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change management in power distribtion

change management in power distribtion

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Change Management: Concepts and Processes

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Change Management in Power Distribution

5.1 INTRODUCTION
It is a common saying that change is the only constant in life. Reflect on your own experiences. How have things changed around you − both in your social life and your workplace? You will realise that the pace of changes has increased manifold in the past few decades. We are experiencing rapid changes in practically all spheres of our lives – food, drinks, clothing, relationships, ambitions, living standard, work, tools, techniques, etc. In this unit, we focus on change at the workplace. Your own workplace may have undergone many changes, particularly in the wake of power distribution reforms. Our aim is to sensitise you to the ways of managing change in your workplace. Therefore, we begin this unit by explaining what change is, what factors drive change and the different types of changes taking place in businesses. We also describe some relevant models of change. Finally, we discuss various strategies for bringing about change in a planned manner. In the next unit, we explain how to manage the people’s responses to change in an organisation, in particular, their resistance to change.

5.2 UNDERSTANDING CHANGE
The dictionary meaning of change as a noun is making or becoming different, difference from previous state, substitution of one for another variation, etc. Change as a verb means to undergo change, to make or become different. Change essentially implies dissatisfaction with the old and urge for the new. It may be perceived in two ways: • Change as continuous and intrinsic to an organisation: There are changes in an organisation that are minute in nature but take place continuously. An organisation may be perceived as being in a state of flux (like the universe) and the elements of its systems and sub-systems always undergo subtle changes (incremental changes). Change as extrinsic and discontinuous: Organisations are perceived as normally stable and change is perceived as disruptive, forcing organisations to modify, restructure or reconfigure. Certain changes occurring inside the organisation are very minute and their impact is hardly felt. But a few changes are cataclysmic in nature, giving the organisation barely any time to cope with them. These are almost like natural calamities such as earthquake, cyclone, etc. in their impact. Some organisations may handle changes in a creative manner or make drastic changes in their strategy and direction to emerge out of this turbulence whereas others may get lost in it.

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We have tried to summarise the understanding of change in Box 5.1.

Box 5.1: What is Change?

• • • •

Change underlies a qualitatively different way of perceiving, thinking and behaving to improve over the past and existing practices. Change can be seen as continuous and intrinsic to an organisation or as extrinsic and discontinuous. Change can be patterned and predictable or complex and unpredictable. Change is dual or bipolar. Continuity without change leads to stagnation, frustration and boredom in individuals and ambiguity, conflict and degenerative pathology in individuals and organisations. Many a times, the rate of change is faster than our ability to comprehend and cope with it.

Change Management: Concepts and Processes

We are familiar with changes brought about by the twin phenomena of liberalisation and globalisation in all walks of life. The banking sector has adapted to the emerging scenario very fast. And the power sector is now beginning to respond to these trends (Box 5.2).
Box 5.2: Turnaround of a State Electricity Board GUJARAT ELECTRICITY BOARD MAKES A TURNAROUND WIPING OUT RS. 2,542-CRORE LOSS (the Board announces a net profit of Rs. 200 crore for 2005-2006). The state government split the Gujarat Electricity Board into four regional power generation companies, four regional power distribution companies, one transmission company and a parent company. GEB restructured loans worth Rs. 4,130 crore and brought down the interest rates from 9.51% to 8.6%. It liquidated accumulated losses of Rs. 2,542 crore and announced a net profit of Rs. 200 crore for 2005-2006 by managing to increase its revenues through strict supervision of power distribution.

5.2.1 Some Key Change Themes
The winds of change today bring with them the inklings of happenings tomorrow, though many-a-times it is difficult to tell whether there are storms in the offing or pleasant breezes to soothe our lives. Predicting future is indeed a tricky business. However, we need to have a futuristic perspective to be able to introduce constructive change in our businesses. We should also have some broad understanding of what factors bring about change in a society. Needless to say, in the present times, one such important factor is the availability of high quality services/products at affordable costs any place, any time. In fact, early providers are invariably the leaders and reap benefits if they maintain customer satisfaction on these counts. 9

Change Management in Power Distribution

Changes in businesses are being brought about by the following key concerns (Fig. 5.1): • Customers’ demand to provide them with products and services as per their requirements, in the shortest possible time and at their convenience, i.e., at any time and at any place. There are many examples of this kind of change, ranging from pocket calculators, mobile phones to computers. Whereas in the 1960s, computers occupied big buildings, the same capabilities are now available in laptop and palmtop computers and indeed on some models of mobile telephones. Growing customer awareness and their desire for associated intangible benefits, e.g., peace of mind, a life free of hassles and tensions stemming from the purchase of products and services. For example, a company which provides prompt complaint grievance redress also provides the customer some peace of mind, which is valued equally by him/her. (You may like to recall Unit 3 of this course.) People don’t really buy goods and services. They buy a value – something they value. The enterprise providing the value is able to share economics with the customer by using as little matter as possible in the preparation of the goods or services. Today, the use of automation and materials technology has reduced the amount of processing and actual material required for providing goods and services. These are being produced more quickly and cheaply, and with less final bulk and weight. All this competitive advantage is encapsulated in the phrase ‘no matter’. ‘No matter’ as a concept also includes the role of the disposable, though we have to watch its impact on the environment. There are throwaway razors, diapers, cameras, pens, etc. The idea of no matter also covers the idea of the invisible purpose behind a sale. Perceiving it opens up opportunities of lateral thinking and further beneficial change. It is all a question of tangible products fulfilling intangible needs. Such ideas can transform a business as these emphasise on the effectiveness of outcomes in addition to the efficiency of inputs. • Mass customization implies providing the customer with precisely what s/he requires – something that is non-standard, yet can be produced on the standard line (which produces goods of standard size, weight or other requirement). Technology now permits this – it requires just a change in computerised instructions. Improvement in quality and reduction in cost are important drivers of change. For an organisation, productivity has meaning if people value its products. And people support the product if they get value for their money. Our concern for the environment has also driven change in the way we conduct our business. In this context, power produced by renewable sources is certainly better than that produced by fossil or nuclear fuels. However, switching over completely to these resources may not be


Fig. 5.1: Key Change Themes

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possible in the near future. But the governments and power utilities the world over are aware of these concerns and trying to switch over to cleaner technologies. • Invention and use of newer technologies has the biggest impact on business, industry and society in determining the pace and nature of change. We have mentioned here some factors and the changes likely to take place in future.

Change Management: Concepts and Processes

We would also like to provide you a glimpse of the changes expected in future in the world of work.

5.2.2 A Glimpse into the Future
The world of work is being affected by the way in which technology and socioeconomic changes act together to create an information society: Here information not only keeps us informed to an unparalleled degree, but also actually tells inanimate things what to do! This drastically reduces the need for human beings to mind machines and perform basic processes. We are into the age of what is called the ‘shamrock organisation’. Such organisations are employing three categories of workers: • core employees who constitute permanent staff, performing the central activity; contractors either as individuals or as companies who perform specialist functions; and casual or part-time workers, who carry out seasonal or variable tasks.

At different times of their lives, people may find that different work styles suit them better and switch over from one category to another. People may actually have a portfolio of approaches to work from which they may invoke the element which suits a particular part of their life cycle (Fig. 5.2). The portfolio may include wage work, field work, home work, (domestic, do-ityourself, etc.), gift work (for charity or the community) and study work (selfeducation). Thus, as the pattern of work changes, lifetime work for one employer will become increasingly rare, and wider opportunities will emerge.

Fig. 5.2: Changes at the Work-place

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Change Management in Power Distribution

The implications of all this are vast both for the business and the individual. If society can get it right, it may mean more leisure and freedom. It will also have a bearing on the concept of career for life, which is also creating problems for many companies where the career ladder has fewer rungs to climb. In addition, the requirements for various kinds of work skills and capabilities are undergoing a radical change. Now-a-days, the services sector has become as important as the manufacturing sector. It requires more mental and interpersonal than manual skills. Most of these brain workers will require higher education, which enough of them are certainly not getting in most countries. As managers, you should be aware of the factors that are bringing about change in your own business and should be able to cope with them. You will also need to educate your workforce to appreciate the nature of these changes for creating a better world of work and life. A proper understanding of the changes in working methods and their impact on careers and employment patterns can help people to be less anxious about the apparent insecurity caused by changing technology, methods and external market forces. If all employees could understand these trends and regard them as a bandwagon to be jumped on rather than as a threat to be resisted, and if you can help trade unions to see them as opportunities, the resistance to beneficial change would be diminished to the advantage of all. Understanding and anticipating changes in the offing will make it possible to introduce change incrementally on a ‘win-win’ basis instead of by the process of conflict. In the world of work, the need for a change mindset (which does not assume the permanence of the status quo), and of a future mindset (which projects itself into the future and sees new possibilities) is going to be vital. There are revolutionary trends at work. It will not be wise to ignore them.

SAQ 1: The nature of change
Reflect upon the changes that have occurred in the past few years in your organisation. Enlist the continuous and intrinsic changes amongst those. ………………………………………………………………………………………. ………………………………………………………………………………………. ……………………………………………………………………………………….

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The recent literature on change management reveals that organisations are undergoing continuous and increasingly rapid and dramatic changes. We need to understand the need to change in the wake of changes in external environment like globalisation, and advancements in information technology as well as inherent challenges in managing these changes. In this context, you need to learn about the forces of change.

5.2.3 Forces of Change
Any factor in the environment (both internal and external) that interferes with the organisation’s ability to attract human, financial and material resources it needs, or to produce and market its services/products becomes a force of change. There are numerous visible and invisible forces, which are constantly affecting changes in organisations. Some of the important ones are described in Table 5.1.
Table 5.1: Important Forces of Change Force of Change Technology Workforce Economy Description Tools, techniques, instruments, methods, procedures Knowledge, skills, ambitions, expectations, needs Liberalisation, globalisation, privatisation, breaking the barriers, resource imbalance Mergers, acquisitions, entry of new organisations, new products, lowering prices, better services Nuclear families, working couples, late marriages, one child norm Warring ideologies, new equations, transitory relationships, coalition Governments, single superpower, etc.

Change Management: Concepts and Processes

Competition

Social Trends

Political Factors

5.2.4 Types of Change
All changes are not similar in nature. Some changes keep on happening on their own and some are planned. Three types of change (Fig. 5.3) may be identified: • • • Evolution Revolution Planned change

These may briefly be described as follows: • Evolution is the kind of change that comes as a natural process, in small adjustments or shifts in response to emerging problems. Revolution is the kind of change brought about by applying force on others to comply through coercion or suppression to resolve conflicts. Planned change takes place when efforts are made to make others feel the need for change, determine the ideal or desired situation and strive to achieve the ideal or desired state through planned actions.

Fig. 5.3: Types of Change

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Change Management in Power Distribution

Social and behavioural scientists have advocated diverse approaches to understand the change process and described the following four kinds of change: A. Exceptional Change: A particular change is accepted as an exception if there is otherwise no change in the ongoing aspects. The existing beliefs are not changed but specific change is introduced separately, as an exception. For example, introduction of flexi-time in one division of an organisation could be termed as an exception if all other divisions continue with the existing system. B. Incremental Change: A gradual change which is not even felt initially by those who experience it is said to be incremental change. Computerisation in offices has been introduced as an incremental change in most of the organisations. C. Pendulum Change: Change from one extreme point of view to the opposite is said to be pendulum change. The shift from open tendering process to single tender on negotiation basis in a company is an example of pendulum change. D. Paradigm Change: When new information about an event, object, behaviour, and image is integrated and leads to the emergence of a new belief, the change is called paradigm change. A paradigm in simple words may be understood as a cognitive model of how things are or a standard for how things should be. A familiar example is change in the power sector in perceiving electricity as a business and the notion of ‘profit centres’.

SAQ 2: Forces of change
Identify the forces of change in your organisation. Categorise the changes that have occurred in the recent past in your organisation into the various categories given in Sec. 5.2.4. ………………………………………………………………………………………. ………………………………………………………………………………………. ………………………………………………………………………………………. ………………………………………………………………………………………. ………………………………………………………………………………………. ………………………………………………………………………………………. ……………………………………………………………………………………….

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Change has also been explained as a continuum between two extremes (Fig. 5.4).

No Change

Desired (Productive Change)
Fig. 5.4: Approaches to Change

Constant Change

Change Management: Concepts and Processes

The No Change Position indicates the zero condition of inertia – sticking to traditional view, valuing the past conservative thinking that new is definitely bad. Any change or deviation from the past is perceived as a threat – a threat to beliefs, habits, preferences, norms and prevailing order. When performance management system is being evolved, constantly sticking to the previous method (where boss does it alone) becomes an example of the no change position. The major benefits of this position are stability, less effort, comfort, less risk but it also brings no growth, boredom, dissatisfaction, conformity and stagnation. Constant Change, at the other extreme, is a dynamic approach with continuous focus on future. In this approach, new is taken as always good. Any change is seen as positive; resistance is seen as bad and equated with not moving with times and as an opposition to the norms, values and progress. While implementing changes with this kind of an approach, not much regard is given to the opinion of the affected people. The Productive (pragmatic) Approach to Change lies between these two extremes and focuses on the existing state (what is happening). Change is seen as inevitable in this approach. The emphasis is on explaining the need for change and making a conscious choice without having a fascination or inertia for the past or a compulsion for rapid change.

5.3 DRIVERS OF CHANGE IN BUSINESS
The drivers of change in business may be classified as: • • • Market changes; Technological changes; and Organisational changes.

Let us discuss each one of these, in brief. • Market Changes In the era of economic liberalisation, market forces are destined to dictate the pace and nature of change. We observe competition for capturing the markets for both goods and services in all spheres by competing industries through joint ventures or subsidiaries. People’s expectations have undergone radical change. The companies that satisfy customers in terms of cost, service, and value for money forge ahead in the competition. 15

Change Management in Power Distribution

Businesses may also have to face changes due to factors such as trade barriers, raw material shortages, change in political regimes, prices shooting up, etc. While such changes are sure to improve quality and bring about customer satisfaction, small businesses may be affected adversely. It seems that even political will is succumbing to WTO led forces in developing countries and this could be detrimental to national interests, in the long run. • Technological Changes Technological changes can give rise to changes in the market and influence specific happenings in a company. Introduction of new and innovative technology is likely to lead to price advantage, quality preeminence and diversification into new products. One can also go to hitherto unexplored areas of the globe. However, the indigenous knowledge / industry / products may get a hit and struggle for survival. • Organisational Changes Organisational response to market changes can take the form of downsizing for cutting costs through retrenchment and reduction in the number of employees as well as in the levels of management. Technology may also force new styles of governance which require different skills. The number of operating sites may be reduced. People may find themselves performing totally new functions. The only way to stay in business may be a merger or to be the subject of takeover, friendly or hostile. With such ownership changes, other market, technological and organisational changes may follow. You must be reading about such changes in national dailies; it has almost become a rule in the technologically developed economies and is now not an exception for developing countries. In the first quarter of the year 2007, Indian business houses have acquired offshore companies and vice versa. As such, this seems inevitable with little scope for escape but there is no need to perceive it as a threat; it could also be looked upon as an opportunity to compete and be a winner.

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Fig. 5.5: Drivers of Change in Business

Some visible and not so visible factors may also compel a business organisation to effect changes of various types. Other factors that bring about change are increased competition, price cuts, technology, laws, customer/user demand, etc. (Table 5.2).
Table 5.2: Factors that Drive Change Factors Reduced cost as a result of competition High workforce cost Changes Cost control efforts, workforce cut, contract employee, automation Buying (importing) rather than manufacturing, outsourcing, workforce reduction Setting up manufacturing unit in other countries Change products, materials, technology, equipment Technology import/ product substitution, putting units in areas having lenient laws Customer (market) research lined retailing

Change Management: Concepts and Processes

Cheaper imported products

Obsolete product due to technology change Pollution Control Laws

Change in choice of consumers (semi-cooked food, electrical/electronic kits in place of fuel based equipment) Time constraint, ease in shopping Health awareness – Low cholesterol oils vs. traditional oils Time constraint

Departmental stores in place of small scattered stores Healthy product substitutes

Home delivery, internet/tele- shopping automation

SAQ 3: Drivers of change
Outline the changes in the power distribution sector brought about by the three categories of drivers of change described in this section. ………………………………………………………………………………………. ………………………………………………………………………………………. ………………………………………………………………………………………. 17

Change Management in Power Distribution

5.4 THE PROCESS OF CHANGE
You have learnt so far that change is the process of moving from the current state to the desired state (vision) of future (Fig. 5.6). Making a change involves moving the work force in organisations and its work culture in line with the strategies, structure, processes and systems to achieve the desired state (vision). Existing Situation Change (Transition)
Fig. 5.6: The Process of Change

Vision Desired Situation

The existing situation signifies the prevailing status at a point of time of what the organisations looks like. The desired situation is the status which one desires to prevail; it is also called the vision. The vision of an organisation helps in clarifying • • • What do we want to become? How much needs to change? What the organisation should look like when the change is completed?

The transition state may be delineated by ascertaining the activities and processes necessary to transform the organisation from its current state to the desired state. It is a road map for specifying the activities, crucial interventions and events during the transition period. For making an organisation to change from the existing state to the desired state, some ‘force’ has to be applied.

5.4.1 Successful Change – The Three Step Model
In the three-step model (Fig. 5.7), successful change in an organisation follows three steps: Unfreezing, intervening and refreezing.

Unfreezing

Intervening (moving)

Refreezing

Fig. 5.7: The Three Step Model for Successful Change

Let us discuss them, in brief. 1. Unfreezing When a product, service or profit is in a deteriorating stage, maintaining a ‘steady state’ is not possible in the face of rapid changes. Therefore, change has to be introduced in a planned way to improve the status quo. This is called de-freezing or unfreezing. It aims at changing the existing equilibrium and creating motivation to change using mechanisms like 18

• • • • •

lack of confirmation or disconfirmation, sharing one’s concerns and perceptions frankly, removing barriers of communications, induction of guilt and anxiety and creation of threats by reducing psychological safety, presentation of alternative scenarios, etc.

Change Management: Concepts and Processes

In case of any change, the effort is likely to be met with individual/collective resistance, which must be overcome. Status quo is maintained when the following two types of forces are in balance in an organisation (Fig. 5.8): • • Driving forces, which prompt change and drive away from the status quo, and Restraining forces, which hinder the movement.

Fig. 5.8: Driving and Restraining Forces

These competing forces should be identified for effecting change in an organisation. While the driving forces ought to be intensified/added, restraining forces should be removed / weakened. Moreover, both strategies should be followed simultaneously. This technique, called the force field analysis, is explained in Box 5.3. 19

Change Management in Power Distribution

Box 5.3: Force Field Analysis

1. Identify the problem, which you want to work on. 2. Define the problem clearly indicating the present situation. 3. Define the situation desired after the problem is solved. 4. Identify the forces working for the change, (i.e., driving forces) by way of individual listing, brainstorming or such other means. 5. Identify and list forces likely to work against the desired change (restraining forces). These forces can be related to human resource, time, money, technology, customer requirements or any other internal or external factors. 6. From the list of driving forces and restraining forces, prioritise the forces and identify 3-4 most significant forces under both categories. 7. Make a force field diagram showing both types of forces after prioritization. The arrows should be proportional to their priority/strength.

8. Discuss and list possible action steps for reducing or eliminating the effect of the restraining forces and for adding or increasing the effect of the driving forces. 9. Determine the most effective steps under both the categories of forces and decide on the ones to be implemented. 10. Examine the resources available for carrying out each step. 11. Develop a comprehensive action plan, sequence of activities and assign responsibilities for implementation. 12. Implement the plan. 13. Evaluate.

2. Intervening The steps to be taken for carrying out the desired change should be planned considering all aspects: tasks, technology, structure and human resources. Since any organisation is composed of these four inter-related and interdependent components, the impact of the changes should be anticipated and examined. New responses should be developed by providing new information. 3. Refreezing The change interventions start making the desired impact in due course of time and need to be stabilised. Refreezing stabilises a change intervention by balancing the forces which have created the desired changes (driving forces) and those, which are inhibiting the changes (restraining forces). For rapid and deep change, the forces applied should be strong, the direction should be clear and the force should be applied in

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the right direction. This stage helps in stabilising and integrating the changes. This is attained by integrating the new responses into persons and into significant ongoing relationships through reconfirmation.

Change Management: Concepts and Processes

5.5 THE CHANGE MODELS
In this section, we briefly describe the current models of change.

5.5.1 C.D.S. Model
This is a very simple three stage model and the three stages are: 1. assessment of the current state; 2. developing the desired state; and 3. formulating the strategy/plan to move the organisation (or system) from the current state to the desired state. 1. Assessment of Current State At this stage, efforts are made to explore, analyse and identify the problems and unused opportunities, understanding the causes and visualising the effects. For this, a climate has to be created where people share their opinions and experiences openly and the management is willing to admit the gaps, slippages, wastages and other problems. Normally, a long list is generated and it is essential to prioritise and identify ‘points of leverages’, i.e., problems, which have high priority. 2. Developing the Desired State (Preferred Scenario) At this stage, efforts are made to determine how the organisation or organisational unit, project or the programme would look like after making the changes. For preparing the scenario, alternative possibilities or preferred scenarios are developed by using techniques like brainstorming, fantasy or a variety of structured exercises. Efforts are made to encourage both conventional and non-conventional ideas. A few indicators or criteria are also developed to indicate the achievement of the desired state. These criteria would help in future to determine to what extent the desired scenario has been arrived at. The steps to be followed are listed below: • Evaluate each of the scenario by using different methods and select the preferred scenario. Anticipate the difficulties likely to be experienced while deciding on the action steps to reach the desired scenario. Examine if appropriate steps can be taken and resources will be adequately available. 21

Change Management in Power Distribution

Otherwise, examine the feasibility of implementation of the next preference. • Re-work on the selected preferred scenario to make it more explicit and inspiring. Ensure the commitment for the change initiatives and resources, and the commitment of the key persons in the organisation and outside.

3. Formulating the strategy/action plan to move the organisation from the current state to the desired state. These strategies/action plans deal with how the movement from the existing to the desired state would be accomplished. Thus this stage would indicate how the results would be accomplished. For this, a wide range of alternative strategies to reach the new stage or preferred scenario would be identified. Each of the alternative strategies would be evaluated and the appropriate strategy would be selected which would help in achieving the desired outcome. These strategies would next be translated in the form of workable plans.

5.5.2 ADPI Model
This model consists of four stages (Fig. 5.9).

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Fig. 5.9: ADPI Model

1. Organisational Analysis This phase aims at developing an understanding about the organisation, its culture and readiness for change. Efforts are made to understand the tasks, structure, strategies, systems, procedures and management practices, morale, motivation and internal and external environment. Different research techniques, interviews, brainstorming and workshops are used. 2. Designing Change Intervention At this stage, the vision or the desired state of the organisation is prepared. Active involvement of top management and wide agreement on the interventions are essential. The key resource persons and other team members are identified and team building initiatives taken to ensure shared vision and commitment to change. The role of each member is clarified. A number of workshops, training sessions, meetings and presentations are usually held at this stage. 3. Planning for the Change The objective of this stage is to plan for effecting the desired changes for achieving the vision. An action plan is prepared indicating the activities, responsibilities, time frame, counting huge measures and required resources. 4. Implementation This is the most crucial stage. The action plan has to be implemented and the persons involved have to be educated and convinced about the gains. Extensive communication is required and high orders of leadership skills especially persuading skills are required. A number of presentations, meetings, workshops need to be held. The success depends on the internal resource persons or facilitators who would work in tandem with the change agent/consultant. It is difficult to get successful implementation without Project Management skills.

Change Management: Concepts and Processes

5.5.3 Action Research
A change process based on systematic collection and analysis of data is called action research. In this approach, data is collected to diagnose the problem and action steps are identified on the basis of the analysis of the data. It is a five step process (Table 5.3). 23

Change Management in Power Distribution Step Diagnosis

Table 5.3: Steps in Action Research Description Data collection about the problems, perceptions, concerns and the expected changes from the employees of the organisation. Questions, interviews, secondary records and a variety of techniques are used. Data analysis to identify the problems, patterns of behaviours, etc. Inferences are drawn and the primary concerns, problem areas and expectations identified. The highlights of the analysis in terms of concerns and problem areas are shared with the employees, especially those from whom data has been collected. With the help of representatives of employees, the action plan for bringing about needed change in specific areas is decided upon. The action plan is set in motion. An evaluation is carried out at the planned intervals to know the extent to which implementation has taken place and desired changes have been arrived at. Necessary steps may be taken for collection, modification or further work.

Analysis

Feedback

Action Evaluation

5.6 PHASES OF PLANNED CHANGE
For attaining enduring results, change cannot be left to chance; rather planned efforts have to be made. On the basis of various change models (Sec. 5.5), we can formulate a general approach for carrying out planned change. It consists of the following steps: 1. creating and communicating awareness; 2. feeling the need; 3. exploring the readiness; 4. intervening – managing the transition; and 5. evaluation and follow-up. We now briefly describe these steps. 24

1. Creating and Communicating Awareness Creating ‘awareness’ about change is the first stage. In an organisation, awareness can be enhanced by reconsidering the goals, reformulating vision and mission statements, assessing the achievement. Consideration of future environmental scenarios, extrapolations and forecast is useful for enhancing awareness. Benchmarking and competitor intelligence are two other triggers for enhancing awareness. Awareness tends more often than not to create an imbalance and disturb the status quo. People respond in different ways to the situation. Awareness may lead to anxiety about creating future scenarios (e.g., likely gains and problems to be faced) and therefore generates energy in those who become aware. One such example is given in Box 5.4.
Box 5.4: An Example of Creating and Communicating Awareness

Change Management: Concepts and Processes

In BHEL, in 1983, an HR manager was trying to project the role of personnel functions in achieving the corporate objectives in the next five years year from 1985 to 1990. He realised that if the workforce strength and turnover/sales kept on increasing at the existing rate, then in 1990, the company would be in red only because of workforce strength. He got alarmed and made a series of presentations in different fora. After initial reaction, the top management also became aware and alarmed of the impending situation. This created planned efforts of workforce planning under the leadership of the HR Manager. The result was that with the workforce of 1983-84 (numbering 78,000), the turnover increased from Rs. 800 crores to 8000 crores in the period 1985-1990.

A variety of strategies, such as publications in newsletters, workshops, quiz, sessions and presentations in management programmes may be used for enhancing awareness. 2. Feeling the Need Once the awareness spreads, the involved people start feeling the need for change in the organisation, particularly the need for elimination of unhealthy situations. They start thinking about ways and means to avoid such situations and about the consequences if no change is made. The feeling is intensified when the actual/projected results are not in line with expectations. 3. Exploring the Readiness In spite of the felt-need, it is essential to explore the readiness of the organisation to change. A process facilitator may call a meeting/workshop 25

Change Management in Power Distribution

of senior people and on the basis of observations or the interaction; s/he can get an idea of the readiness to change. Resistance to change is likely to be high when

− too much fascination for the status quo is displayed, − fear and apprehensions are strongly expressed, − cases of failure are cited more than success stories, and − resource scarcity is repeatedly presented.
An alternative approach to assess readiness is through workshops. This approach is based on 15 indicators, which have been listed in Box 5.5 as a checklist under three broad classes.
Box 5.5: Checklist for Exploring Readiness for Change General Considerations • • • • • • Size of the organisation Growth rate Crisis (situation) Macro-economic OD history Culture Resources • • • • • Time commitment Money Access to people Labour contract limitations Structural flexibility People Variables • • • • Interpersonal skills Management development Flexibility at the top Internal change agents

Source: J.W. Pfeifer and John E Jones, The 1978 Annual Handbook for Group Facilitators

This instrument/checklist can be served to a number of people in the organisation, including the top management and the findings should be 26

discussed. This will give an idea about the readiness as well as the level of awareness towards some of the crucial pre-requisites. A few questions may also be considered for examining various aspects for readiness for change (Box 5.6).
Box 5.6: Questionnaire Commitment/support of the top management to desired changes. Sense of urgency in the top management. The perceived power of top management. Clarity of vision in top management. Shared vision – to what extent the vision is shared by stakeholders. Congruence of targeted change efforts with ongoing change efforts in the organisation. Decision making style and quickness. Hierarchy in organisation – flat and flexible is more conducive to change. Super-ordination – Willingness of Line Managers to sacrifice their personal interest for the good of organisation. Customer focus of the organisation. Monitoring of competitors by the management. Risk taking – the extent to which managers/employees are rewarded for taking risk. Innovativeness – the extent to which innovativeness is encouraged. Communication channel – both directions. History/experience of past change efforts. Trust level between employees and management. Availability of resource persons (change facilitators – internal/ external). Cooperation/collaborative attitude.

Change Management: Concepts and Processes

• • • • • • • • • • • • • • • • • •

4. Intervening – Managing the Transition This involves many steps such as the following: • Preparing the Team: A team of internal resource persons is constituted for carrying out the interventions. Ideally, this is a multidisciplinary team, which would make the interventions and help in its successful implementation. The internal resource persons should be skilled in Human Process facilitation and should have undergone intensive training programmes. Conducting the Activities: The interventions that have been planned need to be implemented. Employees’ resistance may need to be

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Change Management in Power Distribution

overcome (Unit 6). If the approach appears to be inadequate or inappropriate, amendments need to be made. The experiences are to be documented highlighting both process and content aspects. Regular interaction with the committee/task force members and Consultants is essential. • Mid Course Evaluation: Periodic evaluation is required for ascertaining whether the interventions are bringing desired results. If the trend is positive, a follow-up is required. Otherwise, it must be examined whether interventions have been made as per the plan. If planned interventions are not giving the desired results, the causes must be examined and if needed, alternative interventions should be designed and introduced.

Before making the interventions, the management/facilitators should be clear about: a) What changes are to be made? b) What are the ensuring benefits for the organisation? c) How will change affect the individuals who experience it? d) What supports and tools are needed to manage transition? While making interventions the involved persons face different types of problems (see Unit 6). The evaluation of the emerging situation, feedback amendments and enhanced communication, helps integration of the efforts. 5. Evaluation and Follow-up The results of the change initiatives (the gap between the planned and desired) should be measured periodically. For this, a befitting feedback mechanism needs to be set up – to gather information by survey, focus groups, interviews, etc. Usually, it has been found that even if encouraging results are obtained in the beginning, with the passage of time, the situation starts deteriorating. Managers can intervene by way of providing support, appreciation and training, etc. Special meetings, celebrations, support groups and certain types of reinforcements are needed for sustaining and enhancing the results.

SAQ 4: Phases of planned change
Cite an organisational example (from the power sector) where massive and successful change has occurred and discuss the phases of change in that organisation. ………………………………………………………………………………………. ………………………………………………………………………………………. 28

5.7 STRATEGIES OF CHANGE
Change has been a matter of great interest to the Sociologists and Behavioural Scientists. A number of theories and models have been postulated. These have been compiled in the literature as seven pure strategies of change. We discuss each of these strategies, in brief. 1. The Fellowship Strategy The assumption underlying this strategy seems to be, “If we have good, warm inter-personal relations, all other problems will be minor.” Emphasis is placed on getting to know one another and on developing friendships. Groups that use this model often sponsor discussions, dinners, parties and other social events that bring people together. The fellowship strategy places strong emphasis on treating everyone equally; this is often interpreted as treating everyone in the same way. All people must be accepted; no one is turned away. When the group is making decisions, all members are allowed to speak, and all opinions are weighed equally. No fact, feeling, opinion, or theory is considered inherently superior to any other. Arguments are few, because conflict generally is suppressed and avoided. 2. The Political Strategy Political strategists tend to believe that “if all the really influential people agree that something should be done, it will be done”. They emphasise a power structure that usually includes not only formally recognised leaders but informal, unofficial leaders as well. Much of the work done under the political strategy is the result of the leaders’ informal relationships. The political strategy emphasises the identification and influence of people who seem most capable of taking and implementing decisions. It usually focuses on those who are respected and have the largest constituency in a given area. One’s level of influence is based on one’s perceived power and ability to work with other influential people to reach goals that are valued by one’s constituency. 3. The Economic Strategy Economic strategists believe that “Money can buy anything or any change we want”. They emphasise the acquisition of or at the very least, influence over all forms of material goods, such as money, land, stocks, bonds, and any other tradable commodity. This strategy is widely used in the United States and the Western world and is used most often by large corporations and by the very rich. Inclusion in a group that espouses this approach usually is based on possession or control of marketable resources. Influence within the group

Change Management: Concepts and Processes

If we have good, warm interpersonal relations, all other problems will be minor.

Fig. 5.10: The Fellowship Strategy If all the really influential people agree that something should be done, it will be done.

Fig. 5.11: The Political Strategy Money can buy anything or any change we want.

Fig. 5.12: The Economic Strategy

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Change Management in Power Distribution People are rational. If one presents enough facts to people, they will change.

is based on perceived wealth. Most decisions are heavily, if not completely, influenced by questions of profitability as measured by an increase in tangible assets. This approach is highly rational, based on the assumption that all people act more or less rationally from economic motives. As a result, such groups often have high needs for control and for rationality. 4. The Academic Strategy The academic strategy assumes that “People are rational. If one presents enough facts to people, they will change.” To this end, academic strategists undertake an unending series of studies and produce thousands of pages of reports each year. Inclusion in a group that plans to use the academic strategy to solve problems or to make changes is based primarily on one’s expertise in a given area or on one’s desire to acquire such knowledge. Leadership and influence within the group generally depends on the degree to which the person is perceived as an expert. Newcomers to the field are considered to have little to contribute, while those with advanced degrees or many years of specialised study receive a great deal of attention. The Engineering Strategy Users of this strategy try to bring about behavioural change without dealing directly with the people involved. The underlying assumption is, “If the environment or the surroundings change enough, people will be forced to change”. Therefore, engineering strategists may spend a great deal of time studying physical layouts, patterns of interaction, and role descriptions in work place and classrooms without ever speaking to the employees or students. Groups that approach change in this way often recruit members based on their technical skills. Group needs often are defined in terms of technical skills, which are considered more important than interpersonal styles. 6. The Military Strategy The military-style approach to change is based on the use of physical force. The name military has been given to this approach because it conveys the appropriate connotation to most people, not because the military is the sole user of this approach. Police departments, revolutionary student groups, and some teachers, for example, employ the military strategy. The basic assumption behind this approach is, “People react to genuine threats. With enough physical force, people can be made to do anything.” Therefore, considerable time is spent in learning to use weapons and to fight. Physical conditioning, strength, and agility are valued.

Fig. 5.13: The Academic Strategy If the environment or the surroundings change enough, people will be 5. forced to change.

Fig. 5.14: The Engineering Strategy People react to genuine threats. With enough physical force, people can be made to do anything.

Fig. 5.15: The Military Strategy

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Membership in military-strategy groups is often determined by one’s physical power and by one’s willingness to submit to discipline. Both within the group and in its dealings with the external environment, influence is exerted primarily through the fear of authority and through the threat of punishment. Members of military-style groups need control, status, and security. They often tend to view most problems and relationships in terms of power, authority, threat and exploitation. 7. The Confrontational Strategy The confrontational approach to change is based on the assumption that “If one can mobilise enough anger in enough people and force them to look at a problem, the required changes will follow.” Although conflict is stressed, this strategy emphasises non-violent conflict rather than physical force. Membership in such a group is based on one’s ability to deal with and to use conflict in ways that benefit the group. We end this discussion by presenting a collection of principles/rules of change formulated on the basis of the research and experience of social and behavioural scientists.
Box 5.7: Some Principles of Change

Change Management: Concepts and Processes

If one can mobilise enough anger in enough people and force them to look at a problem, the required changes will follow.

• • •

Organisation is a system comprising many inter-related/inter-dependent components. Change in one component affects others. Accepting ownership in the change process best facilitates change. Any change upsets the equilibrium of the organisational system – hence it will be resisted. Change interventions should be made in a planned way, otherwise the system would return back to its past patterns. People really don’t resist change; they resist the pain or threat, which they anticipate for themselves or others out of it. An enlightened self-interest of stakeholders facilitates change. Timing of change is highly significant – time should be ripe for making changes. An accurate and comprehensive design diagnosis is essential for designing appropriate interventions. Change agents are required for affecting changes. They must know how to analyse and manage the restraining and driving forces (Unit 7). High adaptability helps change agents and change plans. High self-awareness is required in planning for change. People affected by change should actively participate in making the change. The acceptance of organisational change will increase if the people affected are invited to contribute to the change process, communicated honestly about all facets of change, given concrete feedback about the change and recognised appropriately for their specific contributions.

Fig. 5.16: The Confrontational Strategy

• • •

• •

• •

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Change Management in Power Distribution

5.8 COMMON INTERVENTIONS FOR MANAGING CHANGE
It is very difficult to enumerate and explain all interventions for managing change effectively. However, in this section, we discuss a few important commonly used techniques and present case studies. • Communication Authentic and complete communication on the objectives, coverage, timing, costs, individual and organisational implications and change methods and the consequences of not going for change and post change benefits is most essential for managing change. Case Study At the Corporate office of a large organisation, as prelude to making change, it was diagnosed that the executives numbering 15 were not communicating with each other. The communication climate was hostile and the top management was perceived as autocratic. Enhancing the communication climate emerged as one of the major concerns. As one intervention, the executives were asked to sit together for 15 minutes in the conference hall around the round table. Initially the executives resented this move but gradually they started sharing some of the operational problems they were facing and others started responding by giving their comments and solutions. Thus they opened up and shared their feelings, concerns, agreements and disagreements, etc. Within a few weeks, this meeting became the most liked forum of communication. Often they had to extend the timing. This forum became the initiating and facilitating platform for major changes in the next few years. There is no standard plan for communication, but pre-intervention diagnosis should attempt to understand the communication climate, styles and barriers. Creation of a supportive communication climate is highly useful in making change interventions. • Education and Training All involved persons may not have the desired environmental, organisational, functional, technical, financial, strategic, behavioural knowledge and skills. Education and training is very essential at all stages. Case Study In the pursuit of designing and commissioning a comprehensive Performance Management system in a large PSU, almost two years were spent in educating and training the senior management personnel and

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users to make them understand the concept, realise the need, express their satisfaction and dissatisfaction from the existing system, and define their expectations from the proposed system. Even the design of the proposed system was prepared in training and development programmes using Behavioural Science based interventions. After the programme was approved for implementation, a series of training programmes were conducted for the users. Background support was provided through internet and publication of literature. Over 200 Performance Management Systems trained separately for ensuring smooth implementation could multiply the efforts. Even an interactive website was installed for resolving the doubts online. All this helped in covering a large section of executives in a short time and fear of change could almost be eliminated. • Participation and Involvement The persons likely to be affected need to be involved right since the initial stage. Their active involvement in all stages of the processes will not only provide valuable ideas at every stage but also inculcate a sense of ownership. For example, in installing an incentive scheme in a medium size Engineering company, the line managers and worker representatives were involved right from the beginning, i.e., from the stage of feeling the need, identifying the benefits and problems, collection and analysis of data, designing and developing the system. • Facilitation and Support Change initiatives should be facilitated by skilled facilitators (change agents). This helps in bringing the issues to the fore, proposal and resolution of conflict, team building and development of a conducive change climate. Facilitation is a process in which a person, acceptable to all members of the group, substantially neutral and having no decision making authority intervenes to help a group improve the way, in which it defines and solves problems and makes decisions in order to enhance the effectiveness of the group. The main task of the Facilitator is to help the group increase its effectiveness by improving its processes. A process refers to how a group works together and includes how members talk to each other, how they identify and solve problems, how they make decisions and how they handle conflicts, etc. Facilitation is of two broad types: basic facilitation and developmental facilitation. In basic facilitation, it is expected that the Facilitator would guide the group using the principles of effective group processes observing both contents and processes. In developmental facilitation, group members expect the Facilitator to monitor and guide the group’s processes and teach them how to accomplish this goal.

Change Management: Concepts and Processes

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Change Management in Power Distribution

Negotiation Negotiation is quite useful in dealing with resistance to change. It is also useful when resistance comes from a powerful person. Three basic types of negotiating styles have been described – Tough battler, the Supportive Facilitator and Cognitive Reasoner. A negotiator should understand these three styles and should be well versed in using all the three styles as each style is effective in a particular situation.

Co-opting Assigning a key individual member a desirable role is quite effective in managing change. The co-opted person becomes a Key Resource Person in charge of project and by way of his/her power base, is able to influence others. His/her involvement and contribution helps the change process.

Manipulation This technique comprises covert influencing tactics which uses twisting and distortion of facts to make them appear more attractive and potent. This also includes hiding or withholding undesirable information and creating rumours. Cooperation is also used sometimes as a manipulative tactic.

Coercion – Implicit and Explicit This involves application of direct threats or force on those who are resisting or are likely to resist. In some situations it may be successful, but in most circumstances it is not effective.

We hope that this discussion on Change Management will help you understand change in your organisation, the factors that are bringing about this change and how you can manage it for attaining your objectives. In this rapidly changing world change is the only constant. In this unit we have tried to define change, understand the concept of change and types of change. Drivers for change and alternative strategies of change have also been discussed. Different models of change are described. On this note, we end the unit and present its summary.

5.9 SUMMARY
• Change may be perceived in two ways: Change as continuous and intrinsic to an organisation and change as extrinsic and discontinuous. A force of change is any factor in the environment (both internal and external) that interferes with the organisation’s ability to attract human, financial and material resources it needs, or to produce and market its services/products becomes. The drivers of change in business may be

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classified as market changes, technological changes and organisational changes. • Making a change involves moving the work force in organisations and its work culture in line with the strategies, structure, processes and systems to achieve the desired state (vision). In the three-step model, successful change in an organisation follows three steps: Unfreezing, intervening and refreezing. For attaining enduring results, change cannot be left to chance; rather planned efforts have to be made. A number of theories and models have been postulated by Sociologists and Behavioural Scientists and have been compiled in the literature as seven pure strategies of change: the fellowship strategy, the political strategy, the economic strategy, the academic strategy, the engineering strategy, the military strategy, the confrontational strategy. A few important commonly used techniques for bringing about change are: communication, education and training, participation and involvement, facilitation and support, negotiation, co-opting, manipulation, coercion – implicit and explicit.

Change Management: Concepts and Processes

5.10 TERMINAL QUESTIONS
1. Consider your present job and indicate which benefits emerging out of an effective change management are most important to you? a) Career advancement. b) Improved prospects. c) Job security. d) Increased job satisfaction. e) Respect and recognition. Justify your answer. 2. a) Which of the following changes have you experienced in the recent past at your work place? - new boss - new work group - new position (responsibility) - new equipment - new supplier b) Which change was most difficult for you? 35 - new system/procedures - new products/services - new customer - new location

Change Management in Power Distribution

c) What were your thoughts and feelings before the change? Did you have any fears? What were those? d) How did you cope with the change? e) What would have helped you to cope with the changes better? 3. Think of the changes that would be beneficial to your company/ organisation and respond to the following four questions: a) What is the change you have thought of? b) What are the reasons/benefits of the change? c) How would the change affect the involved persons? d) What support and tools should be provided to the involved persons for managing the transition?

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