Change

Introduction to change
• What is change
• Organizational aspects of change
Overview of Organizational change
• Reasons of OC
• Factors for OC
Module
• Need for change
• Benefits of OC
Management of change
• Forces of change
• Understanding Change management
• Levels of CM
Scale, scope and context of CM
 Types of organizational change
Overview of Innovation and technological change
Cultural change
Structural change
Module
Reactions and reponse to change
Implementing change – change concepts
Reasons for failed change
Strategy and key activities for successful
change
Indicator of successful change
Overview of Change leadership
•Environmental scan
•Characteristics of change
Module
leaders
•Roles and responsibilities of
change leadership
•Types of change leadership
•Leadership competencies for
successful change management
•Leadership and change
“Change is the essence of life”
- Bhagvad Gita
 Rotates 1670 km/h (24 h)

 Revolves 1.07 Lakh Km/h (1 yr)

Around the Galaxy 8 lakh Km/h (200mn yrs)

Along the Galaxy 11.5 Crore Km/h

Evolve Change is the law of nature.
Change is permanent.

Nothing ever remains static

Devolve
 What is Change?

Make or become different.

- Oxford Dictionary

Change could be merely incremental or a major

change. Whichever, it implies a difference.
 Stone-age
Augmented
Bronze-age
reality

Artificial
intelligence
Iron-age
Change
Knowledge
era

Wheel
Industrial
revolution
Agrarian era
Things constantly CHANGE, so we must ADAPT
 To
To adjust
develop

To To
modify improve

To adapt
What is To
change innovate
 Knows

Leader Goes
Shows
Way
 Looks around

Leader Looks beyond

Looks within
Dinosaurs died out, mammals did not!!!

Mammals embraced change and survived !

- Charles Darwin
 To improve is to CHANGE

To be perfect is to CHANGE OFTEN

 Processes Policies

Training Culture

Products & Laws &

Services Regulations

Organisational
Technology Aspects of Change
Structures
Why Change?
 Pace of Change

The illiterate of the 21st century will not

be those who cannot read or write, but
those who cannot learn, unlearn and
relearn.
- Alvin Toffler
 CHANGE OR FAIL

Strategic Drift

Transformational
Change

Flux

Incremental Change
 Unlearn
Current Learn new
competencies Reformatting
mindsets competencies
Learn Relearn
Organisational Change
Organizational Change

Present state (discontentment)

Desired state (expectation)

Organizational effectiveness
(achievement)
 Technical
Project Management side of the
project

Current Transition Future

State State State

People
Change Management side of the
project
 Organizational
Change

Core
Capabilities

Outside-in
Inside-out
“Change is both exciting and disturbing”

• Exciting because it holds the key to progress

• Disturbing because of the latent apprehension in

people about the unknown & unexpected
 Resons: Org Change
Rapid changes in consumer markets
Globalisation, world is one market
Fierce competition – global and domestic level
Speed – cycles of change in months, not in years
Multi-faceted nature of business
Best practices – new change procedures and tools
 Task

Tech-nology Factors Causing

Structure
Change

People
Leavitt’s Four Variable Concept of Organisational Change

Task Envmt

People

Structure Technology

* Change cannot be affected in one area without repercussions in the

others

* Any of these changes could be intended

Or
* Could be unanticipated outcomes of changes in other variables
whose relationship were previously unknown
 Productivity

Ability to cope with

Performance
future

Need for change

is….. to Improve
Effectiveness &
Image
Efficiency

Relationship
“I am convinced that if the rate of change
inside an institution is less than the rate
of change outside, the end is in sight”
- Jack Welch
 Higher Revenue
To be the leader Efficiency

Benefits:
More Productivity Organisational Effectiveness
Change

Improve Quality Cost reduction

Operational
Excellence
Success
Profits

Fixed Costs
Losses
Failure
Success Profits

Fixed Costs

Losses
Failure
 Success
Profits

Descend
Ascend Fixed Costs

Losses
Failure
 Success
Profits
++

Descend
+-

Ascend
Fixed Costs
-+ -- Losses
Failure
 Explore
Exploit
Out-of-the box
Originate
Re-energize
Re-invent
Re-invest
Re-create
Innovate
Success

Diversify Profits
Minimize costs ++ +-
Optimize resources Fixed Costs
Product improvement
New Product -+ -- Losses
New markets
Global acquisitions
Failure
What is Management
of Change?
A structured process and set of tools
for leading the people side of change
Are Organisations Managing
Change Well?
 Dismal Track Record of Some Change Efforts

John Kotter (Harvard

Mckinsey & Co studies
• * 66% failure in Total Quality
Management (TQM) efforts
• * 70% failure in re-engg
efforts
Business School) study of
100 top mgt driven corporate
transformation efforts
• * More than 50% did not
survive initial change efforts
• * A few highly successful
• * A few utter failures
• * Vast numbers-marginal
success

Therefore, there is a need to understand the process of management of

change
 Change Management - Realities

More than 70% of change efforts fail because of failure to focus

on people issues

Why change efforts fail:

• Resistance to change
• Inadequate sponsorship
• Unrealistic expectations
• Poor project management
• No change management program
 Producing Change

80 percent leadership- establishing direction,

aligning, motivating, and inspiring people

20 percent management - planning, budgeting,

organizing, and problem solving

Unfortunately, in most of the change

efforts, these percentages are reversed
Consequences: Not Managing Peoples Side of Change

Lower productivity
Passive resistance
Active resistance
Turnover of valued employees
Disinterest in the current or future state
Arguing about the need for change
Changes not fully implemented
More people taking sick days or not showing up

People finding work-arounds

People revert to the old way of doing things
The change being totally scrapped
Divisions are created between ‘us’ and ‘them’
 Forces of Change
M
G
T Monitoring & Understanding
Assessing Change Nature of Change

O
F

C
Designing Change
H Implementing
A Change

N
G Communicating
E Change
 Forces of Change
Governmental New leadership/
Competition IT developments
changes management

Forces of Stability/Status quo

Trade
Organisatonal Bureaucratic
Historical inertia union/staff
culture culture
association
 Forces of Change

Internal Factors External Factors

Change in
Tech
workforce

Deficiency in Sys Pol & Legal Sys

Economic
Other changes
Reasons

Market Situation
Understanding Change
Management
 Sustain
Support

Communicate

Educate
Engage
Align

Assess
 Jeff Hiatt – founder of Prosci
Formerly an engineer and program manager for Bell Labs
Founded in 1994, in USA
Largest body of knowledge on change management
 Levels of Change Management

Individual Change Management

Organisational Change Management

Enterprise Change Management

 Levels of Change Management

Individual Change Management

• Understanding how people experience change
• What people need to change successfully.
• Knowing what will help people make a successful transition.
• What messages do people need to hear, when and from whom .
• When is the optimal time to teach someone a new skill.
• How to coach people to demonstrate new behaviours.
• What makes changes “stick” in someone’s work.
• Deals with disciplines like psychology and neuroscience.
• Prosci developed ADKAR® Model for individual change.
ADKAR Model
Awareness of the need for change
Desire to participate and support the change
Knowledge on how to change
Ability to implement required skills and
behaviours
Reinforcement to sustain the change
Awareness Desire Knowledge Ability Reinforcement

Engagement
Enablement
Zone
Zone
 Levels of Change Management

Organisational Change Management

• Identifying groups and people who would need to Change.

• What ways would they need to change.
• Creating a customized plan for ensuring impacted
employees receive awareness, leadership, coaching, and
training they need, to change successfully.
• Driving successful individual transitions should be the
central focus of all activities.
• Complementary to project management.
 Define change management strategy

Phase1 - Prepare change management team

Preparing for Change

Develop sponsorship model

Develop change management plans

OCM Phase-2
Managing Change
Take action and implement plan

Collect and analyze feedback

Phase-3 Diagnose gaps and manage resistance

Reinforcing Change

Implement corrective action and

celebrate success
 Levels of Change Management

Enterprise Change Management

• Enterprise change management is an organizational core

competency that provides competitive differentiation and ability
to effectively adapt to ever-changing world.
• Embedded into organization’s roles, structures, processes,
projects and leadership competencies.
• Change management processes are consistently and effectively
applied to change initiatives.
• Enterprises are able to respond quickly to market changes,
embrace strategic initiatives, and adopt new technology quickly
and with minimal impact on productivity.
• Requires a strategic approach to embed change management
across organization.
 ECM Deployment Process

Vision Strategy Implementation

Assess current state Select deployment strategy Build project plan

Define future state Engage primary sponsor Create change

management team

Form and prepare project Create and present

team business case

Implement integrated plan

 Primary Sponsor
Key Sponsor owner
whose support is
of change (senior
critical (managers
most manager)
with a clout)

Secondary Sponsor
Initiating Sponsor
managers whose
initiates change
support is needed
(first meeting)
Types of to a limited level
Change
Sponsors
 Role of Sponsors

Role Actions
Presenting and selling his or her vision of the new future,
Visionary motivating people to work towards this future.

Reviewing progress at defined milestones or ‘gates’, and only

Monitoring allowing continuation if milestone criteria are met.

Holding the budget for changes and only paying for those
Financing projects and changes which meet change criteria.

Acting to remove resistance and other organizational blocks

Facilitating that hinder the changes being implemented.

Mediating Resolving disputes between people affected by change.

Your business doesn’t get better by CHANCE

It gets better by CHANGE

Scale, Scope & Context of Change
 Forms of Organizational Change
Revolutionary (radical) vs Evolutionary (incremental)

Discontinuous vs Continuous

Episodic vs Continuing flows

Transformational vs Transactional

Strategic vs Operational

Total (holistic) system vs Local option

External changes impact on what Burke and Litwin (1992) have referred to as the
transformational organisational factors: mission, strategy, leadership and culture. In turn this
influences the transactional factors: structure, systems, management and climate.
 Quantum Change: changing many elements at once,
Scale & Scope instead of piecemeal
of Change Transformation: massive programs of
comprehensive changes or renew an organization
Turn-around: quick dramatic resolution
Renewal: slower building of comprehensive change
Bold Strokes: major and rapid changes imposed –
top-down
Long Marches: small scale short term incremental
changes
Classification by
Methodology •Planned Change: programmatic
change following set procedures
•Driven Change: individual or group
ensures that change happens
•Evolved Change: organic change that
happens regardless of management
 • Adaptability
• Cost containment
Drivers • Impatient capital market
Triggers • Competitive advantage

Tracers
• Comparison between current and past
performance
• Current & future performance Causes & Context of Results of projects
• Environmental changes Organizational Change
• Technological changes
• Changes in people
• Interplay between external and internal
forces
• Government legislations
• Advances in process or product
technology
• Changes in consumer tastes or
 6 Elements Contextualize Organizational Change

•Past internal (inner) organizational environment

•Past external (outer) organizational environment
•Present internal organisational environment
•Present external organisational environment
•Future internal organisational environment
•Future external organisational environment
External Contextual Factors

• Changes in competitors strategies

• Level of international competition
• Government legislation
• Changing social expectations
• Technological innovations
• Changes in the level of business activities
External
Context
General or contextual environment

Immediate or operational environment

 Socio-cultural Technological

Legal
Political influences on
business

General or
Economic
Contextual International
Environment developments
(Macro)
 Financial
Institutions
Labour Market Customers

Trading
Competitors
Organizations

Immediate or
Suppliers Operational Trade Unions
Environment
 • Skills
• Abilities
Human • Attitudes
Resources • Values
• Beliefs

• Structural form
• Implications of form
History and Administrative  Leadership
Culture Structure  Authority
Internal  Responsibility
Context  Communications
(Micro)

Product or
Technology
Service