Professional Documents
Culture Documents
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)
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
Looks within
Dinosaurs died out, mammals did not!!!
Training Culture
Organisational
Technology Aspects of Change
Structures
Why Change?
Pace of Change
Strategic Drift
Transformational
Change
Flux
Incremental Change
Unlearn
Current Learn new
competencies Reformatting
mindsets competencies
Learn Relearn
Organisational Change
Organizational Change
Organizational effectiveness
(achievement)
Technical
Project Management side of the
project
People
Change Management side of the
project
Organizational
Change
Core
Capabilities
Outside-in
Inside-out
“Change is both exciting and disturbing”
People
Leavitt’s Four Variable Concept of Organisational Change
Task Envmt
People
Structure Technology
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
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
• Resistance to change
• Inadequate sponsorship
• Unrealistic expectations
• Poor project management
• No change management program
Producing 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
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
Trade
Organisatonal Bureaucratic
Historical inertia union/staff
culture culture
association
Forces of Change
Change in
Tech
workforce
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
Engagement
Enablement
Zone
Zone
Levels of Change Management
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.
Holding the budget for changes and only paying for those
Financing projects and changes which meet change criteria.
Discontinuous vs Continuous
Transformational vs Transactional
Strategic vs Operational
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
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