Section IV

Change management
strategies and Activities

Change Management 2019/20 set by Dr. Habtamu

Dadi
• In previous session we have looked at the forces
which can drive or restrain change, some
reasons for resisting change, and some ways of
overcoming the resistance.
• Now, how the change is implemented is critical
for the successful adoption of new information
resources.
• Here we will see change strategy or means in
which we successfully plan and implement a
change

Change Management 2019/20 set by Dr. Habtamu

Dadi
Organizational Change is essential for companies that
want to evolve and remain competitive, but organizational
change can also be incredibly disruptive without a
strategy to guide the transformation initiatives.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Strategic change and change management
strategies
The are different conceptually.
Strategic change is type of change
Whereas change management strategy is the means

Change Management 2019/20 set by Dr. Habtamu

Dadi
Strategic change is a restructuring of an
organization's business or marketing plan that is
typically performed in order to achieve an important
objective. For example, a strategic change might
include shifts in a corporation's policies, target
market, mission or organizational structure.
 Strategic Change is the movement of a
company away from its present state toward
some desired future state to increase its
competitive advantage and profitability
A change management strategy is a plan for how
to make something different.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Slide 14.6

Types of strategic change

Scholars describe strategic change under four

types:
 Adaptation – can be accommodated with the
existing culture and can occur incrementally.
 Reconstruction – rapid change but without
fundamentally changing the culture.
 Revolution – fundamental changes in both
strategy and culture.
 Evolution – cultural change is required but this
can be accomplished over time.

Johnson, Whittington and Scholes, Exploring Strategy, 9th Edition, © Pearson Education Limited 2011
Why You Need A Change Management
Strategy
Developing a change management strategy
provides direction and purpose for all other change
management activities. By outlining the unique
characteristics of the change and its risks and
potential resistance, change practitioners set
themselves and their project team partners up for
success.
A "one-size-fits-all" approach is not effective for
change management.
“You cannot put the same shoe on every foot”
Syrus Change Management 2019/20 set by Dr. Habtamu
Dadi
The most effective change management strategies are
those that focus on the human behavior element
Why?
Because employees are often the ones most affected by an
organizational change, and because their decision to
become adopters, hold-outs, or disrupters of change can
have a tremendous impact on the short- and long-term
success of a business improvement project.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Strategies for change
Different authors presented in different ways.
 Ideally effective change management should be carried out
as a part of an overall change strategy.
Hence strategic management format you learnt in
your strategic management course will guide all.
Strategic change management is the process of
managing change in a structured, thoughtful way in
order to meet organizational goals, objectives, and
missions

Change Management 2019/20 set by Dr. Habtamu

Dadi
Approach
Change Management strategies using the 7 step Problem Solving Process
1. Recognize and Define the Problem (Current) how things are done
today
2. Gather Facts and Make Assumptions (Current)
3. Define End States and Establish Criteria (Current- Transition)
4. Develop Possible Solutions (Current- Transition) Establish future
goals, prepare plan
5. Analyze and Compare Possible Solutions (Current- Transition)
consult with subject matter experts
6. Select and Implement Solution (Transition) Create policy letters;
Determine timeline for implementation; inform all members on
changes to be implemented. Train personnel on new standards
7. Analyze Solution for Effectiveness (Future) Hold members
accountable; monitor progress. Supervise- Do not micromanage
Change Management 2019/20 set by Dr. Habtamu
Dadi
Approach
. Process of Management of Change
The following are the various steps involved in the
planned process of management of change:
1. Identifying need for a change:
2. Decision on elements of change
3. Planning for change
4. Assessing Possible Impact
5. Communicating the change
6. Overcoming the resistance to change
7. Introducing a change
8. Review

Change Management 2019/20 set by Dr. Habtamu

Dadi
1. Identifying need for a change: The first step in
the process of management of change is to identify
the need for a change. Often a need for a change
arises due to forces in the external environment such
as technological factor may force the management to
introduce a change in the organization. Internal
factors may require a change in the organization such
as high cost of production, high maintenance costs.
Fall in sales, decline in profits, increase in employee
grievances, increases in absenteeism etc.
Change Management 2019/20 set by Dr. Habtamu
Dadi
2. Decision on elements of change: After identifying the
need for a change, the management must decide in the
elements which require a change. For instance a company’s
sales may decline due to faulty promotion, defective
pricing policies and problems in distribution, problems in
the product

3. Planning for change: After identifying the elements
that require a change, management should plan for a
change. Planning for a change need to answer the
following questions like who’s should introduce a change?
When to introduce a change? How to introduce a change?

Change Management 2019/20 set by Dr. Habtamu

Dadi
4. Assessing Possible Impact: The management should also assess
the impact other change on the stake holders such as employees,
customers, etc. For instance, introduction of new technology may
have a direct impact on the work force such as reduction in work
force, Problem of social networking and need or additional training.

5. Communicating the change: The management must
communicate the change to the various stakeholders. For instance, if
there is change in the price of goods, the management must inform to
the customers, dealers, sales - force and other concerned parties.

6. Overcoming the resistance to change: At times there may be
resistance to change. For instance, employees may resist automation
for the fear of retrenchment, problem of adjustment to new
technology, etc.

Change Management 2019/20 set by Dr. Habtamu

Dadi
7. Introducing a change: The management
introduces the change after communicating and
on overcoming the resistance, if any. Introduction
of a change involves a three step procedure:
• Unfreezing means that the old ideas and
practices need to be kept aside so that new one can
be learned.
• Changing means the new ideas and practices are
accepted and learnt by the employees.
• Refreezing means the new techniques which are
learnt is put into practice.

Change Management 2019/20 set by Dr. Habtamu

Dadi
8. Review: There must be a review to ensure that
the change is progressing in the right direction. The
change should bring the desired results. For this
purpose, the management should constantly
monitor the performance of the change process. If
there are any problems due to the change, such
problems should be handled immediately. The
timely identification of problems and appropriate
solutions to such problems will enable the change to
bring the desired results into the organization.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Approach .
Five strategies for planning and implementing change
Directive Strategies
Expert strategies
Negotiating Strategies
Normative (educative) strategies
Participative strategies

Change Management 2019/20 set by Dr. Habtamu

Dadi
Directive Strategies
Here management decides what is to be done and
implements the change with little involvement of
others or deviation from the plan.
Are frequently adopted for changes which must be
carried out speedily
However, this approach does not take into
consideration the views or feeling of those involved, or
affected by the imposed change.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Expert strategies
This approach sees the management of change as a
problem solving process that needs to be resolved by
an expert.
Experts play a major role in the solution and solutions
can be implemented quickly.
There is little involvement on those affected by
change.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Negotiating

Here management initiates the change but is prepared

to negotiate with other groups on its implementation.
Concessions may have to be made. Negotiating
strategies may thus take a little longer while
discussions are held with the other parties involved,
and the outcomes may be less easily predicted as
concessions cannot be fully anticipated.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Normative/educative strategies
Here an attempt is made to capture the commitment of
those affected, not just to specific changes, but to the
overall aims of the organization. This approach involves
changing people values and beliefs, winning hearts and
minds in order for them to fully support the change being
made.
Some times consultants and specialists are involved in the
process of changing values and attitudes about work.
Activities used are persuasion, education, training and
selection
However, this approach takes longer to implement.
Change Management 2019/20 set by Dr. Habtamu
Dadi
Participative strategies
This strategy stresses the full involvement of all those
involved in, and affected by the anticipated changes.
Less driven by management domination since the
view of all will be taken into account before change are
made
Consultants and experts used to facilitate process but
will not make any decision as to the outcomes
However, this approach is time consuming and cost is
also high

Change Management 2019/20 set by Dr. Habtamu

Dadi
The five strategies are not mutually excusive and a
range of strategies can be employed to effect the
change.
Each strategies advantage and disadvantages are
summarized below

Change Management 2019/20 set by Dr. Habtamu

Dadi
Strategies Advantages Disadvantages
Directive Relatively fast Ignores the view of those affected by
change
Negotiate - Change recipients have - May be relatively slow
some say - Anticipate change may have to be
- Reduce resistance modified

Educative People committed to - Relatively slow

change - Requires resources and cost
Expert - Use relevant expertise - Experts may be challenged
- Small groups required - Resistance of those not consulted
- Relatively fast to
implement
Participative - Change more likely to be - Relatively slow to implement
accepted - More complex to manage
- More people committed - Requires more resources
to change - Increased cost

Change Management 2019/20 set by Dr. Habtamu

Dadi
Seven Areas crucial for change
management Strategy
1. Communication
2. Sponsorship
3. Stakeholder engagement
4. change impact and readiness
5. learning and development
6. measurement and benefit realization
7. sustainability

Change Management 2019/20 set by Dr. Habtamu

Dadi
1. Develop communication strategy
Parts of the reasons people resist change is because
they do not understand exactly what is happening.
By defining the strategy of how you will communicate
the change throughout the change management
process you will provide a consistent, well timed
message
Developing a communication strategy ensures that
the organization and its customers are aware of and
understand the organization rational for change.

Change Management 2019/20 set by Dr. Habtamu

Dadi
2. Develop the sponsorship strategy
Sponsorship here is the people or group accountable
for the realization of the benefits of the change.
They built support for the change at all levels
Provide resources and budget for change
A sponsor can make or break a project because every
one else will take their signal from sponsor.
The sponsor strategy describes how to align the
sponsor to support and own the change.

Change Management 2019/20 set by Dr. Habtamu

Dadi
3. Develop a stakeholders engagement
strategy
Stakeholders is an individuals who is affected by the
change
This is a means of describing how you engage
individuals or groups impacted by a change and those
who can positively affect the overall success of change
in the change effect
Stakeholders who are engaged throughout the change
management processes are people who are ready for
the change.

Change Management 2019/20 set by Dr. Habtamu

Dadi
4. Develop the change impact and readiness
strategy
Change impact and readiness strategy describe the approaches,
scope, roles and responsibilities in understanding detailed impact
analysis and readiness planning for implementation of change
Change impact
 Understanding how change affect people, processes, tools,
organization structure, job roles and technology.
 By understanding the impact of change you will ideally solve
problems before they actually occur. You will able to answer
questions when they are raised, and make the change as smoothly
as possible.
Readiness
- To verify the organization is ready for the change
Change Management 2019/20 set by Dr. Habtamu
Dadi
5. Develop a learning and development
strategy
This is the knowledge, skills and competencies
required for stakeholders to adopt the change.
This is determined by the type of change and the level
of risk involved
Change that pose a serious risk to safety or
productivity usually require more extensive training,
supervision

Change Management 2019/20 set by Dr. Habtamu

Dadi
6. Develop a measurement and benefit
realization strategy
This provide timely information to gauge the effectiveness of
change strategy, keep the change implementation or track,
allow correction, ensure benefits of change actually occur.
Three elements:
1. Measurement strategy for the change. Involves setting
targets based on goals of the change and its expected
benefits which is quantifiable and specific
2. measurement strategy for the effectiveness of the change
management strategy. Allows course of correction of some
thing is not working out
3. Benefit realization strategy
Change Management 2019/20 set by Dr. Habtamu
Dadi
7. Develop sustainable strategy
This describe how the change will be one part of the
organization, normal functioning
At some point change will no longer a change and it
will just be the way things are.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Factors affecting the choice of Strategy
Why and when should you choice one strategy over
another?
There are factors which affects your choice
 The pace of change
 The amount and kind of resistance anticipated
 The power base of the initiator
 The amount of information required
 The stakes involved

Change Management 2019/20 set by Dr. Habtamu

Dadi
 Five activities contributing to
effective change management
Motivating Change

Creating Vision
Effective
Developing Change
Political Support Management

Managing the Transition

Sustaining Momentum
Change Management 2019/20 set
by Dr. Habtamu Dadi
Motivating Change
 Creating Readiness for Change
 Sensitize the organization to pressures for change
 Identify gaps between actual and desired states
 Convey credible positive expectations for change
 Overcoming Resistance to Change
 Provide empathy and support
 Communicate
 Involve members in planning and decision making

Change Management 2019/20 set by Dr. Habtamu

Dadi
Creating a Vision
 Discover and Describe the Organization’s
Core Ideology
 What are the core values that inform members
what is important in the organization?
 What is the organization’s core purpose or
reason for being?
 Construct the Envisioned Future
 What are the bold and valued outcomes?
 What is the desired future state?
Change Management 2019/20 set by Dr. Habtamu
Dadi
Developing Political Support
 Assess Change Agent Power
 Identify Key Stakeholders
 Influence Stakeholders

Change Management 2019/20 set by Dr. Habtamu

Dadi
Change as a Transition State

Current Transition Desired

State State Future
State

Change Management 2019/20 set

by Dr. Habtamu Dadi
 Implementation and Evaluation
Feedback
Diagnosis

Design and Implementation of Implementation Evaluation

Implementation Intervention Feedback Feedback
of Interventions Measures of Measure of
Clarify Plan for
Intention Next Steps the Intervention Long-term
and Immediate Effects
Alternative Effects
Interventions

Change Management 2019/20 set

by Dr. Habtamu Dadi
Evaluating a change
 Evaluation is assessing the success of change
against its desired objectives.
 Many people ask how it is possible to measure soft
objectives such as attitude and moral.
 Moral may be monitored by using indicators such
as absenteeism, labor turnover, dissatisfaction
with payment, criticism of working conditions
and soon.

Change Management 2019/20 set by Dr. Habtamu

Dadi
Documents helps you to review a change
Descriptors Comments or Feedback
What were the key objectives of the change?
What was achieved once the change was
implemented?
What has enabled you to sustain the change?
Did you effectively plan the change?
Would you do anything differently next time during
the
planning stage?
Did you communicate with the right people at the
right time in the right way?
Would you use different communication strategies
in the future?
What worked well with the change process?
What would you do differently next time?
What were the key lessons learned?

Change Management 2019/20 set by Dr. Habtamu

Dadi
Factors common to successful change
management
While each public sector organization needs to
consider the best way to approach change based
on their particular cultural and stakeholder
perspectives, factors common to successful
change management (in both the private and
public sector) involve:

Change Management 2019/20 set by Dr. Habtamu

Dadi

Planning: developing and documenting the objectives to be achieved by the
change and the means to achieve it.

Defined Governance: establishing appropriate organizational structures, roles,

and responsibilities for the change that engage stakeholders and support the
change effort.


Committed Leadership: ongoing commitment at the top and across the
organization to guide organizational behavior, and lead by example.

Informed stakeholders: encouraging stakeholder participation and commitment
to the change, by employing open and consultative communication approaches to
create awareness and understanding of the change throughout the organization.


Aligned workforce: identifying the human impacts of the change, and
developing plans to align the workforce to support the changing organization.

Change Management 2019/20 set by Dr. Habtamu

Dadi