BSBINN601

Lead and manage

organisational change
 Housekeeping
 Emergency procedures
 Mobiles and security issues
 Break times and smoking policy
 This course is interactive – ask questions
 Practise respect and confidentiality
 Ground rules.
 Objectives
 Discover how to identify change requirements and
opportunities
 Know how to develop change management strategy
 Learn how to implement change management
strategy
 Gain the skills and knowledge required for this unit
Identify change requirements and
opportunities

1.1 Identify strategic

change needs through
an analysis of
organisational
objectives
 Strategic change
Remember that:
 Change is a constant feature of every organisation’s
landscape
 Failure to change means risk of being overtaken by
competitors
 Strategic change needs may involve:
o people
o processes
o technology
o structure.
 EASIER model (Hussey, 1995)
Hussey’s EASIER model encourages the change
manager to:
 Envision – have a coherent view of future
 Activate – ensure others understand and commit
 Support – inspire others to produce necessary effort
 Implement – use plans and schedules to control
 Ensure – monitor and control the implementation
 Recognition – reinforce the desired behaviour.
 Types of change
Types of change include:
 Incremental change
o ‘step change’
o change takes place gradually
 Fundamental change
o more noticeable impact
o ‘big bang’
o revolution.
Activity 1A
Identify change requirements and
opportunities

1.2 Review existing

policies and practices
against strategic
objectives to identify
where changes are
required
 Reviewing policies and practices
Bear in mind that:
 When change is introduced, there is often a
requirement to alter the ways of working
 Change will impact existing policies and practices such
as:
o staff training
o manufacturing processes and standards
o audit processes
o quality management
o occupational health and safety.
 Key questions
Key questions to ask when reviewing policies and practices
include:
 Is this still fit for purpose?
 Does this need to be updated?
 Does it need to be replaced?
 Is it now obsolete?
 Are new policies and practices required?
 If so, what is their scope?
 Who should be involved in developing
and testing them?
Activity 1B
Identify change requirements and
opportunities

1.3 Monitor external

environment to identify
events or trends that
impact on the
achievement of
organisational
objectives
 The external environment
Organisations do not exist in a vacuum; they are
affected by many things, such as:
 Competitors
 Government policy
 Legislation
 Technological developments
 Trends in ‘people management’
 Environmental developments
 Social trends.
 PESTLE analysis
PESTLE:
 Is a widely-used tool for ensuring that trends in the
external environment are monitored
 Stands for:
o political
o economic
o sociological
o technological
o legal
o environmental.
 Other external environment
factors
Other external environmental factors (some of which
are incorporated in PESTLE) which are important to
consider may include:
 Consumer-driven
 Ecological and economic
 Ethical and global
 Legal and political.
 Other external environment
factors
Other external environmental factors (some of which
are incorporated in PESTLE) which are important to
consider may include:
 Social
 Technological
 The drive to corporate sustainability
 The move to a knowledge economy
 Workforce-driven.
Activity 1C
Identify change requirements and
opportunities

1.4 Identify major

operational change
requirements due to
performance gaps,
business opportunities
or threats, or
management decisions
 Performance gaps
Performance gaps:
 Are gaps between actual and desired performance
 May exist for a wide variety of reasons
 Can be positive
o higher volumes of sales, better customer feedback
 Can be negative
o shortfalls in quality, problems with delivery.
 Business opportunities
Environments can present opportunities for business,
including:
 Internal opportunities
o outdated equipment failing
o personnel leaving the organisation for a variety of
reasons
 External opportunities
o new technological development
o competitor is in financial difficulty.
 Business threats
Environments can present threats to business,
including:
 Internal threats
o low staff morale and engagement
o poor management of systems security
 External threats
o competitor is opening premises nearby
o key supplier goes out of business.
 Management decisions
Remember that:
 Management decisions can be a source of change
within an organisation
 Decisions will be based on a number of factors, for
example:
o data concerning the performance of the
organisation
o overall organisational goals and objectives
o senior managers’ views and principles
o innovative ideas for development.
Activity 1D
Identify change requirements and
opportunities
1.5 Review and prioritise
change requirements or
opportunities with
relevant managers

1.6 Consult stakeholders,

specialists and experts to
assist in the identification
of major change
requirements and
opportunities
 Change requirements and
opportunities
Bear in mind that:
 Many potential change opportunities may arise from
analysis of change requirements
 It is important to sift through possibilities to arrive at
required key changes
 Change should be a team affair involving most
relevant people in and around organisation.
 Relevant managers
Relevant managers:
 Are affected by the change
 Hold a leadership position in the organisation
 Participate in the change project.
 Consulting with specialists and
experts
The person in charge of the change process will be
required to:
 Define what he/she is hoping to achieve
 Identify the area input and expertise required
 Define the credentials required
 Recruit a specialist to meet the required credentials
 Brief the specialist on the exact requirements
 Agree key activities, timescales and budget
 Review the specialist’s progress
 Review any findings and recommendations.
Activity 1E
Develop change management
strategy

2.1 Undertake cost-

benefit analysis for high
priority change
requirements and
opportunities
 Cost-benefit analysis
A cost-benefit analysis:
 Is a simple tool which enables decision-makers to
assess the scope of the change opportunity and
decide whether it is worth the investment required
 Involves:
o listing costs and benefits
o Assigning monetary value to the costs
o Assigning monetary value to the benefits
o Comparing costs and benefits.
Activity 2A
Develop change management
strategy

2.2 Undertake risk

analysis and apply
problem solving and
innovation skills to
identify barriers to
change and agree and
record mitigation
strategies
 Risk analysis
A risk analysis:
 Is the process of assessing the likelihood of risk
against its potential severity
 Is necessary before implementing change so that
action can be taken to either avoid or minimise the
effect of change.
 Barriers to change
Barriers to change may include:
 Challenges to group norms or established roles
 Existing organisational culture
 Existing reward systems
 Fear of loss of status, security, power or friends
 Interdepartmental rivalry or conflict
 Lack of involvement in the change
 Low morale
 Vested interests.
 Mitigation strategies
Mitigation strategies:
 Decide what action should be taken to prevent the
risk/barrier having a negative impact on the change
program
 Are used to plan for ‘what if’ scenarios
 Should be captured in project plan.
Activity 2B
Develop change management
strategy

2.3 Develop change

management project
plan
Change management project plan
A change management project plan:
 Is essential for the successful implementation of any
project, no matter how simple or complex it is
 Involves formally documenting key actions.
 Benefits of a project plan
Project plans are beneficial because they:
 Avoid any doubt or confusion over what should be
happening, when
 Enable the planning and scheduling of key tasks
 Ensure that key tasks are not missed
 Enable accurate budgeting for the activities involved
 Act as a communication tool to update interested
parties about what is planned
 Enable the systematic review of progress
against the plan.
 Sections of a project plan
The features of a project plan include:
 The project title
 The key people involved
 The project objectives
 What is/is not in the scope of the project
 Timescales
 The budget
 Monitoring and review arrangements
 Reporting arrangements.
Activity 2C
Develop change management
strategy

2.4 Obtain approvals

from relevant
authorities to confirm
the change
management process
 Confirming the change
management process
Remember that:
 Support for the change process is vital
 Relevant authorities in the change process may
include:
o senior managers
o external agencies and partners
o other stakeholders.
 Enablers and blockers
In the change process, there are:
 Enablers
o enabling things to happen
o ensuring actions are taken
o ensuring budgets are provided
 Blockers
o failing to engage
o blocking or delaying progress
o not providing the necessary support.
Activity 2D
Develop change management
strategy

2.5 Assign resources to

the project and agree
reporting protocols with
relevant managers
 Resources
Resources can include:
 Contractors
 Employees and managers
 External and internal consultants
 Financial and budget allocation
 Hardware and software
 Physical assets.
 Assigning resources
Resources can include people as well as tangibles such
as finance and equipment/materials, including:
 Contractors
 Employees and managers
 External and internal consultants
 Financial and budget allocation
 Hardware and software
 Physical assets.
 Reporting
Reporting on progress gives the project team the
opportunity to:
 Report on progress made against the project plan
 Highlight problems and outline any
action to be taken to resolve them
 Give early indications of the
success/impact of the project
compared with the initial forecasts
 Forecast any unforeseen problems in the future.
Activity 2E
Implement change management
strategy
3.1 Develop
communication or
education plan, in
consultation with
relevant groups and
individuals, to promote
the benefits of the
change to the
organisation and to
minimise loss
Developing a communication plan
It is important to:
 Communicate the change
 Gain the support and commitment of everyone
involved and/or affected by the change
 Ensure that the correct people, equipment and
materials are in the right place at the right time.
 Relevant people
Relevant people:
 Should be involved in designing the communication
strategy
 Might include:
o people who have been involved in identifying the
need for change
o people who will be affected by the change
o people who will be involved in
implementing the change.
 A communication strategy
A communication plan or strategy needs to consider:
 Who needs to be communicated with?
 What information do they need?
 What resistance can we anticipate?
 What benefits can we emphasise?
 How can we deal with their questions and concerns?
 How can we gain their support and commitment?
 Communication plan activities
Communication plans may include activities such as:
 Consultation meetings
 Briefings and presentations
 Promotional displays
 Intranet-based information
 Text messaging and emails
 Training sessions
 Surgeries.
Activity 3A
Implement change management
strategy

3.2 Arrange and manage

activities to deliver the
communication or
education plans to
relevant groups and
individuals
 Implementation
The implementation step involves ensuring that:
 Invitations to events are appropriate and are
received in good time
 The venue, timing and duration of event is
appropriate
 The wording of written communications is clear
 People know their role and purpose
 Steps are taken to record attendance
 Where people are unable to attend,
alternative arrangements are made.
 Planning events
When planning your events, ask yourself:
 What are the key messages?
 What’s your ‘takeaway’ message?
 What benefits do you want to emphasise?
 How can you pre-empt questions and concerns?
 Who should be involved in delivering that message?
 What is the best way of getting the message across?
 What innovative methods can you use to
get the message to stick?
Activity 3B
Implement change management
strategy

3.3 Consult with

relevant groups and
individuals for input into
the change process
 Consulting with others
Remember that:
 Timing and the level of consultation with others are
both important strands of the communication
strategy
 Consultation is concerned with seeking others’ views
and input to the process
 Consultations should occur at various steps
throughout the change process.
 Who should be consulted?
Consultation tends to involve a representative sample
of different people from across the organisation,
including:
 Staff
 Managers
 Workers’ representatives
 Different departments/job roles
 Different lengths of service
 Different specialisms.
 Consultation events
Consultation events can take many different formats,
including:
 Questionnaires and surveys
 On-line forums/discussions
 Face-to-face consultation sessions
 Virtual consultation sessions
 Telephone consultation.
 Planning and conducting a
consultation exercise
When planning and conducting a consultation
exercise, it is important to consider:
 Questions
 Format
 Rules of engagement
 Recording contributions
 Analysing contributions
 Reporting on the outcome of consultations.
Activity 3C
Implement change management
strategy

3.4 Identify and respond

to barriers to the change
according to risk
management plans
 Responding to barriers to change
Practical ways that managers can respond to barriers
include:
 Expecting some resistance
 Empathising and giving advance warning
 Beating the grapevine and presenting a positive
picture
 Allowing people to vent their feelings
 Emphasising the benefits
 Reassuring people
 Recognising people’s efforts.
 Unexpected problems
If unexpected problems occur, the team should:
 Review the nature of problem and anticipate impact
 Consider possible solutions and decide on the best
course of action
 Revise the project plans accordingly
 Implement the remedial action
 Ensure that the revisions are reported
to relevant people through the regular
reporting mechanisms.
Activity 3D
Implement change management
strategy

3.5 Action interventions

and activities set out in
project plan according
to project timetable
 Interventions and activities
Interventions and activities may include:
 Action research
 Career planning and job redesign
 Sensitivity training
 Succession planning
 Surveys (with feedback)
 Team building
 Termination or redeployment
 Training and transition analysis.
Activity 3E
Implement change management
strategy

3.6 Activate strategies

for embedding the
change
 Embedding change
Bear in mind that:
 Managing change is about embedding the change so
that the new way of doing things replaces the old
 Change can only be considered successful when
people have forgotten how they used to do things
 Deliberate strategies are necessary to
ensure that change is embedded
and not left to chance.
 Strategies for embedding change
Strategies for embedding change include:
Modelling new ways of doing things
Monitoring how teams and individuals are working
Publicising the results of any monitoring activity
Seeking feedback from teams and individuals
Challenging behaviour which doesn’t match the new way
Modifying procedures if necessary
Giving feedback on implementation of changes
Recognising successes
Taking corrective action where there is
a failure to follow new ways of working.
Activity 3F
Implement change management
strategy

3.7 Conduct regular

evaluation and review
and modify project plan
where appropriate to
achieve change program
objectives
 Evaluation and review
It is important to:
 Regularly evaluate and review the progress of the
change management program
 Ensure that the change management program stays
on track and is achieving the desired results
 Ensure the evaluation and review process takes place
on a regular basis.
Methods of evaluation and review
Methods for reviewing and evaluating progress
include:
 Reviewing and analysing relevant data (e.g. sales
data, waste figures, productivity and efficiency data)
 Audit processes to formally monitor compliance with
new ways of working
 Seeking feedback from relevant people
 Reviewing the change management
project plan.
Activity 3G
Skills and Knowledge Activity
 Major Activity
 This activity should take anywhere between 1-2
hours to complete and can be found at the end of
your workbook.

 Your instructor will let you know whether they wish

for you to complete it in session time or your own
time.
 Summary and Feedback
 Did we meet our objectives?
 How did you find this session?
 Any questions?
 Congratulations!

You have now finished the unit…

‘Lead and manage organisational change’