CHANGE

MANAGEMENT

 What is change?

 Change is the interplay among various forces that are
involved in growing something new. Deep change
comes only through real growth – through learning and
unlearning.
 70% of all change initiatives fail due to failure to address
human component of change. HBR by Michael
Beer & Nitin Nohria
 Aspects of Organizational Change


Inside the
organization

In the
organization’s
environment

The change – causes, The transition – how, in practice,

constraints, and opportunities the shift is accomplished
 Causes of Change
 Organizational survival 
 Nokia case

 External environment
 PESTLE model
 Historical view

 Management fashions

 Internal causes of changes

 New leaders

 Growth

 The resourses
 Intentions and Realities of Change


 The realities of change
 Scale of change
 Span of change
 Timing of change
 Depth of change

 What changes?
 Change focused on individuals
 Change at the group level
 Change at organizational level

 How Intentions and Realities of Change Relate

 Planned change
 Emergent change
 Emotions of Change


The relevance of emotions to organizational of
change
 The impact of emotions –
 sadness during planned change

 The spread of emotion

 Emotions of
Change

 Stage models of transition


 Shock and Surprise :

 Denial and Refusal

 Rational
Understanding
 Emotional Acceptance
 Exercising and Learn

 Realization

 Integration
 Types of Organizational Change


 Strategic Change

 Structural Change

 People-Centered Change
 Approaches towards Change


 Reactive Approach

 Responsive Approach

 Proactive Approach

 Creative Destruction Approach

 Factors Affecting Successful
Management Of Change

 Institutional factors

 Organizational culture

 Support for culture

 Nature of the business

 Nature of Change

 People Involved
 Resistance to Change
20-50-30 Rule


 Inertia

 Cultural lock-in

 Comfort and security

 Clash of interests

 Human relationships
 Strategies to Reduce Resistance to
Change

 Awareness and communication

 Training and development

 Participation

 Facilitation and support

 Negotiation
 Change Management : Concept

 Change management is the discipline that guides how we

prepare, equip and support individuals to successfully adopt

change in order to drive organizational success and outcomes.

 A planned approach to integrating change which includes formal

processes for assessing the impact of the change on both the people

it affects and the way they do their jobs.

 Change Management

 Change management is effected in the following three

ways:

 Adopting to change

 Controlling a change

 Effecting a change
 Change Management

 Three stages of change management:

 Current state

 Future state

 Transition state
 Elements of Change Management

 The Elements :

 Planning

 Anticipating risk

 Developing strategy

 Developing procedure

 Leadership

 Involvement
 Models of Change Management


 Prosci’s 3-phase model:
 Preparation for change

 Managing change

 Reinforcing change

 Lewin’s model:
 Step-1: Unfreezing the present

 Step-2: Introduction of change

 Step-3: Refreezing the change

 Force Field Analysis:

 Driving forces
 Restraining forces
 

Thank You
 Change Management Guidelines

1. Expect resistance
2. Remember the “20-50-30” rule
3. Get resistance out into the open
4. Choose opening moves carefully
5. Explain the rationale for change
6. Provide a clear aiming point
7. Promise problems
8. Beware of bureaucracy
9. Wear your commitment on your sleeve
 
10.Take care of the “me” issues
11.Alter the reward system to support change
12.Seek opportunities to involve your people
13.Over-communicate
14.Make sure people have the know-how needed
15.Track behavior and measure the results
16.Outrun the resisters
 1. Expect resistance


 Resistance is the common side effect of change.
 It has been said people do not resist change, they resist being
changed.
 What complicates the picture is that different individuals and
groups react in different ways at the same time to the same change.
 Change triggers the organization’s immune system sort of
like antibodies. Resistance can be valuable by defending the
health of the organization and individuals.
 But it can also cause problems. Resistance is a very reliable
barometer to measure the impact of change, but not a good gauge
of how appropriate the change may be.
 2. Remember 20-50-30 Rule
Change
Resister Friendly
30% 20%

Fence
Sitter
50%

Generally time is best spent trying to woo the fence

sitters, BUT you must manage the Resisters.
Never presume you must have buy-in from everyone
before moving forward. For some, buy-in will only
come later (if at all) after the results are in which prove
the change was both appropriate and successful.
 3. Get resistance out into the open/Categories of Resister


Understand who are the roadblocks to change
1. Those who call attention to themselves – high profile
in their resistance. Make most noise generally
smallest group.
2. Moderates. Some disguise it to be politically correct.
Normally largest group.
3. Undercover. Resist on the sly, subversive resistance
many time through others. The most dangerous type.
They demonstrate signs of passive resistance with
stronger undertones.
 —Enthusiasm
—Cooperation
Acceptance — —Cooperation under pressure

—Acceptance
—Passive resignation
Spectrum of Possible Behavior Toward

Indifference — —Indifference
—Apathy; loss of interest in the job
—Doing only what is ordered
—Regressive behavior
Passive Resistance — —Non-learning
—Protests
—Working to rule
—Doing as little as possible
Active Resistance — —Slowing down
—Personal withdrawal (increase time off)
Change

—Committing “errors”
—Spoilage
—Deliberate sabotage

Arnold S. Judson, Changing Behavior in Organizations: Minimizing Resistance to Change

 5. Explain the rationale for change

 Always make it safe and easy for people to open up
 Operate from premise that people resist for what they
consider good reasons. Evaluate the legitimacy, understand
the reasons.
 Get beyond superficial answers to the true issues (root cause
– Ask the 5 Why’s)
 Try to understand their position, most resist for good reasons
 Listen to them, they may really be an ally and prevent you
from doing something dumb.
 Treating resisters with respect and dignity may alone keep
resistance from escalating.
 Discounting it gives them the feeling they must fight.
Disallowing it will drive it underground.
 6. Provide a clear aiming point


 Well defined and understandable goals
 Provide a clear map, a picture of the future that is
clear not fuzzy
 Aiming point should be desirable for the business
and people. Needs a good marketing campaign.
 Change needs to be purposeful for people to commit
 Change should be a bridge to the Vision
 7. Promise problems


 Resistance spikes when issues arise
 During the “sales pitch” of the project
be honest about what is coming
 Create a project “Warning Label”
 Better chance handling problem
if known ahead of time
 Attitude “turn lemons into lemonade”
can do approach to handling problems
 Everyone is either part of the problem
or part of the solution – be part of the solution
 8. Beware of bureaucracy


 Bureaucracy is politics, systems, processes; anything
that bogs down the organization.
 Its primary virtue is to stabilize, providing
structure.
 It can have a habit of reproducing itself – without
removing out dated bureaucracy.
 Encourages doing things the same as always.
 Beware of “informal” networks.
 9. Wear your commitment on your sleeve


 People will “test the limits” looking to find their
own proof of how serious you are about the change.
 Once you have settled on a course of action you
must be obvious, passionate and determined to
follow through.
 EFFECT (to bring about or execute) not just AFFECT
(to influence)
 10. Take care of the “me” issues


 People want to know how it will affect me
 Toughest thing to deal with is not knowing
 Lack of adequate communication results in rumors and
increased number of resisters
 People instinctively start to resist change when they
can’t draw a bead on what’s about to happen to them
 Initial emotions are fear, denial, shock, resentment,
stress, cynicism over latest flavor-of-the-month
program, negative prior experience of similar project,
etc.
 11. Alter the reward system to support change


 Encourage them to learn from the V-team.
 Agree on the goal.
 Work as a team. Don’t create drag.
 Be willing to help others.
 Be willing to get help from others.
 Do all you can with your talents, knowledge and abilities.
 Be willing to lead.
 Be willing to let others lead.
 Honk to encourage each other.
 Stand by those who get sick or wounded along the way.
 12. Seek opportunities to involve your
people

 Change is more likely to be accepted if we don’t think it
is being forced upon us without representation
 Look for opportunities to involve people, for them to
have a role
 However; “Change by committee” gets clumsy. Don’t
want to set the false expectation that all must agree or
all must have input before the change will occur.
 The good news is if they see representative involvement
and are given proper communication,
their concerns are more likely to be addressed
 13. Over Communicate

Somebody once said; “The more unpleasant the message
the more effort should go into communication”
Failure to communicate will fuel the rumor mill.
 Multiple modes of communication
 Multiple types of communication
 Frequent and consistent messages
 Listen, provide a means to have a two-way street
 A direct correlation between quality of communication
and resistance
14. Make sure people have the know-how
needed

What do people do most when they don’t know what to do?
What looks like obstinacy or lack of cooperation on the
part of your people may prove to be a simple lack of know-
how.
Fears of becoming obsolete, unclear expectations, inability
to perform to prior levels, failure.
They may decide it is best to do nothing as opposed to
doing something wrong.
May find what they think is short cut and instead harm
another part of the process.
 Experiential Learning Process


 Vision, Big picture
 Learner driven, team based
 Build insight
 Allow time for reflection& internalization
 Mistakes are a tool for learning
 Nurture new mental models
Con.

 15. Track behavior and measure results


-Major change efforts require monitoring.
-Things go wrong and unexpected situations develop.
-Be flexible, adaptable, responsive.
-Some resistance is telling you the game plan has flaws.
-Other resistance is a hindrance to the success of the project. You need to
differentiate.
Need to track:
 Time tables
 Deliverables
 Uncooperativeness
 Attitudes
 Destructive Criticism
 Drifting off course or regressing back to old ways
 Circumventing system in place with “back room” processes.
 16. Outrun the resisters

Resisters rely on a strategy of delay. They hate fast. They hope
slow turns into stop.

Evan after the decision has been made they want to sit down,
talk things over, weigh risks again…again, consider other
options, ruminate over what might possibly go wrong and
value deliberation.

In today’s business slow change doesn’t have a very high

success rate. There are far more failures from going too
slowly that from exceeding some imaginary speed limit.
 SIX Thinking Hats

The Blue Hat is used to manage the thinking process. It's the control
mechanism that ensures the Six Thinking Hats® guidelines are
observed.
The Green Hat focuses on creativity; the possibilities, alternatives, and
new ideas. It's an opportunity to express new concepts and new
perceptions.

The Red Hat signifies feelings, hunches and intuition. When using this
hat you can express emotions and feelings and share fears, likes,
dislikes, loves, and hates.
 SIX Thinking Hats

The Yellow Hat symbolizes brightness and optimism. Under this hat
you explore the positives and probe for value and benefit

The White Hat calls for information known or needed. "The facts, just
the facts.“

The Black Hat is judgment - the devil's advocate or why something

may not work. Spot the difficulties and dangers; where things might go
wrong. Probably the most powerful and useful of the Hats but a
problem if overused.
 
 CHANGE MANAGEMENT Helps Determines How
People Will React To These Changes, And Therefore, The
Ultimate Success Of The Transformation of the VISION,
KNOWLEDGE, & RESPONSIBILITY
 Levels of Change Management

Individual Change Management
 Individual change management requires understanding how
people experience change and what they need to change
successfully.
 It also requires knowing what will help people make a
successful transition: what messages do people need to hear
when and from whom, when the optimal time to teach
someone a new skill is, how to coach people to demonstrate
new behaviors, and what makes changes “stick” in someone’s
work.
 Individual change management draws on disciplines like
psychology and neuroscience to apply actionable frameworks
to individual change.
 Management
Enterprise Change
 Enterprise change management is an organizational core competency
that provides competitive differentiation and the ability to effectively
adapt to the ever-changing world. An enterprise change management
capability means effective change management is embedded into your
organization’s roles, structures, processes, projects and leadership
competencies.
 Change management processes are consistently and effectively applied
to initiatives, leaders have the skills to guide their teams through
change, and employees know what to ask for in order to be successful.
 The end result of an enterprise change management capability is that
individuals embrace change more quickly and effectively, and
organizations are able to respond quickly to market changes, embrace
strategic initiatives, and adopt new technology more quickly and with
less productivity impact.
 
Organizational/Initiative Change
Management
 Organizational change management involves first
identifying the groups and people who will need to change
as the result of the project, and in what ways they will need
to change.
 Organizational change management then involves creating
a customized plan for ensuring impacted employees receive
the awareness, leadership, coaching, and training they need
in order to change successfully. Driving successful
individual transitions should be the central focus of the
activities in organizational change management.
 Phases of change
1. Shock and Surprise :

 Confrontation with unexpected situations. This can happen ‘by
accident’ (e.g. losses in particular business units) or planned
events (e.g. workshops for personal development and team
performance improvement). These situations make people
realize that their own patterns of doing things are not suitable
for new conditions any more. Thus, their perceived own
competence decreases.

2. Denial and Refusal

 People activate values as support for their conviction that
change is not necessary. Hence, they believe there is no need
for change; their perceived competency increases again.
 Phases of change
 3. Rational Understanding

 People realize the need for change. According to this insight,
their perceived competence decreases again. People focus
on finding short term solutions, thus they only cure symptoms.
There is no willingness to change own patterns of behavior.

 4. Emotional Acceptance
 This phase, which is also called ‘crisis’ is the most important
one. Only if management succeeds to create a willingness for
changing values, beliefs, and behaviors, the organization will
be able to exploit their real potentials. In the worst case,
however, change processes will be stopped or slowed down
here.
 Phases of change

 5. Exercising and Learning
 The new acceptance of change creates a new
willingness for learning. People start to try new
behaviors and processes. They will experience success
and failure during this phase. It is the change managers
task to create some early wins (e.g. by starting with
easier projects). This will lead to an increase in peoples
perceived own competence.
 Phases of change
 6. Realisation.

 People gather more information by learning and
exercising. This knowledge has a feedback-effect.
People understand which behavior is effective in which
situation. This, in turn, opens up their minds for new
experiences. These extended patterns of behavior
increase organizational flexibility. Perceived competency
has reached a higher level than prior to change.
 Phases of change

7. Integration
 People totally integrate their newly acquired patterns
of thinking and acting. The new behaviors become
routine
Phases of Change

 What is change?

Change is generally a response to some significant threat or opportunity arising outside of the

organization. According to Pettigrew (Daft,1983):

Changes within an organization take place both in response to business and economic

events and to processes of managerial perception, choice and actions. Managers in this

sense see events taking place that, to them, signal the need for change.

In this sense it is important that an organization continually monitors what is happening around

it ; that is, it develops a sense of awareness which stems from realizing the need to set in motion

changes that will keep it in, or ahead of, the game.

It is evident that for the organization to survive, let alone thrive, change needs to be considered

by management at all levels. It is necessary to consider what the causes of change are and what

actually needs changing. The main causes of change that give rise to change programs being

initiated can be classified as follows (Wilson,1994: 164-184):