CHANGE IS THE ONLY THING

THAT WILL NEVER CHANGE.

SO LETS LEARN TO ADAPT IT…
BY

CHANGE
MANAGEMENT
 Time compression: information and communication.
 Interdependence: one economic world.
 Technology advances: shorter product cycles.
 Turbulence: political and social.
Why People resist change..???
 Education and communication

 Participation and involvement

 Facilitation and support

 Negotiation and agreement

Types of Organizational Change Programs
 Change drivers
– Near-term economic improvement (or turn around)
– Improvement in organizational capabilities
– Termed ‘Theory E’ or ‘Theory O’
(HBS Michael Beer and Nitin Nohria)
• Theory E: Economic

– Dramatically and quickly improve shareholder value

– Measured by improved cash flow or share price
– All implicit contracts between company and employees
are suspended; produce or you are gone; failure is
NOT an option
– All organizational elements are like chess pieces on a
chessboard
– Non value-add elements are especially valuable
– Top-management and ‘inner-circle’ driven
– Examples: GE under J. Welsh; IBM under L. Gerstner
• Goal is to change
– Organizational culture to one supporting learning and high
performance
– Committed, capable, relatively autonomous employee is
best asset.
• Implicit contract can never be broken
– May be incompatible with top-down direction
• Highly participative from within the ranks
– Examples: Schwab, Merck, 3 M, Intel, Microsoft
 Theory E may lead to short-term gains but hurts long term
– Look at the IBM example
– And may backfire
– 1990s downsizing did not guarantee higher performance

 Theory O is a huge, multi-year project

 Hybrid approaches generally preferred
1. Mobilize energy and commitment through joint
identification of problems and solutions
2. Develop a shared vision
3. Identify the leadership
4. Focus on results, not on activities
5. Start at the periphery, then let it spread
6. Institutionalize success through policies and structures
7. Monitor and adjust as you go

People will quit, elements will fail, the setting may change
While change
• Create a project team dedicated to change
 Communicate the vision and goals of this team
• Monitor people/organizational issues
• Determine change management processes/practices
• Reorganize to support processes and practices
• Implement processes and practices
• Monitor completion of the plan; tasks and milestones
• Communication feedback, revise processes and practices as
required.
• Further the buy-in with continuous training/skills updating

Repeat
 Change Management Process
Getting Planning Implementing Sustaining
started

Establish
Understand
role & Implement
implementation Review &
governanc change
schedule improve
e plan
change plans
Understand
vision & Manage
benefits Build stakeholder
Embed
change s
system &
Quantify the plans
impacts new ways of
working
Review
Assess Readiness
Identify
risks
stakeholders Realize
Go live benefits
Define
communication
strategy
 High

Market
Differentiating

Low

Low High

Mission Critical
 The 7 Levels of Change:
A STRATEGY FOR CREATIVITY, INNOVATION & CONTINUOUS
IMPROVEMENT
ICICI Bank merger with Bank of Madura (December 2000)

What does it reveal ?

It reveals the importance of change management for the Bank

of Madura and how effective management of change could
bring out best results from the employees in the Bank of
Madura.
ICICI Bank Ltd. Bank of Madura (BoM)

ICICI was established by the Established in 1943, in Madurai,

Government of India in 1955. Tamilnadu. By 2000, it became
the no. 1 in Tamilnadu.
Three times to that of Bank of One third the size of ICICI.
Madura

Staff strength was only 1,400. Staff strength was 2,500.

Departments into individual Management concentrated on

profit centers. the profitability of the overall
bank.
 There were large differences in profiles, grades,
designations and salaries of personnel
 There was uneasiness among the staff of BoM as they felt
that ICICI would push up the productivity per employee, to
match the levels of ICICI
 BoM employees feared that their positions would come in
for a closer scrutiny.
 They were not sure whether the rural branches would
continue or not as ICICI's business was largely urban-
oriented.
PERIOD  EMPLOYEE BEHAVIOR

Day 1 Denial, fear, no improvement

After a month Sadness, slight improvement

After a Year Acceptance, significant

improvement
After 2 Years Relief, liking, enjoyment,
business development activities
 Established clear communication channels
throughout.

 Training programs were conducted which emphasized

on knowledge, skill, attitude and technology to
upgrade skills of the employees.

 Direct dialogue with the employee unions of the BoM

to maintain good employee relations.
 ICICI transferred around 450 BoM employees to ICICI Bank,
while 300 ICICI employees were shifted to BoM branches.

 Promotion schemes for BoM employees were initiated and

around 800 BoM officers were found to be eligible for the
promotions.

 End of the year, ICICI seemed to have successfully handled the

HR aspects of the BoM merger.

“The win-win situation created”

 “We do put people under stress by raising the bar constantly.
That is the only way to ensure that performers lead the change
process.” K. V. Kamath, Ex- MD & CEO, ICICI

 Noticing Small Changes early helps You Adapt To The Bigger

Changes That Are To Come…

 Change Happens, Anticipate Change, Monitor Change, Adapt

To Change Quickly.

 Enjoy Change…! Be Ready To Change Quickly And Enjoy It

Again…
“To IMPROVE is to
change, to be PERFECT is
to change often”….

-Winston Churchill

THANK YOU