CHANGE MANAGEMENT

YOUR LOGO
BASICS / DEFINITIONS
Change Management
Quotation

» The only thing that is constant is Change .«

Heraklit of Ephesus (about. 540 - 480 BC.)

Change Management
Definition

Change
Management
Required, targeted and holistic
change of company for future
success.

+
Change Management
 Change  Analysis , planning,
implementation
 Adaption
 Manage, control
 Turnaround
 Entrepreneurial
activities
Change Management
Definition

Change management is the conception, planning, organization,

implementation, control and stabilization of the change processes of a
company, with the aim to maximize the effectiveness and efficiency of
the change process and to reach the widest possible acceptance of
managers and employees.
Change Management
Reasons

1.
Only companies whose learning rate is higher
than the rate of change of
their environment will achieve
long term success.
3.
Continuous control of change measures ensures
the flexibility within a company. The
organization can better and faster adapt to

?
new situations.

Proper change management

Change Management causes a is a guarantee for success
targeted dynamics that harbors continues and survival in the
growth potential. globalized economy.

2. 4.
Change Management
Effects

Generates positive energy for change

CHANGE
Builds confidence in own strengths

Allows learning and development across the organization

AHEAD 
Strengthens the networking through communication

Aligns the organization of new

Promotes a collective process thinking

Change Management
Application Examples

Process optimization

Business Process Reorientation and

Management strategy communication
This is a placeholder text. Quality improvement
Mission This is a placeholder text.
and anchoring statement
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your own text will look Quality your own text will look
Cost reduction
when you replace the management when you replace the
placeholder with your own Reorganization Introduction of
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text. new overall or text.
partial processes
Mergers
Corporate strategy and
culture
Change Management
General triggers

Routine Authority &

change

Change is a
process
Principle
Value
of change systems

The correct
Resistance
answer is
& comfort
not enough Sender
and
receiver
Change Management
External triggers

1. Faster production possibilities 6. Economy

2. Scarcity of resources 7. Technological progress

3. Focus on core competencies 8. Ecology

4. Globalization 9. Competitors

5. Customers
Change Management
Internal trigger

1. Reformulation of the 5. Inefficient processes

corporate strategy
6. Management
2. Wrong decisions in the past
7. Employees
3. Demography and social
influences 8. Organizational
development
4. New management
concepts
CHANGE CONCEPTS
Change Management
Phases

Analysis Planning Implementation Performance review

 Thorough analysis of the  Determination of the  Practicing new behaviors

situation objectives  Integration and motivation  Target-actual comparison
 Short description of the  Selection of a suitable of employees  Possible further adjustment
analysis concept of change  Training
Change Management
Analysis

1. 2. 3. 4.

Analysis Planning Implementation Performance review

Diagnosis of your change project

 Quantitative Analysis
Who is affected to which the extent?
 Qualitative Analysis
The extent and threat level do the necessary changes have for those affected?
 Analysis of previous experience
of the changes and the ongoing ability and willingness to change
 Determining the type of changes.
If it is only to a structural change or a change in culture?
Change Management
Planning

1. 2. 3. 4.

Analysis Planning Implementation Performance review

Development of a change strategy

 Specification of objectives for change
 Preliminary design of the change process
 Development of content solutions
 How do we achieve that the solutions will be adopted and implemented by the affected employees?
 Define roles and tasks, and determine the change manager
 Time and Profit Planning
 Planning of the communication strategies and methods of changes
 Plan the measures how to deal with resistance, conflicts and crises
Change Management
Implementation

1. 2. 3. 4.

Analysis Planning Implementation Performance review

Implementation of the change process

 Develop a change awareness among stakeholders (Transparency and impart knowledge)
 A (positive) change of attitude presumes that there is awareness of the benefits of the new approach
 Change of attitude
 Change of behavior
Change Management
Performance review

1. 2. 3. 4.

Analysis Planning Implementation Performance review

Outcome evaluation
 Regular measurement of results
 Publication
 Communicate successes
 Learning from mistakes
 Plan further changes
Change Management
Phase model according to John Kotter- Overview

Creating the Engaging & enabling Implementing & sustaining

climate for Change the organisation change

7 8
5 6
4
3
2
Incorporating
Changes into the
1
Never
Empowering Generating let up! Culture
Communicating broad-based short-term wins
Development a the vision for Action
Creating the change vision buy-in
Establishing a guiding coalition
sense of urgency
Change Management
Phase model according to John Kotter

Step 1 Creating the

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text.
Step 2
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Step 1 to 3
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Step 3
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text. 1 Development a
Creating the
Establishing a guiding change vision
sense of coalition
urgency
Change Management
Phase model according to John Kotter

Step 4 Engaging & enabling

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text.
Step 5
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5 6

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will look when you replace the placeholder
with your own text.
Step 6 4
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Generating
text. Empowering short-term
Communicating broad-based wins
the vision for Action
buy-in
Change Management
Phase model according to John Kotter

Step 7
Implementing & sustaining change
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8
7

Step 7 to 8
Step 8
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Incorporating
Never Changes into
let up! the Culture
Change Management
Process
1. Description of the
change project
9. Implementation plan 2. What kind of change
process is it?

3. ACTUAL situation starting

8. Communication strategy
position
Circle

4. Who plays
which role?
7. Motivational strategy-
What makes the future
attractive?
5. Target groups:
6. Corporate Culture
attitude and skills
How much resistance
can arise?
Change Management
Classic three-phase- model in the Change Process
Unfreezing
 Bring Satus quo out of balance and
prepare all parties involved for the change
process.
 Overcome resistance and encourage
willingness of participants.
Movement
 Movement to a new condition if enough
willingness to change is established.
 Creation of a new solution and new
attitudes till a new balance is established.
Refreezing
 Consolidation of new attitudes and the
new created balance.
 Integration of new problem solving
strategies into company processes.
 Next Change-Project after successful
conclusion of this phase.
 Change Management
7 Phases of the psychological Change Process

7. Integration
High

Adaption of sucessful attitudes to the active behavior

2. Association repertoire
False game; sense of security, inflated
estimation of own competences

3. Understanding…
Perceived Competence

In the necessity of change, Insecurity

6. Realization
Perception of causal coherences
between attitude patterns and
success or defeat

1. Schock 5. Try…
Big discrepancy between high To search new
expectations and reality 4. Acceptance … attitudes
Of reality. Letting go of old •Success– Failures
habits •Anger- Frustration
Time
Change Management
Effective Phases
 Operating Model
 Structure
 Roles  How leadership works together
 Competencies  Identifying the leadership actions
 Populate  Individual leadership actions
 Governance
 Decision Making

 Confirming the vision,

 Ensuring we have the right skills
values and behaviors
 Individual values and
Effective  Learning plans
the capacity to change Organization 

New capabilities
Career plans
 Strategic message

 Balanced score card  Migration plans

 Performance management  Redeployment
 Reward alignment  Legislative compliance
 Communication  Redundancy
 Support
 Morale maintenance
 Communication
Change Management
Processing curve - Psychological perspective

7. Integration
System performance

3. Defense Confidence

Trouble
4. Rational
acceptance
Frustration
Productivity gain

100 %
Loss of productivity

1. Premonition 6. Opening
Concern 2. Shock 5. Emotional Curiosity,
Acceptance enthusiasm
Fear
Mourning

Planning Realization

Publication Introduction Time

Change Management
Approaches in the planning and implementation

In the planning and implementation of changes four approaches need to be distinguished

TOP DOWN
 Change process is planned by top management
 Staff changes are to implement even though they are not involved in the planning

DISADVANTAGE :
 Resistance
 Management has excessive expectations

BOTTOM UP
 change process continuously consists from the lowest level upward
 changes are initiated by competent staff

DISADVANTAGE :
 Potential is not fully exploited
 Possible lack of knowledge
Change Management
Approaches in the planning and implementation

In the planning and implementation of changes four approaches need to be distinguished

BOTH DIRECTIONS
 Countercurrent process
 Combination of bottom up and top down
 Combines advantages of both approaches and will eliminate the disadvantages

MULTIPLE NUCLEUS
 Subject organizations where there is no pronounced hierarchy
 changes start at the same time in different places

DISADVANTAGE :
 Possible chaotic sequence
 Risk of uncoordinated partial solutions
Change Management
Implementation

Dissolve Change Stabilize

Timetable / Success
Analysis Perspective Joint Base Arouse enthusiasm Fix sustainability
Milestones monitoring

Preparation Analysis Planning Implementation Development

 Reason  Strategy  Hypotheses  Fast success  Feedback of results

 Vision  Structure  Strengths  Detailed objectives achieved
 Objectives  Systems  Weaknesses  Detailed plans  Target balance
 Expected Results  Values  Opportunities risks  Detailed concepts  Revision
 Roles  Skills  Conflicts  Introduction  Stabilization
 Milestones  Style
 Stakeholder  Features
 Risks

Coaching and Communication

INSTRUMENTS
Change Management – Analysis
Management Audit

Audit Benefit
 Management Audits are general examination procedures to evaluate processes for the  Identification of potential employees
performance, whereby mainly the practical knowledge of the company is  Increasing the motivation of employees
systematized.  Transparency for future tasks

 Strategy is determined
 Acceptance issue is
resolved
 Requirement profile
needs to be created
 Key capabilities
included
 Knowledge Test
 Audit conversation
 External assessment
 Self-assessment
 All participants will  The detected potential of
compare their results the employees serves as
from the basis to enforce the
 Creation of an individual strategy
profile

Create Estimate
Integration
Check a profile potential (discussions) Results
conditions (methods)
Change Management – Analysis
Management Audit – Example 1

Project definition Requirements Employees: Jan Smith

Features Bad Average Good Notes

Communication  …
This text is intended to
demonstrate how your own Quality assurance  …
text will be displayed when
you replace the. Strong personal presence  …

Decision making  …

Assessment by: Promote teamwork  …

Coaching and support  …

Target orientation  …
Manager 1
Manager 2 Take charge  …
Manager 3
Placeholder  …

Summary  …
Change Management – Analysis
Management Audit – Example 2

Talents Stars
High

Mrs. Doe Placeholder

POTENTIAL

Placeholder
Placeholder

Placeholder
Mr. Smith
Mrs. Doe
Low

Critical cases Achievers

Low CURRENT PERFORMANCE High

Change Management – Analysis
Stakeholder analysis

Stakeholder Objectives / interests Attitude to the project Influence of stakeholders Impact / Power

Client Provides money and resources, Positive Direct (Medium) High

expects a professional project
management.

Employees Provides his technical know-how. Neutral Direct (Large) Medium

Board of Directors Want a successful project. Positive Direct (Large) Low

Environmental association Want to boycott the project and Negative Indirect (Small) Low
stop it if possible.

… … … … …
Change Management – Analysis
Scenario analysis

Positive Extreme Scenario Effect of Decisions

 This is a placeholder text positive
extreme scenario
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Trend Scenario trendline

 This is a placeholder text.

Negative Extreme Scenario negative

years 5-10 11-20 >20 extreme scenario
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trouble event decision point
(f.e. use of measures)
Change Management – Analysis
TPC Matrix

Strategic Direction Task distribution / Process organization Staff

Technical value-level



Mission
Vision
Strategic direction
? ?
 Business model Do we have the Are the right employees
right organization? at the right places?

Political level ? ? ?
Who wins / loses Who is the beneficiary
by realigning? of this constellation? Who is a promoter / opponent?

Cultural level ? ? ?
Which of the values need Do we have adequate Do we have enough role
to be strengthened? strategic management behavior? models for the values?
Change Management – Analysis
Acceptance matrix

Skeptics Promoters
low
personal risk core

ca. 40% ca. 5%

Assessment of

include first

include later

Opponents Suppressers don’t include

high

ca. 40% ca. 40%

high low

Assessment objective risk core

Change Management – Instruments
Roadmapping

2020
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2021
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2022
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Change Management – Instrument
Communication

Change or modification is not an indispensable part of everyday business. Changing market conditions, customer and technical
progress permanently challenge all involved. Structures and processes must be designed differently and staff must also be convinced
and amazed.

Implement change properly

Change Management – Instrument
Content

Placeholder  Why the change is necessary

 Express gratitude to the employees
text
 How will it be after the change
Placeholder
 Explain change process

 Anticipate possible problems

Placeholder
 Presentation of the effect without change

 Identify external forces

Placeholder
 Find out what will not change

 How to express resistance

Placeholder
 Demonstrate how far you have already come with change
Change Management – Communication

What the management should try initially:

Further Training
 Clearly inform about causes and goals of change
 Sufficiently motivate through immaterial and material incentives
 Motivate employees to active involvement Motivation
in the process of change
 Professionally qualify employees through further training
Information
 Protect and support employees who are negatively affected by
the change (f.e. protection against dismissal, retraining)

The Employee

Protection
Change Management
Motivational tools

Rapid success
Participation Awards
Promote agreement

Successful role models Intrinsic incentive

potential

Communication
Project
Qualification
work
Avoid rejection

Top-down Severance
impulses

Preservation of the
Offsetting transactions
tried and tested
PLANNING/ IMPLEMITION
Change Management – Key factors
Phases for a successful implementation of the CM

1. Management by objectives
"Where do the issues arise?"

8. Selection of the key persons 2. No action without diagnosis

"A good analysis is already
"people ultimately control processes"
halfway the success of a project"

7. Vivid communication 3. Holistic thinking and acting

"Communication as a management tool" "No neglect of the people"

6. Process-based management 4. Participation of stakeholders

"Factual and emotional coherences" "creation of identifications"

5. Helping people help

themselves "Distributed
self-organization of employees"
Change Management – Key factors
Supporting and resistant elements

 Review communication regularly  Onboard the employees

 Develop early warning system  Raise awareness for the issues
 Organize workshops

Ensure learning Awaken energy & create trust

Organize from outside to inside Thinking in processes and structures

 Customers and the market have the highest priority  Dynamic thought & action approach
 Align strategy, objectives and measures  Acceptance of the unpredictable
 Employees and shareholders have a lower priority

Communication Align business to environment

 ensure internal networking through communication  Consideration of the factors and conditions in the external
 Communication is a key managerial function environment of the company
Change Management
Conditions for successful leadership through the process

01 02 03
BE ACTIVE BE RESPONSIBLE BE CLEAR

Change yourself and your area otherwise Do not hide behind others; Ensure at all times perfect clarity
be you’ll be changed. take 100% responsibility about visions, strategies, change objective,
at any time! content and effect chains.

04 05 06
BE FLEXIBLE BE A ROLE MODEL BE PART
OF THE PROCESS
Changes start with you. Dispose of ineffective Live the new behavior, the new
habits and prove you that you can change values and the new culture actively ... only then will
Work openly with others and use
yourself. your employees follow.
the general support system.
Change Management
Supporting/promoting and resistant elements

+ Change-promoting elements - Change-resistant elements

 Live a clearly articulated vision  Continuous monitoring & evaluation

 Progress and future orientation  Rigid workflows
 Initiative & Ideas  Rigid hierarchy
 Accept personal boundaries  Encrusted structures
 Respect for moral principles  Too much responsibility for individuals
 Social responsibility
 Fairness
 Equal opportunity
Change Management
Crucial success factors

Effective New Permanent and targeted Well-planned and organized

leadership qualifications communication method

 Support actively and visibly
 Show the commitment as
promoters for change
 Continuous motivation of the entire
team
 Enforce new training on the job  Consistently open and honest  Early introduction of activities
units to qualify staff for new tasks  Use of the available measures of  Systematic approach
 Implement trainings with coaches communication
for additional qualification

01 02 03 04
Change Management
Obstacles

Limited time,
resources and
budget
Inadequate
Resistance leader
 Overshadowed
of middle
by everyday
management work and
 No visible and
levels responsibilities
active support
Resistance of  Because of loss
employees of power and / or
limited project
involvement
 Fear of the
unknown
Change Management
Resistance on an individual level based on perception, personality and needs

Fear of the New Habit

and Unknown As a try not to make decisions all the time
e.g. Switch of a system in the job (complexity reduction)

Economic Factors Security

e.g. insecurity regarding the fulfillment of new Change as a possible threat for people
or altered job requirements with a distinct need for security

Selective Information Processing

Security attitude towards own perception.
New information are blinded out . E.g. introduction of a new QM-System
Change Management
Resistors against Change

verbal nonverbal
(Talk) (Behave)

Contradiction Excitement
Counter-Arguments Restlessness
active Allegations Dispute
(Attack) Threats Intrigue
Polemic Rumors
Stubborn Formalism Cliques

Avoidance Listlessness
Silence inattention
passive Belittlement fatigue
(Escape) Trivialization absence
unimportant inner emigration
debate disease
Change Management
Measures for the treatment of resistors

Instruments Effect

 Participation of employees  Identification with the project

 Coaching of management  Strengthening of the will to change

 Training of employees  Realignment of staff skills

 Professional team building  Ensuring motivation and identification

 Compensation and reward systems  Stabilization of new behaviors

 Recruiting and staff development  Hedge features & capacity building

Change Management
To overcome obstacles all three levels have to act

Organization Level
Determination of Guidelines
of Changing Process. Poor
centralization of information
and decision processes. Poor
Group Level standardization of internal
Display dangers of group tasks and processes. Support
Individual Level thinking and encourage of a company structure
criticism. Forming of sub with focus in change.
Gain understanding groups to create solution suggestions.
(Why? For what?) Consult
Support of Skills and external observer.
Willingness through
training and company Step 3
culture.

Step 2
Step 1
Change Management
Resistance on the Organization Level

Devaluation of Expertise Inertia

Changed Organizational patterns can Group norms and regulations prevent
devaluate expertise of specialized Groups individual willingness for change

Threat of existing resources Threat of existing

assignments Power relations
Insecurity with resource responsible Reassignments of responsibilities
concerning the change and power of decision

Structural inertia and Alternations limited

formal obstacles to sub systems
By formalizing such as job descriptions, Change of sub systems also requires
selection, trainings and socialization methods a change of the overall system (dependency)
Change Management
Acceptance matrix

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first
Skeptic Promoter The text demonstrates
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low

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personal Risks

later
Estimation of

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Objector Breaksman
high

approx. 40% approx. 40%

high low

Estimation of
factual Risks
Change Management
Use of a change agent

Tasks of the change agents during the process

 Shows the need for changes

 Selection of the instruments to support decisions
Change  Support and consults in communication and information throughout the process
Agent
 Reduction and prevention of conflict and opposition
Plant,
organisiert,
steuert und
 Ensuring transparency during the change process
moderiert
 Keeps neutrality
 Monitor the rate of change
 Strengthen the solidarity
 Manage the criticism and reflecting the sequence of events
Change Management
Iceberg-Model

 Organisation
HIGH Processes  Performance
 Infrastructure
Hard Factors Company Objectives  Processes
(rational level) Structures
Figures Products

Power
Speed of change

Influence
Management/
Cooperation
Leadership
Convictions
Soft Factors Realtionships
(emotional level)
Wishes
Emotions
Habits
Privileges  Employee /
Lead
LOW Ethics Relationship
WORK SHEETS
Change Management – Tips
Benefits of a systematic change management

Qualitative benefits
 Increasing motivation among employees and partners
 Increasing creativity and innovation performance
 Flexible organizational structures The strategic process of
change needs to be managed
 More flexible processes professionally throughout
all phases.

Consolidate
Outcome evaluation
 Optimized use of available resources Change
 Achieving goals and benefits
 Sustainable performance improvement Structure

 Less coordination effort

Analyze
Change Management
Checklist - Responsibilities

Project name Date

Project leader Project leader
Last updated (employee) 15.10.2015 (Jan Smith)

Responsibilities
Topic Status Remarks

Does the project manager obtain the overall responsibility for the project? OPEN

Does the project manager regularly communicate with stakeholders? COMPLETE

Is there a change manager who plans the changes and monitors the effectiveness? COMPLETE

Do the executives realize that they need to take a positive role within the company? NOT RELEVANT

Placeholder Placeholder
Change Management
Checklist - Results

Project name Date

Project leader Project leader
Last updated (employee) 15.10.2015 (Jan Smith)

Results
Topic Status Remarks

Are new schedules, plans, concepts and standards implemented? COMPLETE

Is the analysis of the affected structures and processes completed? OPEN

Is the analysis of the expected changes and the expected obstacles completed? OPEN

Is there a plan for the effected training and development? NOT RELEVANT

Placeholder Placeholder
Change Management
Checklist - Processes

Project name Date

Project leader Project leader
Last updated (employee) 15.10.2015 (Jan Smith)

Processes
Topic Status Remarks

Were all parties identified who will be affected by the project processes? OPEN

Is the change schedule for the processes defined? OPEN

Are all the effects on the organizational structure identified? OPEN

Placeholder NOT RELEVANT

Placeholder Placeholder
Change Management
Checklist – Processes: Communication measures

Project name Date

Project leader Project leader
Last updated (employee) 15.10.2015 (Jan Smith)

Processes - Communication measures

Topic Status Remarks

Are the planned communication activities actually taking place? COMPLETE

Is there a communication flow and feedback loop? OPEN

Is there a system to review if the content was submitted successfully? OPEN

Placeholder Placeholder

Placeholder Placeholder
Change Management
Checklist – Processes: Strengthen awareness of role model

Project name Date

Project leader Project leader
Last updated (employee) 15.10.2015 (Jan Smith)

Processes – Strengthen awareness of role model

Topic Status Remarks

Is there an action plan to strengthen the role models? COMPLETE

Are the planned measures implemented? COMPLETE

Placeholder Placeholder

Placeholder Placeholder

Placeholder Placeholder
Change Management
Checklist – Processes: Development schedule

Project name Date

Project leader Project leader
Last updated (employee) 15.10.2015 (Jan Smith)

Processes – Development schedule

Topic Status Remarks

Is the schedule actual and regularly adapted? COMPLETE

Is the quality of the training monitored regularly? OPEN

Are surveys provided to the participants? NOT RELEVANT

Is the content of the classes verified and transmitted at the right time? COMPLETE

Placeholder Placeholder
Change Management
Excellence in Change-Matrix (EiC-Matrix)

40 This is a placeholder text.

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Excellence The text demonstrates
Skill deficits
Willingness to Adapt

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25 + This text can be replaced with your own text.

Reformation
Will barriers
pile-up

10
10 25 40

Adaptability
Change Management ─ Action Research
Five steps of the action research

Diagnosis Analysis Feedback Act Evaluation

Collection of information
through
„Change Agent“ and diagnosis
through survey of Employees
(Problems, Concerns, Change
Requests)
Organization of all information Discussion of results and action Execution of specific measures Comparisson with initially
and Definition of core concerns planning with Employees. for problem solving together collected data and evaluation of
and main problem reports with with Change Agent and change development.
possible counter measures. Employees.

Advantage: Problem oriented Method with strong involvement of employees

 Targeted reduction of the resistance against change
Change Management
Success and Failure Factors

Factors for Success Factors for Failure

 Clear Vision and forward-looking conception  Imprecise, unclear Vision
 Concrete Target values and consequent implementation  Lack of grasp of problem
 Broad Employee participation  Insufficient Communication
 Integrative Approach  Only partial optimization attempts
 Introduction of Cultural Change  Missing courage and missing conviction
 Top Management-Commitment  Short time horizon
 Enough time
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