Change management

Lecture 1
1. Change management – introduction, main definitions
2. Types of change
3. Categories of change
4-5. Process of change
6. Change spectrum
7. Interlocking proces
8. John Kotter’s change management theory
9. Organization life cycle – main assumptions
10. Models of change proces
11-12. Top Ten Change Management Models
13. Man in the process of change. How to effectively communicate changes?
• Change Management is a systematic activity to prepare an organization for and
implement ongoing environmental changes in a business operation. So to
speak, Change Management is about innovative strategies and speedy activities
to deal with variable and sudden changes. In addition, the current definition of
Change Management can contain individual change management models to
address the people side of change.
• Generally, change management can address the large part of a business
operation from planning to controlling; i.e. organization and governance
structure, product development, customer satisfaction etc. Successful Change
Management not only improves the governance structure which needs to be
changed, but also raises productivity up to the maximum level by modifying and
complementing the existing organization system. Through these processes, the
customer satisfaction can be done with a good image and benefit of a business
enterprise
• To achieve the most optimal result via Change Management, it is critical that
each organization member works collaboratively and maximizes their capacity.
From the management-level to entry-level employees, they should make one
voice based on the business vision and goals. However, there are always various
types of people in the organization for the matter of change; passive, active,
stubborn, or apathetic. Because of these diversities, a leader has to lead his/her
members to one direction. In this way, the role of the ‘change manager’ is
important to control the variable inside of its organization. In addition, the role of
the sponsor and active support that change needs to receive from the sponsor
should take into the consideration for more effective Change Management. No
matter how good a leader we have, change is likely not to succeed without
strong sponsorship and partnership. According to the report result from change-
management.com, they suggested as follows; ‘active and visible executive
sponsorship is the number one contributor to change management success.
• Through this collaborative and interactive relationship between two or more,
each organization can not only exchange the ideas for changes, but also conduct
its business for mutual benefit.
• Also, an information technology and engineering aspect of Change
Management takes into the consideration a systematic approach which keeps
tracking the system in the organization. For example, what kind of operation
system will be reliable to each individual’s computer, how often the system
update will be made by user's feedback and bug reports, and what patches
have to be updated for the system resilience? To decrease the potential risk by
changing the system, IT engineers should construct communication, education,
and feedback systems which can be changed or updated by the internal and
external needs of the targets of change. These needs (data, contents, system
requirement, etc.) enable the IT engineers to estimate the potential risk for the
change, the detailed system implementation steps to minimize the risk, and the
budget control for system implementation.
• Before going to next phase, it is worthy of taking a look at the real and simple
business cases which could make it for companies have competitive business
resilience under the fast changing business environment. Through these cases,
Change Management is not only applicable to the organizational structure, but
also reliable to in and outside factors of the organization such as maintaining a
competitive business strategy and developing a nice product.
• There are several Management Innovation programs to deal with change for
any modern company, such as 6-Sigma, TQM (Total Quality Management), TPM
(Total Productive Maintenance), ERP (Enterprise Resource Planning), etc.
Especially among these, 6-Sigma and ERP are the most figurative and energetic
programs on the basis of an innovative quality in an electronic and
manufacturing field most actively.
• Theory ,,O’’

• Theory ,,E’’
• 6-Sigma is a management philosophy and methodology which was invented by
Motorola. It focuses on producing reliable and consistent results through
minimizing process variation. As of today, various sectors of industry implement
6-Sigma to the large part of the applications in many different ways. And the
main purpose of using 6-Sigma is to discover and then eliminate the causes of
defects or errors in manufacturing lines and business processes.
• ‘Originally, it referred to the ability of manufacturing processes to produce a
very high proportion of output within specification. Processes that operate with
"six sigma quality„ over the short term are assumed to produce long-term
defect levels below 3.4 defects per million opportunities (DPMO). Six Sigma's
implicit goal is to improve all processes to that level of quality or better.
• For a decade, most of the world’s leading companies (Citibank, GE, POSCO,
Samsung,etc.) imported 6-Sigma program to their businesses in order to
increase the product quality and achieve cost savings.As a striking example, GE
produced the key concepts for its 6-Sigma implementation as follows;

1) Critical to Quality : Attributes most important to the customer

2) Defect: Failing to deliver what the customer wants
3) Process Capability: What your process can deliver
4) Variation: What the customer sees and feels
5) Stable Operations: Ensuring consistent, predictable processes to improve what
the customer sees and feels
6) Design for 6-Sigma: Designing to meet customer needs and process capability
Generally, these management innovation programs have a goal of ‘Customer
Satisfaction.’ It is very important for the customer management to treat each
customer as its family members. Maintaining the product quality is also critical.
Thus, these kinds of programs and projects, which aim to improve the system
and product development of a company, can be most reliable when they can
measure the customer [clients] needs accurately. In addition, here is another
Management Innovation Program which can be successfully implemented to the
target organization by Change Management; Enterprise Resource Planning(ERP).
From this case, you can recognize the importance of Change Management.
What is change
management?
• Planned approaches

Refreezing
the new
behavior

Moving to the
new behawior*
• Change management is a systematic approach to dealing with change both
from the perspective of an organization and the individual.

Types of change:
Mission and strategy  Organisational structure
People Culture
Knowledge Policies and Legal Agreement
Technology  Integration
Products, Marketing and Customers  Development change
Transitional change  Transformational change
 Three categories of change

Structure Technology People

• Authority • Work • Attitudes

relationship process • Expectations
• Coordinating • Work • Perceptions
mechanisms methods
• Job redesign • Equipment
Three steps process – change management

3.for change
2. Managing
1. Preparing change
Reinforcing change
Preparing for change
• Define your change management strategy

• Prepare your management team

• Develop your sponsorship model

 Managing change
• Develop change management plan

• Take action and implement plans

Reinforcing change
• Collect and analyze feedback

• Diagnose gaps and manage resistance

• Implement corrective actions and celebrate

success
 Organizational development
• An approach to organizational change in which the employees themselves
formulate the change that’s required and implement it, usually with aid of a
trained consultant
Resistance to change
• People

• Organisations

• Resistance to change is taken by individual or groups when

they perceive that is occuring as a threat to them
 Organizational change
• Radical change

• Incremental change
• The process by which organizations move from their effectivness

• Goal: to find improved ways using resources and capabilities

• Target: change improving effectivness at:

Human resources
Functional resources
Technological capabilities
Organisation capabilities
• Why organizations resist to change?
Comfortable with present situation
Lack of clarity
Fear of losing something, values
Discomfort with uncertainty
Organizational inertia
Avoid risk taking
Fear of loose job
New tasks – unknown future
Lack of trust and suport
Lack of reward
 Petrini and Hultman classification
Symptoms of active resistance Symptoms of passive resistance
Being critical Agreeing verbally but not following
through
Finding fault Procrastinating or dragging one’s feet
ridiculing Feigning Ignorance
Appealing to fear Withholding informations, suggestions,
help or support
Using facts selectively standing by and allowing change to fail
 • Sabotaging • Spreading • Becoming

Hidden/ indirect attacks

Open/ direct attacks

Passive behaviour
new false rumours apathetic
equipment • stall
• Complaining
directly
• Intentionally
slowing down
advantages disadvantages
Change throughout organization Major Time requirements
Greater motivation Substantial expenditure
Increased productivity Delayed pay off period
Better quality of work Possible failure
Higher job satisfaction Possible psychological harm
Improved teamwork Cultural incompatibility
Increased willingness to change Difficulty in evaluation
Lower turnover x
Creation of learning individuals and groups x
• Hardly anyone can deny the fact that active participation to change will bring
more opportunities to all the members in a company. However, there are only
few can deal with change in an active and effective way when they actually face
with it. Most of them, they resisted or tried to find out the way to escape from
an unexpected situation especially if they believe that the risk by changing was
much higher than the given reality.

• Generally speaking, everyone can make their future better and more stable
than today. But, this can be actualized if only they can manage changeable
situations with a strong motivation to change or self-motivated attitude. Also,
there will always be some risk by managing change whenever facing these
situations.