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Introduction to

Change

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Continuous Change at Nokia
Nokia has
continually
adapted to its
changing
environment. The
Finnish company
began as a pulp
and paper mill in
Courtesy National Board of Antiquities, Finland
1865, then moved
into rubber, cable wiring, and computer monitors. In
the 1980s, Nokia executives sensed an emerging
market for wireless communication. But today, Nokia is
a no more world leader in cellular telephones.
Changing People: Some Basic
Steps
Step 3: Refreezing
Incorporating the changes,
creating and maintaining a
new organizational system

Step 2: Changing
Attempting to te
St a
create a new state w
of affairs Ne

Step 1: Unfreezing
Recognizing the
tate
need for change tS
re n
r
Cu

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Some External Forces for Change

Information
Technology

Globalization
& Competition
Courtesy National Board of Antiquities, Finland

Demography
Force Field Analysis

Restraining
Desired Forces
Conditions

Restraining
Forces Driving
Forces
Restraining
Forces

Current Driving
Conditions Forces
Driving
Forces

Before During After


Change Change Change
Exercise

 Quiet quitting is a burning problem


for today’s organization. What types
of organizations are more prone to
quiet quitting?
 Do Force Field Analysis.

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Resistance to Change

Direct Costs

Saving Face

Fear of the Unknown


Forces for
Change Breaking Routines

Incongruent Systems

Incongruent Team Dynamics


Creating an Urgency for Change

• Need to motivate employees to change


• Most difficult when organisation is doing
well
• Must be real, not contrived
• Customer-driven change
– Adverse consequences for firm
– Human element energizes employees
Minimizing Resistance to Change

Communication

Coercion Training
Minimizing
Resistance
Negotiation
to Change Employee
Involvement

Stress
Management
Change Agents

• Anyone who possesses


enough knowledge and
power to guide and facilitate
the change effort
• Change agents apply
transformational leadership
– Help develop a vision
– Communicate the vision
– Act consistently with the vision
Courtesy of CHC Helicopter Corp. – Build commitment to the vision
Activity

Project 1: Suggest few steps to enhance


inclusion @ IMT-BS.
Project 2: Suggest few steps to reduce
delay in administrative decisions @ IMT-
BS
Project 3: Suggest few steps towards
sustainability @IMT-BS

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Instructions

• Discuss and present – 20mins

Q1 What are the gaps in current


practices?
Q2 Why it is important to fill the gaps?
Q3 How will you fill the gap?

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Action Research Process

Entry of
change
agents

Diagnose Evaluate/
Introduce
Need for Stabilize
Change
Change Change

Exit of
change
agents
Appreciative Inquiry Process

Discovery Dreaming Designing Delivering

Forming Engaging in Developing


Discovering
ideas about dialogue objectives
the best of
“what might about “what about “what
“what is”
be” should be” will be”
Parallel Structures
Parallel
Organization
Structure
Refreezing the Desired Conditions

Creating organizational systems and team


dynamics to reinforce desired changes
– alter rewards to reinforce new behaviours
– new information systems guide new
behaviours
– recalibrate and introduce feedback systems
to focus on new priorities

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Successfully Diffusing Change

• Successful pilot study


• Favourable publicity
• Top management support
• Labour union involvement
• Diffusion strategy
described well
• Pilot program people
Courtesy of CHC Helicopter Corp.
moved around

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Organization Development Defined

A planned system wide effort, managed


from the top with the assistance of a
change agent, that uses behavioural
science knowledge to improve
organizational effectiveness.

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Organizational Development: How
Effective Is It?
Percentage of Studies Showing Positive Changes
Organizational outcomes
50 more often benefited from (48.70)
OD interventions than did
individual outcomes

40

30 (23.55)

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Individual Organizational
outcomes outcomes
(e.g., job (e.g., profit) (Source: Porras and Robertson, 1992.)
satisfaction)
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Organization Development Concerns

• Cross-Cultural Concerns
– Linear and open conflict assumptions
different from values in some cultures

• Ethical Concerns
– Management power
– Employee privacy rights
– Employee self-esteem
– Consultant’s role
Examples:

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Scenario #1: “Greener Telco”

Scenario #1 refers to Bell


Canada’s Zero Waste
program, which
successfully changed
wasteful employee
behaviours by altering the
causes of those
behaviours. Courtesy of Bell Canada
Bell Canada’s Change Strategy
Relied on the MARS model to
alter behaviour:
Motivation -- employee involvement,
respected steering committee
Ability -- taught paper reduction, email,
food disposal
Role perc. -- communicated importance
of reducing waste
Situation -- Created barriers to wasteful
behaviour, eg. removed garbage bins

Courtesy of Bell Canada


Scenario #2: “Go Forward Airline”

Scenario #2 refers to
Continental Airline’s “Go
Forward” change strategy,
which catapulted the
company “from worst to
first” within a couple of
years.
Courtesy of Continental Airlines
Continental Airlines’ Change Strategy

 Communicate, communicate,
communicate
 Introduced 15 performance
measures
 Established stretch goals
(repainting planes in 6 months)
 Replaced 50 of 61 executives
 Rewarded new goals (on-time
arrival, stock price)
Courtesy of Continental Airlines
 Customers as drivers of change
Wrap up
• What is change?
• Why it is important?
• Change process (3 step model)
• Force-field analysis
• Action research
• Appreciative enquiry
• Resistance to change
• Organisation Development
• Change agents
• Successful diffusion of change
• Activities
• Examples
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