Change Management

( AN ISO 9001:2008 CERTIFIED CENTRE )
12/21/23 1
© Confederation of Indian Industry
TIME TO LEAP
Jack Welch at General Electric identified his talent pipeline by individually

meeting with potential successors and asking them THIS QUESTION.
This made them nominate other individuals from their peer group and was
an effective way to gauge what the individuals felt about the senior
leadership of the company.
12/21/23 22
12/21/23 3
These monkeys
were then
substituted with
new with new set
of 5 monkeys
12/21/23 4
These new monkey went up to the ladder, immediately the other
monkey beat him up. After several beatings the new members
learned not to climb the ladder even though they never knew
why ???
Why you ask? Because they were taught the same lesson that
some of us have been taught… “that’s the way we do things
around here”.
12/21/23 55
There may be an area in your life that you are afraid to change or innovate
because of your paradigm or the way you’ve been taught. You already have in
your mind, though not proven that “it won’t work’.
Your aunt tried to start a business in 1987 and it failed.
Going back to school is a waste of time, Shyam has three degrees and still
has no job.
My whole family is overweight and has diabetes, I’m bound to have it also.
There is no way to earn a living but the 9 to 5 hustle.
My new idea will never be received by management.
12/21/23 66
Energizer 1 - Cross Your Arms
12/21/23 7
Managing Change Requires Looking at
All the Dimensions
Past History in Putting Change in Place

Degree of Sponsorship
Authenticity of Sponsorship (Walk the Talk?)
Organizational and Individual Current Stress
Who Will Be Impacted by the Change
Cultural Fit of the Change
Addressing “What’s in It for Me”
Communication of the Change and Its Progress
Skill Sets of the Change Agents
12/21/23 8
Change = Motivation X Vision X Next Steps
Motivation – Some Good Reason to Give up the Status Quo

Vision – A Clear and Practical Vision of the Desired Future State
Next Steps – Understanding of the Steps Required to Progress Toward the Vision
If One Is Missing, Little Change Will Take Place
We cannot become what we

want to be by remaining
what we are.
12/21/23 9
Change
•No Organization is immune to

change
•To cope with new external and

internal forces, leaders have sought
to fundamentally alter the way their
organizations work.
12/21/23 10
Forces of Change ……….
“Knowledge Mergers &

economy” Virtual organizations acquisitions
Electronic Digital convergence Privatizations

commerce
“Information Superhighway”
are transforming the world of

12/21/23 business………. 11
Macro - level
Technological advances Shifting political

dynamics
Introduction and removal of

government regulations Changes in
demographics
Changes in societal Growing international

values interdependence
12/21/23
12/21/23 12
12
And some more……
sales development
new product development
new market development
business organization, shape, structure and processes
development (eg, outsourcing, e-business, etc)
tools, equipment, plant, logistics and supply-chain
development
people, management and communications (capabilities
and training) development
strategic partnerships and distribution routes development
international development
………..List is endless
12/21/23 13
13
BROADER AGENDA
What is Change ?
Two sides of change
 People oriented change
Organizational change
Managing resistance to change
Tools for change
The problems of change
12/21/23 14
What is Change ?
Change management is defined as the systematic deployment of

change management programs, tools and processes throughout an
organization.
To change is to take different actions than previously. To take different

actions than previously means to make different choices. Different
choices produce change. The same produce sameness, a reinforcement
of the status quo.
12/21/23 15
Impact of Change
Change
•Economic
•Politic
•Social
•Technological
Direct impacts
Customers
Organization Suppliers
Business partners
Indirect impacts
12/21/23 16
Why do we Change ?
Any organization is facing today’s business challenges:
* Severe competition
* Rapid change in technology, communication and information
12/21/23 17
Two sides of change
TechnicalSide
Technical Sideof
ofChange
Change HumanSide
Human Sideof
ofChange
Change
12/21/23 18
 People Oriented Change:  Organizational Change: changing
before changing the strategy, policy, system and
other people, we have to procedures for achieving an high
change our self, first! performing organization
 Changing the mindsets:
Creating hope
 Building beliefs
Shifting paradigms
Courage to Take Action
12/21/23 19
SHIFTING PARADIGMS
OLD PARADIGMS NEW PARADIGMS
THE BUSINESS Ore-Mining Exploitation Mining-Based Processing
Up-stream industry Down-stream industry
THE OPERATIONS Local and Domestic Global and International
organization (Mind-set) Local Operations (Mind-set) World-
standards class standards
THE QUALITY Good organization Great Institution
THE PEOPLE People = Costs People = Human Capital,
Strategic Assets and Strategic
Partners
LEADERSHIP Managers are promoted Leadership is earned. You do not
need a title to be a leader.
Transactional Leaders Transformational Leaders

Effective Managers should be Effective Leaders deliver results.
nice and kind.
LEADERSHIP Survival of the fittest (By Development of the fittest (By
DEVELOPMENT Nature) Nature + Nurture)
12/21/23 20
THE CULTURE Strategy and Culture Culture can drive or drag
are independent and Strategy
standing alone
Build Any Culture Build High Performance
Business Culture
DEVELOPMENT Training Learning
Class Training – Learning can be any where and
Training is one way & by any means. The role of
knowledge transfer. Interventions are key.
Training = Costs (Key Development = Investment

word: REDUCE!) (Key word: MEASURE THE
RETURNS!)
COST Efficiency Effectiveness (Cost Conscious-
ness is still important)
Bureaucratic Operations Speedy + Agile Operations
12/21/23 21
EMPLOYMENT Attracting mediocre Employee of Choice – Ability
people to attract the best talent
The dullest = the Employer of Choice – Ability
brightest to retain the best people
Life-time employment Life-time employability
KNOWLEDGE Knowledge = Knowledge is the ability to
Certification act
BUSINESS Business is dirty, the Business with ethics.
ends justify the means. Business is noble. To
improve the quality of life of
mankind.
Business is complex. Business is simple. The
You need sophisticated business principle uses
solutions to play. common sense.
12/21/23 22
Dimensions Theory E Theory O Theory E and O Combined
Of Change
Goals Maximize Develop Explicitly embrace the paradox

shareholder organizational between economic value and
value capabilities organizational capabilities
Leadership Manage change Encourage Set direction from the top

from the top participation and engage the people below
down from the bottom
up
Focus Emphasize Build up Focus simultaneously on the

structure corporate hard (structures and systems)
and systems culture, and the soft (corporate culture)
employees’
behavior and
attitudes
12/21/23 23
Dimensions Theory E Theory O Theory E and O
Of Change Combined
Focus Emphasize structure Build up corporate Focus
and systems culture, employees’ simultaneously on
behavior and the
attitudes hard (structures and
systems)
and the soft
(corporate culture)
Process Plan and establish Experiment and Plan for spontaneity
programs evolve
Reward System Motivate through Motivate through Use incentives to

financial incentives commitment – use reinforce
pay change but not to
as fair exchange drive it
12/21/23 24
Two Strategies of Change
• Incremental Change Strategy – taking necessary changes in sequential order
• Fundamental Change Strategy – the whole organization and its relationship will
simultaneously change
Awakening Energizing Unfreezing
Mobilizing Envisioning Moving
Reinforcing Enabling Refreezing
12/21/23 25
Process of Planned Change
Kurt
Lewin
Unfreezing Moving Refreezing
• Provide rationale • Provide information • Implement new

for change that suspects evaluation systems
• Create minor proposed changes • Create minor levels
levels of • Bring about actual of guilt/anxiety about
guilt/anxiety about shifts in behavior not changing
not changing • Implement new
• Create sense of hiring and promotion
psychological systems
safety concerning
change
12/21/23 26
Generate energy, allocate resources, shift
MANAGEMENT
CHANGE
paradigms, develop transformation team, develop
transformational leaders at all levels
Product portofolios, market repositioning, value

STRATEGY proposition, competitive advantages, the winning
CHANGE
formula, business model (KPI, strategic initiative)
Realignment and rebuilding of policies, management

STRUCTURAL
systems, organization structures, business processes,
CHANGE
enabling technology
Cultural assessment, value definition, a set of

CULTURAL
CHANGE
behaviors, socialization, internalization,
externalization (Moments of Truth), reassessment
12/21/23 27
The Strategy Model for Fundamental change
CULTURE
Business Acumen
A Culture of Excellence
LEADERSHIP STRUCTURE & SYSTEMS

Results-Based Accountability
Transformational Relationship
CHANGE
Fundamental, Strategic and Comprehensive
First WHO then WHAT THE SOCIAL
28
12/21/23
© Confederation of Indian Industry CAPITAL
28
Post-
implementation Successful
Phases of a change project
Change
Implementation
Concept and Design
Business Need
Awareness Desire Knowledge Ability Reinforcement
Phases of a change for employees

12/21/23 29
Tools for Change
 Analysis “Force Field”

Planning and Strategy ”Strategic Triangle”
Implementation ”8 Steps”
Supporting implementation ”Cycle of Change”
”Storytelling”
12/21/23 30
Restraining and Driving Forces
RF
Desired
Condition
RF DF
Restraining DF
forces
Current
Condition
Driving
forces
12/21/23
Before change After change 31
Energizer 2 - Group Exercise
• Take this opportunity to think of a situation in your organization
where Force Field Model could be demonstrated. Begin by
identifying a change being instituted in your organization.
• List the driving forces
• List the restraining forces
12/21/23 32
Desired state
RESTRAINING
FORCES
CURRENT STATE
DRIVING
FORCES
Kurt Lewin
12/21/23 33
Legitimacy and • Mission
Support:
• Goals
Comes from
authorizing • Objectives
environment
• Value
The Strategic Triangle
Operational
Capacity:
Ability to
deliver results
12/21/23 34
Energizer 3 - Castle
12/21/23 35
12/21/23
12/21/23 36
36
Change is Not an Event...it is a Process
Help People See

Understand the Logic
Compelling situations are
The logic from the created to help others
analysis feeds into the visualize problems,
creation of the solutions, or progress in
compelling situations solving complacency,
Logic
Logic
strategy, empowerment
or other key problems
within the eight steps
See
See
Hit the Emotions
Change Behavior Change
Change The visualizations provide
Emotionally useful ideas that hit
charged ideas people at a deeper level
change behavior than surface thinking.
or reinforce They evoke a visceral
changed behavior response which reduces
emotions that block
Feel
Feel change and enhances
those that support it.
12/21/23 37
8 Steps for Successful Change
Implementing & Sustaining
Transformation 8. Make it Stick
7. Sustain the Change

Engaging & Enabling the
Whole Organization 6. Create Short-term Wins
5. Plan/Organize/Enable Action
Creating a Climate for
Change 4. Communicate for Buy-in
3. Define the Change Impacts
2. Create the Vision & Build the Guiding Team
1. Create a Sense of Shared Need & Urgency
12/21/23 38
8. Make it Stick
7. Sustain the
Change
6. Create Short- • Targeted
Sample Tools 5. Plan/
term Wins Reinforcement
• User Strategy
Organize/ Enable Satisfaction
Action • Perform-ance
• Quick Hit Survey
4. Commun. Mgt Process
Workshop
for Buy-in • Sponsor Continuum
3. Define the • Change Agent Template
Change Assess-ment
Assessment • Balanced
Impacts • Quick Hit (update)
2. Create the • Stakeholder Scorecard
• Sponsorship Action Plan
Vision Analysis • Stakeholder
1. Sense of Assessment Template • Perform-ance
• Impact Awareness
Need & • Audience Appraisal Design
Assess-ment • Org. Structure • Quick Hit Assess-ment
Urgency Analysis / Approach
• Project Team • Organiza- Primer Evaluation (update)
Prioritiza-tion
Charter tional Analysis Guidelines • Project QA
Matrix • Performance • Leader Action
• Problem • Responsibility Survey Program
Primer Plans
Charting • Position • Communication Materials
Statement
• Managing Prototype Media Analysis • Client • Change
• Project • Perform
Expectation & Survey Readiness Challenge
Description • Cultural Alignment and
Assessment Session
• Climate for • Visioning Assess-ment • Media Usage Mgt. Strategy
Materials
Change Basics • Change Matrix • Stakeholder
Assessment Guideline Impact Action Plan • Don’t Let Up
• Communication
• Sponsor-ship Analysis Field Guide
• Risk Wheel Matrix • Project Team
Action Plan • Force Field Assessment
• Stakeholder
Analysis
Action Plan
12/21/23 39
Supporting implementation
Lead
Image people
into the
Tame the future
grapevine Share
information
Explain and
complex idea knowledge
to spark
action Further team
work
Transmit
values
12/21/23 40
Misconception about Change
If change without direction business as

usual
 Change for better and the importance
of change is adapting to new era and
survival
Jack Welch at General Electric identified his talent pipeline by individually

meeting with potential successors and asking them THIS QUESTION.
This made them nominate other individuals from their peer group and was
an effective way to gauge what the individuals felt about the senior
leadership of the company.
12/21/23 41
For most organizations, the problems with managing change derive from
two key areas:
Too many unnecessary changes caused by cross - functional

misunderstandings;
And too many well-intentioned changes made in later stages without

adequate consideration of their negative impact
12/21/23 42
Strategic Lens
1. Why do organizations need to make changes on a regular basis? What are the
major causes of these changes?
2. Why is it so difficult for people to change their behavior, even when they know it
is important to do so?
3. If you were in a managerial position and believed that a major change in your
unit’s structure was needed, what actions would you take to ensure that the
change was made effectively?
12/21/23 43
8 Common Errors
Not establishing a Not Creating a Lacking a Vision

great sense of Powerful Enough
Urgency Guiding Coalition
In failed
The message that the Teamwork is transformations, you
status quo is more essential often find plenty of
dangerous than plans and programmes,
launching into the but no vision
unknown must be A vision says something
given that clarifies the
direction in which an
organization needs to
move
12/21/23 44
Under communicating Not removing obstacles to Not Systematically
the Vision the New Vision planning for and Creating
Short-Term Wins
In more successful Too often, an employee Short-Term wins help

transformation understands the new keep the urgency level
efforts, executives
use all existing vision and wants to make up and force detailed
communication it happen. But something analytical thinking that
channels to appears to be blocking the can clarify or revise
broadcast the path visions
vision
12/21/23 45
Declaring Victory Too Soon Not Anchoring Changes in the
Corporation’s Culture
 While celebrating a win is Take sufficient time to make sure that

fine, declaring the war won the next generation of top
management really does personify
can be catastrophic. the new approach.
 Changes must sink deeply
into an organizational
culture.
 New approaches are fragile
and subject to regression
12/21/23 46
Four Dimensions of Change
Understanding
Change
Consolidating Planning
Change Change
Implementing
Change 47
12/21/23
Here is a list of typical ‘programme-led’ change initiatives
that you may have encountered in your working life,
together with a brief description of what they involve.
12/21/23 48
12/21/23 49
12/21/23 50
12/21/23 51
Questions to ask yourself
•Have I involved everyone who should be involved?
•Do I and my colleagues really believe that involvement is essential for successful
• CHANGE?
•Has the case for CHANGE been communicated and understood?
•Have people had the necessary training and preparation?
•Have I ensured that everybody knows what benefits are expected from the
CHANGE?
•Does everybody fully understand and accept the case for CHANGE?
•Can I answer everybody’s vital question: “What’s in it for me?”
•Will the planned CHANGES genuinely make people’s jobs more interesting?
•What would I want done for me if my job was at stake?
12/21/23 52
Points To Remember
•Change should not begin until all key questions are answered
•Involve people in plans
•Measurement is the key to realistic planning
•People work best if they identify a change with their self-interest
•Long documents, long words, and long explanations are off-putting
•Objectives must be few in number and unambiguous
•The likely consequences of change, inside and outside the organization, need to
be considered thoroughly
•All key managers must fully commit themselves to the change philosophy
•There needs to be regular liaison between all departments and functions affected
by the CHANGE
•Confronting opposition and opponents is a painful necessity.
•If obstructive ringleaders will not reform, they will have to leave
•All senior people should develop the habit of taking and listening to everybody
•Emotion cannot be countered by reason alone, but requires emotional
reassurance, Once trust is lost, it is very difficult to win back
•Criticism is not necessarily mere resistance; it may be well founded
•Once the CHANGE programme is up and running – and working – resistance will
dwindle
12/21/23 53
Why Do Change Programs Fail?
Resistance By Employees 82%
Resistance by Employees
Inadequate Sponsorship 72%
Inadequate Sponsorship
Unrealistic Expectations 65%
Unrealistic Expectations
Poor Project Management 54%
Poor Project Management
Business Case not Compelling 46%
Business Case not Compelling
Project Team
Scope Lacked
Expansion Skills
/ Uncertainty 44%
Project Team/ Uncertainty

Scope Expansion Lacked Skills 44%
No Organizational
No OrganizationalChange Plan
Change Plan 43%
Silos/No Horizontal Process

Silos / No Horizontal Process View 41%
View Source: Deloitte CIO Survey
IT Perspective not Integrated Change Leadership issues are noted in RED
IT Perspective not Integrated 36%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

% of Firms
12/21/23 54
Do’s and Don’ts
Do invite suggestions from everyone Don’t make offers people cannot refuse
Do hold frequent formal and informal Don’t keep unnecessary secrets or tell any
meetings lies
Do involve teams in planning as well Don’t forget that CHANGES should
as implementation improve organizational results
Do manage people’s expectations with Don’t leave anybody out in the cold
care Don’t assume that older people are too set
Do promote comradeship among in their ways to be CHANGE agents
CHANGE agents Don’t discourage others by singling out
Do give CHANGE agents stretching CHANGE agents for special treatment
tasks Don’t prevent CHANGE agents from using
Do encourage people to form and their initiative
Don’t create an atmosphere of secrecy
follow up ideas for CHANGE
Do listen to what CHANGE agents say
about morale and reactions
12/21/23 55
Managing Change
Stability at the
Point of change Anger
Inability
Bargaining
to act Denial
Acceptance
Emotional response
Testing
Depression
Passive
Time 56
12/21/23
Transition curve indicating the reaction of staff
through time from when change is first suggested
12/21/23 57
Types of Negativity What to Do About Them
RATIONAL • Explain plan with greater clarity

and detail
• Involve everybody
• Institute bottom-up programme
PERSONAL • Stress improved job prospects
• Accept managerial responsibility
EMOTIONAL • Show with examples

• Stage a series of meetings
• Demonstrate
• Explain the reasons for change
• Be honest
12/21/23 58
12/21/23 59
Studying All Angles of Change
External Internal
Is the client satisfaction rising? Is the organization or
Has the improved quality department meeting schedules
increased results? and targets? How is staff
morale?
Process
Is quality nearing 100 percent? Result
Can schedules be cut? Are Is the financial position better?
innovations emerging?
12/21/23 60
12/21/23
12/21/23 61
The Truth About Coping With Change
Most People Resist Any Change That Doesn’t Jingle in Their Pockets
1.Doesn’t surface in standardized ways

2.Can be overt, implicit, immediate, or deferred
3.Easiest for management to deal with when it is overt and immediate
4.More challenging if it is implicit or deferred
What should the manager do?
1.Initiating change is an important part of the manager’s job

2.Expect resistance to change come in a number of forms
3.Prepare to undermine this resistance
12/21/23 62
How to undermine resistance
Provide rewards for accepting change

Communicating reasons for why change is necessary
Including people who will be effected by the change to participate in change
decisions
TELL ME I will forget
SHOW ME I might remember
INVOLVE ME I will never forget
12/21/23 63
The Effective Management of Change Involves An
Integrated Approach In Each Of These Three Arenas
Effective Change
Equals
Altering Harnessing Shaping

Mind-set Motivation Behavior
12/21/23 64
SOME Of The Examples Of The
Companies Implementing Change
12/21/23 65
65
Case Studies
12/21/23 66
A Riddle for Paradigm Change
If I continue to take in information as I’ve always taken in
information
I’ll continue to think as I’ve always thought.
If I continue to think as I’ve always thought

I’ll continue to believe what I’ve always believed.
If I continue to believe what I’ve always believed

I’ll continue to act as I’ve always acted.
If I continue to act as I’ve always acted

I’ll continue to get what I’ve always gotten.
12/21/23 67
Lessons Learned
• Change process goes through a series of phases that, in total require

a considerable length of time
• Skipping steps creates only an illusion of speed and never produces a

satisfying result
• Critical mistakes in any of the phases can have a devastating impact,

slowing momentum and negating hard won gains
• Even very capable people often make at least one big error
12/21/23 68
12/21/23 69
A stepped approach to change
Success
A journey of a thousand
miles occurs one step at a
time.
X
Start
12/21/23 70
Last but not the least
25 Inventions That Changed Our Way Of Life
25 iPod 23 Credit card 21 Calculator
Pogram redesign
24 GPS 22 Microwave Oven 20 The Bar code
12/21/23 71
19 Printing Press 17 ATM
15 Gun
18 Radio 16 Fridge 14 Telephone
12/21/23 72
11 Robots 9 Mobile phone
13 Digital Camera
10 Television 8 Aircraft
12 Gaming Consoles
12/21/23 73
7 Automobile 5 Email 3 Computers
1 Electricity
6 Steam Engine 4 Internet 2 Light Bulb
12/21/23 74
12/21/23 75
Communication Jungle
Adobe Acrobat
Document
12/21/23 76
12/21/23 77

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( AN ISO 9001:2008 CERTIFIED CENTRE )

Jack Welch at General Electric identified his talent pipeline by individually

Your aunt tried to start a business in 1987 and it failed.

There is no way to earn a living but the 9 to 5 hustle.

My new idea will never be received by management.

Past History in Putting Change in Place

Motivation – Some Good Reason to Give up the Status Quo

We cannot become what we

•No Organization is immune to

•To cope with new external and

“Knowledge Mergers &

Electronic Digital convergence Privatizations

are transforming the world of

Technological advances Shifting political

Introduction and removal of

Changes in societal Growing international

Change management is defined as the systematic deployment of

To change is to take different actions than previously. To take different

Any organization is facing today’s business challenges:

* Rapid change in technology, communication and information

Transactional Leaders Transformational Leaders

Training = Costs (Key Development = Investment

Goals Maximize Develop Explicitly embrace the paradox

Leadership Manage change Encourage Set direction from the top

Focus Emphasize Build up Focus simultaneously on the

Reward System Motivate through Motivate through Use incentives to

• Incremental Change Strategy – taking necessary changes in sequential order

Awakening Energizing Unfreezing

Mobilizing Envisioning Moving

Reinforcing Enabling Refreezing

Unfreezing Moving Refreezing

• Provide rationale • Provide information • Implement new

Product portofolios, market repositioning, value

Realignment and rebuilding of policies, management

Cultural assessment, value definition, a set of

LEADERSHIP STRUCTURE & SYSTEMS

Concept and Design

Awareness Desire Knowledge Ability Reinforcement

Phases of a change for employees

 Analysis “Force Field”

• List the driving forces

• List the restraining forces

The Strategic Triangle

Help People See

7. Sustain the Change

3. Define the Change Impacts

2. Create the Vision & Build the Guiding Team

1. Create a Sense of Shared Need & Urgency

If change without direction business as

Jack Welch at General Electric identified his talent pipeline by individually

Too many unnecessary changes caused by cross - functional

And too many well-intentioned changes made in later stages without

Not establishing a Not Creating a Lacking a Vision

In more successful Too often, an employee Short-Term wins help

 While celebrating a win is Take sufficient time to make sure that

•Has the case for CHANGE been communicated and understood?

•Have people had the necessary training and preparation?

•Can I answer everybody’s vital question: “What’s in it for me?”

•What would I want done for me if my job was at stake?

Resistance By Employees 82%

Project Team/ Uncertainty

Silos/No Horizontal Process