Change Management.

 Adoption of a new idea or behaviour by an

organization.
 Organizations need to continuously adapt to new
situations if they are to survive and prosper;
 Constant change keeps organizations agile;
 Indicative of “learning” organizations.
 Forces for change

Shifting
Demographics
World
Technology
Politics
Forces For
Change
Economic
Globalization Shocks
Competition
 Change - Introduction
What is “Change”?
 To make different in some particular - Transform
 To make radically different
 To give a different position, course, or direction to
 To replace with another
 To make a shift from one to another
 To exchange for an equivalent sum or comparable
item
 Change cont …
 Factor, change is usually resisted because…..
 Change always threatens the comfort zone,
the world of the familiar, that we tend to build
up around us;
 Change is a venture to the unknown. With
very few excepts the exact outcomes of
change are uncertain;
 Change cont …
 Change is a challenge to our ability to keep
learning. With age we fear that our ability to
learn has diminished.

 Change brings insecurity. We fear change is

a challenge to our worth. Will we still be as
cherished and valued?
 Why Change?
 Your very survival may depend upon it.
 Is existence your ambition or is growth? – change is
often the key to both.
 External factors may induce change- better be ready
to adapt
 Survival of the fittest – Is more than just about
Darwin. It is true of life.
 Change is often fun- a great distraction from the
norm
 Why change cont …
“If there is anything steadfast and unchanging it is
change itself”.
 Change gives opportunity for growth;
 Change creates new and efficient; methodology and
systems;
 Change reduces the status quo mentality;
 It creates risk management and contingency systems;

 Change promotes flexibility.

 What is Change Management?
 A planned, managed, systematic process to
change the culture, systems, & behavior of an
organization. It seeks to improve the
organization’s effectiveness in solving its
problems & achieving its objectives.
 Change Management is about facilitating
changeability, rather than change.
Change Management cont …
Change management is the process, tools and

techniques to manage the people-side of business

change to achieve the required business outcome,

and to realize that business change effectively

within the social infrastructure of the workplace.

 The ADKAR Model
Is useful for individual change management
between supervisor and employees.
 Awareness - of the need for change (Why);
 Desire- to support and participate in the
change (our choice);
 Knowledge – about how to change (the
learning process);
 ADKAR cont …
 Ability- to implement the change (turning
knowledge into action);

 Reinforcement – to sustain the change

(celebrating success).
Lessons in change- Change or perish
 Markets, customers and external factors may change
while you take on a complacent attitude;
 A market leader may be overtaken and survival
threatened if sensitivity to competition is not
developed;
 Change management is often a process but in many
organizations and groups the orientation to change is
an attitude;
 In some cases, change is a vital necessity.
 The Kodak Story
“There are a few corporate blunders as
staggering as Kodak’s missed opportunities in
digital photography, a technology that it
invented”- Forbes
 Kodak researchers invented the digital
photography way back in 1975. Digital
photography was the biggest thing that
marked the world but Kodak took over ten
years to adapt to the change.
 Kodak story cont …
 Worried that entering the market of digital
photography would mean the end of the film
and print business, Kodak let Sony and others
take over.
 A failure to adapt that cost Kodak its survival
by 2012.
Case study- King of the Indian Roads
 Through the 1980’s the one that which
remained the undisputed ruler of the Indian
roads was the Ambassador. Almost all
government vehicles were Ambassadors.
Considered a veritable status symbol, the
Ambassador refused to change.
 Ambassador cont…
But when new cars entered the market the
introduction of new design and new shape and
much lighter models attracted the Indian
audience. The Ambassador is now
….looking at dying a slow death.
 Sources of Change in Human
Resources
 Review of the organization structure
 Poor Succession Planning
 Low Employee Morale
 Poor performance management culture
 Lack of link between performance, reward
and recognition
 Non responsive customer culture
 Others
 Need for enhanced service delivery
 New and improved technology
 Revised organizational structure
 Regional competition
 Enhanced performance culture
 Organising for Change
Doing the right things

Leadership
How you achieve Who is responsible
your goals
Structure for what
Strategy
Purpose
shared vision/
values/goals Organizatio
n Ongoing
Underlying Culture systems processes
assumptions
that drive behavior
Workforce

Capacity and capabilities of

the people who do the work
 Four Roles in Organizational Change
Inventor Champion Sponsor Critic
·Develops and ·Believes in idea ·High-level ·Provides reality
understands ·Visualizes benefits manager test
technical aspects of ·Confronts who removes ·Looks for short-
ideas organization organizational comings
·Does not know how realities of cost, barriers ·Defines hard-
to win support for benefits ·Approves and nosed
the idea or make a ·Obtains financial protects idea criteria that idea
business of it and political within must pass
support Overcomes organization
obstacles
Types of Change:
1) Planned
2) Accidental
 Organizational Change

Organizational
Change

planned
plannedChanges
Changes Accidental
AccidentalChanges
Changes
•• Changes
Changesin inproducts
productsand
and •• Changing
Changingemployee
employee
services
services demographics
demographics
•• Changes
Changesin inadministrative
administrative •• Performance
Performancegaps
gaps
systems
systems •• Governmental
Governmentalregulations
regulations
•• Changes
Changesin inorganizational
organizational •• Economic
Economic competitionin
competition inthe
the
size
sizeor
orstructure
structure global
globalarena
arena
•• Introduction
Introductionofofnew
new
technologies
technologies
•• Advances
Advancesin ininformation
information
processing and
processing and
communication
communication
 Types of Planned Changes
Two Types

Operational Change
based on efforts to improve basic work and organizational processes

Transformational Change
involves redesign and renewal of the total organization
Attitudes and Change-The Human Side of
it
 Change is fundamentally about feelings. It
needs people’s heads and hearts together.
 “Winning Attitudes” do make a difference,
and it is important to market new ideas and
approaches within the organization very
carefully.
 Aspects of Attitude
 Cognitive- What the person knows about the
situation

 Affective – How the person feels about it

 Behavioral - How the person reacts

 Attitudes & Change cont…
 Every time the world discourages you, tell the
world “I’ll prove you wrong”
 Every time the world encourages you, tell the
world “ I’ll prove you right”
 Three Phases of Change
 Current state- Employees generally prefer
current state
 Future state- The future state is unknown to
the employee
 Transition state – Creates stress and anxiety

“ Negative attitude kills All your positive skills”

 Lewin’s Three phases of Change

Unfreezing Changing Refreezing

Unfreezing Old behavior creates motivation to learn.

 Lewin’s Three-Step Process
 The first step, “unfreeze” involves the process of
letting go of certain restricting attitudes during the
initial stages of an outdoor education experience.
 The second step, "change" involves alteration of
self-conceptions and ways of thinking during the
experience.
 The third step, "refreeze" involves solidifying or
crystallizing the changes into a new, permanent form
for the individual
Process of Change management
 Change Planning.

 Change Strategy Formulation.

 Change Implementation.

 Change Strategy Review.

 Change Planning
 Change readiness.
 Why does the need to Change?
 Why should the organization plan for
Change?
 Principles governing Change planning?
 How can the organization plan for Change?
 Change Management Strategies.
Individual Dynamics of Change
 No matter how exciting change is, expect a sense of
loss.

 No matter how competent people are, expect a sense

of confusion / ambiguity.

 The loss and ambiguity may lead to deterioration of

trust and a sense of self preservation.
Organizational Dynamics of Change
 Power / turf struggles
 Communications deteriorate
 Productivity suffers
 Good people jump ship
 Morale often goes down
 The 7 S’s of Strategy
 A Tool used to reveal the inner workings of the organization

Structure

Strategy Systems
Super
ordinate
goals
Skills Style
Staff
 The 7 S’s Strategy
Hard S’s
Actions organization plans in
response to or anticipation
Strategy
of changes in its external
environment.
Basis for specialization and
co-ordination influenced
Structure primarily by strategy and by
organization size and
diversity.
Formal and informal
procedures that support the
Systems strategy and structure.
(Systems are more powerful
than they are given credit)
Soft S’s The 7 S’s
The culture of the organization,
Style/ consisting of two components:
Culture • Organizational Culture
• Management Style
The human resource management –
processes used to develop
managers, socialization processes,
ways of shaping basic values of
Staff management cadre, ways of
introducing young recruits to the
organisation, ways of helping to
manage the careers of employees.
The distinctive competences –
what the organization does best,
Skills
ways of expanding or shifting
competences.
 The 7 S’s
Soft S’s

Guiding concepts, fundamental ideas around

which a business is built – must be simple,
Superordinate
usually stated at abstract level, have great
Goals
meaning inside the organization even though
outsiders may not see or understand them.
Factors for successful change management

CULTURE:
 The organizational culture must change to
accommodate the change
 An organization that doesn’t have the right
culture cannot manage change effectively
 If culture isn’t right, it affects the whole
foundation of the business
Success factors cont…
COMMUNICATION:
 You must use the right tools to communicate
 PEOPLE:
 Get to know why some people embrace change
whilst others resist change
 You must have the skills and understanding to lead
people through change
 Cont’
MOTIVATION:
 Know what things you need to do in order to
motivate people to change
 Sometimes words are important
 Sometimes you don’t have to use words in
order to have big impact
 Cont…
SYSTEMS:

 Your product, systems, structures and

management must be right so as to ensure the
changes wanted happen the way you had
hoped

 You must know how to test your systems.

Success Factors cont…
CAPACITY:
 Are you trying to do too much?
 Your team?
 Do you know how to increase the capacity of
your organization?
 Do you know Yourself?
 Cont…
CREATIVITY:
 The most important thing that a business can
do to survive in challenging times is to get
creative
 “If the candle was good enough, why invent
the light bulb?”
 A creative environment helps stimulate ideas
and positive solutions to complex problems
 The 10 C’s Model
 Comprehensiveness- Includes all aspects of
people management
 Credibility- Staff trust top management and
believe in their strategies
 Communication- Objectives understood and
accepted by all employees, open culture with
no barriers
 Control- Ensure performance is consistent
with business objectives
 The 10 C’s Cont…
 Cost – Effectiveness- Competitive fair reward
and promotion systems
 Competence- Organization competent to
achieve its objectives – dependent on
individual competencies
 Creativity- Competitive advantage comes
from unique strategies
 Coherence- HR Management activities and
initiatives form a meaningful whole
 10C’s Cont’
 Commitment- Employees motivated to
achieve organizational goals

 = CHANGE- Continuous improvement and

development essential for survival
 Skills Necessary for Implementation of
Change
 Leadership
 Teamwork
 Interpersonal skill
 Communication skills
 Interviewing, listening, questioning
 Written and oral presentations
 Leadership
 A leader is someone you would
choose to follow to a place you
would not go to by yourself
 Job purpose vs. Job titles
 Neglect the Future vs. take care of the present

 During change processes leaders

Leadership Cont…

Can:
 Keep your paradigm &
change your customer
 Change your paradigm &
keep your customer
 Change your paradigm and
change your customer
 Cont…
 Leadership of the change must involve top
management in order for people to feel
obliged to support the change
 Teamwork
 Teams are necessary in order to:
 Articulate the vision
 Communicate with the large number of people
 Eliminate obstacles
 Generate short-term wins
 Teamwork Cont…
 Lead the Project teams

 Embed the new approaches in the Corporate

culture
 Communication
 Method for delivery of the change vision and
strategy.
 Means of developing understanding by the
workforce and management.
 To send important messages.
 To offer help and assistance.
 Communication Cont…
Cross team efficiency.

Overcoming resistance
Resistance to Change
 Resistance occurs because of
 Perceived Risk
 Habit
 Perceived risk refers to one’s perception of
the risk associated with the decision to
adopt the innovation
 Habit refers to current practices that one is
routinely doing.
 Resistance Cont…
 In order to reduce employees’ resistance the
top management of the organization must
analyze these sources of resistance and must
employ the appropriate set of strategies to
counter them.
Overcoming Resistance to Change
 Education - if the resistance comes from lack
of trust and misunderstanding, it is useful to
clarify the reasons for, and the benefits of, the
change.
 Negotiation - where people feel that they are
going to suffer some kind of loss as a result of
change, it may be best to negotiate the process
of change and to offer incentives.
 Overcoming Resistance Cont…
 Participation - where people have different
assumptions and perceptions of the changes
needed, they may be more willing to co-
operate if you involve them in the design and
implementation of the change program(s).
 Overcoming Resistance Cont…
 Enforcement - sometimes (e.g. with new
legislation on wearing seat-belts or anti
discrimination laws), change may have to be
enforced/imposed in order to achieve new
types of behavior on the assumption that
people will eventually come to terms with the
change.
Frequently Asked Questions on Change
 What is Change?
Change refers to a transformation or
modification in the affairs of one’s life or of
the organization. Such change can be drastic
 Why is Change necessary?
The need for change comes from many
sources both internal and external.
 FAQ’s Cont…
These include, among others, economic forces
and leadership
 How will the Change affect me?

Change has various effects on individuals and

organizations. Please refer to the Change
Agents for the very specific manner in which
your role will be re-defined as a result of the
change process.
 FAQ’s cont…
 Who will champion the Change?
A Change Agent is appointed by the Sponsor
to manage and facilitate the change process.
Every employee has a key role to play in the
Change Process.
 FAQ’s Cont …
 Who is a Change Sponsor?
A change sponsor is usually a senior manager
who has bought into the idea that the
organization needs to change certain aspects
of its business.
 FAQ’s Cont…
 Who is a Change Agent
A change agent is usually a manager or
consultant who is brought into a company that
is interested in new ideas or undertaking a
project in order to return the company to
growth or to steer it to continued growth
 FAQ’s Cont…
 Why is Change Management needed?
It is a structured way of dealing with the
conduct of Change within an organization.
Unmanaged change can be disastrous!
 FAQs Cont…
 Who is responsible for carrying out a
Change Process?
Everyone to be affected is responsible for the
change process. There are however Change
Sponsors and Change Agents who are actively
involved in steering the change.
 FAQs Cont…
 What will I be expected to do during the
Change Process?
Each member of staff will be assigned a role
to play during the change process. The
Change Agent will let everyone know what is
expected of them
 FAQs Cont…
 What will I need to do that I was not doing
before?
There are various aspects of your working life
which will have to change and these will be
made known to you when the change program
is put in place
 FAQs Cont…
 Will I loose my Job?

New jobs will be created. New jobs have been

created! Staff will be retrained and up-skilled in
order to cope with the new way of doing things.
Most of this training has commenced. It is important
that each one continue to exert themselves in the

performance of their duties.

 FAQs Cont…
 How can we improve our communications
during the Change Process?
At all times employees are requested to speak
openly about their misgivings and suggestions
in order to improve on the overall
performance of the organization
 FAQs Cont…
 Will I be in trouble if I am not in favor of the
Change?
Employees are encouraged to be open about their
reservations about anything they feel aggrieved
about. Like any professional environment the idea is
to understand the value of the change to the
organization not necessarily to be in favor of the
change. To every change there are merits and de-
merits.
 FAQs Cont…
 What will happen to me if I am unable to
cope with the Change?
Seek counseling from your immediate
supervisor or any member of the change
management team. If this does not help you
may have to be deployed in a role closer to
your current one.
 FAQs Cont…
 How should we manage time by prioritizing
and organizing the changes?
Decide which changes will provide the most
value to you. Concentrate on those. Argue
about and resist changes which take your eye
off the ball. Don't get distracted by trivia.
Root out time wasting activities.
 FAQs cont …
 How should we manage changes imposed on
us by influencing upwards?
Take time as a group to decide what changes
in the pattern of imposed change are required.
Think about what is important to the person
who can make the required modifications.
Present proposal emphasizing the benefits to
him/her
 THE END

 QUESTIONS / COMMENTS