CHANGE MANAGEMENT

THOUGHTS ABOUT CHANGE

Things do not change; we change

- Henry David Thoreau

You must be the change you wish to see in the world

- Gandhi

There is a better way for everything. Find it!

- Thomas Edison
Everyone thinks of changing the world, but no-one thinks of changing himself
- Leo Tolstoy
We do not succeed in changing things according to our desire, but gradually our desire changes
- Proust
To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly.

- Henri Bergson French Philosopher

Treat people as if they were what they ought to be and you help them to become what they are capable of being
- Goethe
THE ORGANIZATION & CHANGE

14-3
 NEED FOR CHANGE
Changes in:
The level of technology
Customer expectations or tastes
Competitors activities: domestic and international competition
Advent of e-commerce
Government legislation
The economy
Market requirements
Nature of the workforce: cultural diversity, aging population,
new entrants with inadequate skills and at5titudes
 INTERNAL & EXTERNAL FORCES OF
CHANGE
Internal forces for change
Desire to increase profitability
Reorganization to increase efficiency
Natural ageing and decline in a business (e.g. machinery, products)
Conflict between departments
The need for greater flexibility in organizational structures
Ineffective communication, de-motivation or poor business relationships
External forces for change
Increased demands for higher quality and levels of customer service
Uncertain economic conditions
Greater competition
Higher cost of inputs
Legislation & taxes
Political interests
Ethics & social values
Technological change
Globalization
Scarcity of natural resources
Changing nature and composition of the workforce
 FORCE FIELD ANALYSIS

Desired
state

Restraining forces

Status quo

Driving forces

Time
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.
 LEWINs THREE-STEP CHANGE
MODEL

UNFREEZING MOVING REFREEZING

Chapter 10, Nancy Langton and

Stephen P. Robbins,
Fundamentals of
Organizational Behaviour, Third
Canadian Edition
 UNFREEZING
Efforts to overcome the pressures of both individual resistance
and group conformity
Instigated by the actions of a leader: people in an organization
may recognize and become aware of the need for change as a
result of an immediate crisis, threats or opportunities
Important to invest the time to uncover not just the threat
facing the organization that make for an urgent need for
change, but its root cause(s) as well
Arouse dissatisfaction with the current state
Activate and strengthen top management support
Use participation in decision making
Build in rewards
 CHANGING/MOVING
This is the phase where the actual change takes place
People look for leadership in finding new ways to do things
Requires a plan of action to be successful
Efforts to get employees involved in the change process:
establish goals
Institute smaller, acceptable changes that reinforce and
support change
Develop management structures for change
Maintain open, two-way communication
 REFREEZING
Stabilizing the change intervention by balancing driving and
restraining forces
Old habits, values, traditions, attitudes, and mindsets are permanently
replaced
New behaviors, values, and attitudes are instilled or refreezed in the
culture in order to avoid a reversion to the old ways after
implementation
Involves institutionalizing the new changes so that they become part
of the organizational culture
Build success experiences
Reward desired behaviour
Develop structures to institutionalize the change
Make change work
COMPARATIVE CHANGE-MODELS
 INDIVIDUAL RESISTANCE TO CHANGE

Threat to ones self-interest/loss of status/personal values and ideas

Uncertainty and fear of personal failure
Lack of confidence that change will succeed
Lack of conviction that change is necessary or possible
Distrust of leadership: lack of communication and respect from
ones supervisor
Fear of being manipulated/resentment of interference
Feeling uninformed about what was happening
Lack of communication and respect from ones union
representative
Lack of opportunity for meaningful participation in decision
making
 INDIVIDUAL RESISTANCE TO
CHANGE

Selective
information Habit
processing

Individual
Resistance
Security
Fear of
the unknown

Economic
factors
Chapter 10, Nancy Langton
and Stephen P. Robbins,
Fundamentals of
Organizational Behaviour,
Third Canadian Edition
 ORGANIZATIONAL RESISTANCE TO
CHANGE
Threat to established
Structural
resource allocations: inertia
cost-factor

Threat to established Organizational Limited focus

power relationships Resistance of change

Threat to Group
expertise inertia
Chapter 10, Nancy Langton
and Stephen P. Robbins,
Fundamentals of
Organizational Behaviour,
Third Canadian Edition
 MINIMIZING INDIVIDUAL RESISTACE
TO CHANGE
Communicate the need and the urgency for change: assemble a coalition
of supporters inside and outside the organization
Maintain ongoing communication about the progress of the change
Avoid micromanaging and empower people to implement the change
Ensure that change efforts are adequately staffed and funded
Show relentless support and unquestionable commitment to the change
process
Anticipate and prepare people for the necessary adjustment that change will
trigger
Career counseling
Retraining
Align organizational structure with new strategy, for consistency
Transfer the implementation process to a working team
Recruit and fill key positions with competent and committed supporters
Recognize and reward the contributions of others to the change process
 TRADITIONAL PERFORMANCE
CURVE
HIGH
AVERAGE PERFORMANCE

LOW
TIME
 PERFORMANCE CURVE DURING
CHANGE
HIGH END OF
CHANGE
AVERAGE PERFORMANCE

ONSET OF EVENT
CHANGE
EVENT

LOW
TIME
 THE NORMAL AND POTENTIAL CYCLE
OF PERSONAL CHANGE
READINES
HIGH S

ANTICIPATION
AVERAGE PERFORMANCE

OWNERSHIP
PRIVATE
CONCERN
PUBLIC SATISFIED
CHALLENGE
HOPEFUL COMPLETION
OPTIMISM ENGAGEMENT

EMERGING RENEWED
PESSIMISM OPTIMISM
PUBLIC
RESISTANCE
RENEWED
HOPE
CHECKING OUT

LOW
TIME
 CONDITIONS FOR SUCCESSFUL
CHANGE
Dissatisfaction with the status quo
People have the necessary knowledge and skills
Tools needed to are available
Implementers have time to learn, adapt, integrate and
reflect on change
Rewards or incentives exist for participants
Participation in process is expected and encouraged
Have support for innovation by key players and
stakeholders
 PR-EREQUISITES FOR CHANGE

Vision: Develop, articulate and communicate a

shared vision of the desired change
Need: A compelling need has been developed and is
Shared by all
Means: The practical means to achieve vision:
planned, developed and implemented
Rewards: Aligned to encourage appropriate
behavior compatible with vision and change
Feedback: Frequent
 CHANGE MANAGEMENT

Effective Change

Equals

Altering Harnessing Shaping

Mind-set Motivation Behavior
Tell me and I will forget. Show me and I will remember. Involve me and I will understand - Confucius
STAGES OF CHANGE MANAGEMENT
Coming to Grips with the Problem

Working through the Change

Attaining and Sustaining Improvement

 ROLE OF LEADERSHIP IN
IMPLEMENTING CHANGE
Resistance to change and the absence of effective leadership are major
reasons for why most transformation efforts fail
Effective change agents must:
Make every effort to eliminate policies, procedures, and behaviors
that undermine the change efforts
Willing to alter own behavior if it will minimize resistance
Strategies that leaders can use to effectively manage change rather than
simply reacting to it, include:
Articulating a compelling reason for change through effective and
transparent communication
Having a road map for implementation that includes training programs
for required skills/competencies upgradation
Forming a coalition of supporters and experts
Recognizing and rewarding the contributions of others
Having a plan for dealing with resistance
 OVERCOMING RESISTANCE TO
CHANGE
Education and Communication
Assumes that the source of resistance lies in misinformation or poor communication
Best used: Lack of information, or inaccurate information
Participation and Involvement
Prior to making a change, those opposed can be brought into the decision process
Best used: Where initiators lack information, and others have power to resist
Facilitation and Support
The provision of various efforts to facilitate adjustment
Best used: Where people resist because of adjustment problems
Negotiation and Agreement
Exchange something of value for a lessening of resistance
Best used: Where one group will lose, and has considerable power to resist
Manipulation and Cooperation
Best used: Where other tactics wont work or are too expensive
Explicit and implicit Coercion
The application of direct threats or force upon resisters
Best used: Speed is essential, and initiators have power
Chapter 10, Nancy Langton and
Stephen P. Robbins,
Fundamentals of
Organizational Behaviour, Third
Canadian Edition
 THE ADAPTIVE ORGANIZATION

Proactive Calculated risk taking is rewarded

Willingness to make change
Candidness
Identifies problems quickly
Internal and external looking Open to feedback
Implements solutions rapidly
Enthusiasm
Focus on innovation
Upward communication Long-term focus
Trust Investment in Skill Development

Learning Organization