01 Management of Change

7/24/2019 01 Management of Change

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Management

of

Change

Prof Bharat Nadkarni


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Management of Change

What is Business?


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Nothing can be changed

by changing the face...

but everything can be changed

by facing the change...


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Survival Rate for Corporates

Age in Years Percentage surviving

5 3

!" #!

!5 !$

#" !"

#5 %

5" #

%5 !

!"" "&5"


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Innovate or Perish1. Incremental Vs adical change

!. "trategic ty#e of change

$. %echnological change

&. Ne' Product and "ervices

(. )earning organisation


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* +.. , +.. +.. ) +..I

'*##roach or Planning

',e#loyment or Im#lementation

'esult

')earning

'Im#rovement


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Creativit( ) *nnovation

"ystematic redesign of Processes

!& 4liminate

#& Simplif(

3& *ntegrate

$& Automate


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-rganisational ffectiveness

Productivit( Profits 4fficienc(

ualit( Accidents 6ro,th

A+sentism 7urnover 8o+ Satisfaction

Motivation Morale Control

Conflict9Cohesion Readiness Sta+ilit(

6oal Consensus *nternalisation of:rg& 6oals

Role ) NormCongruence

Managerial*nterpersonal Skills

Managerial 7askSkills

*nformation Mgmt) Communications

.le1i+ilit(9Adaptation

7rg ) 2ev4mphasis

Planning ) 6oalSetting


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Who are the "ta/eholders of Business ?

' Shareholders and Promoters

' Customers

' 4mplo(ees

' Suppliers and Partners ;incl Contractors Agents etcs

Stakeholders&?

4ffectiveness of BusinessAchievement of :+@ectives&

4fficienc( in Business

Achievement of Results ,ith the least amount ofResources&


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Innovation

7he N2B Concept

Managing Change

8ack /elsh 7heor(

-rgani0ational ene'al evitalisation

Continuous Process +rought +( internal incum+ents&


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merging Waves

2actor 3esterday %oday

4conom( Protected :pen

Characteristic Monopolistic Competitive

Market Sellers Bu(ers

Pla(ers .e, Several

ind of Pla(ers National 6lo+al

Price evel igh 2ropping

Consumer No choice Multiple Choice7echnolog( o, igh

ualit( Average igh

2eliver( /eeks9Months9Years :ff the shelf

Pricing igh CutDthroat

Needs imited 4nhanced

Response Sluggish uick

Relation Curt Respect

Approach Mass PersonalisedSt(le Arrogant Enderstanding


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Changing Characteristics of Corporates

:ld Ne,

6oal :riented Fision oriented

Price focused Falue focused

Product Gualit( 7otal Gualit(

Product driven Customer drivenShareholder focused Stake holder focused

.inance oriented Speed oriented

4fficient Sta+le *nnovative entrepreneurial

ierarchical .lat empo,eredMachine +ased *nformation +ased

.unctional Cross functional

Rigid Committed .le1i+le learning

ocal9regional9National 6lo+al


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%est 3our Memory

' /hen did (ou last see or hear a+out these0

H 7(pe,riter 9 Stencils 9 C(clost(ling

H 7ele1 9 teleprinter 9 telegramH .ountain pen 9 ink 9 +lotting paper

H Pagers

H Slide rule

H FCRH :n the ,a( out- .a1 9 .ilm roll 9 conventional

telephone

H I to 5


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%he ise ,ecline of+++..

' All species ;and organiJations< go through a common lifeD

c(cle of *ntroduction

gro,th

maturit(

decline

and eventual death&

' 7ransformation ) change management is a+out-

H astening the gro,th phase

H Prolonging life +( arresting the decline phaseHAdapting to emerging opportunities ) threats


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Intriguing Ine#titude

' An oftDrepeated clichK- =7he onl( thing constant in life is

change?' Yet ,e are hopelessl( clums( at managing change&

' Most attempts at change not onl( fail to lead to

improvements +ut also result in organiJational trauma&


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)essons 2rom ,r. Christian Barnard

' 7he recipient of the first heart transplant died ,ithin a

fortnight of his operation&' Cause of death- =ph(siological shock?

' 7he patient>s +od( re@ected the health( transplanted

heart&

' esson learnt- .irst suppress the +od(>s immune s(stemto prepare it to accept an alien organ&


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%he %y#ical Change Process

' A ke( person has a L+rilliant idea>

' :vercome +( the +rilliance of his o,n idea he is in a

tearing hurr( to implement it&' e is totall( insensitive to the Limmune s(stem> of his

organiJation&

' e follo,s through unilaterall(& Result-

H SurpriseHAnger

H Re@ection


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emember 44

' 7he +rilliance of an idea is not enough

' Change strikes fear in the su+conscious minds of thoseaffected +( it&

' 7herefore it must +e communicated ) sold ,ellin order

to +e understood&

' 7he time invested in this preparator( phase ofcommunicating the need for and advantages of change

is vital for the success of an( change effort&


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%he "uccessful *##roach5 I&

' *nform

H ighlight the dangers lurking round the corner

H 4sta+lish the need for change' *nspire

H ighlight the +enefits from change

' *mplement

H *nvolve peopleHAllo, e1periments ) tolerate failures

' *nstitutionaliJe

H Cele+rate successes


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What 3ou Can ,o

' Accept change (ourself

' Communicate communicate ) communicate&' isten& Enderstand and remove fears

' *nvolve people in planning ) implementation

' 2evelop strateg( for overcoming resistance

' elp people learn ne, skills' Challenge complacenc(

H Share information a+out competition 9 threats

H Set high standards of performance


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:rganiJational Change - Prof Bharat Nadkarni

* 67ste# oadma#

' Creating a shared need- Why do it?

' Fisioning- What will it look like when done?

'eading change- Who will be responsible?

' Mo+iliJing commitment- Who else to involve?

' Modif(ing s(stems 9 structures- How will it be

institutionalized?

' Monitoring progress- How will it be measured?' Making it last- How will it get started and last?


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89% )WIN 5 2I), 2-C

%:-35' ! increase the driving forces - generall( seen

that restraining forces also increasesimultaneousl( there+( returning to theeGuili+rium state

'

' # decrease the restraining forces - a change isless resisted ,hen those affected +( it

participate in the change

' *nvolves 3 steps


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89% )WIN 5 2I), 2-C %:-3

' A unfreeJing - creates motivation forchange if people feel uncomforta+le ,ith thepresent situation the( ma( see the need forchange

' B change - assimilation of ne, informatione1posure to ne, concepts development of adifferent perspective

' C freeJing - sta+ilises the change& Changeto +e effective has to +e congruent ,ith aperson>s self concept and values&


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%;M 5 M9*

*nnovations ) 2iscrepancies in the s(stem

' appens sometimes

' appens at some places

' appens to some people


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Thank You


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Competency Clusters

BusinessKnowledge

Communicatio

n

Proactivity

Collaboration

Result Focus

CustomerFocus

Innovation

Leadership

Conceptual Thinking (Futuristic

!" P#$

%daptability


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Management


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:rg& 2ev& ) Change - Prof Bharat Nadkarni

)eading Managing Change for ffective change Mgmt

!& Motivating changea& Creating readiness for change

+& :vercoming resistance to change

#& Creating a visiona& 2escri+ing the core ideolog(

+& Constructing the envisioned future

3& 2eveloping political support

a& Assessing change agent po,er

+& *dentif(ing ke( stakeholders

c& *nfluencing stakeholders


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:rg& 2ev& ) Change - Prof Bharat Nadkarni

)eading Managing Change for ffective change Mgmt

5& Managing the transitiona& Activit( planning

+& Commitment planning

c& Management structures

O& Sustaining momentum

a& Providing resources for change

+& Building a support s(stem for change agents

c& 2eveloping ne, competencies and skills

d& Reinforcing ne, +ehaviours

e& Sta(ing the course

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01 Management of Change

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