Change Management Change Management

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ContentsContents

• Forces for ChangeForces for Change

• Principles of ChangePrinciples of Change

• Five Activities Contributing to Effective Change Five Activities Contributing to Effective Change

ManagementManagement

• Motivating ChangeMotivating Change

• Creating Vision of ChangeCreating Vision of Change

• Developing Political SupportDeveloping Political Support

• Managing the TransitionManaging the Transition

• Sustaining MomentumSustaining Momentum

• Elements of Change EnablementElements of Change Enablement

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“When the rate of change outside exceeds the rate of change

inside, the end is in sight”

Rate of ChangeRate of Change

Jack Welch

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Forces for Change...Forces for Change...

Electronic commerce

Virtual organizations

Digital convergence

“Knowledge economy”

“Information Superhighway”

... are transforming the world of business

Mergers & acquisitions

Privatizations

A-2

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Not Very Successful

Very Successful

Moderately Successful

Too soon to tell

Unsure33%

27%

27%

9%

4%

Rate of Success in Change Efforts Rate of Success in Change Efforts

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Technical Side of ChangeTechnical Side of Change Human Side of ChangeHuman Side of Change

Two Sides of ChangeTwo Sides of Change

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1.1. Change is a process that can be enabled, not Change is a process that can be enabled, not

managedmanaged

2.2. The change process must be linked to business The change process must be linked to business

and performance goalsand performance goals

3.3. Building capacity to change is a strategic Building capacity to change is a strategic

imperative imperative

4.4. Building capacity for change is an evolutionary Building capacity for change is an evolutionary

processprocess

Principles of ChangePrinciples of Change

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5.5. Effective change processes require a systemic Effective change processes require a systemic

view of the organizationview of the organization

6.6. The change process involves both organizational The change process involves both organizational

and personal transitionsand personal transitions

7.7. Behavioral change is a function of perceived need Behavioral change is a function of perceived need

and occurs at the emotional, not the intellectual and occurs at the emotional, not the intellectual

levellevel

Principles of ChangePrinciples of Change

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8.8. Resistance to change is predictable reaction to Resistance to change is predictable reaction to

an emotional process and depends on a person’s an emotional process and depends on a person’s

perception of a change situationperception of a change situation

9.9. A handful of change enablement best practices A handful of change enablement best practices

account for the success of most change account for the success of most change

processesprocesses

10.10.Change strategies are situationalChange strategies are situational

Principles of ChangePrinciples of Change

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Five Activities Contributing to Five Activities Contributing to Effective Change ManagementEffective Change Management

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Five Activities Contributing to Effective Five Activities Contributing to Effective Change ManagementChange Management

1. Motivating Change

2. Creating Vision of Change

3. Developing Political Support

4. Managing the Transition of Change

5. Sustaining Momentum

Effective Effective ChangeChange

ManagementManagement

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1.1. Motivating ChangeMotivating Change

Motivating change and creating readiness for

change

Sensitize organizations to

pressure for change

Reveal discrepancies

between current and desired states

Convey credible positive

expectations for the change

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Force Field Analysis ModelForce Field Analysis Model

Current Situation

Restraining Forces for ChangeRestraining Forces for Change

Driving Forces for ChangeDriving Forces for Change

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Force Field Analysis ModelForce Field Analysis Model

Strengthening or adding

driving forces

Removing or reducing

restraining forces

Changing the direction of some of the

forces

ChangeChange

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Group ExerciseGroup 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

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Resistance to Change

20% 40% 60% 80% 100%

Source: Information Week, June 20, 1994

Limitations of Existing Systems

Lack of Executive Commitment

Lack of Executive Champion

Unrealistic Expectations

Lack of Cross-Functional Team

Inadequate Team and User Skills

Technology Users Not Involved

Project Charter Too Narrow

Barriers to ChangeBarriers to Change

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Individual ResistanceIndividual Resistance

Individual Resistance

Habit

Selective Information Processing

Economic Factors

Job Security

Fear of the Unknown

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Organizational ResistanceOrganizational Resistance

Organizational Resistance

Threat to Established Power Relationship

Group Inertia

Threat to Established Resource Allocations

Structural Inertia

Limited Focus of Change

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Denial

Resistance Exploration

PastPast FutureFuture

Four Phases of TransitionFour Phases of Transition

Commitment

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• “How good things were in the past”

• “It can’t happen here”

• Numbness

• Everything-as-usual attitude

• Refusing to hear new information

• Anger

• Loss and hurt

• Stubbornness

• Blaming others

• Complaining

• Getting sick

• Doubting your ability

Some of the Signs in Each PhaseSome of the Signs in Each Phase

Denial Resistance

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Exploration Commitment

• “What’s going to happen to me?”

• Seeing possibilities

• Chaos

• Indecisiveness

• Unfocused work

• Energy

• Clarifying goals

• Seeing resources

• Exploring alternatives

• “Where I am headed”

• Focus

• Teamwork

• Vision

• Cooperation

• Balance

Some of the Signs in Each PhaseSome of the Signs in Each Phase

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Overcoming Resistance to ChangeOvercoming Resistance to Change

Education and Communication

Participation and Involvement

Facilitation and Support

Negotiation

Manipulation and Cooptation

Coercion

Overcoming Resistance to Change

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2. Creating Vision of Change2. Creating Vision of Change

Constructing Constructing the Envisioned the Envisioned

FutureFuture

Bold and Bold and Valued Valued

Outcomes Outcomes

Desired Desired Future Future StateState

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3. Developing Political Support3. Developing Political Support

Assessing Change Assessing Change Agent PowerAgent Power

Identifying Key Identifying Key StakeholdersStakeholders

Influencing Influencing StakeholdersStakeholders

Developing Developing Political Political SupportSupport

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Roles in Organizational ChangeRoles in Organizational Change

Change Change SponsorSponsor

Change Change AgentsAgents

Change Change TargetTarget

These are individuals or groups with

the power to determine that a change

will occur

These are individuals or groups

responsible for seeing that a previously

determined change occurs

These are individuals or groups who are

asked to change something (knowledge,

skills, or behavior) as a result of the

change

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Influencing Key StakeholdersInfluencing Key Stakeholders

A set of questions designed to profile an individual stakeholder:

• Reluctant and occasional • Make response to threats • Assertive and direct • Deception and subtlety

What is their

style of using

power?

• What is their source of power ?• What they can control: money, time,

resources, people, information ? • Who they can influence: friends, admirers,

those who feel obligation ?

Power

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Influencing Key StakeholdersInfluencing Key Stakeholders

• Changes their power ?

• Affects other needs ?

• Affects goals, objectives and interests ?

• Opposition, uncertainty or support ?

• Action now or ‘wait and see’ ?

• Open action or hidden action ?

• Individual action or acting with others ?

What is their likely What is their likely

response to the response to the

change?change?

How does the How does the

change really affect change really affect

them?them?

Effect of ChangeEffect of Change

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Influencing Key StakeholdersInfluencing Key Stakeholders

• Significant or limited ? • Local or widespread ? • Recoverable or permanent ?

What would be the What would be the

impact of their impact of their

response?response?

Effect of ChangeEffect of Change

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Influencing Key StakeholdersInfluencing Key Stakeholders

What would make What would make them more them more

supportive of the supportive of the change?change?

• Information / understanding ? • Involvement and ownership ? • Changes in planned actions? • Direction from more senior managers ? • Evidence of the success of the change ?

What would make What would make them less them less

supportive of the supportive of the change?change?

• Personal threat ? • Non-involvement in decisions ? • Personal rivalries ? • Insufficient evidence in ‘trial period’

(defined by them) ?

Influencing Key StakeholdersInfluencing Key Stakeholders

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4. Managing the Transition 4. Managing the Transition

Current State

Desired Future State

Transition Transition StateState

• Activity PlanningActivity Planning• Change Management TeamChange Management Team

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Head(Executive Sponsor)

HeadOrganizationalDevelopment

(Change Leaders)

Communication Role(Change Agents)

Human Resources Role(Change Agents)

• Corporate Management• Key project accountability and ownership• Report to CEO on project outcomes/success

• Coordinate overall change program• Develop clear change strategies for change• Responsible and accountable for overall success• Develop individual and team change capability

• Provide clear communication to all key stakeholders on change related issues

• Develop 2-way communication channels to foster ongoing organizational change

• Provide expert HR advice on personal transitions and support

• Provide Change Office & project based HR infrastructure

Change Management Team : Roles ExampleChange Management Team : Roles Example

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Project Leaders

• Take responsibility for key initiatives• Coordinate project team• Report to business unit GM and Change Office on

project progress

• Develop leadership change management capability• Provide ongoing change advice to leaders

• Coordinate project infrastructure & integration• Prioritize and plan overall project timeframes

• Establish clear project performance measures and reporting systems

• Manage ongoing project performance• Report to Executive on overall progress

Leadership AdvisoryRole

Process Co-ordinationRole

PerformanceManagement Role

C - 5

Change Management Team : Roles ExampleChange Management Team : Roles Example

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Critical Skills of Change AgentsCritical Skills of Change Agents

Understands Understands change change

dynamicsdynamics

Appreciates Appreciates diversitydiversity

Anticipates Anticipates and manages and manages

resistanceresistance

Understands power and influence

Has high credibility

Manages multiple tasks

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5. Sustaining Momentum5. Sustaining Momentum

Sustaining Sustaining

MomentumMomentum

Providing Resource for Change

Building a Support System for Change Agents

Developing New Competencies and Skills

Reinforcing New Behaviors

Staying the Course

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Five Activities Contributing to Effective Five Activities Contributing to Effective Change ManagementChange Management

1. Motivating Change

2. Creating Vision of Change

3. Developing Political Support

4. Managing the Transition of Change

5. Sustaining Momentum

Effective Effective ChangeChange

ManagementManagement

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Elements of Change Elements of Change

Enablement Enablement

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Culture Capacity

Leadership Capacity

Individual & Team

Capacity

FutureState

CurrentState

Leadin

g

Leadin

g

Designing

RealizingRealizing

EndingExplorin

g

Beg

inni

ng

Leadership Capacity

Individual & Team Capacity

Change Architecture

Communication

PerformanceManagement

Cultural Capacity

Organ

izatio

nal T

ransi

tion

Perso

nal T

ransi

tion

Elements of Change EnablementElements of Change Enablement

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Change Change ArchitectureArchitecture

CommunicationCommunication

Performance Performance ManagementManagement

Organizational Organizational TransitionTransition

Leadership Leadership CapacityCapacity

Team & Individual Team & Individual CapacityCapacity

Cultural Cultural CapacityCapacity

Personal Personal TransitionTransition

ChangeChangeProcessProcess

Elements of Change EnablementElements of Change Enablement

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There is an explicit strategy and

structure which define the nature and

sequence of specific activities and

resources required to facilitate the

change process.

Change Change ArchitectureArchitecture

CommunicatCommunicationion

An infrastructure and plan is in place to

build awareness of change goals,

communicate progress toward

attainment of these goals, and

encourage collective ownership of the

change process and outcomes.

Change Enablement – Best PracticesChange Enablement – Best Practices

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Human Resources processes -

recruiting, training, measuring and

rewarding - are aligned to drive new

behaviors in support of the business

vision.

Performance Performance ManagementManagement

Change Enablement – Best PracticesChange Enablement – Best Practices

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Leaders’ values and behaviors are

aligned with the business vision; leaders

possess the skills to drive the change

process to completion, and accept the

responsibility for doing so

Leadership Leadership CapacityCapacity

Team & Team & Individual Individual CapacityCapacity

Actions have been taken to increase

individuals’ and teams’ ability to enact

the business vision and operate

effectively in the new environment.

Change Enablement – Best PracticesChange Enablement – Best Practices

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The organization has assessed the

alignment of the current culture with the

change process and built new values

and behaviors as appropriate to support

it.

Cultural Cultural CapacityCapacity

Change Enablement – Best PracticesChange Enablement – Best Practices

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Recommended Further Readings:

1. Thomas Cummings and Christopher Worley, Organization Development

and Change, South Western College Publishing

2. Lynn Fossum, Understanding Organizational Change, Crisp Learning

Publication

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