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SYNDICATE REPORTONCHANGE MANAGEMENT

Engr. Muhammad Tanveer AbidBy

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CHANGE MANAGMENT

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SELF INTRODUCTION

. NAME . MUHAMMAD TANVEER ABID

. QUALIFICATION

.B.Sc (ELECTRICAL) FROM U.E.T LAHORE IN 2001 & MBA (Executive) FROM AIOU IN 2013.

. JOINED MEPCO . MARCH 2002

. PRESENT POSTING

. Addl: EXECUTIVE ENGINEER, MEPCO S/Div DAHRANWALA

. WORK EXPERIENCE

. 13 YEARS in MEPCO

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Self-assessment can motivate change. Fear of self-knowledge can

prevent it.”—Walter Turnow

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SEGMENTS COVERED

INTRODUCTION

REASONS OF CHANGE

CONCEPTS OF CHANGE

MODELS

RESPONSES TO CHANGE

CHANGE PROCESS

CASE STUDY

CONCLUSION & RECOMMENDAT

IONS

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OVERVIEW OF CHANGE

It has never been more true that today and tomorrow will be a time of constant and rapid change. Managers and leaders need the skills to help their people and organizations navigate the rocky and chaotic shoals of change. Without the proper tools and understanding of how to lead change, you will be unable to prevent your organizations from being destroyed on the sharp edges of ambiguity and chaos.

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CHANGE MANAGEMENTChange management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level.

Change management is an approach to transitioning individuals, teams, and organizations to a desired future state.

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CHANGE MANAGEMENT

Prosci’s Definition:

Change management is the application of a structured process and set of tools for leading the people side of change to achieve a desired outcome.

10 REASONS FOR CHANGE

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REASONS FOR CHANGE

External Forces For Change

Market situation or market place Technology Government laws and regulations Economics

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REASONS FOR CHANGE

Internal Forces For Change

Corporate strategy Workforce Technology and equipment Employee attitudes

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ORIGINS OF CHANGE MANAGEMENT

Change management was originated in the 1950's

modern forms of management were introduced

e.g. teamwork, autonomous groups “war” between followers of top-down change approaches bottom-up change approaches

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BASICS OF CHANGE MANAGEMENT

Correct understanding of the organizations that want or need to be changed.

Correct understanding of the people who are willing or forced to change effectively.

Realization of change understanding the dynamics of change.

15 CONCEPTS OF CHANGE MODELS

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CONCEPTS OF CHANGE MODELS

George Box, a statistician said, "essentially, all change models are wrong, but some are useful”.

Role of Organizational change management (OCM).

The complex and unpredictable human behavior.

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CONCEPTS OF CHANGE MODELS

Prosci’s ADKAR Model

Developed in 1998 by Prosci.

ADKAR, A goal-oriented change management model.

Focus on team activities.

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CONCEPTS OF CHANGE MODELS

Benefits1. It encapsulates the business/process dimension

of change and the individual dimension of change2. Provides a clear management checklist to

manage change

Limitations1. Misses out on the role of Leadership and

principles of program management to create clarity and provide direction to change

Prosci’s ADKAR Model

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CONCEPTS OF CHANGE MODELS

McKinsey 7-S Model

To facilitate organizational change.

To help implement new strategy.

To identify how each area may change in a future.

To facilitate the merger of organizations.

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CONCEPTS OF CHANGE MODELS

BENEFITS1. Examines the likely effects of future within an

organization.2. Align department and processes during a merger or

acquisition. 3. Determines how best to implement a proposed strategy.

LIMITATIONS1. The external environment is not mentioned, although

others variable exists & only the most crucial variables are depicted in this model.

2. The notion of performance & effectiveness is not made explicit.

McKinsey 7-S Model

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CHANGE MANAGEMENT MODELS

Establish a Sense of Urgency

Form a powerful, guiding coalition

Develop a vision & Strategy

Communicate the vision Remove Obstacles & empower action

Plan and create short-term wins

Kotter's 8-Step Change Model

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CHANGE MANAGEMENT MODELS

BENEFITS1. Focus on buy-in of employees as the focus for

success2. Clear steps which can give a guidance for the

process3. Fits well into the culture of classical hierarchies LIMITATIONS1. The model is clearly top-down, it gives no room for

co-creation or other forms of true participation.2. Can lead to frustrations among employees if

the stages of grief and individual needs are not taken into consideration.

Kotter's 8-Step Change Model

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CHANGE MANAGEMENT MODELS

Bullock And Batten’s Phases Of Planned Change

Exploration phase Planning phase Action phase Integration phase

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CHANGE MANAGEMENT MODELS

Bullock And Batten’s Phases Of Planned Change

Benefits1. An individual’s reaction to change is well captured,

this forms a good foundation to develop communication strategy

Limitations1. Not all change is bad. This model assumes the

worst reaction to change.2. It is difficult to identify the transition between

stages. 3. Difficult to apply to a group

25 RESPONSE TO CHANGE

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RESPONSE TO CHANGE

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ORGANIZATIONAL RESPONSE TO CHANGE

Time Needed For Different Personalities To Change Innovators and Early Adaptors – Short time to change

and join the organization. Intellectuals – need more time to process. Will

eventually come along. Late adaptors – Need more time to change. Traditionalists/Diehards – Will hold out to the end

until they have to change.

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POSITIONAL RESPONSE TO CHANGE

Top Management Isolated at the top and may underestimate the

impact of change. Avoid communication in fear they do not have the

answers. Depend on Middle-Managers to make change

happen.

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POSITIONAL RESPONSE TO CHANGE

Middle Management Squeeze between Top Management and Workers. Feel pressure to make change happen. Often feel deserted, blamed or misunderstood

when there is resistance to change.

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POSITIONAL RESPONSE TO CHANGE

Workers Often feel attacked that they are not doing a good

job when changes are made. Many respond with anger, frustration, and

confusion. Become afraid to take risks or be innovative.

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PEOPLE’S RESPONSE TO CHANGE

People Respond Differently To Change Based On: Skills Knowledge Attitudes Motivation Experiences Personality

32 THE CHANGE PROCESS

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THE CHANGE PROCESS

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THE CHANGE PROCESS

Initiating A Top-Down Change

External expert for a strategy audit Process analysis Elimination of all non value-increasing

activities Optimisation of all activities

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THE CHANGE PROCESS

Initiating A Bottom-Up Change

Responsibilityfor managing change Change management process Dealing with the change Scope

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CHANGE MANAGEMENT PROJECTS

Change Strategies And Approaches

Directive strategies Expert strategies Negotiating strategies Educative strategies Participative strategies

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REASONS OF CHANGE PROCESS FAILURE

Not every change process is successful A 60% to 80% of change processes fail due

to Insufficient Problem Awareness Insufficient Communication Unprofessional Stakeholder Management Lack of Control Allowing too much complacency Failing to create a sufficiently powerful

guiding coalition

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REASONS OF CHANGE PROCESS FAILURE

Underestimating the power of vision

Permitting obstacles to block the new vision

Failing to create short-term wins Declaring victory too soon Neglecting to anchor changes

firmly in the corporate culture

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CHANGE MANAGEMENT PROJECTS

Bringing Change To Success

Building a Business Case Determining Organizational

Readiness Reaching more people – better

communication Involvement of the

Stakeholders Review the Change

40 CASE STUDY OF PTCL

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PRIVATIZATION OF PTCL

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PRIVATIZATION OF PTCL

In 1991 Govt. decided to privatize PTCL, by selling 26% shares with management rights.

In 1994 12% of its shares were divested. In 1994 Govt. issued 1 million

exchangeable vouchers, equal to 100 million shares of Rs.10each for Rs.3 billion .

In September 1994 five million vouchers has been issued to 31 international investors for $ 900 million

HISTORY

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PRIVATIZATION OF PTCL Cont…

In 1997 notes of $150 million were issued to international investors which were convertible to “A” class ordinary shares, which were equal to 3.3% of total share capital.

In 1998 Govt. hire M/s Goldman International to provide advisory services.

According to M/S Goldman Report, PTCL handed over to “Etisalat”, they purchased 26% shares with management rights.

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DIFFERENT RESPONSES TO CHANGE

Resistance by the Employees.

Resistance by Social groups.

Resistance from Political Parties.

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DIFFERENT RESPONSES TO CHANGE

Ptcl Had To Face Very High Resistance Due To:

Less magnitude of communication was found between the employees and the administration.

The incentives given to the employees were not enough to make them feel heard.

The job cuts were far beyond the limits and still the employees are in fear of losing the  jobs.

 

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DECISIONS TAKEN BY PTCL MANAGEMENT

VSS (voluntary separation scheme) program was launched.

Equal employment opportunities was facilitated.

fresh blood from the market was inducted. T & D department organized a

comprehensive six months “Urgent Training Needs” program in technical and managerial fields to enhance soft skills.

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BRIGHTER SIDE

More customers and subscribers are heading

toward the company, thus making it profitable.

PTCL introduced new technology in some areas.

Improve customer services.

48 CONCLUSION & RECOMMENDATIONS

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CONCLUSION Change is inevitable. Forces for change comes either from

within and outside the firm. Today, trend is toward learning

organizations. Managers should think of change, as

having four elementsI. The forces for changeII. The perceived need for change III. The initiation of changeIV. The implementation of change

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RECOMMENDED STEPS TO HANDLE RESISTANCE

i. Address the “human side” systematicallyii. Start from the topiii. Involve every layeriv. Make the formal casev. Create ownershipvi. Communicate the messagevii. Assess the cultural landscapeviii. Address culture explicitlyix. Prepare for the unexpectedx. Speak to the individual

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RECOMMENDATIONS Organization should be designed for creativity,

encouraging change agents, and establishing  changes. Technology changes should be accomplished

through a bottom-up approach. Structural changes should be initiated in a top-

down fashion.

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RECOMMENDATIONS Executive managers should familiarise

themselves with the toolbox of change management.

If you wish to remould your company or organization, first make sure you really want the change and get enthusiastic about the opportunities.

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