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Change Management & Management of Strategic Change Carmelita Charles Week5
Objectives
By the end of this lesson you will be able to;
• Explain the concepts of change and transitions • Understand how individual perceptions inform
change processes • Explain the various models and approaches to
managing individuals through organisational change• Identify strategies for leading people through change
Exercise
Describe a Change project/process that you’ve been involved with:-
How was it introduced to you?
What happened?
Did the change work?
What would you do differently to lead change for yourself and others?
What type of leadership was at the helm ?
It’s been difficult for 500 years!
‘It should be borne in mind that there is nothing more difficult to handle, more doubtful of success, and more dangerous to carry through than initiating changes in a state’s constitution. The innovator makes enemies of all those who prospered under the old order, and only lukewarm support is forthcoming from those who would prosper under the new. Their support is lukewarm partly from fear of their adversaries, who have the existing laws on their side, and partly because men are generally incredulous, never really trusting new things unless they have tested them by experience.’
Niccolo Machiavelli 1513 – The Prince(Translation: George Bull, Penguin, 1961)
The Pyramid of Resistance
Cultural AlignmentPerformance Management AlignmentShared vision and business case for change
Skill Development ProgrammeRole Models
Effective communicationInvolvement / EngagementLeadership activity & visibility
The keys to Successful Change
Leadership 92%
Corporate Values 84%
Communication 75%
Teambuilding 69%
Education and Training 64%
% of senior executives mentioning these as important in an American AssociationSurvey of Fortune 500 companies in the USA (1995)
% of Firms
Top 10 Barriers to Success
36%
41%
43%
44%
44%
46%
54%
65%
72%
82%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
IT Perspective not Integrated
Not Horizontal Process View
No Change Management Program
Scope Expansion / Uncertainty
Project Team Lacked Skills
Case for Change not Compelling
Poor Project Management
Unrealistic Expectations
Inadequate Sponsorship
Resistance to Change
Source: D&T 1995 CIO Survey
Effective Change Management is a critical success factor
.
EXPLAINING PROCESSES OF INDIVIDUAL CHANGE Elrod and Tippett (2002) Lewin’s (1947) Three-Step model Kubler-Ross (1969) On Death and Dying Marris (1974) Loss and Change Rashford & Coghlan (1989) Denying, dodging, doing and sustaining
Presenter / Location / Date
Kubler-Ross
Future stateCurrent state
External threat
P
How do we understand what this is?
Organisationalanalysis
P
The case for change
PP
Vision• what will it be like• how will we be• what shape• what will it feel like
Change Team
BECKHARD MODEL2
Transitional Bridge
Presenter / Location / Date
Richard Beckhard
A+B+C+D>X
A= shared Vision
B=Dissatisfaction with the status quo
C= First practical steps
D= Competency
X= Fear ( cost of change)
MANAGING INDIVIDUALS THROUGH ORGANISATIONAL CHANGE
Bridges (1986) transition management Conner (1998) a perpetual student of human transitionsBalogun and Hope Hailey (2008) some change processes concentrate on attempting to change the values of employees, others emphasise behavioural change, while others seek to change the performance objectives or outputs of employees.
THE CHANGE EQUATION(1)
Developed by David Gleicher
A = the individual's level of dissatisfaction with things the way they are now
B = the individual's vision of a better future
C = an acceptable first step
D = the cost to the individual of making the change
Individuals will resist change unless: A + B + OD
THE CHANGE EQUATION (2)
Individuals will resist change unless: A + B + OD
Some people sharpen the tool by stating a corollary thus: AxBxCX)
The basis of the pseudo-mathematics is that making a change always costs an individual something, represented by "D". It may be money, resources, it often is time and can be psychological trivia or trauma.
THE CHANGE EQUATION (2)
Individuals will resist change unless: A + B + OD
Some people sharpen the tool by stating a corollary thus: AxBxCX)
The basis of the pseudo-mathematics is that making a change always costs an individual something, represented by "D". It may be money, resources, it often is time and can be psychological trivia or trauma.
“Eight Steps of Change”
Increase Urgency
Build the Guiding Team
Get the Right Vision
22 3311
Creating aclimate for change
Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press. 2002.
Communicate for Buy-in
Empower Action
Create Short-term Wins
6644 55
Engaging and enablingthe whole organization
Don’t Let Up
Make it Stick
77 88
Implementingand sustaining
change
LEADING CHANGEKotter (1996, p26), a great advocate of leadership, asserted that ‘successful transformation is 70 to 90 per cent leadership and only 10 to 30 per cent management.’ In 1995, ‘Leading change: Why transformation efforts fail’ appeared in Harvard Business Review.
1. Establishing a sense of urgency2. Creating the guiding coalition3. Developing a vision and strategy4. Communicating the change vision
LEADING CHANGE
5. Empowering broad-based action 6. Generating short-term wins 7. Consolidating gains and producing more
change8. Anchoring new approaches in the culture
Caldwell (2003) undertook original research in order to establish whether change leaders and change managers’ roles were different. Caldwell suggests that we need both change leadership and change management in order to effectively deliver change.
Presenter / Location / Date
Kotter’s Eight- Stage Process
• Establishing a Sense of Urgency• Creating the guiding coalition• Developing a Vision and Strategy• Communicating the Vision• Empowering Employees for Broad Based
Action• Gathering Short Term Wins• Consolidating Gains and Producing More
Change
Presenter / Location / Date
Transition Management- William Bridges
Change vs Transition
Change – is a shift in the external situation/ environment
Transition- is the psychological reorientation in response to change
Change and Transition are not the same
Presenter / Location / Date
Fundamental difference between Change and Transition
Change• External• Situational• Event based• Defined by outcomes• Can occur quickly
Transition• Internal• Psychological• Experienced based• Defined by process• Always takes time
Presenter / Location / Date
Resistance
It is the transition not change that people fight against• Loss of their identity and world• Disorientation of the neural zone • Risk of failing in a new beginning
PHASES OF TRANSITION MANAGEMENT
ENDINGS
NEUTRAL ZONE
NEWBEGINNING
Early adopters Positive Followers
resistors
Negative resistors
ChampionsDeadbeats
How can you apply this (from marketing) to your organisational change?
•People change only when they want to; - develop a personal need for change
• People commit themselves to a course of action only when they have understood it and had the opportunity to influence it;- a commitment to the course of action
• Changes remain only if those who change learn how they have changed and what it takes to maintain change;- the required skills to maintain that course once implemented
KEY CONCEPTS IN THE PROCESS OF CHANGE
• Who are the key groups?
• What is their attitude towards change?
• What will be the type of transition these people/ groups go through?
• What type of transition/ownership management should we put in place?
• What capacity building programme might we need?
• How to keep the psychological contract with those who leave/those who survive?
MICRO LEVEL
• Work out the business case (logic of change)• What is the vision of change?• How far between where we are & where we want to be?
• Is it transactional or transformational change? Implications?
• State of readiness/capacity of the organisation - freezing, movement, re-freezing (Kurt Lewin)…or
just slush?• Primary focus of intervention - Technical, political,
cultural?• Implication of change area for rest of organisation
• Systemic alignment - lack explains 90% of change failure
CHANGE AT MACRO LEVEL
• List/mindmap all the reasons for the change
• Draw/envisage - if the change project is successful, what will it look like in a few years’ time
• Describe what is A (now) & what is B - change is about getting from A
to B
METHODS TO TALK ABOUT THE CHANGE(S)
• Logic is internal climate affects individual & organisational
performance
• Requires a shift in behaviour
• Focus on structure, systems, management practices, motivation,
task requirements, individual needs & welfare
TRANSACTIONAL (CLIMATE) CHANGE
• Capability of changing
• Accessibility of the obstacle
• Readiness for change
• Leverage
• Technical
• Political
• Cultural
FOCUS OF INTERVENTION
The 2 C’sConnectionConcern
Communicate the 4 P’sPurposePlanShow the PictureAllocate the Part
SIGNS OF WELL MANAGED NEUTRAL ZONES
• People understand what is over and what isn’t• Symbolic boundary actions have been used• Constant communication of information• Losses have been acknowledged• Grieving has been permitted and facilitated
SIGNS OF WELL MANAGED ENDINGS
CRITICAL PERSPECTIVE
The major academic challenge to Kotter’s vision of leading change is: where is the evidence? Does not contain a list of supporting references at the end of the book and in the body of the book there are only cursory references to Kotter’s earlier publications. There is no explicit evidence of successful organisational change arising out of following the eight steps. The book does not acknowledge the importance of context in processes of organisational change.Culture, power, communications and employee relations are dealt with in a very simplistic manner in the book.
Presenter / Location / Date
LEADERSHIP AND CHANGE
Does Leadership make a difference?
EVALUATING THE OUTCOMES OF MANAGING CHANGE
‘The brutal fact is that about 70 per cent of all change initiatives fail.’ (Beer and Nohria, 2000a, p133)
EVALUATING THE OUTCOMES OF MANAGING CHANGE
Explaining why organisational change fails: Frequency Implementation Top Down/Bottom Up Cultural challenges People problems Power and politics
EVALUATING THE OUTCOMES OF MANAGING CHANGE
Potential pitfalls of evaluating organisationalchange outcomes The context specific nature of managing changeThe latent and espoused rationales of a change initiative The unintended consequences of a change initiative The multidimensional/interdependent nature of a change initiative.
What is Change Leadership?
Successful Change Leadership is about getting individuals and groups to do things differently, to change the way they behave and to implement the changes associated with new systems and processes. Any transformation programme will create significant organisational and individual change challenges. Staff will quickly realize that their roles and responsibilities are going to change significantly, and that job shifts may result.
It is vital for the leadership to understand the human dynamics of change and to act upon it. This task is particularly challenging as people respond both on a rational and emotional basis.
Key attributes of an effective change leader (1)
• Tenacity• Ability to inspire through role modelling and
influencing• Authenticity, credibility & trustworthiness• Ability to see the big picture - strategic• Outcome focus• Organised / project management skills• Stakeholder management ability
Key attributes of an effective change leader (2)
• Research / evidence based practice focus• Measurement focus – quantitative & qualitative• Understanding of cultures and how to redesign
them• Understanding of structures and how to
redesign them• Understanding of procedures and how to
redesign them
Key attributes of an effective change leader (3)
• Ability to balance ‘hurry up and get results’ with ‘slow down and check what we are doing’
• Creativity and innovation• Ability to build and support team development• Ability to enable people development• Comfort with ‘soft systems’ (a set of
component plans, structures & practices that are often messy and random because people are involved!)
Setting the scene
I know something is changing
I know what it is
I know the implications for me
I’ll look at doing it the new way
I’ll do it the new way
This is the way we do things
This is the way I do things
Achieving acceptance
Achieving commitment
An important thing to remember is that not everyone needs to get to the top level of commitment immediately!
The Commitment Curve illustrates the different stages of change that people go through for sustainable transformation
LASTINGCHANGE
SUSTAINABLECHANGE
NoOwnership
No RoleModels
NoKnowledge
NoWillingness
NotLasting
No Results
NoDirection
Leader & Stakeholder Commitment
CulturalFit
NoAction
Change Management
Process
EffectiveCommunication
ClearShared Vision
Individual & Team
CapabilityCase for Change
Performance Measures+ ++ + + =++
=
=
=
=
=
=
=
=
=
Critical Success Factors for Sustainable Change
Traditional approach
Analysis-Think-Change
Traditional approach
Analysis-Think-Change
A “people-driven” approach to problem solving is required for truly successful change results
Focus: Give People Analysis
1. Information is gathered and analysed, reports are written, and presentations are made
As a result:
2. The information and analysis change people’s thinking
3. New thoughts change behaviour or reinforce changed behaviour
Focus: Help People See
1. Compelling, eye-catching, dramatic situations are created to help others visualise problems, or solutions
As a result:
2. Seeing something new hits people on a deeper, emotional level. This helps reduce emotions that block change and enhance those that support it
3. Emotionally charged ideas change behaviour or reinforce changed behaviourIn the most successful change cases, individuals had a sense of passion. On
the other hand, where change was less successful, individuals tended to intellectualise the change.
Recommended approach
See-Feel-Change
Recommended approach
See-Feel-Change
Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press. 2002
Reference
Adams, Hayes and Hopson (1976) Transitions: Understanding and Managing Personal Change, Martin Robertson, LondonBeckhard,R , Harris R.T(1987) Organisational Transitions : Understanding complex change. Addison-Wesley; 2 edition. Cameron, E & Green, M (2004) Making Sense of Change Management, Kogan Page, LondonJarrett M, (2009) Changeability: why some companies are ready for change and others aren’t, FT Prentice Hall, Harlow Great BritainGreen, M (2007) Change Management Masterclass, Kogan Page, LondonKotter, J (2012) Leading Change, Harvard Review PressKubler Ross, E (1969) On Death and Dying, Macmillan, New York
Next session
Power, Politics & Organisational Change
Question:How Powerful are you?
Reading: French, J.R.P., Jr., & Raven, B. (1959). The bases of social power. In D. Cartwright (Ed.), Studies in social power. Ann Arbor, MI: Institute for Social Research, The University of Michigan.