Organizational Change and Development - Module 1 - MG University - Organizational Change and...

Organizational ChangeModule 1 – MG University

Prepared By

Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.

Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – [email protected]

Contents

• Organizational Change: Meaning- Necessity for Change- Classification of change-factors affecting change.

• Model of Organizational change- Kurt Lewin Three Stage Model and Force Field Analysis- Systems theory, 7 Stage models, Burke-Litwin model, Porras and Robbortson.

• Change Agent-Role and Skills of a change Agent.HR Role as change agent.

• Resistance to Change and minimizing the resistance.• Impact of change on Human Resources Planning.• Quality consciousness as an emerging catalyst for

change.

Continuous Change at Nokia• Nokia has continually adapted

to its changing environment.

• The Finnish company began as a pulp and paper mill in 1865, then moved into rubber, cable wiring, and computer monitors.

• In the 1980s, Nokia executives sensed an emerging market for wireless communication.

• Today, Nokia is a world leader in cellular telephones.

Organizational Change: An International Phenomenon

0 10 20 30 40 50 60 70 80

0 10 20 30 40 50 60 70 80

Percentage of Respondents by Country

Internationalexpansion

Reduction inemployment

Mergers,divestitures,acquisitions

Majorrestructuring

HungaryMexicoS. KoreaGermanyUnited StatesJapan

(Source: Kanten, R., 1991.)

Organizational Change

• Organizational change occurs when business strategies or major sections of an organization are altered.

• It is defined as a change that has significant effects on the way work is performed in an organization.

Organizational Change

• Organizational change may be apparent when there is a gap between how the work area is operating and how it should be operating to ensure successful future growth.

• Organizational change may be a result of the work area identifying goals that they want to achieve.

Change management

• Change management is a structured approach to shifting individuals, teams and organisations from a current state to a desired future state.

• It is an organisational process aimed at helping employees to accept and embrace changes in their current business environment.

Change management

• Kotter defines change management as the utilization of basic structures and tools to control any organizational change effort.

• Goal of change management is to minimize the change impacts on workers and avoid distractions.

Speed of Change

Criteria toConsider

Urgency

Degree of support

Amount and complexity of change

Competitive environment

Knowledge and skills available

Financial and other resources

Characteristics of OC• Change happen for the pressure of

both internal and external forces in the organization.

• Change in any part of the organization affect the whole organization.

• Change may affect people , structure, technology, and other element of the organization.

• Change also affect the rate of speed and degree of significance of the organization.

• Change may be reactive or proactive.

Forms of change

Planned change

• It is a change resulting from a deliberate decision to alter the organization.

• Companies that wish to move from a traditional hierarchical structure to one that facilitates self-managed teams must use a proactive, carefully orchestrated approach.

• Not all changes are planned.

Unplanned change

• It is imposed on the organization and is often unforeseen.

• Changes in government regulations and changes in the economy, for example, are often unplanned.

• Responsiveness to unplanned change requires tremendous flexibility and adaptability on the part of the organizations.

• Managers must be prepared to handle both planned and unplanned forms of change in organizations.

Radical Change

• It is a process by which firms regain competitive advantage after it has been lost or threatened significantly.

• The type and extent of change undertaken depends upon the firm’s resources and capabilities; its competitive environment; and its leadership.

• Radical change is divergent, meant to fundamentally change the firm’s processes, systems, structures, strategies, and core values.”

Transformational change

• Transformational change occurs when organizations incur drastic changes and must essentially transform themselves.

• This can occur when an organization faces different technologies, significant changes in supply and demand, unexpected losses etc.

Change agents

• Change agents are responsible for managing change activities.

• They see a future for the organization, which others have not identified, and they are able to motivate, invent and implement this vision.

• Change agents can be managers or non-managers, current or new employees, or outside consultants.

Change agents• Jim Canterucci defines change

leaders on five levels. • Although he mainly focuses on

leadership capabilities and qualifications, his system can easily be transferred to change projects with varying importance.

• The leader of an organization-wide restructuring project will need different capabilities than the one who is responsible for clearly defined project on departmental level.

Change agents

• Level I - Accepts the need for change, communicates and defends the need for change throughout the organization, creates an open and receptive environment.

• à small change initiatives with clear direction

Change agents

• Level II - Defines and initiates change, identifies leverage points for change in processes and work habits

• à change projects at local level

Change agents

• Level III - Leads change, translate the vision of the organization into the context of a specific change initiative and bring this message to the entire organization, redirects approaches in the face of new opportunities

• à transformation of a central vision into change initiatives and organization-wide communication

Change agents

• Level IV - Manages complex change, understands the cultural dynamics of the current state of an organization, creates a strategic practical course, balancing the current reality with the need for rapid adoption of the desired future reality

• à generates change with a high degree of transformation

Change agents

• Level V - Champions change, challenges the status quo by comparing it to an ideal or a vision of change, causes crisis in order to support dramatic actions and change efforts, transforms the organization

• à Ability to revolutionize organizations

Forces for change• Given a choice, most organizations

prefer stability to change because the more predictable and routine activities are, the higher the level of efficiency that can be obtained. Thus, the status quo is preferred in many cases.

• But organizations are not static; they are continuously changing in response to a variety of forces coming from both inside and outside. For leaders, the challenge is to anticipate and direct change processes so that the performance is improved.

Forces for change

FORCES FOR

CHANGEEXTERNAL FORCES

INTERNAL FORCES

External forces• The major external forces for

change are:-– Nature of the workforce: Almost

every organization must adjust to a multicultural environment, demographic changes, immigration and outsourcing.

– Technology is continually changing jobs and organization. Ex: faster, cheaper and more mobile computers and handheld devices.

– Economic shocks: rise and fall of global housing market, financial sector collapse, global recession.

External forces• Competition is changing.

Competitors are as likely to come from across the ocean as from across town. Ex: increased government regulation of commerce.

• Social trends don’t remain static. Companies must continually adjust product and marketing strategies to be sensitive to changing social trends. The State Bank of India did the same when it started a zero-balance bank account program for villagers.

Internal forces

• Declining effectiveness is a pressure to change.

• A company that experiences its third quarterly loss within a fiscal year is undoubtedly motivated to do something about it.

• Some companies react by instituting layoffs and massive cost – cutting programs, whereas others look at the bigger picture, view the loss as symptomatic of an underlying problem, and seek the cause of the problem.

Internal forces• A crisis situation also may stimulate

change in an organization. • Strikes or walkouts may lead

management to change the wage structure.

• The resignation of a key decision-maker is one crisis that causes the company to rethink the composition of its management team and its role in the organization.

• A much-publicized crisis that led to change with Exxon was the oil spill accident with Exxon’s Valdez oil tanker. The accident brought about many changes in Exxon’s environmental policies.

Internal forces• Changes in the work climate at an

organization can also stimulate change. • A workforce that seems lethargic,

unmotivated, and dissatisfied is a symptom that must be addressed.

• This symptom is common in organizations that have experienced layoffs.

• Workers who have escaped a layoff may grieve for those who have lost their jobs and may find it hard to continue to be productive.

• They may fear that they will be laid off as well, and many feel insecure in their jobs.

The Evolution of Starbucks

Exploring Behavior in Action

In the beginning they had only just a shop that sold some selected coffee beans.

As Starbucks growing, they realized that the informal techniques were not sufficient and needed to have a more formalized with people and places.

Now Starbucks was the biggest coffee chain network in the world with more than 15000 shops in over 44 countries. And they grown too fast.

They adopting the Italian culture and make some important changes in organization.

Howard Schultz

Dave Olsen

Dawn Pinaud

ExperiencingStrategic OB

Coca-Cola Is Finding a New Fizz

Neville Isdell Sandy Douglas

Coca-Cola is changing its culture, andalso enhance its product line to bettersatisfy the demand of customers.

Resistance to Change

Three Factors

Organizational Resistance

Group Resistance

Effort to block new ways of doing things

Individual Resistance

Individual Resistance• Individual sources of resistance to

change reside in basic human characteristics such as perceptions, personalities & needs.

• Reasons of individual resistance:• Economic Reason –The

economic reason of resistance to change usually focus on:

• Fear of technological unemployment.

• Fear of reduced work hours & consequently less pay.

• Fear of demotion & thus reduced pay.

Individual Resistance

• Fear of Loss- When a change is impending, some employees may fear losing their jobs, status particularly when an advanced technology is introduced.

• Security – people with a high need for security are likely to resist change because it threatens their feeling of safety.

• Status quo- change may pose disturbance to the existing comforts of status quo.

Individual Resistance• Peer Pressure- individual

employees may be prepared to accept change but refuse to accept it for the sake of the group.

• Disruption of Interpersonal Relation- employees may resist change that threatens to limit meaningful interpersonal relationships on the job.

• Social Displacement- Introduction of change often results in disturbance of the existing social relationships. Change may also result in breaking up of work groups.

Group Resistance• Organizations, by their very nature

are conservative. They actively resist

change. Reason of organizational

resistance

• Resource constraint: resources

are major constraints for many

organizations. The necessary

financial , material & human

resources may not be available to

the organization to make the

needed changes.

Group Resistance

• Structural inertia – some

organizational structures have in-

built mechanism for resistance to

change. Eg in bureaucratic

structure where jobs are

narrowly defined & lines of

authority are clearly spelled

out, change would be difficult.


• Organizational resistance means the

change is resisted at the level of the

organization itself.

• Some organization are so designed

that they resist new ideas, this is

specifically true in case of

organization which are conservative

in nature.

• Majority of the business firm are

also resistance to changes.


• The major reason for organizational

resistance are:-

• Threat to power

• Group inertia

• Organizational structure

• Threat to specialization

• Resource constants

• Sunk costs

Communication • Highest priority and first strategy for change• Improves urgency to

change• Reduces uncertainty (fear

of unknown)• Problems -- time

consuming and costly

Minimizing Resistance to Change

Communication • Provides new knowledge and skills• Includes coaching and

action learning• Helps break old routines

and adopt new roles• Problems -- potentially

time consuming and costly


Training

Communication • Increases ownership of change• Helps saving face and

reducing fear of unknown• Includes task forces,

search conferences• Problems -- time-

consuming, potential conflict


Training

Employee Involvement

Communication • When communication, training, and involvement do not resolve stress• Potential benefits–More motivation to change– Less fear of unknown– Fewer direct costs

• Problems -- time-consuming, expensive, doesn’t help everyone


Training


Stress Management

Communication

• When people clearly lose something and won’t otherwise support change• Influence by exchange--

reduces direct costs• Problems– Expensive– Increases compliance, not

commitment


Training


Stress Management

Negotiation

Communication

•When all else fails• Assertive influence• Firing people -- radical

form of “unlearning”• Problems–Reduces trust–May create more subtle

resistance


Training


Stress Management

Negotiation

Coercion

APPROACHES TO MANAGING ORGANISATIONAL CHANGE

Three stage model• One of the cornerstone models

for understanding organizational change was developed by Kurt Lewin back in the 1940s, and still holds true today.

• His model is known as Unfreeze – Change – Refreeze, refers to the three-stage process of change he describes.

• Kurt Lewin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice.

Three stage model

Unfreezing RefreezingMoving

• Provide rationale for change

• Create minor levels of guilt/anxiety about not changing

• Create sense of psychological safety concerning change

• Provide information that suspects proposed changes

• Bring about actual shifts in behavior

• Implement new evaluation systems

• Implement new hiring and promotion systems

Kurt Lewin

Three stage model

Three stage model• Unfreezing is the process which involves

finding a method of making it possible for people to let go of an old pattern that was counterproductive in some way.

• Unfreezing is necessary to overcome the strains of individual resistance and group conformity.

• Unfreezing can be achieved by the use of these three methods. – Increase the driving forces that direct

behavior away from the existing situation or status quo.

– Decrease the restraining forces that negatively affect the movement from the existing equilibrium.

– Find a combination of the two methods listed above.

Three stage model• Movement stage involves a process of

change in thoughts, feeling, behavior, or all three, that is in some way more liberating or more productive.

• Once team members have opened up their minds, change can start. The change process can be dynamic and, if it is to be effective, it will probably take some time and involve a transition period.

• In order to gain efficiency, people will have to take on new tasks and responsibilities, which entail a learning curve that will at first slow the organization down.

• A change process has to be viewed as an investment, both in terms of time and the allocation of resources: after the new organization and processes have been rolled out.

Three stage model

• Change will only reach its full effect if it’s made permanent. Once the organizational changes have been made and the structure has regained its effectiveness, efforts should be made to cement them and make sure the new organization reaches the standard.

• “Re-freezing” gives people the opportunity to thrive in the new organization and take full advantage of the change.

Changing People: Some Basic Steps

Recognizing theneed for change

Attempting tocreate a new stateof affairs

Incorporating the changes,creating and maintaining anew organizational system

Step 1: Unfreezing

Step 3: Refreezing

Step 2: Changing

Current State

New State

Case study• The oil company had three

divisional offices in the West, located in Seattle, San Francisco, and Los Angeles.

• The decision was made to consolidate the divisions in to a single regional office to be located in San Francisco.

• The reorganization meant transferring over 150 employees, eliminating some duplicate managerial positions, and instituting a new hierarchy of command

UNFREEZING

• The status quo can be considered to be an equilibrium state. To move from this equilibrium to overcome the pressures of both individual resistance and group conformity unfreezing is necessary. It can be achieved in one of three ways.

• The driving forces, which direct behavior away from the status quo, can be increased.

• The restraining forces, which hinder movement from the existing equilibrium, can be decreased.

• A third alternative is to combine the first two approaches.

Movement• The oil company’s management

could expect employee resistance to the consolidation. To deal with that resistance, management could use positive incentive to encourage employees to accept the change, such as these;

• Increase in pay can be offered to those who accept the transfer.

• The company can pay liberal moving expenses.

• Management might offer low cost mortgage funds to allow employees to buy new homes in San Francisco.

Movement• Employees could be counseled individually.

Each employee’s concerns and apprehensions could be heard and specifically clarified.

• Assuming that most of the fears are unjustified, the counselor could assure the employees that there was nothing to fear and then demonstrate, through tangible evidence, that restraining forces are unwarranted.

• If resistance is extremely high, management mat have to resort to both reducing resistance and increasing the attractiveness of the alternative if the unfreezing is to be successful.

• To be effective, change has to happen quickly. Organizations that build up to change do less well than those that get to and through the movement stage quickly.

Refreezing• Once the consolidation change has

been implemented, if it is to be successful, the new situation needs to be refrozen so that it can be sustained over time.

• Unless this last step is taken, there is a very high chance that the change will be short lived and that employees will attempt to revert to the previous equilibrium state.

• The objective of refreezing, then, is to stabilize the new situation by balancing the driving and restraining forces.

Force Field Analysis

• It provides a framework for looking at the factors (forces) that influence a situation, originally social situations.

• It looks at forces that are either driving movement toward a goal (helping forces) or blocking movement toward a goal (hindering forces).

• The principle, developed by Kurt Lewin.


• Driving forces are forces that push in a direction that causes change to occur.

• Driving forces facilitate change because they push the person in the desired direction.

• They cause a shift in the equilibrium towards change.


• Restraining forces are forces that counter driving forces.

• Restraining forces hinder change because they push the person in the opposition direction

• Restraining forces cause a shift in the equilibrium which opposes change.


• Equilibrium is a state of being where driving forces equal restraining forces and no change occurs

• Equilibrium can be raised or lowered by changes that occur between the driving and restraining forces.

DesiredConditions

CurrentConditions

BeforeChange

AfterChange

DrivingForces

RestrainingForces


DuringChange

DrivingForces

RestrainingForces Driving

Forces

RestrainingForces

KOTTER’S EIGHT STEP MODEL

• 30 years of research by leadership guru Dr. John Kotter have proven that 70% of all major change efforts in organizations fail.

• Why do they fail?• Because organizations often do not take

the holistic approach required to see the change through.

• However, by following the 8 Step Process outlined by Professor Kotter, organizations can avoid failure and become adept at change. By improving their ability to change, organizations can increase their chances of success, both today and in the future.

KOTTER’S EIGHT STEP MODEL

• In “Leading Change” (1996), Dr. John Kotter outlined an 8-Stage Process to Creating Major Change:

Step 1: Create Urgency• Develop a sense of urgency around the

need for change. This may help you spark the initial motivation to get things moving.

• Open an honest and convincing dialogue about what's happening in the marketplace and with your competition.

• What you can do:– Identify potential threats, and develop

scenarios showing what could happen in the future.

– Examine opportunities that should be, or could be, exploited.

– Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking.

Step 2: Form a Powerful Coalition

• Bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance.

• Once formed, your "change coalition" needs to work as a team.

• What you can do:– Identify the true leaders in your

organization.– Ask for an emotional commitment

from these key people.– Work on team building within your

change coalition.– Check your team for weak areas.

Step 3: Create a Vision for Change

• Link ideas and concepts to an overall vision.

• A clear vision can help everyone understand why you're asking them to do something.

• What you can do:– Determine the values that are central

to the change.– Develop a short summary (one or two

sentences) that captures what you "see" as the future of your organization.

– Create a strategy to execute that vision.

Step 4: Communicate the Vision

• Communicate the vision more frequently and powerfully, and embed it within everything that you do.

• Use the vision daily to make decisions and solve problems. When you keep it fresh on everyone's minds, they'll remember it and respond to it.

• What you can do:– Talk often about your change vision.– Openly and honestly address peoples'

concerns and anxieties.– Apply your vision to all aspects of

operations – from training to performance reviews.

– Tie everything back to the vision.

Step 5: Remove Obstacles• Put in place the structure for change,

and continually check for barriers to it.

• Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward.

• What you can do:– Identify, or hire, change leaders whose

main roles are to deliver the change.– Recognize and reward people for

making change happen.- Identify people who are resisting the change.

– Take action to quickly remove barriers (human or otherwise).

Step 6: Create Short-term Wins

• Create short-term targets – not just one long-term goal.

• Each "win" that you produce can further motivate the entire staff.

• What you can do:– Look for sure-fire projects that

you can implement without help from any strong critics of the change.

– Don't choose early targets that are expensive.

– Reward the people who help you meet the targets.

Step 7: Build on the Change

• Each success provides an opportunity to build on what went right and identify what you can improve.

• What you can do:– After every win, analyze what

went right and what needs improving.

– Set goals to continue building on the momentum you've achieved.

– Keep ideas fresh by bringing in new change agents and leaders for your change coalition.

Step 8: Anchor the Changes in Corporate Culture

• Make continuous efforts to ensure that the change

is seen in every aspect of your organization.

• It's also important that your company's leaders

continue to support the change. This includes

existing staff and new leaders who are brought in.

• What you can do:

– Talk about progress every chance you get.

- Include the change ideals and values when

hiring and training new staff.

– Create plans to replace key leaders of change

as they move on. This will help ensure that

their legacy is not lost or forgotten.

Systems Theory

• Systems Theory was first introduced by Van Bertalanffy (1950) and was introduced into the organisational setting by Kataz and Khan (1966).

• Systems theory is an approach to organisations which likens the enterprise to an organism with interdependent parts, each with its own specific function and interrelated responsibilities.

Systems Theory

• The system may be the whole organisation, a division, department or team; but whether the whole or a part, it is important for the OD practitioner to understand how the system operates, and the relationship the parts of the organisation have.

Systems Theory

• The emphasis in OD is that that real systems are open to, and interact with, their environments, and it is possible to acquire new properties through emergence, resulting in continual evolution.

• Rather than reducing an organisation to the properties of its parts or elements, systems theory focuses on the arrangement of and relations between the parts which connect them into a whole.

Systems Theory• The organization is an open system, which

interacts with the environment and is continually adapting and improving.

• The organisation influences and is influenced by the environment in which it operates

• If an organisation is to be effective it must pay attention to the external environment, and take steps to adjust itself to accommodate the changes in order to remain relevant

• All part of the organisation are interconnected and interdependent

• If one part of the system is affected, all parts are.

• It is not possible to know everything about the system, but if you look hard enough there are plenty of clues.

Burke-Litwin change model

• The Burke-Litwin change model revolves around defining and establishing a cause-and-effect relationship between 12 organizational dimensions that are key to organizational change.

• Let’s take a look at how this change model can make the process easier.

Burke-Litwin change model• External Environment: The key

external factors that have an impact on the organization must be identified and their direct and indirect impact on the organization should be clearly established.

• Mission and Strategy: the vision, mission and the strategy of the organization, as defined by the top management should be examined in terms of the employees’ point-of-view about them.

Burke-Litwin change model• Leadership: A study of the

leadership structure of the organization should be carried out, which clearly identifies the chief role models in the organization.

• Organizational Culture: An organizational culture study should seek information on the explicit as well as the implied rules, regulations, customs, principles and values that influence the organizational behavior.

Burke-Litwin change model• Structure: The study of structure

should not be confined to hierarchical structure; rather it should be a function based structure focusing on the responsibiliity , authority, communication, decision making and control structure that exists between the people of the organization.

• Systems: Systems includes all types of policies and procedures with regards to both the people and the operations of the organization.

Burke-Litwin change model• Management Practices: This would

entail a study of how well the mangers conform to the organization’s strategy when dealing with employees and the resources.

• Work Unit Climate: It is a collective study of how the employees think, feel and what do they expect. The kind of relationships the employees share with their team members and members of other teams is also an important aspect of work unit climate.

Burke-Litwin change model• Tasks and Skills: This involves

understanding what a specific job position demands and the kind of skills and knowledge that an employee must have in order to fulfill the task responsibilities of that job position. It’s important to see how well jobs and employees have been matched.

• Individual Values and Needs: This dimension seeks to explore the employee’s opinion about their work so as to identify the quality factors that will result in job enrichment and better job satisfaction.

Burke-Litwin change model• Motivation Level: Identifying the

motivation level of the employees will make it easier to determine how willingly they would put in their efforts to achieve organizational goals. This would also involve identifying motivational triggers.

• Individual and Overall Performance: This dimension takes into account the level of performance, on individual and organizational levels, in key areas like productivity, quality, efficiency, budget and customer satisfaction etc.

Porras & Robertson Model

• Porras & Robertson outline four types of organizational change based on the category of change (planned or unplanned) and its order (first or second).


• Planned change originates with a decision made by the organization itself with the deliberate purpose of improving its functioning.

• It is also common to engage an outside resource to help in the processes of making these improvements.

• Planned change is typically initiated to respond to new external demands imposed upon the organization.

• Planned change will often affect many unforeseen segments of the organization.


• Unplanned change is change that originates outside of the organizational system and to which the organization must respond.

• This adaptive response is often focused on the alteration of relatively clearly defined and narrow segments of the organization.

• It is spontaneous, evolutionary, fortuitous, or accidental.


• First-order change, linear and continuous in nature, involves alterations in system characteristics without any shift in either fundamental assumptions about key organizational cause-and-effect relationships or in the basic paradigm used by the system to guide its functioning.


• Second-order change is a

multi-dimensional, multi-

level, qualitative,

discontinuous, radical

organizational change

involving a paradigmatic

shift.

Factors constituting an organizational work setting

Impact of change on Human Resources Planning

• Human resources planning are a process that identifies current and future human resources needs for an organization to achieve its goals.

• Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization.

Impact of change on Human Resources Planning

• Aging worker populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning.

Quality consciousness

• The term “quality consciousness” was first used n a 1947 keynote by C.R. Sheaffer to the first convention of the American Society for Quality Control (ASQC), the predecessor to ASQ.


• Quality consciousness can be summed up by the “3 A’s” – Awareness, Alignment, and Attention.

• Quality consciousness implies awareness of yourself and the environment around you (including what constitutes quality and high performance for people, processes and products – most importantly, YOU).


• It also suggests that you must achieve alignment of your consciousness with the consciousness of the organization, which will aid in full activity and engagement of the senses.

• Your attention must be selectively focused onto what you can accomplish in the present moment according to that alignment

Case studyStrategic Change Management

Scenario #1: “Greener Telco”

Scenario #1 refers to Bell Canada’s Zero Waste program, which successfully changed wasteful employee behaviours by altering the causes of those behaviours.

Courtesy of Bell Canada

Bell Canada’s Change Strategy

Courtesy of Bell Canada

Relied on the MARS model to alter behaviour:Motivation -- employee involvement, respected steering committee Ability -- taught paper reduction, email, food disposalRole perc. -- communicated importance of reducing wasteSituation -- Created barriers to wasteful behaviour, eg. removed garbage bins

Courtesy of Continental Airlines

Scenario #2: “Go Forward Airline”

Scenario #2 refers to Continental Airline’s “Go Forward” change strategy, which catapulted the company “from worst to first” within a couple of years.

Continental Airlines’ Change Strategy

Communicate, communicate, communicate

Introduced 15 performance measures

Established stretch goals (repainting planes in 6 months)

Replaced 50 of 61 executivesRewarded new goals (on-time

arrival, stock price)Customers as drivers of change Courtesy of Continental Airlines

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