CHANGE ?
“NOT IN VAIN THE DISTANCE BEACONS. FURTHER, LET US RANGE THE
GREAT WORLD SPIN FOREVER DOWN THE RINGING GROOVES OF
CHANGE”.
-- ALFRED LORD TENNYSON LOCKSLEY HALL
WHEN THE RATE OF CHANGE OUTSIDE EXCEEDS THE RATE OF CHANGE
INSIDE, THE END IS IN SIGHT”
JACK WELCH
CHANGE MANAGEMENT
CHANGE MANAGEMENT IS THE DISCIPLINE THAT GUIDES
HOW WE PREPARE, EQUIP AND SUPPORT INDIVIDUALS TO
SUCCESSFULLY ADOPT CHANGE IN ORDER TO DRIVE
ORGANIZATIONAL SUCCESS AND OUTCOMES.
ACCORDING TO FRANCIS AND SINCLAIR, “ORGANIZATIONAL
CHANGE IS AN ONGOING PROCESS OF SOCIAL
CONSTRUCTION THAT COMPRISES SPIRAL PATTERN OF
DISCURSIVE CHANGE AND RESTRUCTURING OF
COLLECTIVE MEANING”.
LEVELS OF CHANGE
MANAGEMENT
• THE ENTERPRISE LEVEL
• THE PROJECT LEVEL
• THE INDIVIDUAL LEVEL
THE IMPORTANCE OF
ORGANIZATIONAL CHANGE
ORGANIZATIONAL CHANGE IS DRIVEN BY MANY FORCES, INCLUDING:
• GROWTH OPPORTUNITIES
• MARKETPLACE DEMAND
• COMPETITOR PRESSURE
• TECHNOLOGICAL INNOVATION
FORCES OF CHANGE:
ORGANIZATION ARE SYSTEM THAT EXIST IN THE CONTEXT OF
EXTERNAL ENVIRONMENT, AN INTERDEPENDENT RELATIONSHIP
AND INTERACT IT IN ORDER TO SURVIVE AND GROW.
ANY FACTOR IN THE ENVIRONMENT THAT INTERFERES WITH THE
ORGANIZATIONAL ABILITY TO ATTRACT THE HUMAN, FINANCIAL
AND MATERIAL RESOURCES IT NEEDS OR TO PRODUCE AND MARKET
ITS SERVICES/PRODUCT BECOMES FORCE OF CHANGE
FORCES OF CHANGE STEMMING
FROM EXTERNAL ENVIRONMENT
• ECONOMIC FORCE
• TECHNOLOGICAL FORCE
• GOVERNMENT FORCES:
• DEREGULATION
• FOREIGN EXCHANGE
• ANTI-TRUST LAW
• ANTI-DUMPING DUTIES
• SUSPENSION AGREEMENT
• PROTECTIONISM
• INCREASED GLOBAL COMPETITION
• CHANGING CUSTOMER NEEDS AND PREFERENCES
INTERNAL FORCE OF CHANGE
• SYSTEM DYNAMICS
• INADEQUACY OF ADMINISTRATIVE PROCESSES
• INDIVIDUAL / GROUP SPECULATIONS
• STRUCTURE FOCUSED CHANGE
• TECHNOLOGICAL CHANGE
• PERSON FOCUSED CHANGE
• PROFITABILITY ISSUES
• RESOURCES CONSTRAINTS
SOME DETERMINING FACTORS OF
CHANGE
Planned Unplanned
Internal Internal planned Internal unplanned
change change
External External planned External unplanned
change change
PLANNED INTERNAL CHANGE
• CHANGE IN PRODUCT OR SERVICES
• CHANGES IN ADMINISTRATIVE SYSTEM
• CHANGES IN ORGANIZATIONAL SIZE AND STRUCTURE
PLANNED EXTERNAL
CHANGE
• INTRODUCTION TO NEW TECHNOLOGIES
• ADVANCES IN INFORMATION PROCESSING AND
COMMUNICATION
UNPLANNED INTERNAL
CHANGES
• CHANGING EMPLOYEE DEMOGRAPHICS
• PERFORMANCE GAPS
UNPLANNED EXTERNAL CHANGES
• GOVERNMENT REGULATION
• ECONOMICS COMPETITION IN THE GLOBAL ARENA
TYPES OF CHANGES
• HAPPENED CHANGE
• REACTIVE CHANGE
• ANTICIPATORY CHANGE
• PLANNED CHANGE
• INCREMENTAL CHANGE
• OPERATIONAL CHANGE
• STRATEGIC CHANGE
• DIRECTIONAL CHANGE
• FUNDAMENTAL CHANGE
• TOTAL CHANGE
• TRANSFORMATIONAL CHANGE
• REVOLUTION CHANGE
• RECREATION
CHARACTERISTIC OF
EFFECTIVE CHANGE
MANAGEMENT
MODELS OF CHANGE
MANAGEMENT
• LET US STUDY DIFFERENT TYPES OF MODELS .
• THEY PLAY A KEY IMPORTANT ROLE IN CHANGE
MANAGEMENT .
• EVERY MODEL HAS ITS OWN THEORY OF CHANGE .
• THESE MODELS HELPS TO EXCEUTE EFFECTIVE CHANGE IN
AN ORGANIZATION .
• THERE ARE TOTAL 5 MODELS WHICH ACT AS A CATALYST IN
CHANGE MANAGEMENT OF AN ORGANIZATION .
Kurt Lewin's Change Model
Kurt Lewin developed a change model involving three
steps: unfreezing, changing and refreezing.
For Lewin, the process of change entails creating the perception that a change is needed, then
moving toward the new, desired level of behavior and finally, solidifying that new behavior as
the norm.
Unfreezing
Before you can cook a meal that has been frozen, you need to defrost or thaw it out. The same
can be said of change. Before a change can be implemented, it must go through the initial step
of unfreezing.
Changing
Now that the people are 'unfrozen' they can begin to move. Lewin recognized that change is a
process where the organization must transition or move into this new state of being.
Refreezing
Lewin called the final stage of his change model freezing, but many refer to it as refreezing to
symbolize the act of REINFROCING
Leavitt’s Diamond Model of Change
LEAVITT’S DIAMOND MODEL OF
CHANGE
LEAVITT'S DIAMOND: UNDERSTANDING THE FACTORS INVOLVED IN CHANGE
• IT IS ALMOST IMPOSSIBLE TO IMPLEMENT A CHANGE STRATEGY WITHOUT IT
HAVING AN EFFECT ON OTHER PROCESSES, DEPARTMENTS, OR INDIVIDUALS,
WHETHER THEY ARE INTENTIONAL OR NOT.
• THEREFORE, BEING AWARE OF THE EFFECTS THE CHANGE WILL HAVE ON THE
ORGANISATION AS A WHOLE, AND PLANNING ACCORDINGLY, IS CRUCIAL FOR
THE SUCCESS OF ANY CHANGE STRATEGY.
• HAROLD LEAVITT DEVELOPED LEAVITT’S DIAMOND, ALSO KNOWN AS
LEAVITT’S SYSTEM MODEL, IN 1965 AS A MECHANISM FOR ANALYSING THE
ORGANISATION WIDE EFFECTS A CHANGE STRATEGY WILL HAVE.
• THE AUTHOR OUTLINED 4 INDEPENDENT COMPONENTS OF EVERY
ORGANISATION; TASKS, PEOPLE, STRUCTURE AND TECHNOLOGY. HE
ARGUED THAT TO HAVE A SUCCESSFUL ‘INTEGRATED CHANGE’, IT IS CRUCIAL
TO UNDERSTAND THE CONNECTION BETWEEN EACH COMPONENT.
Tasks
The key tasks of the restaurant are to take orders, cook the food and then serve it to
customers. As well as secondary tasks such as cleaning, customer service and management.
Clearly this change will affect how orders are taken, however it may also affect the way the
food is cooked, as chefs now receive the order online, and how it is served as table numbers
are now automatically sent online, rather than being told face-to-face.
People
The 3 key roles in the restaurant are taking orders, cooking and serving the food. As stated
above all three of the above roles will be affected by the change and training may even be
necessary for all individuals to adapt to the change successfully. In particular, the individuals
taking order will no longer be needed.
Structure
As the individuals taking orders are no longer needed a restructuring of the workforce will
take place. This will result in either a lay-off of workers, or transferring them into new roles.
If the second option is taken training may be required.
Technology
This strategy is clearly heavily focused on technology. The technology will need to be
developed so that it is efficient enough to make the order process faster than before.
KURT LEWIN’S CHANGE MANAGEMENT
MODEL:
FORCE FIELD ANALYSIS MODEL
LEWIN’S MODEL OF
CHANGE HAS FOUR
CHARACTERISTICS:
• IT EMPHASIZES THE IMPORTANCE OF RECOGNIZING THE NEED FOR
CHANGE AND BEING MOTIVATED TO IMPLEMENT IT.
• IT ACKNOWLEDGES THAT RESISTANCE TO CHANGE IS INEVITABLE.
• IT FOCUSES ON PEOPLE AS THE SOURCE OF CHANGE AND
LEARNING.
• IT HIGHLIGHTS THE NEED TO SUPPORT NEW BEHAVIORS.
KOTTER’S EIGHT STEP PLAN FOR
IMPLEMENTING CHANGE
KOTTER’S EIGHT STEP PLAN
FOR IMPLEMENTING CHANGE
• JOHN KOTTER, WHOM WE STUDIED EARLIER WHEN WE
TALKED ABOUT THE DIFFERENCE BETWEEN MANAGERS
AND LEADERS, EMBELLISHED LEWIN’S THREE STEP MODEL
INTO A MORE DETAILED EIGHT STEP MODEL.
• KOTTER STUDIED ALL OF THE PLACES WHERE FAILURES
COULD OCCUR IN LEWIN’S MODEL. KOTTER RECOGNIZED
THAT SEVERAL THINGS NEEDED TO BE ADDED IN:
Action Research
Action Research
Action research is a change process based on systematic collection of data
and then selection of a change action based on what the analyzed data
indicate. The process of action research consists of five steps, very similar
to the scientific method:
2.CHANGE AND ITS IMPACT
OPERATIONAL EFFECT
PSYCHOLOGICAL EFFECTS
SOCIAL EFFECTS
WHY INDIVIDUAL RESIST CHANGE
• SELECTIVE PERCEPTION
• LACK OF INFORMATION
• FEAR OF UNKNOWN
• HABIT
• RESENTMENT TOWARD THE INITIATOR
WHY ORGANIZATION RESIST CHANGE
• POWER MAINTANANCE
• STRUCTRAL STABILITY
• FUNCTIONAL SUB-OPTIMISATION
• ORGANIZATIONAL CULTURE
• GROUP NORMS
OVERCOMING RESISTANCE TO
CHANGE
• EDUCATION AND COMMUNICATION
• PARTICIPATION AND INVOLVEMENT
• FACILITATION AND SUPPORT
• NEGOCIATION AND AGREEMENT
• MANIPULATION AND COOPTATION
• EXPLICIT AND IMPLICIT COERCION
EFFECTIVE IMPLEMENTATION OF
CHANGE
• PROVIDE PEOPLE WITH HEAL TO DEAL WITH CHANGES, RECOGNIZING THE VALUED
SKILL THAT THEY MAY NO LONGER USE, AND ENCOURAGE THEM TO SEE THE
FUTURE BENEFITS OF CHANGE
• AVOID USING OVER- ORGANIZING SO THAT THERE IS FLEXIBILITY TO DEAL WITH
PROBLEM NEW SYSTEM ARE NEVER 100% SUCCESSFUL, MANAGER ARE NEED TO BE
FLEXIBLE TO ALLOW ADAPTATION ALONG WAY.
• EFFECTIVE COMMUNICATION IS CRUCIAL BUT THIS MEAN QUALITY NOT QUANTITY
• RECOGNIZE THAT THE PROBLEM OTHER EXPERIENCE, DO NOT IGNORE THEM FACE
THEM
• GAIN FULL COMMITMENT TO CHANGE BY SUPPORTING PEOPLE. REWARD THEM,
PROVIDE POSITIVE FEEDBACK
REQUIRED ATTRIBUTES, SKILL AND
• THEY MUST BE ABLE COMPETENCIES
TO IDENTIFY OBJECTIVE AND NATURE OF PROBLEM
• THEY MUST IMAGINE THEMSELVES IN THE POSITION OF THE PEOPLE TO BE
AFFECTED
• MANAGER AND SUPERVISORS ABLE TO IDENTIFY CULTURAL BELIEF THAT
MIGHT BE IN CONFLICT WITH THE CHANGE
• ABLE TO PERFORM ALL TASK EFFECTIVELY
• MUST HAVE GENERAL ATTITUDE TOWARD OTHERS
• MUST BE SKILLED IN COMMUNICATION AND GOOD LISTENER
• MUST BE PERSUASIVE IN THEIR APPROACH TO SUBORDINATES STAFF UNION
OFFICIAL
• MANAGER MUST BE FLEXIBLE AD ADAPTABLE TO CHANGE
• EACH MANAGER SHOULD HAVE CLEAR CONCEPT OF HIS/HER ROLE IN
INSTITUTING AND IMPLEMENTING CHANGE
3.ORGANIZATIONAL CULTURE
• CULTURE IS DIFFICULT TO DEFINE, BUT STILL REFLECTED IN THE HOW
AND CHANGE
THINGS ARE DONE AND HOW PROBLEM ARE SOLVED IN A
ORGANIZATION.
• IT CAN BE DEFINED AS “THE ETHOS OF A COMPANY OR SHARED
VALUES AND TEAM SPIRIT”
• CORPORATE CULTURE IS THE PATTERN OF BASIC ASSUMPTION THAT IS
INVENTED, DISCOVERED OR DEVELOPED BY AN ORGANIZATION AS IT
LEARN TO COPE WITH ITS PROBLEM OF EXTERNAL ADAPTATION AND
INTERNAL INTEGRATION AND VALIDATED ENOUGH TO BE TAUGHT TO
NEW MEMBERS
• EG; MARKET ORIENTED COMMUNICATION SYSTEM (AT&T)
• CUSTOMER ORIENTATION( CITIBANK)
• RISK – TAKING AND INNOVATION(BOEING , HEWLETT PACKARD )
IDENTIFYING AND DIAGNOSING
ORGANIZATION CULTURE
• INTERVIEWING EMPLOYEES AT DIFFERENT LEVELS OF AN
ORGANIZATION EG; WORKER, SUPERVISORS, MANAGERS, ETC.
• ADMINISTERING RELEVANT QUESTIONNAIRES AND
CONDUCTING ATTITUDINAL AND MORAL SURVEYS
• ANALYZING THE PROCESS ASPECT EG; ORGANIZATIONAL
POLICIES, DECISIONS, PROCEDURES, RULES, ETC
• EXAMINING THE ORGANIZATIONAL EXTERNAL RELATION
WITH ITS CUSTOMERS, CLIENTS, ETC.
IS IT POSSIBLE TO CHANGE CORPORATE
CULTURE
• CULTURE IS DEEP-SEATED IN AN ORGANIZATION AS MUCH AS THE PERSONALITY IN THE
INDIVIDUAL
• ANY ATTEMPT TO CHANGE THE CORPORATE CULTURE REQUIRES AN UNDERSTANDING OF THE
CULTURE DIMENSIONS(ARTIFACTS, NORMS, VALUES, BASIC ASSUMPTION)
• OUTER LAYER IS EASY TO CHANGE, ITS HARD TO CHANGE DEEPER LAYER
• CHANGING CORPORATE CULTURE IS DIFFICULT TO CHANGE, IT DOES NOT OCCUR IN OVERNIGHT
IT REQUIRES COMMITMENT, INVOLVEMENT AND PERSISTENCE OF EFFORT AT ALL LEVEL
• WHILE CHANGING CULTURE, THE DEPTH OF CULTURAL CHANGE HAS TO BE IDENTIFIED.
CULTURE AUDIT COULD ASSIST IN THAT.
• CULTURE CHANGE MAY INVOLVE ISSUES OF ETHICAL AND LEGAL SENSITIVITY, TO MINIMIZE
THIS REALISTIC VALUE SHOULD BE SET TO GOVERN CULTURE CHANGE
• CHANGE IS NECCESARY IN CORPORATE WHEN:
1. RAPID CHANGE IN TECHNOLOGICAL, ECONOMIC AND POLITICAL CHANGES TAKES PLACE.
2.ORGANIZATION PLAN TO IMPLEMENT OR RECREATE THEMSELVES
3.ITS IS THE ONLY WAY TO SURVIVE
4.TWO ORGANIZATION ARE MERGED
CULTURAL ATTRIBUTES OF
CHANGE
• CLEAR AND COMMUNICATED STRATEGIC VISION
• VISIBLE SENIOR MANAGEMENT INVOLVEMENT
• PEOPLE BASED COMPETITIVE EDGE
• MARKETING ETHOS
• CONSENSUS DRIVEN MANAGEMENT
• AWARENESS AND REFLECTION OF SOCIAL RESPONSIBILITY
ROLE OF COMMUNICATION
• CUSTOMIZE THE MESSAGE
• SET THE APPROPRIATE TONE
• BUILD THE FEEDBACK
• SET THE EXAMPLE
• ENSURE THE PENETRATION
CHANGE AGENTS: THE DRIVING FORCE BEHIND CHANGE
TYPES OF CHANGE AGENT
• 1. INTERNAL CHANGE AGENT
• WHEN A PERSON IS HIRED WITHIN THE ORGANIZATION AS A CHANGE AGENT TO LOOK AFTER
THE PROCESS OF CHANGES, THEN HE IS KNOWN AS AN INTERNAL CHANGE AGENT.
• HE CAN BE ANY ONE OF THE EMPLOYEES LIKE A LEADER, SENIOR EXECUTIVE OR A
MANAGER WHO HAS THE NECESSARY KNOWLEDGE IN INTERVENTION TECHNOLOGY AND
BEHAVIORAL SCIENCES FOR ORGANIZATIONAL GROWTH AND DEVELOPMENT.
• 2. EXTERNAL CHANGE AGENT
• WHEN A PERSON IS HIRED FROM OUTSIDE THE ORGANIZATION AS A CHANGE AGENT TO
LOOK AFTER THE CHANGE PROCESS, THEN HE IS KNOWN AS AN EXTERNAL CHANGE AGENT.
• HE IS NOT SUBJECTED TO EVERY RULE AND REGULATION OF THE FIRM AND HAS THE
LIBERTY TO BRING FORTH A SEPARATE AND DIFFERENT VIEWPOINT IN THE EQUATION AND
CHALLENGE THE EXISTING STRUCTURE.
CORE COMPETENCIES OF A
CHANGE AGENT
• BROAD KNOWLEDGE
• OPERATIONAL KNOWLEDGE AND RELATIONSHIP
ORIENTATION
• SENSITIVITY AND MATURITY
• AUTHENTICITY
ROLES OF CHANGE AGENT
• A CHANGE AGENT PLAYS MULTIPLE ROLES AND WORKS AS A COUNSELOR, CONSULTANT, TRAINER, RESEARCHER AND SOMETIMES LINE MANAGER. THEY ARE
EXPERT IN SHIFTING THEIR ROLES PER THEIR RESPONSIBILITIES TO SUIT THE NEEDS AND DEMANDS OF THE ORGANIZATION. SOME OF THE ROLES AND
RESPONSIBILITIES OF A CHANGE AGENT ARE AS FOLLOWS-
• ACT AS A CATALYST AND ASSUME THE ROLE OF MANAGING AND INITIATING ACTIVITIES RELATED TO CHANGE IN THE ORGANIZATION
• EXPLAINS THE REASON FOR THE INITIATIVE, WHY IS IT TAKING PLACE AND WHO IS GOING TO BE AFFECTED BY IT AND IN WHAT MANNER
• THE CHANGE AGENT FOCUSES ON INNOVATION AND ADVANCEMENT IN THE ORGANIZATION THROUGH THE CHANGE INITIATIVE
• MANAGES AND TRACKS OBJECTIVES THAT HAVE BEEN ESTABLISHED FOR THE CHANGE AGENT
• SPEAKS AND ADVOCATES IN FAVOR OF A CHANGE INITIATIVE
• FORMULATES THE METHOD THAT WILL TRANSFORM HAPPEN
• PROMOTES THE VALUE OF TRANSFORMATION UNDERTAKEN BY A FIRM
• HIGHLIGHTS ADVANTAGES OF PROPOSED ACTIONS
• SUPPORTS AND GUIDES OTHER PEOPLE THROUGH THE PROCESS OF CHANGE
• ANTICIPATES THE AREAS OF POTENTIAL DISRUPTION, DISPUTE, AND CONCERN
• DEVELOPS STRATEGIES TO MITIGATE POTENTIAL DISRUPTION, CONFLICT, AND CONCERN
• ENSURES EFFECTIVE IMPLEMENTATION OF STRUCTURES, PROCEDURES, AND PROCESSES TO ACHIEVE THE DESIRED VALUE FROM THE EXPECTED CHANGE
• OBTAINS RELATED FEEDBACK
• ACTS AS A POINT-OF-CONTACT WHO ANSWERS QUESTIONS AND CONCERNS OF OTHERS
• HE MEDIATES BETWEEN THE CONTENTION POINTS AND ISSUES
AREAS OF CHANGE
MANAGEMENT
• O THAT END, LET'S TAKE A LOOK AT THE KEY COMPONENTS THAT MAKE UP A
SUCCESSFUL CHANGE MANAGEMENT APPROACH:
• READINESS ASSESSMENTS. ...
• COMMUNICATION PLANNING. ...
• SPONSORSHIP ROADMAPS. ...
• TRAINING. ...
• RESISTANCE MANAGEMENT. ...
• ONGOING EMPLOYEE FEEDBACK. ...
• CHANGE REINFORCEMENT. ...
• RESULTS MANAGEMENT.
