catlyst for change

8/7/2019 catlyst for change

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Catalyst ForChange &

Managing

Change


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The Nature of Organizational Change

What is organizational change?

Any substantive modification to some part ofthe organization.

What are the forces for change? External forces: derive from the organizations

general and task environments.


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Managing Change

Modern day organizations are often required to

change to remain viable.

Planned change describes the systematic process

of introducing new behaviors, structures, andtechnologies for addressing problems and

organizational challenges. Three approaches are:

Behavioral (People)

Structural

Technological/Operations


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Behavioral/People Changes

Abilities and skills.

Performance. Perceptions.

Expectations.

Attitudes.

Values.


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Organization Structure and Design

Changes

Job design.

Departmentalization.

Reporting relationships.

Authority distribution.

Coordination mechanisms.

Line-staff structure.

Overall design.

Culture. Human resource management.


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Technological and Operational Changes

Information technologies.

Equipment.

Work processes.

Work sequences.

Control systems.


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Why Change?

What are these forces?

Top management

revises theorganizations strategy.

Socio-cultural values

shifts.

Attitudes toward jobs

shifts.


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Managing Change

UnexpectedExpected

Incremental

Radical

Tuning:

(e.g., new policies,technologies)

Adaptation:

(e.g., new products ornew features)

Reorganization:

(e.g.,org. redesignor reengineering)

Re-Creation:

(e.g., new culture ortotal strategic change)


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Types of Change

Risk

Return

Low

Low

High

High


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Types of Change

Automation

Using computers to speed up existing tasks

Low risk, low return

Rationalization

Streamline procedures to improve automation

Remove bottlenecks Low-medium risk, low-medium return


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Example: WorkflowManagement

Automation and subsequent rationalisation

Flow of work (documents) in an organisation

Routing Approvals

Scheduling

Reporting

Simultaneous work on documents

Instant transfer no more in transit

Indexing and collation of information


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Example: Total QualityManagement

Incremental change to organisation

Continuous improvement

Everyone is responsible for quality control Quality of products, services and operations

Catch problems early, they cost less

Simplify production process

Automate to give less steps

Less steps, less chance of error

Faster production times

Automation and subsequent rationalisation


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Changing Business Process

What does this mean?

Reengineering:

The radical redesign of all aspects of a

business to achieve major gains in cost,

service, or time.

Why reengineer? Problems occur when management does not

recognize entropy until it is well advanced.


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Types of Change

Business Process Re-engineering/Re-design

Radical re-design of business processes

Remove procedural steps

Eliminate paper-based tasks

Improve costs, quality and service

Medium-high risk, medium-high return


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TheReengineering

Process


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Types of Change

Paradigm Shifts

Re-thinking the nature of the business /

organisation

Complete re-conception of how the business

should function

High risk, High return


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Steps in theChange Process


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Understanding Resistance to Change

Uncertainty: employees may become

anxious.

Threatened self-interests: change may

diminish managerial power.

Different perceptions: employees may

disagree with managers assessment of

the change.

Feeling of loss: disruption of existing

social network.


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Forced-Field Analysis for Plant

Closing at GeneralMotors

Need to cut costs

Excess capacity

Outmoded facilities

Plant

closing

Resistance from unions

Concern about worker welfare

Possible future needs

Reason for change Reason against change


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Managing Change

Forces against change must be identified and theroot causes determined. Employee may see

resist change because: Their needs are ignored

Lack of information about changes Failure to perceive need for change We verus They attitude View change as supervisor flaw

Threat to their well being Conflict between individual andorganizational goal

Lack for resources to support change


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Managing Change

Change strategies: Extensive communication Training Employee involvement

Staff changes New policies (reward systems Evolutionary versus revolutionary


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Managing Change

Change mechanisms (dependent upon, problemdiagnosis and forces for and against change):

Survey feedback Team building Sensitivity training

Process consultation Confrontation meeting Training and development Automation of processes

Human Resource policies and programs Reward systems Job redesign Structural changes


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Organization Development Techniques

Diagnostic activities.

Team building.

Survey feedback.

Education. Inter-group activities.

Third-party peacemaking.

Techno-structural activities.

Process consultation.

Life and career planning. Coaching and counseling.

Planning and goal setting.


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Overcoming Resistance - Summary

Participation:

Allow employees to takepart in the planning and

implementation. Education and communication:

Educate the employeesabout the need.

Facilitation:

Make only necessarychanges, announce inadvance, and allowemployees to adjust to thechange/s.


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Change Leadership

Requires a dedicated change agent

Change agentis the single individual responsible

for overseeing the change process

Change agent are: Change generators

Change implementers

Change adopters Changes agents can either be internal, external or a

combination


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Traditional Implementation

Project management deals with the size and complexity ofthe project

Breakdown to subprojects / tasks

Schedule, milestones, budget

Assign team to subprojects / tasks

However, this focuses on project mechanics, not businessobjectives

Need to consider changing environment and be moreflexible

Not easy with third-party fixed-price contracts


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Costs and Benefits

Can be both financial and non-financial:

Costs

Tangible benefits Intangible benefits

Benefits may go direct to customer

Reduce costs lead to reduced prices for competitiveness

Benefits may not be realised if poorly implemented


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Example Costs and Benefits

Costs:

Equipment, maintenance, services, training, personnel

Tangible benefits: Productivity, lower costs and expenses

Intangible benefits:

Improved planning and flexibility, attained legalrequirements, morale, customer satisfaction, better

image A business case will require the quantification of

intangible benefits


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Risks

Organizational

Management / user / customer support

Requirements fully analysed and understood Technological

Inadequate, unproven, unreliable, unavailable

Project team have insufficient knowledge

Project and control

Insufficient time, budget or resources

Supplier delays

Can we account for Acts of God?


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Controlling Risk

Increasing user involvement

Users can become active project members

Users can control installation and training

Input into requirements and design Involved in testing and trials

Manage technical complexity

Planning, control and reviews

Managers must understand technical constraints

Build good relationships with team / suppliers

Anticipate problems: risk register and manager

Give team members access to technical decisions


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Types of Failure

Cost

Implementation over budget or schedule

Too costly to complete

Running costs over budget Costs may exceed business value

Estimated that projects are:

Underestimated by 1.5 times budget and schedule

1994: 25% of projects cancelled

1998: 30%-40 % fail or are abandoned

1998: 75% exceed budget/schedule


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Types of Failure

Design

Failure to capture business requirements

Failure to improve organisational performance

Information may be wrong / wrong format / delivered

slowly

System may be difficult to use user interface

Traditionally all design was technically-based

Technically excellent solutions

Solutions that do not meet the organisational needs


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Types of Failure

Data

Data may be inaccurate / inconsistent /

incomplete Operation

System runs poorly or is unreliable

Neither timely or efficient

Can be organisational issues

Mostly technical reasons for failure


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Managing Change

Failure can be avoided by effective management /

leadership

For example:

Effective management

Maintain management support

Increase user involvement and influenceMonitor project tasks and risks


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ImplementationManagement

Poor management makes failure more likely

Cost overruns far exceed budget

Unexpected slippage

Technical shortfalls

Failure to obtain benefit


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ImplementationManagement

Common causes of management problems:

Ignorance and optimism

Poor ways of estimating time and budget

Not enough experience of similar projects

Mythical man-month

More people does not equal less time

Training and expertise

Bad news travels slowly

Slow communication of lateness to management


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Management Support

Commitment from all levels of management will improvechances of success

Recognition and rewards for involvement

Sufficient funding and resources

Management backing of organisational changes

However

Over commitment can lead to excessive funding and

resources for a failing project


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Evaluating Change

Evaluating changes, four levels:

Affective Learning Behavioral Performance

Change must be institutionalized!

catlyst for change

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