HRM - Change Management

CHANGE MANAGEMENT&

Empowerment

Day 02 & 03Dec 02, 03, 2010

MANAGE

SESSION PLAN

• Human Resource Planning,• Managing Empowered Organization,• Creativity Management, • Innovation Management,• Talent Management, • Time management in context of HRM,

Session Overview

• Change Management• Change Management Iceberg Model• Models of Change - Satir Change Model - Lewin’s Change Model• Interventions for Change - Problem solving - People Management

Definition of Change

• Change is “the coping process of moving from the present state to the desired state that individuals, groups and organizations undertake in response to dynamic internal and external factors”.

Change Management

• Change management is the effective management of a business change such that executive leaders, managers and front line employees work in concert to successfully implement the needed process, technology or organizational changes

Goals of change management

• minimize the impact on productivity• avoid unnecessary turnover or loss of valued

employees• eliminate any adverse impact on your customers• achieve the desired business outcomes as soon

as possible

A Case in a box

• Refer to page 304,305

OD and Change Management

• Organizations focus on the process and the impact change has on the individuals concerned from a psychological perspective.

• Any change intervention needs to be owned at the top but implemented in an appropriate way throughout the organization - depending on the structure and existing culture of the organization

Change Management Iceberg Model


• According to Kruger many change managers only consider the top of the iceberg:

• Cost• Quality • Time ("Issue Management").


Below the surface of the CM Iceberg:

• Opponents• Promoters• Hidden Opponents• Potential Promoters


Opponents

• Opponents have both a negative general attitude towards C.

• And a negative behavior towards this particular personal C. T

• they need to be controlled by M. of Perceptions and Beliefs to change their minds as far as possible.


• Promoters on the other hand have both a positive generic attitude towards C.

• and are positive about this particular C. for them personally. They take advantage of the C. and will therefore support it.


• Hidden Opponents have a negative generic attitude towards C.

• although they seem to be supporting the C. on a superficial level ("Opportunists").

• Here M. of Perceptions and Beliefs supported by information (Issue M. ) is needed to change their attitude.


• Potential Promoters have a generic positive attitude towards C.

• However for certain reasons they are not convinced (yet) about this particular C.

• Power and Politics M. seems to be appropriate in this case.

MEC-CAMI OD Model

Clarity of strategy and mission

diagnosis

Change Management

•Performance management & process Alignment

Customer focus

Organization Processes

HR processes

Culture, Leadership & structure

Knowledge management

Change Management

Interventions Planned

Organizational diagnosis

Strategy Analysis

OD Phases

• The phenomenon of change takes place in series of steps.

• Phase 1 – Strategy analysis and• Phase 2 - Organizational Diagnosis • Phase 3 – Interventions planned • Phase 4 – Managing Change

Change Process

Skills

Problem Solving

People Management

Process of Change

Satir Model

Lewin’s Model

The Satir Change Model

• developed by family therapist Virginia Satir

• helps people improve their lives by transforming the way they see and express themselves

• Satir System is a five-stage change model

• describes the effects each stage has on feelings, thinking, performance, and physiology

The Satir Change Model• Late Status Quo• The performance pattern is consistent. Stable

relationships give members a sense of belonging and identity.

• Members know what to expect, how to react, and how to behave.

• Implicit and explicit rules underlie behavior• They don’t necessarily enjoy the amount of work

they had to do, but they know and understand what is expected of them


• Stage 2: Resistance• A foreign element threatens the stability of

familiar power structures. • Most members resist by denying its validity,

avoiding the issue, or blaming someone for causing the problem.

• Members in this stage need help opening up, becoming aware, and overcoming the reaction to deny, avoid or blame.

The Satir Change Model• Stage 3: Chaos• Members may behave uncharacteristically as they

revert to childhood survival rules. • Managers of groups experiencing chaos should plan

for group performance to plummet during this stage. • Management needs special help avoiding any

attempt to short circuit this stage with magical solutions.

• The chaos stage is vital to the transformation process.

The Satir Change Model• Stage 4: Integration• The members discover a transforming idea that

shows how the foreign element can benefit them. • Awareness of new possibilities enables authorship

of new rules that build functional reactions, expectations, and behaviors.

• Members in this stage need more support than might be first thought.

• The members need reassurance and help finding new methods for coping with difficulties.


• Stage 5: New Status Quo

• If the change is well conceived and assimilated, the group and its environment are in better accord and performance stabilizes at a higher level than in the Late Status Quo.

• In this stage, the members continue to need to feel safe so they can practice.

Postscript: Coping With ChangeStage Description How to Help

1 Late Status Quo Encourage people to seek improvement information and concepts from outside the group.

2 Resistance Help people to open up, become aware, and overcome the reaction to deny, avoid or blame.

3 Chaos Help build a safe environment that enables people to focus on their feelings, acknowledge their fear, and use

their support systems. Help management avoid any attempt to short circuit this stage with magical solutions.

4 Integration Offer reassurance and help finding new methods for coping with difficulties.

5 New Status Quo Help people feel safe so they can practice.

Lewin‘s Change Model

Skills

Problem Solving

People Management

Process of Change

Satir Model

Lewin’s Model


• One of the early fundamental models of planned change was provided by Kurt Lewin.

• He conceived of change as a modification of those forces keeping a system’s behavior stable.

• This model provides a general framework for understanding organizational change.


• Unfreeze• In this step employees are educated about the

external and internal factors that make change imperative.

• People are content with the existing work environment, organizational rules and procedures and therefore are unwilling to change


STAGE 1

CREATING MOTIVATION AND

READINESS TO CHANGE THROUGH

DISCONFIRMATION

CREATION OF GUILT OR ANXIETY

PROVISION OF PSYCHOLOGICAL

SAFETY


• Movement to Change • After the resisting employees are convinced or

prepared for change, the actual change process begins.

• This involves doing away with old practices and adopting new methods.


STAGE 2 HELPING THE CLIENT TO SEE, JUDGE AND FEEL THINGS

AND REACT DIFFERENTLY BASED ON A NEW POINT OF

VIEW OBTAINED THROUGH

IDENTIFYING WITH A NEW ROLE MODEL, MENTOR, ETC

SCANNING THE ENVIRONMENT FOR NEW RELEVENT

INFORMATION


• Refreeze• After change has been implemented, it has to be

assimilated into the organizational processes. • The third step involves reinforcing change so that

the organization does not revert to old state of things.

• Therefore, repetition and constant reinforcement of new work techniques is essential to sustain change.


STAGE 3 HELPING THE CLIENT TO INTEGRETE

THE NEW POINT OF VIEW INTO A

TOTAL PERSONALITY AND SELF

CONCEPT

SIGNIFICANT RELATIONSHIPS

A case in a box

• Refer to page 323,324

Skills

Problem Solving

Problem Solving

• Problem Solving is a logical process and a learned skill. It is unlikely that a team will be able to do high-quality problem solving after only training.

• Like any complex skill, effective problem solving requires extensive practice

The Problem-solving process

Recognize and focus on the problem

• In many cases, people often start improvement activities without first understanding why the problem in question is being addressed.

• Problem areas become much clearer when the actual circumstances are compared to the business objective, the process requirements, or the customer expectations. The bottom line is that problem areas must be “discovered”.

Recognize and focus on the problem

• You need to be aware that a problem or opportunity exists before you can solve it or take advantage of it.

• It is from the information gathered in analyzing the environment that you will learn that a problem or opportunity exists.

Techniques and tools for this stage

• Stakeholder Analysis

• Force-Field Analysis

Stakeholder Analysis

• Stakeholder Analysis (Mason and Mitroff, 1981) looks at how groups of people might affect the outcomes of a proposal by the way they react.


• Who are the sources of reaction or discontent to what is going on?

• Who have relevant positional responsibility? • Who do others regard as ‘important’ actors’? • Who participate in activities? • Who shape or influence opinions about the issues

involved? • Who fall in demographic groups affected by the problem? • Who have clear roles in the situation (e.g. customer,

friend, adviser)? • Who are in areas adjacent to the situation?


• Using a matrix , stakeholders can be plotted and categorized both by the chance of their affecting the situation, and by the scale of impact they would have if they did.

• Should any quadrant in the matrix appear empty, check that you have really included everyone, or plot the scale of the stakeholders influence (high or low) against whether they would support or oppose your project


Impact Unlikely Impact Likely

Impact, if it occurred, Would be high

Chairman of the Board Chief accountant

My managerKey customer

Impact, if it occurred, Would be low

Reprographics Department My secretary


• Listing any assumptions that stakeholders are making could prove helpful

• e.g. using assumption surfacing, carefully assess the list, especially in relation to the stakeholder for whom they have been derived.

Force-Field Analysis

• developed by Kurt Lewin (1890-1947),

• characterizes the conflicting forces in a situation.

• The recommended approach to this method is to outline the points involved in problematic situations at the problem exploration stage, followed by recognizing factors likely to help or hinder at the action planning and implementation stages

Force-Field Analysis• Members of the group identify and list the driving and

restraining forces (perhaps using a suitable brainstorming or brain writing technique) openly discussing their understanding of them.

• The group leader is representative of the current position as a horizontal line across the middle of the page. The leader will draw all the driving forces as arrows that either pull or push the line upwards, and all the restraining forces as arrows that pull or push the line downwards (see below).

• Where driving and restraining are paired use arrow thickness to signify strength of impact of a force and arrow length to show how complicated it would be to adapt. It is normally best for the team to reach agreement on these details.


• The diagram should then be used to find as many possible combinations of moving the centre line in the desired direction. Try to: – Find ways to strengthen or add positive forces – Find ways to weaken or remove negative

forces – Recognize that the negative forces are too

strong and abandon the idea

Step 2:Define the problem

• makes sure the efforts will be directed towards solving the real problem rather than merely eliminating the symptoms.

• establishes the objectives of the problem solving process and determines what will constitute evidence for the problem to be solved.

• The outcome is a set of decision criteria for evaluating various options.


• Fishbone Diagram

Fishbone Diagram

• developed by Professor Kaoru Ishikawa

• helps to structure the process of identifying possible causes of a problem.

• shows the relative importance and inter-relationships between different parts of a problem.

Fishbone/Ishikawa Diagram

Step 3:Generate Alternatives

• involves cataloging the known options (a rational act) and generating additional options (a rational and intuitive act)

• to ensure that you reach the selection stage of Problem Solving Process with enough potential solutions.

Generate Alternatives

• not a haphazard activity, but a logical, thoughtful, careful search for specific actions that will alleviate the cause.

• nurture your logic and also reinforce creative talents in search of solutions.


• Analogies

• Morphological Analysis

• Brainstorming

Analogies

• analogy - is when you say that something is like something else (in some respects but not in others)

• Analogies are a key feature of many approaches to creativity. For instance, they were central to the earlier forms of Synectics and they are an important element in various types of Excursion. The term bionics has been used to describe the systematic use of biological and botanical analogies to solve novel engineering problems.

• Often analogies are used very informally: 'This problem makes me think of X (analogy) - that suggests to me that maybe we could try Y (idea drawn from analogy X)'. But the underlying logic will be along these lines:

• Identify what it is you want ideas for, and try to find a core verb phrase that captures the essential functional nature of what you are looking for - e.g.: 'How to make X'. 'How to prevent Y', 'How to speed up Z', 'How to become better at A'.

• For each verb phrase generate a list of items (people, situations, objects, processes, actions, places, etc.) that is 'like' it in some way - e.g. analogies to 'making X' (having a baby, making a pudding, the Genesis creation story, a robot car factory, ...etc.).

• Pick one of these analogies that seem interesting - preferably where the verb phrase and analogy are from different domains - e.g. a biological analogy for a mechanical problem.

• Describe the analogue, including active aspects (such as how it works, what it does, what effects it has, how it is used) as well as passive aspects (size, position, etc.).

• Use this description to suggest ideas relevant to your problem. Does the analogue have features you can use directly? Do the differences suggest other ways of looking at your problem?

Morphological Analysis

• term morphology comes from classical Greek (morphe) and means the study of shape or form.

• It is concerned with structure and arrangement of parts of an object, and how these "conform" to create a whole.

Steps of the process• First step. The problem to be solved must be very

concisely formulated.

• Second step. All of the parameters that might be of importance for the solution of the given problem must be localized and analyzed.

• Third step. The morphological box or multidimensional matrix, which contains all of the potential solutions of the given problem, is constructed.

Steps of the process

• Fourth step. All the solutions contained in the morphological box are closely scrutinized and evaluated with respect to the purposes that are to be achieved.

• Fifth step. The optimally suitable solutions are ... selected and are practically applied, provided the necessary means are available.

Brainstorming • Define your problem • Write out the problem concisely.• Respond with as many ideas or suggestions as possible. • Record every response. Often, the most creative or outrageous

suggestions are the most useful and interesting.• Give yourselves a time limit.• No criticizing of ideas. • Once your time is up, select the five ideas that you like best. Make

sure everyone involved in the brainstorming session is in agreement. • Write down about five criteria for judging which ideas best solve your

problem. • Prioritize, analyze, or use the list to generate discussion or problem

solving. • The idea with the highest score will best solve the problem.

Step 4 : Evaluate and Choose• Decision making - based on a systematic

evaluation of the alternatives against the criteria established earlier.

• The better the job done in generating alternatives and determining their possible outcomes, the greater the chance that an effective choice will be made.

• The choice process is mostly rational, but very skilled decision makers rely on intuition as well, especially for complex problems


• Evaluation Matrix

Evaluation Matrix

• great tool for evaluating and prioritizing among from 2 to 20 choices

Evaluation Matrix Criterion A Criterion B Criterion C Criterion D

Option 1

Option 2

Option 3

Option 4

Option 5

Option 6

Step 5:presenting and selling recommendations

• When you and your team reach a solution, they will have achieved several important milestones.

• These achievements must not go unnoticed, and it is the presentation to the management and client that will recognize the accomplishment.

• Everything you have done to this point leads to this critical, final step.


• Consequence and Sequel (C&S)

• ROI Analysis

Consequence and Sequel (C&S)

• If your thinking is going to result in action of any sort (decisions, choices, plans, initiatives etc.) then that action is going to take place in the future. So you have to look at the consequences of that action.

• Will it work out?• What are the benefits?• What are the problems and dangers (risks)?• What are the costs?• In doing a C & S you should keep in mind ‘position’.

Something you do may put you in a better ‘position’ to do something else.

ROI Analysis

• . The inherent benefits of an ROI analysis go well beyond the numerical result, and include:

• Shortening the Purchase Process • Building Consensus within Your Company • Standardizing the Purchase Process • Focusing on the Business Issues • Gaining Senior Management Support • Establishing an Historical Record • Sleeping at Night

Step 6:Implementation

• Implementation requires persistent attention

• This means accounting for details and anticipating and overcoming obstacles

• Set specific goals and reasonable deadlines, and gain the support of others for your solution


• Implementation Checklists

Step 7:Assessing the implementation and control

• Evaluating results is the final, and overlooked, stage in the Problem Solving Process.

• The purpose of the evaluation is to determine the extent to which the actions you took have solved the problem.

• It is important at this stage to be able to recognize deficiencies in your own solutions if necessary.


• Comparisons against Others

• Monitor Weak Signals

• Opportunity Searches

People Management

Skills

Problem Solving

People Management

Process of Change

Satir Model

Lewin’s Model

4 Cs

• Communication- Listening and SPIN questioning

• Conversational control and appreciative enquiry

• Concerns

• Credibility and competency

Demonstrating our listening

Spin Questioning

• developed by Neil Rackham

• It is intended for large product or service sales

• is a questioning technique and is an acronym for Situation,Problem,Implication,Need-payoff Questions.

Spin Questioning

• Situation Questions – to gather background information and understand the context of the sale.

• Problem Questions – to explore the customer’s dissatisfactions and concerns.

Spin Questioning

• Implication Questions – that develop and link apparently isolated problems by examining their ‘knock-on’ effect on the areas of the customer’s business.

• Need-payoff Questions – that invite the customer to consider the benefits of solving his or her problems and, having done so, to express an Explicit Need for a solution

Conversation Control

• The essence is to control is your ability to manage your own conversation.

• It is likely that if other people see you behaving in a reasonable fashion and exercising control over what you say, then they will respond in a positive way.

The Concept of Probing• Probing is the means by which you gather

information to achieve that understanding.

• The ability to ask questions that logically and efficiently to uncover important information about a customer's needs

• Your goal in probing is to build a clear, complete, mutual understanding of a client's needs.

Paraphrasing

• Paraphrasing is reshaping what has been said to make it more comprehensible.

• Paraphrasing can be a useful tool for insuring that successful communication has taken place.

Appreciative Enquiry

• based on the assumption that organizations change in the way they inquire

• organization which inquires into problems or difficult situations will keep finding more of the same

• an organization which tries to appreciate what is best in itself will find/discover more and more of what is good.


• a particular way of asking questions and envisioning the future that fosters positive relationships and builds on the basic goodness in a person, a situation, or an organization.

• In so doing, it enhances a system's capacity for collaboration and change.


• Discover: The identification of organizational processes that work well.

• Dream: The envisioning of processes that would work well in the future.

• Design: Planning and prioritizing processes that would work well.

• Destiny (or Deliver): The implementation (execution) of the proposed design

Concerns

• Identifying the needs and motives

The Iceberg Principle

• The tip of the iceberg - represents people’s behavior.

• What lies under the waterline are the reasons for that behaviour.

• It is easy to observe behaviour and accept it at face value.

The Iceberg Principle

Credibility and Competency

• Credibility is the objective and subjective components of the believability of a source or message.

• Traditionally, credibility is composed of two primary dimensions: trustworthiness and expertise, which have both objective and subjective components.

Factors influencing perceived credibility are

Confidence

• People who seem in control and confident in what they say and do are more believable than people who appear to be hesitant and uncertain.

Factors influencing perceived credibility

Initial impact

• People are never more sensitive than when they first meet.

• The behaviour involved in initial impact are observable and can be controlled and improved.


Honesty • A lack of honesty may take some time to be

discovered or it could be discovered the moment a few words have been uttered


• Delivering as promised• This is a factor influencing credibility which is not

easily demonstrable early in the relationship. • Continued credibility rests on being able to

deliver on an on-going basis.

Competency

• fundamental knowledge, ability, or expertise in a specific subject area or skill set.

• Companies with specific strengths in the marketplace, such as data storage or the development of accounting applications, can be said to have a core competency in that area.

Factors which affect perceived competence

• Knowledge • Knowledge is defined in this context as the

amount which we know (technically or theoretically) about a subject.


• Track record• If we have a record of providing valuable advice

in a particular industry and type of business, this will build our competence


• Expertise • Expertise is the ability to apply one’s knowledge

and track record to the particular situation and produce credible and believable ideas, ways forward and solutions.

HRM - Change Management

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