Managing Chnge
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Transcript of Managing Chnge
Change Management Leading Corporate Transformation
PANKAJ AGRAWAL
CHANGE – THE WAY OF LIFE
Change is inevitable
There is only one thing constant in the world – Change
Nothing Lasts Forever
If mankind denied changes – We would still be living on tree
BUT STILL – WHY TO CHANGE When the rate of change outside is more than rate of
change inside, end is in sight – JACK WELCH (CEO GE 1981-2001)
A Change Paradox - To not introduce change in changing environment may present as much risk as to introduce change in a non – changing environment.
At this moment of history, change is so rapid that we see the present, only when it is already disappearing.
AND THOSE WHO DON’T CHANGEDo you remember :-
FIAT and AMBASSOADAR Cars From Omni Present status to the rubble
NOKIA PHONE Synonyms to mobile - Struggling for survival
KODAK From USD 30 billon company to less then a billion company now.
FORCES FOR CHANGES Technological Advancements Changing customer aspirations Mergers & Acquisitions Privatization Knowledge Economy E-commerce Human Resource – Problem & Prospects External Economy – World Politics
EXAMPLES OF CHANGES ORGANIZATIONS ARE CURRENTLY TAKING ON
Ad hoc processes Documented and managed processes
Multiple, legacy systems One integrated database
Haphazard & inefficient duty roster New efficient & lean roster
No web interface for suppliers Supplier website integrated into supply chain
Two different companies Merged organization
Currentstate
Transitionstate
Futurestate
Manual Work Flows Automated Machines
FORMAL CHANGE MANAGEMENT PROCESS– A NEW MANAGEMENT TOOL
Consequences of no/improper Change management
Lower productivity Passive resistance Active resistance Turnover of valued employees Disinterest in the current or future state Changes not fully implemented People revert to the old way of doing
things The change being totally scrapped
CHANGE MANAGEMENT Two sides of changes
Technical Side of Change Human Side of Change
Change Management here is the process, tools and techniques to manage the people side of change to achieve the required business results.
(Change Management at Technical changes is part of Project Management).
PROPER CHANGE MANAGEMENT IS IMPERATIVE TO ACHIEVE DESIRED RESULTS FROM THE INTENDED CHANGE
CHANGE MANAGEMENT PROCESSCreate Vision for Change – Prepare for it
Manage Change
Post implementation Reinforcement
PHASE 1 – PREPARE FOR CHANGE Define nature of
change Do benefit analysis Identify Risk Prepare Risk
Handling Plan Devise Strategy Prepare Sponsor Plan Take Approval
PHASE 2 – MANAGE CHANGE Communication
plan Sponsor Roadmap Training Plan Coaching Plan Resistance
Mgmt Plan
CHANGE MANAGEMENT – CRITICAL SUCCESS FACTORS COMMUNICATION WITH STAKEHOLDERS
COMMUNICATION List all the stakeholders to be affected Make a clear communication to them
about changes Explain new risk/comfort profile
subsequent to change Check and handle scepticism Take Acknowledgement
CHANGE MANAGEMENT – CRITICAL SUCCESS FACTORS
TRAINING & COACHING
TRAINING & COACHING Assess current competency level of
people Assess competency level required post
change Do gap analysis Provide adequate training & coaching
at each level Check & freeze preparedness Keep Plan B ready in case of fallout
CHANGE MANAGEMENT – CRITICAL SUCCESS FACTORS
PEOPLE’s RESISTANCE
RESISTANCE TO CHANGE
Resistance to change (individual) is the main barrier for change – 60% time this is the case.
Employee Resistance
Habit
Job Security
Economic Fear
Selective Information Processing
Unknown Fear
OVERCOMING RESISTANCE
TRANSITION OF CHANGES
DENIALIt can’t happen here:::Current System is just fine:::Refusing gathering new information
RESISTANCEAnger:::Complaining:::Getting Sick:::Blame Game
EXPLORATIONWhat’s for me:::Seeing possibilities:::Chaos & indecisiveness
COMMITMENTFocus:::Team Work:::Vision:::Cooperation
TRADITIONAL CHANGE MODEL
PHASE 3 - POST IMPLEMENTATION REINFORCEMENT
Audits and employee feedback
Corrective action plans
After action review
Finally freeze the change
MOOT QUESTION - WHO WILL DO IT ………….
Project team
Changemanagement
Senior leaders
Managers and supervisors Employees
SENIOR LEADER(Main Project
Sponsor)• DRIVES CHANGE AT
MACRO LEVEL • Build the needed
coalition with peers and other managers
• Overall communicate the business messages about the change to all
MOOT QUESTION - WHO WILL DO IT ………….
Project team
Changemanagement
Senior leaders
Managers and supervisors Employees
MANAGERS/SUPERVISOR
(The Key Link)• Communicate the
personal messages about the change to stake holders
• Conduct group and individual coaching sessions
• Identify, analyze and
manage resistance • Provide feedback to the
rest of the change management ‘gears’
MOOT QUESTION - WHO WILL DO IT ………….
Project team
Changemanagement
Senior leaders
Managers and supervisors Employees
EMPLOYEES(Critical Success
Factor)• IF THEY EMBRACE IT, IT
WILL HAPPEN• Seek out information
related to the business reasons for change and the personal impact of the change
• Provide feedback and reaction to the change process
• Take control of the
personal transition
MOOT QUESTION - WHO WILL DO IT ………….
Project team
Changemanagement
Senior leaders
Managers and supervisors Employees
PROJECT TEAM(The executor on
ground)• Provide timely, accurate
and succinct information about the change (or project)
• Integrate change
management activities into project management plans and activities. Both should be well interlaced
CHANGE MANAGEMENT AND PROJECT MANAGEMENT
Currentstate
Transitionstate
Futurestate
Project management
Change management
Project Management & Change Management Process to work in tandem and should be in sync with each other
CONCLUSION Continual Change is imperative for success of any
organization Proper Change management is key to success behind any
change implementation Managing resistance, proper communication and training
are key success factors for proper change management.
Change management requires action and involvement by leaders and managers throughout the organization
Change management and project management are both tools that support project benefit realization – project management is the ‘technical’ side and change management is the ‘people’ side
SO ITS TIME FOR A CHANGE
Thanks a lot for your kind attention