Change managementtimssubscription@gmail.com, 2015-02-05

How does an organisation know when it is time to change?

At one level, there are some fairly clear signals which indicate that change is necessary

Signals for Change

• Market performance

• Changing Env. Circumstances

• Organizational Performance

Understanding Strategic Change

Theories

According to Beer and Nohria (2000), there are 2 models;

Theory O Reflects the cultural approach and the need to develop a political 'mini-constitutional'

form of ordering in the organisation Based on the idea that 'organisations are nonlinear dynamic systems in which there

are many unintended consequences when direct linear action is taken.

Theory E Reflects the machine and engineering approaches, with a view that power rather

than authority may need to be exercised Focuses on economic value and top-down and programmatically driven change in

order to achieve this.

Theories

Comparison of Theories

Images of managing change

• Director image : This perspective is generally very little interested in how employees in the organisation see the problem. Behaviour is the main focus rather than the beliefs or understandings of the individuals in the organisation.

• Navigator image : the navigator image focuses on the need for continual readjustments of the course and destination in a change process.

• Caretaker image : the caretaker image is used to describe change contexts where management activity is limited.

What is to Change ( Design Tests )

The four 'fit' tests offer initial screen;

•Market advantage test: Is change likely to lead to market advantage?

•Parenting advantage test: Does change help the corporate parent add value to the organisation?

•People test: Does the change reflect the strengths, weaknesses and motivations of key people in the organisation?

•Feasibility test: Does the change take into account constraints in implementation?

And the five 'good design' tests refines its prospective design:

•The specialist cultures test: Does the change protect units that need distinct cultures?

•The difficult-links test: Does the change help bridge otherwise difficult unit-to-unit links?

•The redundant hierarchy test: Does the change leave too many levels and units?

•The accountability test: Does the change support effective controls?

•The flexibility test: Does the change facilitate new strategies and future change?

Four 'fit' tests offer an initial screen, five 'good design' tests can help a company refine its prospective design.

What and How What of Change

Fine Tuning Change pressure is weak, mainly surfaces

in minor mismatches between policy and practice

Incremental Change pressure is weak, is incremental,

built on the existing dominant model

Modular Transformation process of more radical change which is

limited in its effects to a particular part of the organisation

Corporate Transformation most dramatic form of change where the

whole organisation is subjected to a thorough critique and restructuring

How Of Change

Collaborative changeDependence on the knowledge and skills of people closest to the problem. Collaboration is also likely to be time intensive

Consultative changeSuggests an initial closing down of options by senior managers to a limited number.

Directive changeChange management is basically driven by top managers. Main emphasis for employees will be on communication, explaining why the change is necessary, what it will be and what impacts on work, employment and the organisation more generally can be expected

Coercive changeNo choice given to inside the organisation and expected to conform to new directives

Kotter’s 8 Step Model

Kotter observed 8 key errors;

1.not establishing a great enough sense of urgency

2.not creating a powerful enough guiding coalition

3.lacking a vision

4.undercommunicating the vision by a factor of ten

5.not removing obstacles to the new vision

6.not systematically planning for, and creating, short-term wins

7.declaring victory too soon

8.not anchoring changes in the corporation's culture

http://leanchange.org/2014/02/navigating-organizational-change/

Kotter’s 8 Step Model

• examining market and competitive realities

• identifying and discussing crises, potential crises, or major opportunities.

• assembling a group with enough power to lead the change effort

• encouraging the group to work together as a team

• creating a vision to help direct the change effort

• developing strategies for achieving that vision.

• using every vehicle possible to communicate the new vision and strategies

• teaching new behaviors by the example of the guiding coalition. • getting rid of obstacles to change.

• changing systems or structures that seriously undermine the vision

• encouraging risk taking and nontraditional ideas, activities, and actions.

• planning for visible performance improvements

• creating those improvements• recognising and rewarding

employees involved in the improvements

• using increased credibility to change systems, structures, and policies that don't fit the vision

• hiring, promoting, and developing employees who can implement the vision

• reinvigorating the process with new projects, themes, and change agents

• articulating the connections between the new behaviours and corporate success

• developing the means to ensure leadership development and succession

Kübler Ross Grief Cycle – 5 Stages

1. Denial – This isn’t happening to me

2. Anger – Who’s to blame for this? Why me?

3. Bargaining – If I can live till my daughter’s wedding…

4. Depression – I am too sad to do anything

5. Acceptance – I’m at peace with what is coming

5 Stages• https://www.youtube.com/watch?v=fBm7pzErEWM

Resist to change

Why people might resist changedislike of changediscomfort with uncertaintyperceived negative effects on interestsattachments to established culture/way of doing thingsperceived breach of psychological contractlack of conviction that change is neededlack of clarity as to what is expectedbelief that the specific change being proposed is inappropriatebelief that the timing is wrong'excessive change'cumulative effect of other changes in one's lifeperceived clash with ethicsreaction to the experience of previous changesdisagreement with the way the change is being managed

The psychological contract

•We expect; be loyal keep trade secrets work hard and do their best for the

organisation

•Employees expect; receive an equitable level of remuneration be treated fairly and with dignity have some level of security of employment have some level of autonomy have an opportunity to learn and develop

Kubler Ross’ Change Curve (adapted)Source : http://leanchange.org/2014/02/navigating-organizational-change/

Dealing with resistance to change

Force field analysis

Kotter and Schlesinger’s Model

This involves listing and assessing the forces for change (or in favour of a decision) and against change (or against a decision).

• https://www.youtube.com/watch?v=__IlYNMdV9E

Summary of Change Management

Who will deal with this?

THE Mıddle managERs

Change is important and difficult leadership responsibility.

Role of the middle manager is becoming more important. Balogun (2003) suggests 4 key roles for middle managers to adopt organisational change;

implementing changes needed keeping the business going undertaking personal change helping others through the change.

Role of Middle Manager• https://www.youtube.com/watch?v=MXRCP8cXrW0

Managing Yourself andYour Working Relationships

• The most important question in change is: What does it mean for me? When I am satisfied with the answer to this question, then I am able to think about what it means for others and for the organisation.

• Treat people as adults. If my job is going to disappear, I want to know as early as possible so that I can take action to secure my future, pay my mortgage and look after my family.

• Communicate, communicate, communicate. And if you literally have nothing new to tell people communicate this too.

• Act speedily

Communicate, Communicate, communicate,communicate, communicate communicate

And if you literally have nothingAnd if you literally have nothing new to new to tell peopletell people,, communicate this too. communicate this too.