Tochange is to take different actions than previously.

To take
different actions than previously means to make different
choices. Different choices produce change. The same produce
sameness, a reinforcement of the status quo.

Changemanagement is defined as the systematic deployment

of change management programs, tools and processes
throughout an organization.

6
2/21/2014 7

To have competitive supremacy, increasing profits, and

Business Challenges maximum control over organization’s destiny it is
essential to innovate, learn quickly and respond
Severe Competition quickly

Change in Tech

Change in Comm

Change in Info

Being aware of the environment and trends outside

the organization and working with those within the
organization who are keen to make change a strategic
2/21/2014 68 approach to required change

Change Management 1

People Oriented Change: before changing
other people, we have to change our self, first! • Leader must possess the discipline, determination, and courage
necessary to get the job done. “A unique feature of the human brain
is its ability to form mental images of the future and to translate

Organizational Change: changing the these images into reality though leadership and action”.
strategy, policy, system and procedures for
achieving an high performing organization • Leaders must possess more than vision and values. They must
discipline, energy, determination, zeal, and courage to carry them
through the difficult periods and more important, to keep them
moving forward during thee good times as well.

Turning Point
“The road stop here, what got you here, won’t get you there” * Theory E
Theory E has as its purpose the creation of economic value, often
expressed as shareholder value. Its focus on formal structure and
systems. It is driven from the top down with extensive help from
consultants and financial incentives. Change is planned and
Good programmatic

* Theory O
Second Theory O has as its purpose the development of the organization’s
Curve human capability to implement strategy and to learn from actions
taken about the effectiveness of a changes made. Its focus is on
the development of a high – commitment culture. Its means
First Curve consist of high involvement, and consultants and incentives are
relied on far less to drive change. Change is emergent, less
planned and programmatic

Change Management 2
 Dimensions Theory E Theory O Theory E and O Combined
Of Change
Goals Maximize shareholder Develop organizational Explicitly embrace the paradox
Theories E and O of Change value capabilities between economic value and
org. capabilities
Purpose & Means Theory E Theory O Manage change Encourage participation Set direction from the top
Leadership
from the top down from the bottom up and engage the people below
Purpose Maximize economic value Develop organizational
capabilities Focus Emphasize structure Build up corporate Focus simultaneously on
and systems culture, employees’ hard (structures and systems)
Leadership Top – down Participative behavior and attitudes and soft (corporate culture)
Process Plan and establish Experiment and evolve Plan for spontaneity
Focus Structure & systems Culture programs

Planning Programmatic Emergent Reward System Motivate through Motivate through Use incentives to reinforce
financial incentives commitment – use pay change but not to drive it
Motivation Incentives lead Incentive lag as fair exchange

Consultants Large/knowledge – Small/process driven Use of Consultants analyze Consultants support Consultants are expert
driven Consultants problems and shape management in shaping resources who empower
solutions their own solutions employees

Fundamental Change
Generate energy, allocate resources, shift paradigms,
MANAGEMENT develop transformation team, develop transformational
CHANGE leaders at all levels

Product portofolios, market repositioning, value proposition,

• Incremental Change Strategy – taking necessary STRATEGY competitive advantages, the winning formula, business
changes in sequential order CHANGE success model (KPI, strategic initiative)

• Fundamental Change Strategy – the whole STRUCTURAL Realignment and rebuilding of policies, management
organization and its relationship will systems, organization structures, business processes,
CHANGE enabling technology
simultaneously change

Cultural assessment, value definition, a set of behaviors,

CULTURAL
socialization, internalization, externalization (Moments of
CHANGE Truth), reassessment

Change Management 3
 The Business Transformation Implementation of Change
Model (Simplified Framework)

1. Anticipate Change
2. Generate
TECHNOLOGY CHANGE Confidence
3. Initiate action
Analysis “Force Field”
4. Liberate thinking
5. Evaluate results
Planning and Strategy ”Strategic Triangle”
BUSINESS
TRANSFORMATION PROCESS CHANGE 1. Phase One: Results
Implementation ”8 Steps”
FOCUSED
Communicate Vision,
Strategy and

Supporting implementation ”Cycle of
commitment
2. Phase two: Change”
PEOPLECHANGE Fast Target
3. Phase three :
Build on going

”Storytelling”
capability

 Not Establishing a Great Enough Sense of Urgency
Transformation requires the aggressive
 Not Creating a Powerful Enough Guiding Coalition cooperation of many individuals
 Lacking a Vision
Change by definition always demand leadership
 Undercommunicating the Vision by a Factor of Ten
The message that the status quo is more
 Not removing obstacles to the New Vision dangerous than launching into the unknown
 Not Systematically planning for and Creating Short-Term must be given
Wins
 Declaring Victory Too Soon
 Not Anchoring Changes in the Corporation’s Culture

80

Change Management 4

Successful transformation requires a minimum
In failed transformations, you often find plenty of
“critical” mass plans and programmes, but no vision

Guiding coalition members must include those that

A vision says something that clarifies the direction
operate outside of the normal hierarchy in which an organization needs to move

Teamwork is essential

82 83

In more successful transformation efforts, executives use all
Too often,an employee understands the new vision and
existing communication channels to broadcast the vision wants to make it happen. But something appears to be

Communication comes in both words and deeds blocking the path,

Nothing undermines change more than behaviour by
Organization structures, systems and procedures can
important individuals that is inconsistent with their words seriously undermine transformation efforts.

The worst of all are bosses who refuse to change and make
demands that are inconsistent with the overall effort.

84 85

Change Management 5

Without Short-Term wins, too many people give up or
actively join the ranks of those who have been resisting
While celebrating a win is fine, declaring the war
change won can be catastrophic.

Changes must sink deeply into an organizational

Short-Term wins help keep the urgency level up and
force detailed analytical thinking that can clarify or culture.
revise visions
New approaches are fragile and subject to
regression.

86 87

Change sticks when it becomes “the way we do things

around here.”

There must be a conscious attempt to show people how
the new approaches, behaviours, and attitudes have
helped improve performance.

Take sufficient time to make sure that the next
generation of top management really does personify the
new approach.

Change Management 6

Develop Detailed, Multi-dimensional Plans
 Change Description

How Things Will Be Better With the Change  Business Objectives

 Human Objectives

More Than Sloganeering
 Key Role Map

Leaders and Change Agents Need Their Own
 Vision
Individual Visions and Need to Know How That Fits  Detailed Activities, Resources, Timelines
Into the Organization’s Vision  Measurements

People Need to See How They Fit Into That Vision
Recognize That This Is a Journey
 Will Need to Adapt Plan As Needs Change

There Is a Need to Develop a Comprehensive Plan for the
The Past Bounds Future Success
Change
Identify Critical Success Factors From Previous

There Is a Need to Get the Organization Ready for the Change Successful Changes in the Organization

But If It Takes Too Long, People Lose Interest and Motivation  Surveys

So, Plan for Short Projects That Will Engage the People  Interviews
 Lessons Learned Sessions

Acknowledge Past Failures
 Explicitly Plan on Countermeasures

Change Management 7

Create a Key Role Map of the Formal Organization

At All Levels Within the Organization  Sponsors (at All Levels)

Teach Them Their Job  Change Agents
 Establish a Clear Vision  Targets
 Articulate That Vision
Augment With Identification of Informal Organization Key
 Communicate With the Affected Groups People (Understand Why They Have This Influence)
 Focus Energies on Their Direct Reports  Opinion Shapers
 Monitor Progress  Gate Keepers
 Eliminate Obstacles  Idea Champions
 Recognize and Reward Short-term Wins
Develop an Understanding of Their
 Stick With It for the Long Haul  Level of Influence
 Level of Commitment to the Change

Assess the Organization on Their Readiness for This Particular

Change
 Surveys
 One-on-One Discussions

Avoid the Dedicated Resistors, Focus on Early

Understand Where People Are Adopters (About 20% of the Population)
 Early Adopters
Helps to Get Some Early Wins
 Late Adopters
 Laggards

Are There Outside Organizations That Are Influencers?

Understand Their Frames of Reference and Develop
Communication Strategies

Change Management 8

Get People Involved Early in the Planning
Substitute One Fear for Another

Even If They Can’t Plan “What”, They Can Plan “How”  Make the Anxiety Associated With Not Changing Greater

They Are Changed by the Act of Participating in Planning the Than the Anxiety of Changing
Change  Intentionally Create Disorder

Surfaces Resistance Early and Can Potentially  Remove the Mechanisms That Allow People to Stay the
Manage It Same

Sample

Keep It Simple – No Jargon

Use Language of the People Memo From Director General to Manager:
Today at 11 O'clock There Will Be a Total Eclipse of the Sun. This Is When the Sun

Use Storytelling Disappears Behind the Moon for Two Minutes. As This Is Something That Cannot Be

Use Different Mediums Seen Every Day, Time Will Be Allowed for Employees to View the Eclipse in the Car Park.
 Memos People Should Meet in the Car Parking Area at Ten to Eleven, When I Will Deliver a Short
Speech Introducing the Eclipse, and Giving Some Background Information. Safety
 Group Meetings
Goggles Will Be Made Available at a Small Cost.
 Stories in Newsletters
 One-on-one Meetings
 (Have Different Levels of Impact) Memo From Manager to Department Head:

Change Style of Communication Depending Upon Today at Ten to Eleven, All Staff Should Meet in the Car Parking Area. This Will Be
Followed by a Total Eclipse of the Sun, Which Will Disappear for Two Minutes. For a
 Where You Are in the Change Moderate Cost, This Will Be Made Safe With Goggles. The Director General Will Deliver a
 Who You Are Communicating With Short Speech Beforehand to Give Us All Some Background Information. This Is Not

Walk the Talk, Be Honest Something That Can Be Seen Every Day.

Change Management 9

Plan for Goals (Long and Near Term) That Are Measurable,
Tangible and Clear

In Terms That Have Meaning to Individuals and Teams  Explicitly Tied to Vision

 Ask Them What a Reward Would Look Like to Them
Not a Count of Activities

Highly Visible  # Of People Trained in CM Projects/programs

Reward Throughout the Change, Not Just at the End  # Of Procedures Written

Performance Results That Matter to Customers, Employees
or Shareholders
 Reduction in Delivered Defects
 Reduction in Cycle Time
 Reduced Escaped Defects Resulting in Reduced Rework

Resistance Can Be at Systemic or Behavioral Level

Things Often Get Worse Before They Get Better
 Systemic – Lack of Appropriate Knowledge, Information,

Increase the Communication
Skills and Managerial Capacity (Cognitive)
 Change the Medium and Words
 Behavioral – Reactions, Perceptions and Assumptions
 Focus on What Is Ahead (Emotional)
 Provide As Much Information As Possible
Acknowledge the Pain of Changing

Allow Resistance to Surface and Manage It

Change Management 10

Resistance Is

Letting Go of Familiar Past (Perhaps a Romanticized  Inevitable
View)
 A Natural Function of Change

Confronting Feelings About an Uncertain Future  Manageable

Dealing With Loss of Face
Resistance Is Not

Redesigning a Focus on New Realities  Necessarily Logical

Working on These in Public, Facilitated Forums Allows  A Sign of Disloyalty
People to Constructively Express Their Anxiety and Anger
 To Be Taken Personally
and Helps to Reduce Passive-Aggressive Inertia and
Sabotage  A Sign That the Change Project Is Out of Control

Train Managers As Facilitators for the Change
Study Groups

 Helps Them to Demonstrate Active Commitment to the

“On-the-Dash” Coaching
Change
Web-based
 Can Immediately Reinforce the Training on the Job
Classroom Training

Trainers Are Generally Not Held Accountable for Achieving
Results

Development and Delivery Are Much Less Important Than
Group Dynamics and the Perception That Leadership Is
Interested

Change Management 11

Simultaneously Pushing for Change While Allowing Self-learning to
Unfold

Educate Leaders of the Change As Well As the Targets of
Their Roles in the Change
Being Prepared for a Journey of Uncertainty
 To Be Open to Change
Seeing Problems As Sources of Creative Resolution
 To Anticipate Change, Not Just React to It
Having a Vision, but Not Being Blinded by It
 To Accept That Change Causes Stress and to Developing
Valuing the Individual and the Group
Coping Mechanisms
Incorporating Centralizing and Decentralizing Forces

Being Internally Cohesive, but Externally Oriented

Valuing Personal Change Agency As the Route to System Change

Change Management 12