change management
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CMU1IntroandOverview1_0e3c21f239719bd4f7ced76125019e681.pdf
CHANGE MANAGEMENT
BBA313
Introduction and Overview
Unit 1
Introduction and Overview
•Definition of change management.
•The Change House Model.
•4 types of organizational changes.
•The 10 principles of change management.
•The change process and its stages.
•Introduction to the overall change management model ( The eight ”C”s) core concepts: 1- The Change Agent, 2- External conditions, 3- Internal conditions, 4- Four change strategies, 5- Costs and Resistances, 6- Communications in change contexts, 7- Change targets, 8- Consequences of change.
Change Management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state, to fulfill or implement a vision and strategy.
It is an organizational process aimed at empowering employees to accept and embrace changes in their current environment.
It is the set of activities that helps people transition from their present way of working to the desired way of working.
-Lambeth Change Management Team, Change Management Toolkit.
As a Means of Transitioning People: Change management is a critical part of any project that leads, manages, and enables people to accept new processes, technologies, systems, structures, and values.
What is Change Management
What is Change Management
As a Systematic Process Change management is the formal process for organizational change, including a systematic approach and application of knowledge. -
Change management means defining and adopting corporate strategies, structures, procedures, and technologies to deal with change stemming from internal and external conditions.
Society for Human Resources Management, 2007 Change Management Survey Report
As a Competitive Tactic, Change management is the continuous process of aligning an organization with its marketplace—and doing so more responsively and effectively than competitors.
What is Change Management
Organizational change is introduced into corporate settings through projects, programmes and portfolios in order to deliver business value however, it is only the beginning of the process of embedding change and making it the new normal state for the organization.
-Lisa M. Kudray and Brian H. Kleiner, “Global Trends in Managing Change,” Industrial Management, May 1997
Understanding Change Management Terminology.
As a discipline, change management has evolved to include change management models, processes, and plans that help reduce the negative impact of change on organizations.
Change Management Models have been developed based on research and experience on how to best manage change within an organization or in your personal life. Most Change Management Models provide a supporting process that can apply to your organization or personal growth.
Change Management Processes include a sequence of steps or activities that move a change from inception to delivery.
Change Management Plans are developed to support a project to deliver a change. It is typically created during the planning stage of a Change Management Process.
Core concepts of a change managament model
Change Agent: Also known as an advocate of change, is a person who acts as a catalyst for the change
management process. They help an organization, or part of an organization, transform how it operates by inspiring and influencing others. A change agent will promote, champion, enable, and support an organization’s change implementation.
Core concepts of a Change Managament Model
Change Maturity refers to the sophistication of enterprise change management. In short, how developed is an organization’s change management function.
Change Readiness refers to how ready an organization is to change. This is a state – some organizations are more ready, some are less ready.
Change Model is a framework used to describe organizational change processes.
Change Management Strategy is the high-level strategy that defines a change project’s aims, goals, and tactics.
Change management capability refers to how developed change management is within a company. How capable an organization is when it comes to managing, leading, and executing change projects
Change Management Processes include a sequence of steps or activities that move a change from inception to delivery.
Core concepts of a Change Managament Model
Change Management Plans are developed to support a project to deliver a change. It is typically created during the planning stage of a Change Management Process.
Company culture is like a living being formed from the sum of all the people who constitute it. Therefore, it has its own personality, its own internal culture, and is formed by the employees' attitudes, values, behavioral norms and the illusion and hope for the future that they all have.
ROI (Return On Investment). it refers to how much of a result is being drawn
from the effort and capital that is being invested initially.
Stakeholder analysis means to analyze all the people in the company who can be affected by a change initiative, whether they are the ones who have to implement it or who are the beneficiaries or recipients of this change.
Risk Mitigation. It refers to an unified analysis of the risks that can appear and the attitudes that must be taken to avoid them or at least to diminish the impact they have on the project as a whole.
Core concepts of a Change Managament Model
Q. _____ is critical in a changing
environment
Click on the radio button to
select the correct answer!
Human Resources
Operations
Marketing
Finance
Forces For Change (Internal & External)
1
3
People & roles
Profits and cash flows
Mergers & Acquisitions
Political-Legal Reasons
Electronic Commerce Social-culture Reasons
Privatizations
New Technology
Digital Convergence
Knowledge Economy
The House of Change is a great tool for understanding and dealing with the emotions we all experience in response to change, then getting to where you want to go!
The theory The Four Rooms theory is about change. It identifies and describes polarizing and potentially detrimental conceptions of reality. Psychologist Claes Janssen called this phenomenon “The Conflict Between NO and YES”. At the heart of this psychological phenomenon are two exceedingly different perspectives that drive each individual in every situation and in every decision.
The House of Change
Basic Principles of Human Behavior
Thoughts
Feelings
Attitudes
Behaviors
Habits
Character
Feelings
Attitudes
Behaviors
Habits
Character
Destiny
Basic Principles of Human Behavior
The House of Change
Room of Contentment In this room, there is a mindset in which the individual is happy enough with their lot and there is little desire to change. Everything feels good, there is no desire to learn new skills or try new ways of working. There is a sense of being relaxed. This is a positive feeling of not needing to change, such as “If it’s not broken – don’t fix it”. The dark side (for employers) .
The House of Change
What They say How They act
Let ´s postpone it Ignore the outside work
We know what we are doing Arrogant
We achieve our targets Justify bad results
If it isn't broke don't fix it Don't listen to customers
I will get better next month Don't listen to own staff
Management have decided No sense of urgency
We don't have any major problems Unaware of new threat s
Room of Contentment
The House of Change
Room of Denial In this room, people are aware of the change around them but decided that none of it applies to them. There is a focus of defending the status quo and blaming others. This is a negative experience of not seeking change, for example, “I’ve tried it and it doesn’t work.” Or the best excuse by many is I just do not have the time to even consider anything else. The dark side.
No urgency to change Blames on others
Don´t want to improve
What The say How They act
It is a General Industry trend Defend the past
it's not our fault Defend the present
The budget was too ambitious Aggressive
It's a short time issue Miss the message but Kill the messenger
It's the recession Blame everything else
Corporate doesn't understand Blame everybody else
It will be okay and next month Minimize or trivialize the change
It can't happen here Not listening to own staff
We ´ve always done it this way Not listening to customers
Our business is different Try to find competitors who are doing worse
If is not broken don´t fix it
Room of Denial
Room of Confusion Something feels wrong, but there is not a clear sense of what is causing this. However, change is required as people recognize a need to develop new skills and knowledge. This room can be characterized by people saying things like, “I wish I knew where I was going”. However, this room (for employers) is good because is known on the bright side because although may seem confused they have the character in wanting to develop and improve personally be become a better individual.
The House of Change
Aware of change need Something is wrong People want to improve
What They say How They act
What are we doing? Frustration
What should we do? Anger
How did we get into this mess? Insecurity, self-doubt
Let´s hire some consultants No sense of direction
What are our competitors doing? Dependency on others
What have I done wrong Slogan of the mouth
We must do something now Set up numerous committees and task forces
I had been saying that for years Hire people from outside
We are trying to do too many things at once
Never complete anything
Room of Confusion
Room of Renewal This is a room for creative change. There is positive energy and radical ideas emerge. People support and are committed to new approaches. Thoughts and feelings are expressed openly without inhibition and ideas of change flow. This is positive energy towards change, characterized by expressions such as, “I am going to try this”.
The House of Change
New ideas Open mind Let´s try
What They say How They act
Let's make it happen. Learning
Let's do it together Trust and delegation
This is a good place to work Independence
Let's tell everybody about this Accepting risk
This is our plan Flexibility and creativity
It's been tough but we had made it Trying new approaches
We are doing well but We could do better Enjoying themselves
We have to trust each other Continually improve
We wont ´do it if it doesn't fit or strategy Stay focused
Set new Target
Regularly review progress and process
Room of Renewal
The House of Change
Q: Lack of consultation and a negative relationships between
employees and management can lead to the change
A. Not being accepted by employees.
B. Being implemented effectively but not efficiently.
C. Being accepted by employees.
D. Bing implemented effectively and efficiently.
Different types of organizational change will require different strategies. Everything from the implementation plan to the communication should be tailored to the type of change you want to make.
Strategic transformational change:
Refers to changes that are typically much grander in scope than incremental, adaptive changes. Very often, transformational change refers to a dramatic evolution of some basic structure of the business itself—its strategy, culture, organization, physical structure, supply chain, or processes.
People-centric organizational change
People-centric types of organizational change approach is key because emotional reactions are common. In fact, many change management models, such as the Kübler-Ross Change Curve and Satir Change Model, focus specifically on managing emotional reactions to change. 1. New hires; 2. Changes to roles and responsibilities; 3. Employee training and development for new skills;
Type of Organizational Changes
Structural change Structural changes involve major shifts in the management hierarchy, team organization, and the responsibilities attributed to different departments, employees, or teams. These changes often overlap with people-centric changes as they directly affect most, if not all, employees. • Mergers and acquisitions; •The creation of new teams or departments; •Changes to the company organizational chart:
Remedial change Remedial changes are reactionary. This type of change occurs when a problem is identified, and a solution needs to be implemented. As these changes are designed to address an issue; they call for immediate action. •Dealing with a loss of talent; •Addressing customer communication issues; •Providing more training for new hires.
Know your change and own your strategy. Before you can design your change management game plan, determine the type of organizational change you’ll be making. Once you figure that out, you can execute the right change management plan and tools for the best possible results.
Type of Organizational Changes
Type of Changes Developmental
Developmental changes are those you make to improve
current business procedures. As long as you keep your staff
well informed of changes and give them the training they
need to implement process improvements, they should
experience little stress from development change.
Examples of developmental change include:
improving existing billing and reporting methods
updating payroll procedures.
Type of Changes
Transitional change
Transitional changes are those you make to replace
existing processes with new processes. Transitional
change is more challenging to implement and can
increase your employees' discomfort. experiencing
corporate restructures, mergers or acquisitions
creating new products or services
implementing new technology.
Type of Changes
Transformational change
Transformational changes are those you make to completely
reshape your business strategy and processes, often
resulting in a shift in work culture. Transformational change
can produce fear, doubt and insecurity in staff, and needs to
be very well managed.
Examples of transformational change include:
implementing major strategic and cultural changes
adopting radically different technologies, making significant
operating changes to meet new supply and demand reforming
product and service offerings to meet unexpected competition
and dramatic reductions in revenue.
Type of Changes
https://www.researchgate.net/figure/fig1_340862116
Organizational Life Cycle
https://www.circlemakers.co/do-you-know-what-stage-your-business-is-in/
Q. ____________ is when two
companies create a new
company
Click on the radio button to
select the correct answer!
An acquisition
A merger
A privatisation
A public listing
10 Principles of Change Management
1. Address the “human side” systematically. A formal approach for managing change, beginning with the leadership team and then engaging key stakeholders and leaders, should be developed early, and adapted often as change moves through the organization.
2. Start at the top. Because change is inherently unsettling for people at all levels of an organization, when it is on the horizon, all eyes will turn to the CEO and the leadership team for strength, support, and direction. The leaders themselves must embrace the new approaches first, both to challenge and to motivate the rest of the institution. .
3. Involve every layer. Listen, learn and build trust with employees before starting change implementation. Always get their ideas and let them buy-in to the change. Create smaller, quick wins; those being led have to want to follow your change implementation. Go as slow as you have to and keep listening to people’s input. Departments experience the same change differently
4. Make the formal case. Individuals are inherently rational and will question to what extent change is needed, whether the company is headed in the right direction, and whether they want to commit personally to making change happen. They will look to the leadership for answers. .
5. Create ownership.
Ownership is often best created by involving people in identifying problems and
crafting solutions. It demands the will to accept responsibility for making
change happen in all of the areas they influence or control.
10 Principles of Change Management
6. Communicate the message. The best change programs reinforce core messages through regular, timely advice that is both inspirational and practicable. Communications flow in from the bottom and out from the top, and are targeted to provide employees the right information at the right time and to solicit their input and feedback..
7. Assess the cultural landscape. Successful change programs pick up speed and intensity as they cascade down, making it critically important that leaders understand and account for culture and behaviors at each level of the organization.
10 Principles of Change Management
9. Prepare for the unexpected. No change program goes completely according to plan. People react in unexpected ways. Effectively managing change requires continual reassessment of its impact and the organization’s willingness and ability to adopt the next wave of transformation.
10. Speak to the individual People fear the unknown change coming. Change is both an institutional journey and a very personal one. . There is always the issue of current demands/work versus the change implementation. Which has priority over what?
8. Address culture explicitly. Leaders should be explicit about the culture and underlying behaviors that will best support the new way of doing business, and find opportunities to model and reward those behaviors.
The Change Management Model
The Change Process
Identify the type of change
Describe and register details
Select the approach and write the plan
Implement and execute the plan
Monitor and follow up
1. Identify the change
Type of change
Reason for change
Scope
Current state
Future state
Concepts
Organizational readiness
The Change Process
2. The Details
Processes changes
People changes
Behavior changes
Information changes
Cost of changes
Risk assessments
The Change Process
3. The Approach
Stakeholder analysis
Resistance to change
Roles of change management team
The Change Process
4. Implement
Action plan
Communication plan
Training plan
Biz system plan
Resistance plan
Transition plan
Rediness review
Scalation process
The Change Process
5. Monitor
KPI reporting
Sensing behavior
Management review
The Change Process
Q. Setting attainable and realistic
objectives for the change are
_______ strategies
Click on the radio button to
select the correct answer!
Autocratic
Low risk
Coercive
Communication
Any Significant Change shall be documented using an Assessment Template
and include the following minimum details: (I.E.)
a) A full description of the change, including the scope of change;
b) Details of the change management process adopted;
c) Roles and Responsibilities of all persons involved in the change;
d) Change Register, including any details of changes;
e) Risk assessments;
f) Issues register or other similar document demonstrating how safety issues
raised were addressed;
g) Documentation on any communications and consultation processes, including
any training requirements;
h) Monitoring and review processes;
i) Design review and approval documents.
Change Management Assesstment
j) Divisional/departmental change approvals (e.g. Engineering Change Control);
k) Handover and acceptance documents;
l) Information on residual risks;
m) Director of Public Transport approval for rolling stock changes;
n) Bank notifications for rolling stock changes;
o) Approved AVA or notification acknowledgement.
What is Change Management
Four strategies for Managing Change © Fred Nickols
2016.
The four basic strategies used to manage change in and to organizations: 1. (E-R), 2. (N-R), 3. (P-C), 4. (E-A).
Empirical
Rational
(ER)
Normative
Reeducative
(NR)
Power
Coercive
(PC)
Environmental
Adaptative
(EA)
EMPIRICAL- RATIONALE
ASSUMPTIONS
1. People are rational beings and will follow their self-interest. 2. They can be persuaded. 3. Value judgments aside, they can also be bought. 4. Change strategy here centers on the balance of incentives and
risk management. 5. Rational-Empirical strategy consists of converts, that is, people
who buy the story. 6. Another stratagem here is to systematically target converts.
NORMATIVE - REEDUCATIVE
ASSUMPTIONS
1. People are social beings and will adhere to cultural norms and values.
2. For the most part, most people do want to “fit in” and “go along.” They will “go with the flow.”
3. The influence of the informal organization is felt strongly here. 4. The Normative-Reeducative strategy focuses squarely on culture. 5. Ordinarily, culture doesn’t change quickly and certainly not
overnight. This, then, is not the strategy of choice in a turnaround situation on short deadlines.
6. Strategy works best when relationships between the formal and informal organizations are at least cordial and hopefully harmonious.
POWER -COERCIVE
ASSUMPTIONS
1. People are basically compliant and will generally do what they are told or can be made to do.
2. Successful change is based on the exercise of authority and the imposition of sanctions.
3. This can range from the iron hand in the velvet glove to downright brutality – “My way or the highway.”
4. The basic aim here is to decrease people’s options, not increase them.
5. People actually want and will readily accept this strategy, particularly when all feel threatened and few know what to do.
6. Two major factors influencing the choice of the Power-Coercive strategy are time and the seriousness of the threat faced.
ENVIRONMENTAL - ADAPTATIVE
ASSUMPTIONS
1. People oppose loss and disruption but they adapt readily to new circumstances.
2. It exploits their natural adaptive nature and avoids the many complications associated with trying to change people or their culture.
3. People are often quick to oppose change they view as undesirable.
4. They are even quicker to adapt to new environments. 5. Instead of trying to transform existing organizations, it is often
quicker and easier to create a new one and gradually move people from the old one to the new one.
6. Strategy is best suited for situations where radical, transformative change is called for
Considerations in formulating a Strategy Mix
Degree of Change
Degree of Resistance
Population
Stakes
Time Frame
Expertise
Dependency
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Cost-benefit analysis of Change Management Your goal is to demonstrate the relationship between the costs of managing the people side
of change and the benefits you will reap from applying a structured approach to enabling
impacted employees to engage, adopt and use the change.
According to Prosci's Best Practices in Change Management research, the primary cost components of change management include: 1. Change management resources (people); 2. Training; 3. Communications; 4. Travel; 5. Time; 6. Change management materials.
In addition to primary cost components, which were identified most frequently, secondary costs include: a) Consultant fees; b) General expenses; c) Event costs (e.g., workshops, group meetings, "lunch and learn" events, road shows, and
town hall meetings); d) Reinforcement and recognition costs.
Q. ______ strategies assume that
people pursue their own self-
interest.
Click on the radio button to
select the correct answer!
Empirical-Rationale
Normative – re- Educative
Power -Coercive
Normative-Educative
Benefits of Change Management
Three people-side ROI factors – Faster speed of adoption, higher ultimate
utilization, and higher proficiency.
Cost avoidance – Poorly managing change is costly to the project and the
organization. Change management is a cost-avoidance tactic.
Risk mitigation – Individuals, the project and the organization are all at risk
when change is poorly managed. Change management is a tool to mitigate risks.
Benefits realization insurance – Consider how much of the value of the project
ultimately depends on people doing their jobs differently. Change management
provides benefits realization insurance.
Probability of meeting objectives – Data shows that projects with effective
change management in place are more likely to meet objectives, stay on
schedule, and stay on budget.
Reasons Employees Resist
Employees feel they will suffer from the change;
Organization does not communicate expectations clearly;
Employees perceive more work with fewer opportunities;
Change requires altering a long-standing habit;
Relationships harbour unresolved resentments;
Employees lack feeling of job security;
Change alters existing social interactions;
Organization lacks adequate reward process;
Organization lacks sufficient resources;
Resistance to Change (1/2)
5
9
Inadequate Team &
Users Skills
Technology users
not Involved
Resistance to
Change
Limitation Of
Existing System
Lack of
Executive Commitment
Lack of
Executive Champion
Unrealistic Expectation
Lack Of Cross-Function
Team
Project Charter
Too Narrow
Resistance To Change (2/2)
6
0
Low Medium High
Inadequate Team & Users
Skills
Technology users not
Involved
Resistance to
Change
Limitation Of
Existing System
Lack of
Executive Commitment
Lack of
Executive Champion
Unrealistic
Expectation
Lack Of Cross-
Function Team
Project Charter Too
Narrow
Q. ______ strategies rely on achieving
the intended outcomes through the
compliant behavior of those who
have less power
Click on the radio button to
select the correct answer!
Empirical-Rationale
Normative – re- Educative
Power -Coercive
Normative-Educative
Communication Strategy
Effective communication during a change effort will serve to provide employees with
timely and accurate information, which can positively influence whether the
organization can maintain employee productivity and morale and overcome resistance
to change.
The following five areas outline questions and key information for you to consider
when building and delivering a communications strategy designed to inform and guide
employees through a change event:
1. Building a Strategy;
2. Involving Key Stakeholders in Communications Efforts;
3. Determining Message Content;
4. Identifying Most Effective Communications Channels;
5. Ensuring Follow Up;
Consequences
In the absence of: You will see:
Awareness and
Desire
• More resistance from employees.
• Employees asking the same questions over and over.
• Lower productivity.
• Higher turnover.
• Hoarding of resources and information.
• Delays in implementation.
Knowledge and
Ability
• Lower utilization or incorrect usage of new processes,
systems and tools.
• Employees worry if they are prepared to be successful in future
state.
• Greater impact on customers and partners.
• Sustained reduction in productivity.
Reinforcement • Employees revert back to old ways of doing work.
• Ultimate utilization is less than anticipated.
• The organization creates a history of poorly managed change.
https://theedtechworkshop.com/2019/11/20/change-is-really-really-hard/
Case Study 1.
An organization attempts to innovate without change management.
1. What are your conclusion and recommendations?
2. What would you do differently if you were the CEO?
https://jocando.co.uk/types-of-change/ Charles Intrieri on August 19, 2013 in Organization, Change, & HR https://flevy.com/blog/10-principles-of-change-management/ The Change Management Blog https://change.walkme.com/change-management-process-flow/ https://innovationmanagement.se/2015/02/09/the-eight-cs-of-transformational-change/#
References
https://www.changefactory.com.au/our-thinking/articles/change-evolution-or- revolution/#:~:text=Revolutionary%20change%20tends%20to%20continue%20to%20be%20driven,through%20th e%20organisation%20to%20take%20on%20the%20change. https://www.sortlist.com/blog/evolution-vs-revolution/ https://changeassociates.com/the-hard-and-soft-sides-of-change-management-are-we-getting-the-balance-right/ https://simplicable.com/new/change-strategy https://www.prosci.com/resources/articles/cost-benefit-analysis-change-management https://www.prosci.com/resources/articles Change Management: Definition, Best Practices & Examples (haiilo.com) https://www.gatewaygroup.com/management-of-change-moc-attributes/ http://www.expertsmind.com/topic/impact-of-change-on-individuals/intervention-strategy-model-918251.aspx https://conorneill.com/2016/07/06/6-keys-to-leading-positive-change-rosabeth-moss-kanter/
https://theedtechworkshop.com/2019/11/20/change-is-really-really-hard/
The End.
