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MANG6311-Week7-ChangePM-Bb-16Nov21.pdf

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MANG6311 PM – People & Organizations

“We need a change … could

‘YOU’ change please!”

Week 7

Dr Ramesh Vahidi [email protected]

16 November 2021

Southampton

Business School

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Change in Organizations & People

Let’s be clear about our coverage here …

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Change in the Business

World

Process of Managing Change within a Project

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Lecture Cover - Areas to be Understood

Nature of Change

Causes of change at

various levels

PM & Change

Change & its

Challenges

Change Projects Used to Fail and still do!

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http://calleam.com/WTPF/?page_id=1445

“Nearly 40 years of research by leadership and change guru Dr. John Kotter have shown that more than 70% of all major transformation efforts fail.”

http://calleam.com/WTPF/?page_id=1445

What’s in it for me?

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Changes in the

Business World

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World’s Newly Emerged Forces • New forces have arisen in recent times. • Major realigning of global business forces in 1980s. • + Uncertainties since the PANDEMIC

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• Emergence of new/global markets vs. national markets.

• Emergence of new economic powers around Pacific Ocean.

• Political changes in Eastern Europe → World’s economic balance.

• Technology Advancements → computing & telecommunications.

(Frame, 2002)

?Globalization

Downsizing, Mainly 1980s and 1990: Frozen new hiring, encouraged early retirements, fired selectively, shut downs;

Flattening, Restructuring to eliminate the many levels of bureaucracy that separate the CEO from the floor sweeper;

Employing team-based solutions, dealing with complexities through multidisciplinary and cross- functional teams; (online sale – website expertise)

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(Frame, 2002)

Surviving in the New Environment - 1

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Empowering employees, giving the decision making authority to employees to facilitate change and customer satisfaction, changing the role of the managers from director to supporter;

Adopting e-commerce perspectives, achieving great efficiencies and improved operations through Internet and Intranet;

Outsourcing, cost and risk reduction and shifting many of the business burdens to the contractors. Basic questions:

- “Possible/necessary to be good at everything?” - “Possible/necessary to do everything?”

Surviving in the New Environment - 2

(Frame, 2002)

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Which one Resembles the Business World?!

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VUCA World We Leave In!

Project Management’s Compatibility

with the

New Business Environment

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Business and

Organizational

Change,

Project

Management

Sources of Projects

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Where do projects come from?!

Sources of Project Authorization - 1

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A market demand (e.g.: Tesco opens an ‘Express’

in a newly developed residential, masks!)

A business need (e.g.: Sustainability →moving to

renewable sources for power generation )

A customer request (e.g.: An electric utility

company requests a maintenance software to be

developed by an IT company)

A technological advancement (e.g.: An advanced

new processor leads to a new generation of

laptops, transport vaccines)

Sources of Project Authorization - 2

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A legal requirement (e.g.: the Industrial

Ministry demands industries to reduce

CO2 emission)

A crisis (e.g.: a market downturn forces a

company to restructure itself, Covid)

A social need (e.g.: city council authorises

reducing SOTON’s traffic lights, changes fo

r social distancing!!).

PM Compatibility with New Business Environment

• Flat, flexible and team-based;

*At least should be!

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• Project managers have more authority compared to bosses;

*Reflection from those with experience?

• Are dependent on outsourcing as an important mechanism for acquiring products and services on projects.

What’s in it for me?

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Is there any time we are not affected by a change?!

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Note how the business world’s changes could lead companies to change and how the companies’ changes could lead to definition of new projects!

PESTEL helps you to see, discover, predict and monitor some of the

causes

Change:

Individual

Level

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Activity: We are going to have a little QUIZ!

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Describe your mood!

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1 2 3

4 5 6

https://www.youtube.com/watch?v=gjys0hKDcFA

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Elements of the Internal Context of Management (Boddy, 2010, p.385)

Change & Internal Elements of Organizations

If you had to choose one element with the most and strongest relations to the rest of the elements, which one would you choose?

More on Sources of resistance to change in Boddy (2010, Ch. 13) & Combe (2014, Ch.16).

Changes in

Organizations

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Change Analysis - 1

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• Initiation: sufficient influential people believe in a performance GAP.

• Is there always a performance gap?

- Fashion; - Empire building; - Politics; - Personal reasons of influential

people; …

Change Analysis - 2

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- Contextual characteristics:

receptive vs. non-receptive;

- Drivers & Barriers;

- Potentials;

- Past & Present;

- Future directions;

…

Tools and techniques for studying,

describing and analysing GAPs and

the resulting organizational change

in terms of:

Change Analysis - 3 Force Field Analysis

Home Exercise: Organizational Change

- Read Maylor’s (2010, pp92-94) case study on “A new campus for the

University of Rummidge”.

- What were the drivers of change in the case study?

- Which tools from previous lectures will help you to analyse the

context and forces of the change in this case? (analyse within your

study team and could later check your findings with me.)

Home Exercise: Helps with your Essay 2

1) Select a major change you have witnessed in your own country (for example, change in education system, banking, health, benefits, regulations, etc.)

2) Describe and analyse the “context” for this change. Which of the tools you learned could provide a structured description and analysis of this change?

3) Explore the drivers and barriers you could see in this change. Was there any project to manage the change?

Kotter’s 8 Steps of Change

• Urgency: From whose viewpoint? Why?

• Trust can be a key element

*Potential issues: very vague, changing, hard to personalize

• Knowledge of the org and context • Trust can be a key element

• Key element: Trust, clarity, relevance • Is there something for everyone?

*Needs: clarity, motivation, trust

• Knowledge of the org/context • Trust can be a key element

• Constantly realign • Hire, promote, develop

• Institutionalize • Link success&change

Reasons for failure of change efforts

According to Kotter:

• Lack of consistent,

holistic approach;

• Lack of effective

engagement of the

workforce.

Change Levels: Do We Realise/Manage Change?

Small scale

Medium scale

Large scale

Consequences at

organizational level

Consequences at

personal level

Home Exercise

In the ‘major change’ from your Home Exercise 1:

1) Could you find any evidences that some of the Kotter's steps had been taken?

2) Could you discuss whether taking some of Kotter's steps could have possibly facilitated the change? Which steps?

3) Could you link these with your findings from exercise 1?

References

Boddy, D. (2017) Managing change and innovation. 7th ed. (Chapter13)

Boddy, D. (2010) Managing change and innovation. 5th ed. (Chapter13)

Combe, C. (2014) Introduction to management. (Chapter16)

Frame, Davison J. (2002) The New Project Management: Tools for an Age of Rapid

Change, Complexity. Jossey-Bass. 2nd ed. Chapters 1&2. (available as e-book)

Websites:

http://calleam.com/WTPF/?page_id=1445

http://www.kotterinternational.com/about-us/

Videos by Kotter on Youtube

http://calleam.com/WTPF/?page_id=1445

http://www.kotterinternational.com/about-us/