Reflective Report

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MBA600 Week 10 LEADING CHANGE

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COMMONWEALTH OF AUSTRALIA COPYRIGHT REGULATIONS 1969

WARNING THIS MATERIAL HAS BEEN REPRODUCED AND COMMUNICATED TO YOU BY OR ON BEHALF OF KAPLAN BUSINESS SCHOOL PURSUANT TO PART VB OF THE COPYRIGHT ACT 1968 (THE ACT).

THE MATERIAL IN THIS COMMUNICATION MAY BE SUBJECT TO COPYRIGHT UNDER THE ACT. ANY FURTHER REPRODUCTION OR COMMUNICATION OF THIS MATERIAL BY YOU MAY BE THE SUBJECT

OF COPYRIGHT PROTECTION UNDER THE ACT.

DO NOT REMOVE THIS NOTICE.

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WEEK 8 FOCUSES ON TWO LEARNING OBJECTIVES

Undertake independent research to solve complex business problems.

Other learning objectives

Discuss and translate theory, skills and knowledge into effective management practice.

Acquire advanced knowledge and apply it in real workplace contexts to improve performance and competitive advantage.

Critically assess a diverse range of theories accumulated throughout the Masters’ qualification and the connections that exist between each one.

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What we learned in Week 9

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1 Identify the research problem

2 Determine research purpose

3 Develop theoretical framework

4 Develop research questions / hypotheses

6 Identify research scope limitations

5 Define terms

7 Decide methodology

8 Determine expected outcome

WHAT WE LEARNED LAST

WEEK

Research Design Proposal Contents

Strategy requires a change in expectations for the outcome

6 CONCEPTS OF TRANSITIONAL AND TRANSFORMATIONAL CHANGE

WHAT WE WILL LEARN THIS

WEEK

People Processes

Systems

7 KOTTER’S 8 STEP CHANGE PROCESS

WHAT WE WILL LEARN THIS

WEEK

8 MODELS OF ORGANISATIONAL CHANGE

WHAT WE WILL LEARN THIS

WEEK

Kubler-Ross Change Curve

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ORGANISATIONAL CHANGE MANAGEMENT A framework from John P. Kotter, Harvard Business School

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DEFINING THE COMPLEXITY OF CHANGE TRANSFORMATIONAL OR TRANSITIONAL

People Processes

Systems

Culture Capabilities

Infrastructure

Well known model of transformation Transformation model in a strategy context

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Culture Capabilities

Infrastructure

Transformation model in a strategy context

DEFINING THE COMPLEXITY OF CHANGE TRANSFORMATIONAL OR TRANSITIONAL

Transitional Change Increases in efficiencies of existing culture or capabilities or infrastructure • corporate restructures, mergers, acquisitions • creating new products or services • implementing new technology

Transformational Change Reshaping culture, capabilities and infrastructure • implementing major strategic and cultural changes • adopting different organization-wide infrastructure

(technologies, procedures) • adapting operation to meet changed economics

(supply and demand) • reconfiguring product and service in response to

competitor rivalry

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COSTS AND RISKS OF CHANGE

https://blog.prosci.com/the-costs-risks-of- poorly-managed-change

PROJECT-LEVEL COSTS Project delays

Missed milestones

Budget overruns

Rework required on design

Loss of work by project team

ORGANISATION-LEVEL COSTS Productivity plunges (deep and sustained)

Loss of valued employees

Reduced quality of work

ORGANISATION-LEVEL RISKS Impact on customers and suppliers

Morale declines

Legacy of failed change (cynicism)

Stress, confusion, fatigue

Change saturation

PROJECT-LEVEL RISKS Resistance – active and passive

Projects put on hold

Resources not made available

Obstacles appear unexpectedly

Projects fail to deliver benefits (results)

Projects fully abandoned

Change is not always about a major project; some small changes have big

impacts

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LEADING ORGANISATION- LEVEL CHANGE

Using Kotter’s Eight Step Model

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LEADING TRANSFORMATIONAL CHANGE INITIATIVE CRITICAL SUCCESS FACTORS

Urgency Most senior managers must be

convinced that business-as- usual is unacceptable

#1 Influence

Establish a powerful guiding coalition who can overcome the

natural resistance to change

#2 Vision

Create a picture of success that appeals to stakeholders (owners,

employees, others)

#3 Communication Use all communication

channels! Inspire beliefs that change is possible and probable

#4

Empowerment Support others’ conviction for

change by removing system and process blockers; and cynicism

#5 Gratitude

Celebrate quick wins; provide evidence of success to motivate

continued commitment

#6 Perseverance

Change can take years; avoid complacency from declaring

victory too soon

#7 Anchor in Culture

Articulate the legacy of change; define how change has improved performance

#8

John P. Kotter, 1995, Leading Change: Why Transformation Efforts Fail, Harvard Business Review

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LEADING CHANGE

Change at an organisational level

Establish a sense of urgency Examine market and competitive environment Identify and discuss management problems, potential crises or opportunities Create the catalyst for change

Form a guiding coalition Gather together empowered stakeholders to lead the change effort Develop strategies for achieving the desired change (development of distinctive capabilities)

John P. Kotter, 1995, Leading Change: Why Transformation Efforts Fail, Harvard Business Review

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Compelling reasons for change (a driving force)

Vision, picture of success (a responsive force)

LEADING CHANGE

Establish Urgency

John P. Kotter, 1995, Leading Change: Why Transformation Efforts Fail, Harvard Business Review

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LEADING CHANGE

The Vision

McKinsey & Company. 2019. McKinsey Transformation: Tell a compelling change story to inspire your organization. YouTube (https://youtu.be/4FlP1-5WMyo).

FRAME A COMPELLING REASON FOR CHANGE CRITICAL SUCCESS FACTORS

#3 #4

Be sure to take notes! Don’t just passively listen!

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LEADING CHANGE

The Vision

Create a Vision Create a Vision to help direct the change effort (set a ‘picture of change’ or ‘what success looks like’) Develop strategies for achieving the Vision

Communicate the Vision Use all channels and media possible Role model new behaviours with the Guiding Coalition

Why is change so hard if the change steps are done the right way?

Cynicism in organization culture Anxiety of individuals

#3

#4

?

John P. Kotter, 1995, Leading Change: Why Transformation Efforts Fail, Harvard Business Review

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HELPING INDIVIDUALS COPE WITH ORGANISATIONAL CHANGE CRITICAL SUCCESS FACTORS

Empower others to act on the Vision

Remove obstacles to change Restructure systems and processes Encourage risk taking and strategic thinking

Plan and create quick wins Make performance improvement visible Recognise and reward people for achievements

Consolidate continuous improvements

Build on the credibility of successful achievements Recruit and select talent Add pace with new projects

Implementing new approaches Manage performance based on new behaviours and/or KPI (key performance indicators)

John P. Kotter, 1995, Leading Change: Why Transformation Efforts Fail, Harvard Business Review

#5 #7

#6 #8

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WORKSHOP TIME

Leading change to overcome a cynical culture in organisations

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SHARED EXPERIENCES OF

CHANGE IN ORGANISATIONS

When finished, you will have a list of what to do

when leading organisational change

BRAINSTORMING, NOMINAL GROUP TECHNIQUE

Resistance to change at an organisation level can be attributed to a cynical culture

Using the nominal group technique in open class discussion, you will participate in 3 rounds of brainstorming

1. Identify your personal experiences of positive and negative organisational change (10 minutes)

2. Brainstorm how to rationalise everyone’s experiences to a few themes or categories (15 minutes)

3. Prioritise items in categories from ‘most’ to ‘least’ impactful on organisational culture and individual morale (15 minutes)

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#3

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GENERALLY APPLIED STAGES OF ORGANISATIONAL CHANGE

Precontemplation People in this stage are not thinking seriously about changing and tend to defend the status quo

Contemplation People in this stage may consider the possibility of change but feel ambivalent about taking the next step

Preparation People make small steps to change as the 'cons’ of the status quo outweigh the 'pros of change; they feel less ambivalent about taking the next step

Some people decide not to adapt and resist change

Action People actively take steps to change their actions, intentions and attitudes

Maintenance People adopt the change as their new normal; and set-backs are not seen as failures

Department of Health, Australian Government

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PROSCI MODEL OF INDIVIDUAL

CHANGE

ADKAR Model

Different people are in different stages of readiness for organisational change

Leaders can develop organisational interventions to: provide additional resources or equipment; introduce organisational changes, such as redistribution of tasks; redesign processes to help improve performance

https://www.prosci.com/

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GETTING BUY-IN FOR THE VISION OF CHANGE

Awareness • What is and isn’t

working in my organisation

• What are my options • Communicate that

there is a problem

• Focus attention on the most important (compelling) reasons to change

Desire • Communicate benefits

for adopting change

• Identify risks involved • Build momentum • Address fears

Knowledge • Communicate benefits

for adopting change

• Identify risks involved • Build momentum • Address fears

Ability • Employ a suitable

governance framework

• Training, develop competence

• Start small • Don’t manage by

stealth

• Adjust processes that impact team performance

Reinforcement • Engage coaches,

mentors, role models

• Identify champions • Share experiences • Learn from early

mistakes

Enablement Zone Engagement Zone

https://www.prosci.com/adkar/adkar-model

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KUBLER-ROSS MODEL OF INDIVIDUAL

CHANGE

SHOCK Surprise or shock at the event

DENIAL Disbelief, looking for evidence that it is not true

FRUSTRATION Recognition that things are different; sometimes angry

EXPERIMENT Initial engagement with the new situation

DECISION Learning how to work in the new situation, feeling more positive

INTEGRATION Changes are integrated; a renewed individual

DEPRESSION Low mood; lacking in energy

M or

al e

an d

Co m

pe te

nc e

Time

The Change Curve, Elizabeth Kubler-Ross

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GETTING BUY-IN FOR THE VISION OF CHANGE

Leadership of the Change Curve 1. Denial – create alignment with a compelling

reason for change in the organisation

2. Frustration - maximise communication with a compelling reason for change in the organisation

3. Depression – inspire motivation with appropriate leadership styles

4. Experiment – develop capabilities with the vision; a picture of success

5. Decision – share organisational knowledge and celebrate success (quick wins)

6. Integration – identify champions who will embed change in organisation culture

The Change Curve, Elizabeth Kubler-Ross

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WORKSHOP TIME

Leading change to overcome individual anxiety of organisational change

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SHARED EXPERIENCES OF CHANGE ANXIETY

When finished, you will have a list of how to

engage as a change agent

BRAINSTORMING, NOMINAL GROUP TECHNIQUE

Resistance to change at an individual level can be attributed to anxiety.

Using the nominal group technique in open class discussion, you will participate in 3 rounds of brainstorming

1. Identify the circumstances when you have felt anxious about change in your workplace (10 minutes)

2. Brainstorm how to rationalise everyone’s experiences to a few themes or categories (15 minutes)

3. Prioritise items in categories from ‘most’ to ‘least’ impactful on organisational culture and individual morale (15 minutes)

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S e e k h e l p w h e n yo u n e e d i t !

Thank you