for DR.SAMUELSON ONLY!!!!!

MHCM 6330 CAPSTONE: BUSINESS STRATEGIES

Week 1- The Health Professional's Modern Arena

Chapter 2 Lecture - The Challenge of Change

Summary Objective

Consider the impact of change on organizational life and especially

address the critical role of the manager as a change agent, addressing change by way of significant examples of successful change, examining the

process of organizational change, and providing specific strategies for dealing with resistance to change.

Participants should leave this chapter understanding that change,

whether welcome or otherwise, is unavoidable, and that the most effective managers are those capable of functioning as change agents.

Specific Objectives

 Identify the impact of change on organizational life.

 Identify the manager's role as change agent.  Review example of successful change.

 Identify specific strategies for dealing with resistance to change.

The Challenge of Change

While there are entire courses on change, in our capstone approach

the attention of this chapter is on four pylons in regard to change: 1. the impact which sometime can be beneficial 2. overcoming the risk

of being the change agent 3. models of successful change for

consideration 4. the keys to resistance to change (knowledge is influence), and a quick look at the multi tiered change impact of the

Affordable care Act of 2010.

Background While there can be many effects from change, the following is central

to its effect on an organization:

1. it consumes financial resources 2. it consumes administrative resources

3. it drains emotional and physical energy away from primary goals 4. It adds a new function and challenge to the manager's role as

change agent

The Manager as Change Agent

The manager moves the trend or issue from "challenge" to a "stable routine" by mediating the imposed change. This is achieved through

adjusting patterns of practice, staffing, and administrative routines. This starts by monitoring "horizon" events through active analysis of

trends. Next, the leader/manager must create a change-ready

environment by taking the lead in accepting the change. This actually gives the organization some degree of stability. All of this is the

epicenter for the leader/manager's success as a change agent.

Successful Change

1. Change as Opportunity: Analyzing change can provide

opportunities that may never afforded themselves otherwise. For example, the Y2K became an opportunity for many organizations

acquire a new well integrated system. 2. Routinization of Change: The Patient Self-Determination Act of 1990 was integrated into the

organization's existing routines (policies/procedures) thus eliminating

the cost of creating a new department. 3. Change via Legislation: HIPAA legislation and regulations has brought about the most

significant change since the passage of Medicare in 1964. HIPAA (Health Insurance Portability and Accountability Act of 1996), (The

very name of the legislation is misleading. The major aspects of HIPAA consist of five sections most of which had nothing to do with the

insurance portability part of the law. The five sections consisted of Titles I, II, III, IV and V. The five Titles (not named here) cover

employee health insurance; promotes medical savings accounts, set standards for covering long-term care, administrative simplification,

preventing health care fraud and abuse, and medical liability reform. Patient Privacy one of the most time consuming and costly processes

in four decades). 4. Proactive Change: The electronic health record was a pro active approach to link an ongoing vision and purpose to

new technology. 5. Anticipatory Readiness via Organizational

Restructuring: As seen in economic and market forces, both nationally and globally. 6. Personal Revitalization via Career Development: Such

as disruption in personal circumstances.

Primary Causes of Resistance

The roots of resistance to change are within human beings

themselves.

Primary Causes of Resistance The common sources of change in the work organization occur in many areas:

 Change in organizational structure

 Change in Management  Products or services are added, dropped or altered significantly

 Introduction of new technology Job restructuring

 Change in methods and procedures requiring workers to learn new ways of doing their job

 Change in organization's policies

Therefore, the guidelines for effective management of change are plan thoroughly, communicate fully, convince when possible, involve

employees when possible, and monitor implementation closely.

In conclusion, whether the change process is macro or micro, the organizational change process should include the following:

 Assessment - isolation of a problem ( root cause)  Focus - boundaries of the problem ( allies and obstacles

identified ahead of time)

 Strategy building - strategies are essentially a plan for action  Working through - repeat as often as necessary

 Resolution - evaluate the effect of the change at the end