CHANGE MANAGEMENT Change Management is the move from one defined state to another-To flexibly adapt the organization to ongoing external changes or making.

CHANGE MANAGEMENT

Change Management is the move from one defined state to another-To flexibly adapt the organization to ongoing

external changes or making of changes in a planned and systematic fashion.

This ... happens all the time

MAMTA ROHIT IDBI Bank

What is ... Change management is a structured approach to

transitioning individuals, teams, organizations ...

from a current state to a desired future state.

Changes initiatives have been given different names such as TQM, Six Sigma,Breakthrough Management,Lean Transformation, BPR and Operational Excellence

Change Management The process of change has impact on the whole

organization and on all individuals working there. It influences

• What the organization does • The way the organization does things• The way all business units of the organization

communicate and share information.

Therefore Change management is a basic skill in which most leaders and managers need to be competent. This competence is based on five key principles . They are……

Key Principles

1.What possible reactions could be -Insecurity, lack of self confidence, that doesn’t concern me, denial, enthusiasm, saying “good bye”, or even attack. We have to encourage employees, convince them, give them information, promise something.

2. Everyone has fundamental needs of visibility, respect, safety , stability and to maintain personal life. We have to listen, involve them, give them recognition, support them.

Contd… 3.Change often involves a loss, and people go

through the "loss curve“ –It could be loss of Identity, our members, what we already know, stability, already tested methods, the feeling of belonging together, title, security.We need to convert them into ‘win’ by giving examples, time, flexibility, confidence and new security.

4.We need to be manage expectations realistically . While we expect acceptance, support, constructive feedback, teamwork, involvement, openess for new ideas and friendship, our people expect the same (mirror effect)

Contd..

5.Fears of loss of groups and leaders, fear of change itself, fear of fail, fear to loose motivation have to be dealt with . For this we need to communicate, understand, talk and respect fears.

Strategies to cope with changes

o Knowledge utilization model o Organisational Development Model o Democratic approach modelo Systems approach modelo Charismatic leader approach model

Different Models 1.Knowledge utilization model- Knowledge is a magic

stick! With right knowledge we foresee roadblocks and address them at the outset. We need to train and support on demand ....

2.Organizational Development Model - Right working conditions, trust and not too much bureaucracy . Also adaptable, flexible, responsive organization that changes gradually, step by step...

3. Democratic Model- Focus is on team working and Consensus on decisions! Collaboration and empowerment!

Contd….

4. Systems approach model –Focus on efficient operations and processes. Right structures and mechanisms, job descriptions...

5. Charismatic Leader Approach model- Strong and clear lead. “One man” vision resulting in efficient instructions, task division...etc.

Barriers to Change

1. Perception Barrier

• Stereotypes in analysis•Difficulties to identify and to analyze the core of the problem•Problems approached with one sided view and lacking ability to see all sides of the problem•Information overload•Mis judgement of information

2. Emotional Barrier

Risk-Aversion Lack of ability to process incomplete or contradictory information. Preference to evaluate existing ideas instead of generating new Ideas . Early evaluation may eliminate creative ideas. Normally people find it easier to reject rather than support a new idea.Not taking time for thinking-Most people don’t want to lean and thing as feel under pressure to deliver results quickly

3.Cultural Barriers Taboos restrict analysis of particular issues and thus change

More focus than imagination – Due to targeted thinking we happen to be less imaginative and creative

Reasons and intuition – We feel that logic, fig critical reasoning and objective analysis are good things and intuition is sub-optimal

Tradition and Change – Challenging to overcome traditions especially when employees do not see the relation between tradition and an existing problem.

4. Environmental Barriers

Lack of support- Changes are perceived as threat as it moves the employee and the organization out of their ‘comfort zone’

Lack of ability to accept criticism- ability to accept criticism is a major precondition for establishing trust and for gaining support

Some Managers are successful because they have good ideas and are able to implement them . But only those who listen to their employees , will be able to use their creatively as well.

5. Cognitive Barriers

Use of wrong terminology- Use of language and terminology appropriate for receivers support creativity and motivation

Sticking to strategies- At times they are applied wrongly- too rigid or not too rigid

Lack of complete and correct information-The best solution is a balanced mix of information and creative ideas

Why efforts fail

PERCEPTIONPERCEPTION

TECHNOLOGY

REALITYREALITY

INFRASTRUCTURE

MANAGEMENTOF CHANGE

Foundation for a successful change

•Commitment of the Top team is a priority

•A supportive team is a must to restructure , redesign, retool or improve (a group with aligned objectives which relentlessly drives change , removes barriers and ensures involvement of the entire organization for a robust change)

•Senior people have to review their responsibilities , attitudes, behaviour, personal leadership styles and their relationship with each other as they have reached this position by doing things a particular way

Contd…..

•A true coalition will learn how to work through conflict to get a shared view as to the best way forward .Training and development play a critical role .•Middle managers need to be on board early and they should be kept fully informed they facilitate instead of undermining the change process due to a feeling of neglect.

•Developing a clear and inspiring vision so that people can see exciting possibilities and can begin to act in accordance with them.

Contd…

•Organizations have to over invest in communication to clarify what will the organization look like during and after the change programme , what concerns will emerge and how will they be addressed . It is critical for people to be reminded of the vision and also how far they have come to help maintain morale and belief in the change process.

•Create and train the facilitators of change

Change Facilitator Network

Establishing an internal network of change champions to build awarenessand understanding of change management principles.

Establishing an internal network of change champions to build awarenessand understanding of change management principles.

Network is established initially by involving client staff in a one dayworkshop to explore business change principles and concepts withinthe context of the changes sought.

Network is established initially by involving client staff in a one dayworkshop to explore business change principles and concepts withinthe context of the changes sought.

WhatWhatWhatWhat

HowHowHowHow

Involve those most impacted by the changes. Develop objective method for selecting candidates. Select staff of equivalent seniority and who are well regarded by their peers, are credible, reliable, eager to learn and be involved, or are “opinion leaders”. Do not

select staff: who are perceived to be management mouthpieces

Who

Kotter’s Eight Stages

• Establish a sense of urgency• Create a guiding coalition• Develop a vision and strategy• Communicate the change vision• Empower employees• Generate short term wins• Consolidate gains for more change• Anchor new approaches

Kotter’s eight errors

• too much complacency• under-powered coalition• under-estimating power of vision• seriously under-communicating vision• permitting obstacles to block change• failing to generate short term wins• declaring victory too soon• not anchoring changes in the culture

Kotter’s five consequence arising from the eight errors

• new strategies not implemented well• gains do not achieve expected synergies• long time-scales and high costs• down-sizing does not control costs• anticipated results not realised

How do you manage change? The first thing you do is jump in. You can't do anything about it from the outside.

• A clear sense of mission or purpose is essential.

• Build a team. "Lone wolves" have their uses, but managing change isn't one of them. On the other hand, the right kind of lone wolf makes an excellent temporary team leader.

• Maintain a flat organizational team structure and rely on minimal and informal reporting requirements.

• Pick people with relevant skills and high energy levels. You'll need both.

• Toss out the rule book. Change, by definition, calls for a configured response, not adherence to prefigured routines.

• Shift to an action-feedback model. Plan and act in short intervals. Do your analysis on the fly. No lengthy up-front studies. Remember the hare and the tortoise.

• Set flexible priorities. You must have the ability to drop what you're doing and tend to something more important.

Managing Resistance To Change

Managing resistance to change:• Freeze cycle approach (Kurt Lewin 1947 )

Unfreezing

Initial awareness of need for change is developed

Changing

Focus on learning needed new behaviors

Freezing

Reinforcing new learned behaviors by positive results, feelings of achievement, and rewards from others.

Managing Resistance To Change

Overcoming resistance

METHODS(Kotter & Schlesinger)

Participation & involvementEducation &

communication

Facilitation &support

Negotiation &agreementManipulation &

cooptation

Explicit & implicit coercion

Managing Resistance To Change

• Driving forces are factors pressuring for a particular change

• Restraining forces are factors pressuring against a change

• The status quo is a condition of equilibrium between the two forces

• Change occurs by increasing driving or reducing restraining forces that is reducing resistance to change

Good union relations

Foreign competition

Recent losses

Cheaper outside sources

Union desire to save jobs

Company reluctance to save jobs

Deteriorating company-union relations

Stringent work rules

Current benefit costs

Current pay costs

Employee absenteeism levels

Company desire for flexibility in layoff decisions

Driving forces for change Restraining forces against change

Small tips on Change Management

• Acting is better than planning• Think big – act small• Go where the energy is• Involve people – build ownership• Make alliances instead of enemies• Help and support is required all the time

Change Organization CultureShared goals “We know where we’re going”

Responsibility for success “We will make this work”

Collegiality “We’re in this together”

Continuous improvement “We can still do better”

Lifelong learning “Learning is for everyone”

Risk taking “We learn by trying something new every day”

Support “There’s always someone there to help”

Mutual respect “Everyone has something to offer”

Openness “We can discuss our differences”

Celebration and humour “We are a good team”

THANK YOU