Change Management (Final)W

8/3/2019 Change Management (Final)W

http://slidepdf.com/reader/full/change-management-finalw 1/28

There is only one constant in this

universe, and that constant is . . . Change



Overview

change management principles

John P Kotter's 'eight steps to successful Change management Example

Questions?

The only thing constant about change is change itself



Organizational change management is theprocess of developing a planned approach tochange in an organization.

Typically the objective is to maximize thecollective benefits for all people involved in thechange and minimize the risk of failure ofimplementing the change.

The discipline of change management dealsprimarily with the human aspect of change, andis therefore related to pure and industrialpsychology.




Change management is a basic skill in which

most leaders and managers need to be

competent. There are very few working environments where

change management is not important.




When leaders or managers are planning to managechange, there are five key principles that need tobe kept in mind:

1. Different people react differently to change2. Everyone has fundamental needs that have to be

met3. Change often involves a loss, and people go

through the "loss curve"4. Expectations need to be managed realistically5. Fears have to be dealt with




Give people information - be open and honest about the factsUNREALISTIC EXPECTATIONS.

For large groups, produce a communication strategy that ensuresinformation is disseminated efficiently and comprehensively to everyoneE.g.: tell everyone at the same time.

However, follow this up with individual interviews to produce a personalstrategy for dealing with the change. This helps to recognize and dealappropriately with the INDIVIDUAL REACTION to change.

Give people choices to make, and be honest about the possible

consequences of those choices. I.e. meet their CONTROL and INCLUSIONneeds

Give people time, to express their views, and support their decision making,providing coaching, counseling or information as appropriate, to help themthrough the LOSS CURVE




Where the change involves a loss, identify what will or mightreplace that loss - loss is easier to cope with if there issomething to replace it. This will help assuage potentialFEARS.

Where it is possible to do so, give individuals opportunity toexpress their concerns and provide reassurances - also tohelp assuage potential FEARS.

Keep observing good management practice, such as makingtime for informal discussion

Apply all the rigors of project management to the changeprocess - producing plans, allocating resources, appointing asteering board and/or project sponsor etc.. The five principlesabove should form part of the project objectives.




Stability - - - - - - - - - - - - - - - - Change

Different people have different preferences for where theylike to be on this spectrum. Some people like to be at the

STABILITY end of the spectrum - they like things to bethe way they have always been. Other people like to beat the

CHANGE end of the spectrum - they are always lookingfor something different and new.




In these situations, the individuals involved canexperience:

strong dissatisfaction

stress negative attitudes towards individuals withpreferences at the other end of the spectrum (e.g.:distrust, dislike)

resistance (to change, or to the status quo)

intense emotions loss of rational judgment People tend to resist, therefore, approaches on

other parts of the spectrum than where theythemselves prefer to be.




A famous psychologist called Will Schutzidentified three basic needs that people have ininterpersonal relations and reaction to change:

The need for control The need for inclusion The need for openness




Whilst the need for these can vary between people, in anychange process there is always some degree of need forcontrol over one's environment/destiny, some degree of needto be included in the process of forming the change that istaking place, and some degree of need for managers/leaders

to be open with their information.

If a change program fails to meet the control, inclusion andopenness needs of the individuals affected by it then thatprogram is likely to encounter a range of negative reactions,

ranging from ambivalence through resistance to outrightopposition.




The relevance of the "loss curve" to a change management programdepends on the nature and extent of the loss.

If someone is promoted to a more senior position, the 'loss' of theformer position is rarely an issue because it has been replaced bysomething better. But if someone is made redundant with little

prospect of getting a new job, there are many losses (income,security, working relationships) that can have a devastating effect.

There are many variations of the "loss curve". One is known as "Sarah"- that is, the individual experiences (in this order):

S-hock

A-nger R-ejection A-cceptance H-ealing




The common factors amongst all "loss curves" are:1. that there can be an initial period where the change

does not sink in. For example, feelings may be kepthigh by the individual convincing themselves that thechange is not going to happen.

2. that when the loss is realized, the individual hits adeep low. The depth of this 'low' is deepened if theloss is sudden/unexpected.

3. that the period of adjustment to the new situation can

be very uncomfortable and take a long time. In thecase of bereavement, the period of adjustment canbe as long as two years.




The relationship between expectations and reality is veryimportant. You can see this in customer relations - if a supplierfails to meet expectations then the customer is unhappy; if thesupplier exceeds expectations then the customer is happy.

Sometimes, enforced change (e.g.: redundancies) inevitablyinvolve the failure to meet expectations: there had been anexpectation of job security, which has now been taken away.

What leaders/managers have to do, however, is make sure

they don't pour petrol on the fire by making promises that cannot or will not be kept. Expectations have to be set at arealistic level, and then exceeded (e.g.: in terms of the degreeof outplacement support that will be provided).




In times of significant change rational thoughtgoes out of the window. This means that peopleoften fear the worst - in fact, they fear far morethan the worst, because their subconscious

minds suddenly become illogical and seeirrational consequences.

E.g.:• Our company is reducing staff, which means...

• They will make people redundant, and...

• I'll be the first to be kicked out, and...

• I'll have no hope of getting another job, and...The only thing constant about change is change itself



Such fears need to be addressed,e.g.: by helping people to recognize thatmost people who are made redundant find

a better job with better pay and have ahuge lump sum in their pocket!

Or, where appropriate, by explaining howthe reductions in staff numbers are goingto be achieved (by natural wastage orvoluntary redundancy).




1. At all times involve and agree support from peoplewithin system (system = environment, processes,culture, relationships, behaviors, etc., whetherpersonal or organizational).

2. Understand where you/the organization is at themoment.

3. Understand where you want to be, when, why, andwhat the measures will be for having got there.

4. Plan development towards above No.3 in appropriateachievable measurable stages.

5. Communicate, involve, enable and facilitateinvolvement from people, as early and openly and asfully as is possible.




Kotter's eight step change model can be summarized as:1. Increase urgency - inspire people to move, make

objectives real and relevant.2. Build the guiding team - get the right people in place

with the right emotional commitment3. Get the vision right - get the team to establish a

simple vision and strategy4. Communicate for buy-in - Involve as many people as

possible, communicate the essentials, simply, and toappeal and respond to people's needs. De-cluttercommunications - make technology work for you ratherthan against.




5. Empower action - Remove obstacles, enableconstructive feedback reward and recognizeachievements.

6. Create short-term wins - Set aims that are easy to

achieve - in bite-size chunks. Finish current stagesbefore starting new ones.

7. Don't let up - Foster and encourage determination andpersistence - ongoing change - encourage ongoing

progress reporting - highlight achieved and futuremilestones.8. Make change stick - Reinforce the value of successful

change via recruitment, promotion, new changeleaders.







Apple is the largest technology based

company and is the second largestcompany in USA after ExxonMobil




22

PRODUCTS

iPodiPhone

Mac



Apple designs Macs, the best personalcomputers in the world, along with OS X,iLife, iWork, and professional software.

Apple leads the digital music revolution withits iPods and iTunes online store.

Apple reinvented the mobile phone with its

revolutionary iPhone and App Store, and hasrecently introduced its magical iPad which isdefining the future of mobile media andcomputing devices.




Apple’s management structure promotes independent andhighly creative personalities and a corporate culture thatcreates products “for the rest of us”

Apple has very few management layers. In practice allemployees report to Steve Jobs

Compared with most companies where ideas come from thebottom up, Apple’s ideas and product decisions come from thetop down. All changes are assessed at the top by Steve Jobs.

“Jobs's primary role at Apple is to turn things down. "He's a

filter," says the Mac engineer Hertzfeld. Every day, the CEO ispresented with ideas for new products and new features withinexisting ones. The default answer is no.” (Manjoo, 2010)




Steve Jobs is paid 1 dollar/year, is a vegetarian, and isinvolved with organic farming

Changed chipset to Intel chipset

Changed from Rhapsody OS to Mac OS X

Introduction of new colors from six-color-rainbow logo

Decision to own retail stores

Environmental shift – 40 percent reduction in packaging

Sales shift from US to Asia Pacific, Europe, and Japan




Songs cost changed to $0.69, $0.99, or $1.29, with prices setby the publishers from $0.99 for any song

They ignore customer requests focusing on innovations thatchange the way things are done

“Steve Jobs has often cited this quote from Henry Ford: "If I'dhave asked customers what they wanted, they would havetold me, 'A faster horse!" (Manjoo, 2010)

Removal of arrow keys from iMac. Addition of arrow keys in

next version. Convinced music studios to all use iTunes (first time in history)




27

Revenue Growth

-40%

-20%

0%

20%

40%

60%

80%

100%

1980 1985 1990 1995 2000 2005 2010

Revenue Growth



28

Change Management (Final)W

Documents