Change Management & Management of Strategic Change Carmelita Charles Week5.

Change Management & Management of Strategic Change Carmelita Charles Week5

Objectives

By the end of this lesson you will be able to;

• Explain the concepts of change and transitions • Understand how individual perceptions inform

change processes • Explain the various models and approaches to

managing individuals through organisational change• Identify strategies for leading people through change

Exercise

Describe a Change project/process that you’ve been involved with:-

How was it introduced to you?

What happened?

Did the change work?

What would you do differently to lead change for yourself and others?

What type of leadership was at the helm ?

It’s been difficult for 500 years!

‘It should be borne in mind that there is nothing more difficult to handle, more doubtful of success, and more dangerous to carry through than initiating changes in a state’s constitution. The innovator makes enemies of all those who prospered under the old order, and only lukewarm support is forthcoming from those who would prosper under the new. Their support is lukewarm partly from fear of their adversaries, who have the existing laws on their side, and partly because men are generally incredulous, never really trusting new things unless they have tested them by experience.’

Niccolo Machiavelli 1513 – The Prince(Translation: George Bull, Penguin, 1961)

The Pyramid of Resistance

Cultural AlignmentPerformance Management AlignmentShared vision and business case for change

Skill Development ProgrammeRole Models

Effective communicationInvolvement / EngagementLeadership activity & visibility

The keys to Successful Change

Leadership 92%

Corporate Values 84%

Communication 75%

Teambuilding 69%

Education and Training 64%

% of senior executives mentioning these as important in an American AssociationSurvey of Fortune 500 companies in the USA (1995)

% of Firms

Top 10 Barriers to Success

36%

41%

43%

44%

44%

46%

54%

65%

72%

82%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

IT Perspective not Integrated

Not Horizontal Process View

No Change Management Program

Scope Expansion / Uncertainty

Project Team Lacked Skills

Case for Change not Compelling

Poor Project Management

Unrealistic Expectations

Inadequate Sponsorship

Resistance to Change

Source: D&T 1995 CIO Survey

Effective Change Management is a critical success factor

.

EXPLAINING PROCESSES OF INDIVIDUAL CHANGE Elrod and Tippett (2002) Lewin’s (1947) Three-Step model Kubler-Ross (1969) On Death and Dying Marris (1974) Loss and Change Rashford & Coghlan (1989) Denying, dodging, doing and sustaining

Presenter / Location / Date

Kubler-Ross

Future stateCurrent state

External threat

P

How do we understand what this is?

Organisationalanalysis

P

The case for change

PP

Vision• what will it be like• how will we be• what shape• what will it feel like

Change Team

BECKHARD MODEL2

Transitional Bridge


Richard Beckhard

A+B+C+D>X

A= shared Vision

B=Dissatisfaction with the status quo

C= First practical steps

D= Competency

X= Fear ( cost of change)

MANAGING INDIVIDUALS THROUGH ORGANISATIONAL CHANGE

Bridges (1986) transition management Conner (1998) a perpetual student of human transitionsBalogun and Hope Hailey (2008) some change processes concentrate on attempting to change the values of employees, others emphasise behavioural change, while others seek to change the performance objectives or outputs of employees.

THE CHANGE EQUATION(1)

Developed by David Gleicher

A = the individual's level of dissatisfaction with things the way they are now

B = the individual's vision of a better future

C = an acceptable first step

D = the cost to the individual of making the change

Individuals will resist change unless: A + B + OD

THE CHANGE EQUATION (2)


Some people sharpen the tool by stating a corollary thus: AxBxCX)

The basis of the pseudo-mathematics is that making a change always costs an individual something, represented by "D". It may be money, resources, it often is time and can be psychological trivia or trauma.

THE CHANGE EQUATION (2)


Some people sharpen the tool by stating a corollary thus: AxBxCX)

The basis of the pseudo-mathematics is that making a change always costs an individual something, represented by "D". It may be money, resources, it often is time and can be psychological trivia or trauma.

“Eight Steps of Change”

Increase Urgency

Build the Guiding Team

Get the Right Vision

22 3311

Creating aclimate for change

Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press. 2002.

Communicate for Buy-in

Empower Action

Create Short-term Wins

6644 55

Engaging and enablingthe whole organization

Don’t Let Up

Make it Stick

77 88

Implementingand sustaining

change

LEADING CHANGEKotter (1996, p26), a great advocate of leadership, asserted that ‘successful transformation is 70 to 90 per cent leadership and only 10 to 30 per cent management.’ In 1995, ‘Leading change: Why transformation efforts fail’ appeared in Harvard Business Review.

1. Establishing a sense of urgency2. Creating the guiding coalition3. Developing a vision and strategy4. Communicating the change vision

LEADING CHANGE

5. Empowering broad-based action 6. Generating short-term wins 7. Consolidating gains and producing more

change8. Anchoring new approaches in the culture

Caldwell (2003) undertook original research in order to establish whether change leaders and change managers’ roles were different. Caldwell suggests that we need both change leadership and change management in order to effectively deliver change.


Kotter’s Eight- Stage Process

• Establishing a Sense of Urgency• Creating the guiding coalition• Developing a Vision and Strategy• Communicating the Vision• Empowering Employees for Broad Based

Action• Gathering Short Term Wins• Consolidating Gains and Producing More

Change


Transition Management- William Bridges

Change vs Transition

Change – is a shift in the external situation/ environment

Transition- is the psychological reorientation in response to change

Change and Transition are not the same


Fundamental difference between Change and Transition

Change• External• Situational• Event based• Defined by outcomes• Can occur quickly

Transition• Internal• Psychological• Experienced based• Defined by process• Always takes time


Resistance

It is the transition not change that people fight against• Loss of their identity and world• Disorientation of the neural zone • Risk of failing in a new beginning

PHASES OF TRANSITION MANAGEMENT

ENDINGS

NEUTRAL ZONE

NEWBEGINNING

Early adopters Positive Followers

resistors

Negative resistors

ChampionsDeadbeats

How can you apply this (from marketing) to your organisational change?

•People change only when they want to; - develop a personal need for change

• People commit themselves to a course of action only when they have understood it and had the opportunity to influence it;- a commitment to the course of action

• Changes remain only if those who change learn how they have changed and what it takes to maintain change;- the required skills to maintain that course once implemented

KEY CONCEPTS IN THE PROCESS OF CHANGE

• Who are the key groups?

• What is their attitude towards change?

• What will be the type of transition these people/ groups go through?

• What type of transition/ownership management should we put in place?

• What capacity building programme might we need?

• How to keep the psychological contract with those who leave/those who survive?

MICRO LEVEL

• Work out the business case (logic of change)• What is the vision of change?• How far between where we are & where we want to be?

• Is it transactional or transformational change? Implications?

• State of readiness/capacity of the organisation - freezing, movement, re-freezing (Kurt Lewin)…or

just slush?• Primary focus of intervention - Technical, political,

cultural?• Implication of change area for rest of organisation

• Systemic alignment - lack explains 90% of change failure

CHANGE AT MACRO LEVEL

• List/mindmap all the reasons for the change

• Draw/envisage - if the change project is successful, what will it look like in a few years’ time

• Describe what is A (now) & what is B - change is about getting from A

to B

METHODS TO TALK ABOUT THE CHANGE(S)

• Logic is internal climate affects individual & organisational

performance

• Requires a shift in behaviour

• Focus on structure, systems, management practices, motivation,

task requirements, individual needs & welfare

TRANSACTIONAL (CLIMATE) CHANGE

• Capability of changing

• Accessibility of the obstacle

• Readiness for change

• Leverage

• Technical

• Political

• Cultural

FOCUS OF INTERVENTION

The 2 C’sConnectionConcern

Communicate the 4 P’sPurposePlanShow the PictureAllocate the Part

SIGNS OF WELL MANAGED NEUTRAL ZONES

• People understand what is over and what isn’t• Symbolic boundary actions have been used• Constant communication of information• Losses have been acknowledged• Grieving has been permitted and facilitated

SIGNS OF WELL MANAGED ENDINGS

CRITICAL PERSPECTIVE

The major academic challenge to Kotter’s vision of leading change is: where is the evidence? Does not contain a list of supporting references at the end of the book and in the body of the book there are only cursory references to Kotter’s earlier publications. There is no explicit evidence of successful organisational change arising out of following the eight steps. The book does not acknowledge the importance of context in processes of organisational change.Culture, power, communications and employee relations are dealt with in a very simplistic manner in the book.


LEADERSHIP AND CHANGE

Does Leadership make a difference?

EVALUATING THE OUTCOMES OF MANAGING CHANGE

‘The brutal fact is that about 70 per cent of all change initiatives fail.’ (Beer and Nohria, 2000a, p133)


Explaining why organisational change fails: Frequency Implementation Top Down/Bottom Up Cultural challenges People problems Power and politics


Potential pitfalls of evaluating organisationalchange outcomes The context specific nature of managing changeThe latent and espoused rationales of a change initiative The unintended consequences of a change initiative The multidimensional/interdependent nature of a change initiative.

What is Change Leadership?

Successful Change Leadership is about getting individuals and groups to do things differently, to change the way they behave and to implement the changes associated with new systems and processes. Any transformation programme will create significant organisational and individual change challenges. Staff will quickly realize that their roles and responsibilities are going to change significantly, and that job shifts may result.

It is vital for the leadership to understand the human dynamics of change and to act upon it. This task is particularly challenging as people respond both on a rational and emotional basis.

Key attributes of an effective change leader (1)

• Tenacity• Ability to inspire through role modelling and

influencing• Authenticity, credibility & trustworthiness• Ability to see the big picture - strategic• Outcome focus• Organised / project management skills• Stakeholder management ability


• Research / evidence based practice focus• Measurement focus – quantitative & qualitative• Understanding of cultures and how to redesign

them• Understanding of structures and how to

redesign them• Understanding of procedures and how to

redesign them


• Ability to balance ‘hurry up and get results’ with ‘slow down and check what we are doing’

• Creativity and innovation• Ability to build and support team development• Ability to enable people development• Comfort with ‘soft systems’ (a set of

component plans, structures & practices that are often messy and random because people are involved!)

Setting the scene

I know something is changing

I know what it is

I know the implications for me

I’ll look at doing it the new way

I’ll do it the new way

This is the way we do things

This is the way I do things

Achieving acceptance

Achieving commitment

An important thing to remember is that not everyone needs to get to the top level of commitment immediately!

The Commitment Curve illustrates the different stages of change that people go through for sustainable transformation

LASTINGCHANGE

SUSTAINABLECHANGE

NoOwnership

No RoleModels

NoKnowledge

NoWillingness

NotLasting

No Results

NoDirection

Leader & Stakeholder Commitment

CulturalFit

NoAction

Change Management

Process

EffectiveCommunication

ClearShared Vision

Individual & Team

CapabilityCase for Change

Performance Measures+ ++ + + =++

=

=

=

=

=

=

=

=

=

Critical Success Factors for Sustainable Change

Traditional approach

Analysis-Think-Change

Traditional approach

Analysis-Think-Change

A “people-driven” approach to problem solving is required for truly successful change results

Focus: Give People Analysis

1. Information is gathered and analysed, reports are written, and presentations are made

As a result:

2. The information and analysis change people’s thinking

3. New thoughts change behaviour or reinforce changed behaviour

Focus: Help People See

1. Compelling, eye-catching, dramatic situations are created to help others visualise problems, or solutions

As a result:

2. Seeing something new hits people on a deeper, emotional level. This helps reduce emotions that block change and enhance those that support it

3. Emotionally charged ideas change behaviour or reinforce changed behaviourIn the most successful change cases, individuals had a sense of passion. On

the other hand, where change was less successful, individuals tended to intellectualise the change.

Recommended approach

See-Feel-Change

Recommended approach

See-Feel-Change

Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press. 2002

Reference

Adams, Hayes and Hopson (1976) Transitions: Understanding and Managing Personal Change, Martin Robertson, LondonBeckhard,R , Harris R.T(1987) Organisational Transitions : Understanding complex change. Addison-Wesley; 2 edition. Cameron, E & Green, M (2004) Making Sense of Change Management, Kogan Page, LondonJarrett M, (2009) Changeability: why some companies are ready for change and others aren’t, FT Prentice Hall, Harlow Great BritainGreen, M (2007) Change Management Masterclass, Kogan Page, LondonKotter, J (2012) Leading Change, Harvard Review PressKubler Ross, E (1969) On Death and Dying, Macmillan, New York

Next session

Power, Politics & Organisational Change

Question:How Powerful are you?

Reading: French, J.R.P., Jr., & Raven, B. (1959). The bases of social power. In D. Cartwright (Ed.), Studies in social power. Ann Arbor, MI: Institute for Social Research, The University of Michigan.

Change Management & Management of Strategic Change Carmelita Charles Week5.

Documents

change slide

change processes

change projectprocess

concepts of change

change work

change p p vision

organisational change

successful change leadership92