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Organizational Change
Submitted by:
APARNA MANGLA
2002IPG09

Agenda
Definition of Change Management
States of Change
Why Change Management is Important
Overcoming Resistance
Overcoming Potential Difficulties
Managing Change
Impact of Change on People
Your Questions

Change Management

Is an organized, systematic application of


knowledge, tools, and resources
Integrates the ability to adapt into Lucas
Countys organizational culture
Identifies patterns and structures of change
Predicts issues to accelerate change and
minimize problems

Reasons for Change


Current needs have been met
New needs have been identified
The environment changes

Everything is in a state of flux,


including the status quo.
-Robert Byrne-

Change from Without


External influences

Economy
Business Demographics
Hot Topics
APICS changes

Change from Within


Internal influences

Size of the board


Personalities on the board
Number of undertakings planned
Financial health

Reacting to Change
Deny/ignore it
Ride it out
Fight it
Suffer through it
Run from it
Seek it out
Embrace it

Elements of Change
Culture
Process
People

Process - Change Cycle


PLAN
ACT

DO
CHECK
The Deming Cycle

Process - Plan
Recognize the need for change
Decide what needs to change
Focus on what you can influence
Ask yourself
Where are we?
Where do we want to be?
How do we get there?

Prioritize
Your Strategic Plan is your roadmap

Process - Do
Develop the solution
Document the change
Communicate the change
Communicate the change
Execute the solution
Stay committed to the solution

Process - Check
Monitor progress
Measure results against the plan
See where youve been
Be aware of where you are going
Identify variances and root causes

Process - Act
Adapt quickly
Respond to the measurements
Fix what wasnt quite right
Systemize the solution
Re-plan as more change happens
Be ready to change quickly and enjoy it!
Find the next opportunity for change!

The States of Change

Current State
The way Lucas County does its business today
Includes processes, organizational structure, technology,
people, and culture

Future State
The way Lucas County anticipates doing its business once the
change is implemented
Includes new processes, organizational structure, technology,
job roles, and culture

Transition Period
The time between the current and future states

The States of Change (continued)

Transition
TransitionPeriod
Period
Current
Current
State
State
Processes, organizational
structure, technology,
people, and organizational
culture

Future
Future
State
State
New processes,
organizational structure,
technology, people, and
organizational culture

Why is Change Management Important?


The
Thebiggest
biggest reason
reasonwhy
why
organizational
organizationalchange
changefails
fails
Not
Notplanning
planningto
tomanage
manage
its
itsimpact
impact on
onpeople
people
People want to be successful
People feel successful once they have mastered their environment
and believe it is secure
People will resist any change to the work environment that impacts
their security

Overcoming Resistance
The
Thekey
keyto
toovercoming
overcoming
resistance
resistance

Helping
Helpingpeoples
peoplestransition
transition
to
tothe
thenew
newenvironment
environment

Change is an event
To manage change, we must have a clear understanding of
our goal and how we will get there

Transition is a process
To manage peoples transitions, we must help them come to
terms with the changes

Organizations
Organizations often
often overlook
overlook the
the transition
transition

Overcoming Potential Difficulties


Reasons
Reasonsfor
forFailure
Failure

What
Whatthe
theCounty
CountyHas
HasDone
Done

AApoorly
poorlydefined
definedvision
visionof
of
the
thefuture
futurestate
state

Clearly
Clearlydefined
definedfuture
future
states
states

Not
Notintegrating
integratingmajor
major
change
changeinitiatives
initiativesinto
intoaa
master
masterplan
plan

Change
Changeinitiatives
initiativesclearly
clearly
defined
definedand
andintegrated
integratedinto
into
project
projectplan
plan

Lack
Lackof
ofaastructured
structured
approach
approachto
toaddress
addressthe
the
people
peopleissues
issuessurrounding
surrounding
the
thechange
change

Structured
Structuredapproach
approachto
to
tackle
tacklepeople
peopleissues
issues
Change
ChangeManagement
Management
Team
Team

Lack
Lackof
oftop
topmanagement
management
support
support

Strong
Strongsupport
supportfrom
fromLucas
Lucas
County
Countyleaders
leaders

Managing ChangeCompleting the Puzzle

PeopleSoft
Training

Education

Communication
Knowledge
Transfer

Process
Training

Change ManagementStages
Current
CurrentState
State

Transition
TransitionPeriod
Period

Future
FutureState
State

Human Impact
Immobilized

Morale

Internalization/
Commitment

Denial or
False Hope

past
Merging
and present

Anger or
Panic

Depression

Testing
Letting Go/Accepting Reality

Time

Employee
Employeemorale
moralefluctuates
fluctuatesduring
duringeach
eachphase
phase

Reacting to Change
Ostrich (Deny/ignore it)
Whenever he thought about it he felt terrible. And so, at last, he came
to a fateful decision. He decided not to think about it.
-Life 101 Bystander (Ride it out)
If you refuse to ride the wave of change, youll find yourself beneath it.

-Anonymous, Successories-

Resister (Fight it)


In a fight between you and the world,
bet on the world.
-Franz Kafka-

Change at Telus Corp.


Telus, the Vancouver-based
telecommunications firm, has
been forced by deregulation
and new technology to
dramatically change its
culture and practices. I do
think the employees of this
organization understand the
need for change, says CEO
Darren Entwistle (shown).

CP/Kevin Frayer

A Generic Typology of
Organizational Change
Adaptive
Change

Innovative
Change

Reintroducin
g a familiar
practice

Introducing
a practice
new to the
organization

Low

Radically
Innovative
Change
Introducing a
practice new
to the
industry
High

Degree of
complexity,
cost, and
uncertainty
Potential for
resistance to
change

Force Field Analysis Model


Desired
Conditions

Restraining
Forces

Restraining
Forces

Current
Conditions

Driving
Forces

Restraining
Forces

Driving
Forces
Driving
Forces

Before
Change

During
Change

After
Change

Resistance to Change
Direct Costs
Saving Face

Forces for
Change

Fear of the Unknown


Breaking Routines
Incongruent Systems
Incongruent Team Dynamics

Creating an Urgency for Change


Inform employees about driving forces
Most difficult when organization is doing
well
Must be real, not contrived
Customer-driven change
Adverse consequences for firm
Human element energizes employees

Assumptions Underlying Lewins


Change Model
1) The change process involves learning
something new, as well as discontinuing
current attitudes, behaviors, and
organizational practices
2) Change will not occur unless there is
motivation to change
3) People are the hub of all organizational
changes
4) Resistance to change is found even when the
goals are highly desirable
5) Effective change requires reinforcing new
behaviors, attitudes, and organizational
practices

Lewins Change Model


Unfreezing

Creates the motivation to change


Encourages the replacement of old behaviors and attitudes
with those desired by management
Entails devising ways to reduce barriers to change
Creates psychological safety

Changing
Provides new information, new behavioral models, or new ways of
looking at things
Helps employees learn new concepts or points of view
Role models, mentors, experts, benchmarking results, and training
are useful mechanisms to facilitate change

Refreezing
Helps employees integrate the changed behavior or
attitude into their normal way of doing things
Positive reinforcement is used to reinforce the desired change
Coaching and modeling help reinforce the stability of
change

Reducing Restraining Forces at Unilever


Gary Calveley (right) brought in
team coaches to train
employees throughout the
process of changing Unilevers
Elida Faberge factory into
Europes best factory. A
theatrical production helped to
communicate the changes that
Calveley was trying to achieve
through coaching.

Dean Smith/The Camera Crew

Why People Resist Change in the


Workplace
1) An individuals
predisposition
toward change
2) Surprise and fear
of the unknown
3) Climate of
mistrust
4) Fear of failure
5) Loss of status
and/or job security

Why People Resist Change in the


Workplace Cont.
6) Peer pressure
7) Disruption of
cultural traditions
and/or group
relationships
8) Personality
conflicts
9) Lack of tact and/or
poor timing
10) Nonreinforcing
reward systems

The Continuum of Resistance to


Change
Acceptance

Indifference
Passive
Resistance
Active
Resistance

Enthusiastic
Cooperation
Cooperation under pressure from management
Acceptance
Passive resignation
Indifference
Apathy or loss of interest in the job
Doing only what is ordered
Regressive behavior
Nonlearning
Protests
Working to rule
Doing as little as possible
Slowing down
Personal withdrawal
Committing errors
Spoliage
Deliberate sabotage

Minimizing Resistance to Change


Communication

Highest priority and first


strategy for change
Improves urgency to
change
Reduces uncertainty (fear
of unknown)
Problems -- time
consuming and costly

Minimizing Resistance to Change


Communication
Training

Provides new knowledge


and skills
Includes coaching and
action learning
Helps break old routines
and adopt new roles
Problems -- potentially
time consuming and costly

Minimizing Resistance to Change


Communication
Training
Employee
Involvement

Increases ownership of
change
Helps saving face and
reducing fear of unknown
Includes task forces,
search conferences
Problems -- timeconsuming, potential
conflict

Minimizing Resistance to Change


Communication
Training
Employee
Involvement
Stress
Management

When communication,
training, and involvement
do not resolve stress
Potential benefits
More motivation to change
Less fear of unknown
Fewer direct costs

Problems -- timeconsuming, expensive,


doesnt help everyone

Minimizing Resistance to Change


Communication
Training
Employee
Involvement
Stress
Management
Negotiation

When people clearly lose


something and wont
otherwise support change
Influence by exchange-reduces direct costs
Problems
Expensive
Increases compliance, not
commitment

Minimizing Resistance to Change


Communication
Training

When all else fails

Employee
Involvement

Assertive influence

Stress
Management

Firing people -- radical


form of unlearning

Negotiation
Coercion

Problems
Reduces trust
May create more subtle
resistance

Refreezing the Desired Conditions


Realigning organizational systems and team
dynamics with the desired changes
Alter rewards to reinforce new behaviours
Feedback systems
Help employees learn how they are doing
Provide support for the new behaviour patterns

A Systems Model of Change


Target Elements of
Change
Organizing
Arrangement
s

Inputs

Outputs
Internal

Internal
Strengths

Strategy

Goals

People

Factors

Weaknesses

Organizational
level
Department/
group level

External

Opportunities
Threats

Social

Individual level

Methods

Kotters Eight Steps for Leading


Organizational Change
Step

Description

1)

Establish a sense of
urgency

Unfreeze the organization by creating


a compelling reason for why change is
needed

2)

Create the guiding


coalition

Create a cross-functional, cross-level


group of people with enough power to
lead the change

3)

Develop a vision and


strategy

Create a vision and strategic plan to


guide the change process

4)

Communicate the
change-vision

Create and implement a


communication strategy that
consistently communicates the new
vision and strategic plan

Kotters Eight Steps for Leading


Organizational Change
Step

Description

5)

Empower broadbased action

Eliminate barriers to change, use


target elements of change to
transform the organization

6)

Generate short-term
wins

Plan for and create short-term wins


or improvements

7)

Consolidate gains
and produce more
change

The guiding coalition uses credibility


from short-terms wins to create
change. Additional people are brought
into the change process as change
cascades throughout the organization

8)

Anchor new
approaches in the
culture

Reinforce the changes by highlighting


connections between new behaviors
and processes and organizational
success

Strategic Vision & Change at CHC


CHC Helicopter Corp.s four
strategic principles have helped
its employees adapt to rapid
growth at the St. Johns, Nfld.
firm. These principles include
safety first, quality service,
teamwork, and profitable
Courtesy of CHC Helicopter Corp.

growth.

Strategic Vision & Change


Need a vision of the desired
future state
Minimizes employee fear of
the unknown
Clarifies role perceptions

Courtesy of CHC Helicopter Corp.

Change Agents
Anyone who possesses
enough knowledge and
power to guide and facilitate
the change effort
Change agents apply
transformational leadership

Courtesy of CHC Helicopter Corp.

Help develop a vision


Communicate the vision
Act consistently with the vision
Build commitment to the vision

Successfully Diffusing Change


Successful pilot project
Receives visibility
Top management support
Labour union involvement
Diffusion strategy described clearly
Pilot project people moved to other areas

Action Research Philosophy


Change needs both action and research
focus
Action orientation
Solve problems and change the
organizational system

Research orientation
Concepts guide the change
Data needed to diagnose problem, identify
intervention, evaluate change

Action Research Process


Establish
ClientConsultant
Relations

Diagnose
Need for
Change

Introduce
Change

Evaluate/
Stabilize
Change
Disengage
Consultants
Services

Appreciative Inquiry at Hunter


Douglas
The Hunter Douglas Window
Fashions Division in Colorado
relied on appreciative inquiry
as well as a search conference
to create a collective vision, reinstill a sense of community
among employees, and build
leadership within the company.

Courtesy of Amanda Trotsen-Bloom

Appreciative Inquiry Philosophy


Directs the groups attention
away from its own problems
and focuses participants on
the groups potential and
positive elements.
Reframes relationships
around the positive rather
than being problem oriented

Courtesy of Amanda Trotsen-Bloom

Appreciative Inquiry Process

Discovery

Dreaming

Designing

Delivering

Discovering
the best of
what is

Forming
ideas about
what might
be

Engaging in
dialogue
about what
should be

Developing
objectives
about what
will be

Parallel Learning Structure Philosophy


Highly participative social structures
Members representative across the
formal hierarchy
Sufficiently free from firms constraints
Develop solutions for organizational
change which are then applied back into
the larger organization

Parallel Learning Structures


Parallel
Structure

Organization

Cross-Cultural and Ethical Concerns


Cross-Cultural Concerns
Linear and open conflict assumptions
different from values in some cultures

Ethical Concerns

Privacy rights of individuals


Management power
Individuals self-esteem
Consultants role

REFERENCES:

APICS Region VIII Team Workshop


CPIM, Dan Braun, CPIM, CIRM

Pam Somers,

Crystal Janicki, Senior EHR Project Analyst

OB by Robert Kreitner and Angelo Kinicki

Organizational Behaviour by:Debra L.Nelson and James


Campbell

Organizational Behaviour- securing competitive


advantage.by: John A.WagnerIII and John R.Hollenbeck

http://co.lucas.oh.us/Icis/peoplesoft

THANK YOU!!!!!!!

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