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Change Management

Varun Mathur
B54
Raghvendra Rathore

Change???
"Change" is:
to give a different position, course, or
direction.
to make a shift from one to another.
to undergo a modification.
to undergo transformation, transition or
substitution.

Change Management
Change

Management is a structured process


that will cause proposed changes to be
reviewed for technical and business readiness
in a consistent manner that can be relaxed or
tightened to adjust to business needs and
experiences.

The Change Cycle

Kurt Lweins Model of


Change

Kurt Lewins model of change


Stage

Characteristics
People in the
organization made
Unfreezin aware of
g
problems/performanc
e gap and need for
change
People experiment
with new workplace
Changing
behavior to deal with
needed change
People employ new
Refreezin skills and attitudes
g
and are rewarded by
organization

Organizational impact
This diagnosis stage is
often driven by a change
agent
This intervention stage
features specific training
plans for managers and
employees
Changes are
institutionalized in the
corporate culture

Eight steps to successful change


-John P. Kotter
Increase urgency
Build the guiding team
Get the vision right
Communicate for buy-in
Empower action
Create short-term wins
Don't let up
Make change stick

Increase urgency - inspire people to move, make


objectives real and relevant.

Build the guiding team - get the right people in


place with the right emotional commitment, and the
right mix of skills and levels.

Get the vision right - get the team to establish a


simple vision and strategy, focus on emotional and
creative aspects necessary to drive service and
efficiency.

Communicate for buy-in - Involve as many people


as possible, communicate the essentials, simply, and
to appeal and respond to people's needs. De-clutter
communications - make technology work for you
rather than against.

Empower

action - Remove obstacles, enable


constructive feedback and lots of support from leaders
- reward and recognise progress and achievements.

Create

short-term wins - Set aims that are easy to


achieve - in bite-size chunks. Manageable numbers of
initiatives. Finish current stages before starting new
ones.

Don't

let up - Foster and encourage determination


and persistence - ongoing change - encourage ongoing
progress reporting - highlight achieved and future
milestones.

Make

change stick - Reinforce the value of


successful change via recruitment, promotion, new
change leaders. Weave change into culture.

Case Study of ICICI Bank

Major Change

In

May 1996, K.V. Kamath


replaced Narayan Vaghul,
CEO of India's leading
financial services company
ICICI

Introduction
Case mainly revolves around the changes

brought by K.V Kamath after joining.


In May 1996, K.V. Kamath (Kamath) replaced
Narayan Vaghul (Vaghul), CEO of India's
leading financial services company ICICI.
Immediately after taking charge, Kamath
introduced massive changes in the
organizational structure and the emphasis of
the organization changed - from a development
bank mode to that of a market-driven financial
conglomerate.
The first move being the creation of
Infrastructure Group (IIG)

Contd
ICICI

set up three new departments:


Major Client Group (MCG)
Growth Client Group (GCG) and
Personal Finance Group (PFG)

Many

other changes took place in later


stages ,one of the major one was
merger with bank of Madurai

Problems
The problem of discontentment among employees.
Not

a differentiator in terms of customer service


Non-customer centric approach
One-stop solutions not available
Lack of identity after formation of core
groups(IIG,O&G,PTD and SPG)
Growing unhappiness between employees
Rising job-dissatisfaction between MCG & GCG employees
Irregular PBA(Performance based Appraisal)
Apprehension of new work culture, uncertainty regarding
rural business

Imparting New Skills to


Existing Employees
Training programmes and
seminars were conducted

Overseas

training programmes.

Introduced

a two-year Graduates'
Management Training Programme
(GMTP)

ICICI also reviewed the


compensation structure in
place.
Two types of remuneration
were considered
A contract basis which would
attract risk-takers.
A tenure-based
compensation which would be
appealing to employees who
wanted security.

Results
By 2000, ICICI had emerged as
the second largest financial
institution in India with assets
worth Rs 582 billion.

The

company had eight


subsidiaries providing various
financial services.