Copyright Notice: This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent, charge, or profit from the educational materials contained here. Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

1. Arianto Muditomo @2019
Copyright Notice:
This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-
commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from
Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent,
charge, or profit from the educational materials contained here.
Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

2. arianto.muditomo@2019
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§ Session #1: Introduction of Knowledge Management
§ Session #2: KM & Organizational Learning
§ Session #3: Knowledge Management Strategy & Implementation
§ Session #4: Introduction to Change Management
§ Session #5: Organizational Change Management & Culture
Change Management
§ Session #6: Introduction of Innovation & Entrepreneurship
§ Session #7: Creativity & Innovation
§ Session #8: Entrepreneur & Innovation Leadership
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References:
• Kimiz Dalkir, Knowledge Management In Theory and Practice 1st Edition, Butterworth-Heinemann; 1 edition (June 30,
2005), ISBN-10: 075067864X, ISBN-13: 978-0750678643
• John Bessant and Joe Tidd (2015). Innovation and Entrepreneurship 3rd Edition. John Wiley & Sons, Ltd., ISBN-13: 978-
1118993095; ISBN-10: 1118993098
• John P. Kotter, Leading Change, With a New Preface by the Author, Harvard Business Review Press; 1R edition (November
6, 2012), ISBN-10: 9781422186435, ISBN-13: 978-1422186435
• Frank Voehl, H. James Harrington, Change Management: Manage the Change or It Will Manage You, Productivity Press; 1
edition (November 13, 2017), ISBN-10: 1138463957, ISBN-13: 978-1138463950

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Culture change management (CCM) contains many of the elements of the
above but focuses on the human side of change as it affects the employees in
their day to-day work activities by creating a culture of assessment.†
CCM emphasizes that it is the people that make the
change happen (or not, in some cases), and their ability to adapt, absorb, and assimilate
new ways of operating ultimately defines success
Organizational change management (OCM) is a systematic approach to
planning and integrating change aligned with business strategy that focuses on
both the business and its people
From a business standpoint, OCM focuses on planning and implementing transactional
change (quick, short-term change activities), along with or in addition to transformational
change (deep, long-term fundamental change), in order to facilitate delivery of sustainable
organizational outcomes and benefits at minimum cost and risk.

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The concept of culture change management (CCM) is the resulting factor of the
harmonizing of the traditional change management activities and the day-to-day
management of the organization, and how it impacts the total organization’s
ability to embrace change rather than resist it.
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All of these approaches
were basically directed at
ensuring that individual
projects/programs were
successfully implemented
by preparing the affected
people to understand, be
involved in the
development, and accept
the proposed
project/program when it
was implemented.

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The real change impact on the organization is not how well the project team prepared the
impacted people to accept the change but rather how well the output from the change fits
into the organization’s culture and whether it is accepted or rejected.
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Source: Frank Voehl, H. James Harrington, Change Management: Manage the Change or It Will Manage You, Productivity Press;
1 edition (November 13, 2017), ISBN-10: 1138463957, ISBN-13: 978-1138463950

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The cultural web is a model initially created by Johnson and Scholtes (2002) and first
published in Exploring Corporate Strategy (6th Edition), Pearson, NewYork. It was applied to
organizational culture change in the book The High-Performance Organization (Holbeche
2011a).
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The floodgate in change management is CCM, which helps to mitigate the resistance factors
to change. Adjusting the CCM system within any organization is a complex but necessary
endeavour. For example, the following needs to be considered:
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Change should be embraced as the all–employees’ culture and not only the top management’s
vision or desire.
Change should be considered in terms of corporate culture and business needs
simultaneously.
A benchmarking study of the best practices of the participating par- ties (banks) might
be required to achieve the desired change results.
The core part of any CCM effort is to have a management transformation strategy
People will not change unless—and until—they are psychologically ready to withdraw from
their current daily habits.
In any change process people are not being asked to simply learn new ideas; they are asked to
break away from their comfortable old habits and align themselves with the new process.

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The idea that humans go through a certain type of psychological pro- cess during change
first became evident due to the research published by Elizabeth Kubler-Ross in 1969.† The
word “psychodynamic” is based upon the idea that an individual, whenever he or she is
facing change in the external world, experiences a variety of internal psychological states.
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CCM relates to managing the impact of change on the total organization and it is made
up of two parts:
• Organizational change management (OCM): 10% to 20% of the total.This is the needed change that
is brought about to have the impacted personnel accept the change.This type of change
management is normally included in the project management plan.
• Day-to-day change: 80% to 90% of the total.

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There are six elements for driving a change culture associated with The Harrington-Voehl
culture change management model.

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FIGURE 7.8
The conditions for transformational change, showing the five principles of CCM, along
with some basic descriptions of the outcomes for project deployment, execution
excellence, and culture change learning.

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FIGURE 7.9
Mobilizing a commitment to culture change.

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FIGURE 7.10
Developing a shared
vision for managing for
competitiveness.

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FIGURE 7.11
Fostering consensus on the
desired future state, along with
competence and cohesion to
move it along.

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FIGURE 7.12
Spread and institutionalize revitalization through
formal policies, systems, and structures.

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The purpose of change is to create an asset that did not exist before—a learning organization
capable of adapting to a changing competitive environment.The organization has to know how
to continually monitor its behaviour; in effect, to learn how to learn, in order to learn how to
become a high-performance organization. High-performance organizations can be described
as places where the culture:
Is adaptable, flexible, and change-
ready
Has a culture of assessment that is
supportive of innovation, knowledge
sharing, and knowledge creation
Is where people work effectively
across boundaries and functional
departments
Is values-based
Is interested in stimulating
employees to ever-higher levels of
performance
Is a great place to work

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