Change Leadership and Innovation

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Management of Change
ICM - LEVEL 7 HIGHER DIPLOMA IN MANAGEMENT
SUPPLEMENTARY TOPIC – CHANGE LEADERSHIP AND INNOVATION [B]
LECTURER: ADRIAN MIFSUD M B A , B M D I P, M I M [
These Lecture Slides summarize the key points covered in the respective chapters in your recommended text; these slides do NOT substitute, at all, the required reading of the assigned chapter from the text.
These slides also may contain additional supplementary material extracted from other texts and sources outside your text book.
What are the challenges of change
leadership and innovation?
Four steps of the product innovation process:

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What is the nature of organizational
change?
Change leaders versus status quo managers

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Kawasaki’s ten tips in the art of Innovation
A Model for Managing Organizational Change

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What is the nature of organizational
change?
Top-down change.
◦Strategic and comprehensive change that is initiated with
the goals of comprehensive impact on the organization
and its performance capabilities.
◦Driven by the organization’s top leadership.
◦Success depends on support of middle-level and lower-
level workers.
What is the nature of organizational
change?
Bottom-up change.
◦The initiatives for change come from any and all parts of
the organization, not just top management.
◦Crucial for organizational innovation.
◦Made possible by:
◦ Employee empowerment.
◦ Employee involvement.
◦ Employee participation

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What is the nature of organizational
change?
Integrated change leadership.
◦ Successful and enduring change combines advantages of top-
down and bottom-up approaches.
◦ Top-down:
◦ Breaks up traditional patterns.
◦ Implements difficult economic adjustments.
◦ Bottom-up:
◦ Builds capability for sustainable change.
◦ Builds capability for organizational learning.
What is the nature of organizational
change?
Transformational and incremental change.
◦ Unplanned change.
◦ Response to unanticipated events.
◦ Good leaders act on opportunities for reactive change.
◦ Planned change
◦ Aligning the organization with anticipated future challenges.
◦ Activated by proactive leaders who are sensitive to performance gaps.
◦ Transformational change  major and comprehensive redirection.
◦ Incremental change  adjusting existing systems and practices.

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What is the nature of organizational
change?
External forces for change:
◦ Globalization.
◦ Market competition.
◦ Local economic conditions.
◦ Government laws and regulations.
◦ Technological developments.
◦ Market trends.
◦ Social forces and values.
What is the nature of organizational
change?
Internal forces for change:
◦Arise when change in one part of the system creates the
need for change in another part of the system.
◦May be in response to one or more external forces.

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What is the nature of organizational
change?
Organizational targets for change:
◦Tasks
◦People
◦Culture
◦Technology
◦Structure
Phases of planned
change
◦ Unfreezing
◦ The phase in which a situation
is prepared for change and felt
needs for change are
developed.
◦ Changing
◦ The phase in which something
new takes place in the system,
and change is actually
implemented.
◦ Refreezing
◦ The phase of stabilizing the
change and creating the
conditions for its long-term
continuity.

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Alternative change strategies and their
leadership implications.
How can planned organizational change
be managed?
Force-coercion strategy of change.
◦Uses power bases of legitimacy, rewards, and
punishments to induce change.
◦Relies on belief that people are motivated by self-
interest.
◦Direct forcing and political maneuvering.
◦Produces limited and temporary results.
◦Most useful in the unfreezing phase.

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How can planned organizational change
be managed?
Rational persuasion strategy of change:
◦Bringing about change through persuasion backed by
special knowledge, empirical data, and rational
argument.
◦Relies on expert power.
◦Relies on belief that reason guides people’s decisions and
actions.
◦Useful in the unfreezing and refreezing phases.
◦Produces longer-lasting and internalized change.
How can planned organizational change
be managed?
Shared power strategy of change:
◦Engages people in a collaborative process of
identifying values, assumptions, and goals from
which support for change will naturally emerge.
◦Time consuming but likely to yield high
commitment.
Cont/…

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How can planned organizational change
be managed?
Shared power strategy of change:
◦Involves others in examining socio-cultural factors
related to the issue at hand.
◦Relies on referent power and strong interpersonal
skills in team situations.
◦Relies on belief that people respond to socio-
cultural norms and expectations of others.
What is organization development?
Organization development (OD) is a
comprehensive approach to planned
organizational change that involves the
application of behavioral science in a
systematic and long-range effort to
improve organizational effectiveness.

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What is organization development?
Organization development goals:
◦Outcome goals focus on task accomplishments.
◦Process goals focus on the way people work
together.
◦OD seeks to develop the organization
members’ capacity for self-renewal.
Cont/…
What is organization development?
◦OD is committed to change through freedom
of choice, shared power, and self-reliance.
◦OD takes advantage of knowledge about
human behavior in organizations.

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What is organization development?
The organization development process:
◦Establish a working relationship.
◦Diagnosis.
◦Intervention.
◦Evaluation.
◦Achieve a terminal relationship.
Organization development and the
planned change process.

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Organization development and the
planned change process.
Action research
◦ The process of systematically
collecting data on an
organization, feeding it back
to the members for action
planning, and evaluating
results by collecting more
data and repeating the
process as necessary.
◦ Is initiated when someone
senses a performance gap.
Organization development and the
planned change process.

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Organization development and the
planned change process.
How Effective Are Change Interventions?
•The critical test of change intervention is
whether they help to improve organizational
effectiveness
•Research concludes that multi-method
approaches have better success than single-
method ones
Organization development and the
planned change process.
Significant changes occur under the following
conditions:
i. All employees participate in goal setting, decision
making, and job redesign
ii. Employee collaboration is developed through team
building
iii. The organizational structure is reorganized to
accommodate the new levels of participation and
collaboration

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Organization development and the
planned change process.
Steps to Take When Managing Change
1. Management and all those involved must have
high and visible commitment to the effort
2. People who are involved need to have advance
information that enables them to know what is to
happen and what they are there to do
3. The effort must be connected to other parts of the
organization
Organization development and the
planned change process.
4. The effort needs to be directed by line managers
and assisted by a change agent if necessary
5. The effort must be based on good diagnosis and
must be consistent with the conditions in the
organization
6. Management must remain committed to the effort
throughout all its steps

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Organization development and the
planned change process.
7. Evaluation is essential and must consist of more
than asking people how they felt about the effort
8. People must see clearly the relationship between
the effort and the organization’s mission and goals
9. The change agent, if used, must be clearly
competent
Why can people become barriers to
change?
Reasons for people resisting change:
◦ Fear of the unknown
◦ Disrupted habits
◦ Loss of confidence
◦ Loss of control
◦ Poor timing
◦ Work overload
◦ Loss of face
◦ Lack of purpose

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Why can people become barriers to
change?
Methods for dealing with resistance to change:
◦Education and communication
◦Participation and involvement
◦Facilitation and support
◦Negotiation and agreement
◦Manipulation and co-optation
◦Explicit and implicit coercion
How can stress be managed in a change
environment?
Stress
◦ A state of tension experienced by individuals facing extraordinary
demands, constraints, or opportunities.
Stressors
◦ Things that cause stress
◦ Originate in work, personal, and non-work situations.
◦ Have the potential to influence work attitudes, behavior, job
performance, and health.

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How can stress be managed in a change
environment?
Work factors as potential stressors:
◦Includes:
◦ Excessively high or low task demands.
◦ Role conflicts or ambiguities.
◦ Poor interpersonal relationships.
◦ Too slow or too fast career progress.
◦Work-related stress syndromes:
◦ Set up to fail.
◦ Mistaken identity.
How can stress be managed in a change
environment?
Personal factors as potential stressors:
◦Includes needs, capabilities, and personality.
◦Stressful behaviour patterns:
◦ Always moving, walking, and eating rapidly.
◦ Acting impatient, hurrying others, disliking waiting.
◦ Doing, or trying to do, several things at once.
◦ Feeling guilty when relaxing.
◦ Trying to schedule more in less time.
◦ Using nervous gestures such as a clenched fist.
◦ Hurrying or interrupting the speech of others.

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How can stress be managed in a change
environment?
Non-work factors as potential stressors:
◦Includes:
◦Family events.
◦Economics.
◦Personal affairs.
◦“Spill-over” effect on the stress an individual
experiences at work.
How can stress be managed in a change
environment?
Consequences of stress:
◦Constructive stress.
◦ Acts as a positive influence.
◦ Can be energizing and performance enhancing.
◦Destructive stress.
◦ Acts as a negative influence.
◦ Breaks down a person’s physical and mental systems.
◦ Can lead to job burnout and/or workplace rage.

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Potential negative consequences of a
destructive job stress-burnout cycle.
How can stress be managed in a change
environment?
Personal wellness:
◦The pursuit of personal and mental potential
though a personal health-promotion
program.
◦A form of preventative stress management.
◦Enables people to be better prepared to deal
with stress.

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To conclude - a word from the experts ….