managing change

1. Prof. Anil Kumar Singh &
Prof. Muqbil Burhan
ORGANISATIONAL CHANGE AND
TRANSFORMATION

2. ORGANISATIONAL CONTEXT
HORIZONTAL STR
ADAPTIVE
CULTURE
COLLOBORATIVE
STRATEGY
SHARED
INFORMATION
EMPOWERED
ROLES
STABLE ENVIRONMENT
(Mechanical System Paradigm)
TURBULANT ENVIRONMENT
(Natural System Paradigm)
Efficient Performance Learning Organisation
XEROX &
ABB??????
??
Page 178 Xerox/
Team
Xerox/Pag
e 149 ABB
Phase 1
defficiency
Xerox
Business
Architectur
e
Page
147, 158
ASAE/AB
B
Page
147
ASAE
&ABB

3. CHANGE?
Organizational Growth ∞ Organizational Ability to manage change.
Change is the only constant in contemporary context.
Any strategic Development will, of necessity, involve
managing some degree of change to structures,
Technologies, products, services, culture or
processes.
Barlett & Ghoshal, “ Managing across Borders”, HBR
“The levels of change have in many instances outpaced
the Human capability to cope-up with Change”.
CAN WE QUANTIFY CHANGE???????

4. ORGANISATIONAL CHANGE
 An alteration of an organization’s environment,
structure, culture, technology, or people
NATURE
 A constant force
 An organizational reality
 An opportunity or a threat
 Change agent
 A person who initiates and assumes the responsibility for
managing a change in an organization
CHANGE AGENTS IN CASE OF XEROX: Is it Fred Hewitt or
someone else
CHANGE AGENT IN CASE OF ASAE & ABB: ????????
HOW APPROACHES OF THESE TWO CHANGE AGENTS
DIFFER??????

5. STRATEGY-CHANGE
&TRANSFORMATION
 Success can work against a company when
it looses touch with customers.
 Radical changes may be only choice for
organization in desperate need of change.
XEROX & CUSTOMERS?
DESPERATION FOR ASEA?

6. FORCES FOR CHANGE
Competition Laws and
regulations
Strategy modifications
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and
benefits
Labor surpluses and
shortages
Employee attitude
Identify forces of change in context of Xerox and
ASAE/ABB

7. CATEGORIES OF CHANGE
IDENTIFY THE DIMESIONS OF
CHANGE IN CASE OF XEROX,
ABB/ASEA

8. MODEL FOR PLANNED ORGANIZATIONAL
CHANGE

9. CHANGE PROCESS CONTRASTING
VIEWS
 “Calm waters” metaphor
 A description of traditional practices in and theories
about organizations that likens the organization to a
large ship making a predictable trip across a calm sea
and experiencing an occasional storm
 “White-water rapids” metaphor
 A description of the organization as a small raft
navigating a raging river
IS THERE ANY DIFFERENCE BETWEEN
XEROX & ASAE/ABB

10. LEVELS OF CHANGE
IDENTITY CHANGE
Eg. NESTLE
Baby Diet Powder Condensed milk; Chocolates;
Milk; Maggi (ready to eat); Coco Butter
COORDINATION CHANGE Eg. TVS
91-92 (Red ); 91-95 Preparation Phase;
Competing on quality building culture of Quality
CONTROL CHANGE: Prasoon Dutta
Redesigning of stores, Breaking and negotiating
contracts, financial control through Debt
Discipline; Mgmt. Change permitting fresh
thinking
Xerox
Quality
Policy
Leadership
through
Quality &
Team Xerox
Xerox
Business
Architecture
Business
Process
Reengineering
Restr. Xerox
2000
ASAE
Domestic
Firm
ASAE
Exporting firm
ABB
Multinational
PATH BY
BERNEVIK
“Spearhead”
products, Choice
of International
Niches and
Dominance in
these Niche
What
is new
ASAE

11. Time
Forces of Change
Forces of Stability
Desired
state
Status
quo
CHANGE IN “CALM WATERS”
STABILITY CHANGE
UNFREEZE CHANGE RE-FREEZE
CHANG
E
RE-
FREEZE
•Power
•Facilitative
•Persuasiv
e
•Re-
educative
Strategie
s
•Social
•Cultural
•Psychological
•Organizational
•Individual Resistance
•Fear of unknown
•Belief that change is not good
4 org
BARRIE
RS
SOURCES OF
BARRIERS
•Fear of Survival
•Fear of Learning
Change successful
if,
FS > FL
TECHNIQUE
S
•Reward alignment
•Burning bridges
•Evidence Stream
•Institutionalizing
Change
•Socializing

15. ACCOUNTING CHANGE MODEL

16. STRATEGIES FOR PLANNED CHANGE

17. CHANGE IN “WHITE-WATER
RAPIDS”
 Change is constant in a dynamic environment
 The only certainty is continuing uncertainty
 Competitive advantages do not last
 Managers must quickly and properly react to
unexpected events
 Be alert to problems and opportunities
 Become change agents in stimulating, implementing and
supporting change in the organization
IS THE CHAGE AND TRANSFORMATION IN CASE OF ASAE & ABB A
CASE OF CALM WATERS OR WHITE-WATER RAPIDS.
Refer Page 147 &148

18. CONTINUOUS CHANGE PROCESS MODEL OF
ORGANIZATION CHANGE

19. IS A NEW STRUCTURE REALLY
REQUIRED?
When you identify a problem
with your design, first look for
ways to fix it without
substantially altering it. If that
doesn’t work, you’ll have to
make fundamental changes
or even reject the design.
Here’s a step-by-step process
for resolving problems.

20. IS A NEW STRUCTURE REALLY REQUIRED?
(CONT’D)

21. STRATEGIC CHANGE IS A POLITICAL
PROCESS*
1. Establish urgency: Identify & discuss crises,
potential crises & opportunities
Page 175 1st Paragraph Xerox
Page 147 Last paragraph ABB
2. Form a guiding coalition: Assemble a
group with enough power to lead; Integrate the team
Happening at Xerox Leesburg Virginia center
Relationship b/w CEO & Board, VP- Marketing
(Percy’s Boys), also page 151.
3. Create a vision: A vision to direct the change
effort; Develop strategies to achieve that vision
Quality in case of Xerox
Page 149 in case of ABB
4. Communicate the vision: Use every
vehicle possible to communicate & engage; Teach new
behaviors by example
Team Xerox, Learning experiences (180),
documented process, MIOC (184)
Communication of strategic principles (149)
5. Empower others: Get rid of obstacles;
Change systems; Encourage risk-taking
6. Create short-term wins:Target rapid,
visible performance improvements
-
7. Consolidate improvements: Use
credibility from early wins to target areas that lag;
Develop and promote new leaders
-
8. Institutionalize New Approaches:
Connect new attitudes and behaviors to results
; Develop generation that personifies changes
-
* Kotter HBR 1995