This document discusses leading organizational change and integrating change theory with practice. It provides an overview of several change management frameworks and tools that can be used to implement successful change initiatives, including Kotter's 8-stage process for change and stakeholder analysis. The document also highlights common challenges with change efforts and emphasizes the importance of measuring impact, communication, and addressing resistance to ensure changes are effectively anchored in the organization.
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Leading Change Feb09
1. Leading Change: Integrating Theory and Practice Robin Teigland Center for Strategy and Competitiveness Stockholm School of Economics [email_address] www.knowledgenetworking.org February 2009
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3. Jack Welch… "...when the rate of change outside an organization is greater than the change inside, the end is near...."
4. Numerous tools for change Globalization . Information Technology. Total Quality. Benchmarking . Best Practices. Customer Focused. Micromarketing . Outsourcing. Flexible Manufacturing . Value Creation. Core Competence. Partnering . Competitive Advantage. Networks. Strategic Alliances . Delaying. Information. Revitalization. Computer-aided Design . Concurrent Engineering . Computer-aided Engineering Mission. Cross-functional Teams. The New Organization . Diversity. Empowerment . The Information Organization. The Hybrid Organization. Knowledge. The Shamrock Organization . Restructuring. Strategic Stretch and Leverage. The Post-Modern Organization . The Cyclical Organization. The Spider-Web Organization. The Post-Industrial Organization . The Turbulent Organization. The Chaotic Organization…….. Beer 2002
5. Average number of tools used by an organization during 2004 Bain 2007 Survey of 1221 international executives
8. Average CEO tenure is falling Beer 2002 60% drop Number of years as CEO (In USA) Could this partly be due to the CEO’s inability to handle change in an increasingly turbulent environment??
15. PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technological Legal Social Economic Organization
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18. A new workforce is appearing… Mahaley 2008, Merrill Lynch 1999, Beck and Wade, Prensky “ Digital Immigrants” “ Digital Natives” Company loyalty Work ≠ Personal Professional loyalty Work = Personal
19. Technical knowledge becomes quickly outdated 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education
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21. Pressures from one area can affect the entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
23. What are the critical success factors for change?
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25. Getting through the valley of despair High Uninformed optimism (Security) Informed pessimism (Doubt) Hopeful realism (Hope) Productivity Time Low Optimism (Decision Power Commitment) Successful ending (Satisfaction) Hultín, IBM
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28. Kotter’s eight-stage process for change Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change
29. 1. Establish a sense of urgency Forces for change Forces for stability The status quo Burnes 2004
37. 5. Empower others to act on the vision 1. Does the organizational culture encourage individuals to act? 2.Do people have the necessary resources to act? 3.Do people have the appropriate skills and training to act? 4.Do people have the authority to act? 5.Are the organizational structure & systems aligned with the vision? Adapted from Kotter 1996
38. 6. Plan for and create short-term wins 1. Create obtainable targets 2. Encourage & convince people that targets can be reached 3. Recognize and reward “winners” Communicate the wins Adapted from Kotter 1996
40. 7. Consolidate improvements and produce more change Change Project 1 Change Project 2 Change Project 3 Time Scope of change Adapted from Kotter 1996
41. 8. Anchor new approaches Company culture Physical artifacts activities and routines Underlying values, assumptions, beliefs, and expectations Intangible Adapted from Kotter 1996
42. Kotter’s eight-stage process for change Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change
47. Kotter’s eight-stage process for change Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change 1. Prepare 2. Implement 3. Manage
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50. Kotter’s eight-stage process for change Kotter 1996 2. Form a powerful guiding coalition 1. Establish a sense of urgency 3. Create a vision 8. Anchor new approaches 4. Communicate the vision 5. Empower others to act on the vision 6. Plan for and create short-term wins 7. Consolidate improvements and produce more change
51. The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual groups Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual groups Developing a communication plan Performing a risk analysis Module 3 Final Presentation
52. The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual teams Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual teams Developing a communication plan Performing a risk analysis Module 3 Final Presentation
60. PESTEL – External pressures for change Johnson & Scholes 1997 Political Environmental Technical Legal Social Economic Organization
61. Pressures from one area can affect the entire organization Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
62. The Change Project Statement … if you can ´t say it in a few words, then keep discussing! Name of Change Project Names of Change Project team members What are the drivers for your Change Project? What will be the change resulting from your Change Project? How will you measure the impact of your Change Project? When do you expect to see results from your Change Project?
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65. Leading is looking in all directions Sponsor or Steering Group Project Team Project Leader Stakeholders Downwards Outwards Forwards Inwards Upwards Backwards Briner et al 2004
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67. Why use tools? Reducing complexity to something manageable Identifying priorities and importance, sequence of activities Highlighting interdependence between actors and tasks Creating a common language My view…. Making views explicit
68. 1. Identify internal and external stakeholders Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
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70. Stakeholder analysis Adapted from Nader, NTL Current (C) & Desired (D) position regarding the Change Stakeholder Block Help Let Make Diagnosis of stakeholder position Recommended action to move to desired position
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73. Successful change requires attention to all relationships Political Environmental Technical Legal Social Economic Culture Systems Vision Strategy Structure People
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80. 4. Continuously manage risk Low High Low High Probability of occurring Impact of change Monitor Work on reducing Minimal effort Manage
81. Risk analysis From BETE 16 Risk No. Description Proba-bility Project impact Priority Potential consequences Proposed/ implemented actions Status Respon-sible 1 2 3 4
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83. Match the measures to the impact of the change Culture Systems Vision Strategy Structure People
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85. Measurement plan Measure no. Measure Description How directly impacted by change project Baseline measure Measuring frequency 1. 2. 3.
86. The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual groups Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual groups Developing a communication plan Performing a risk analysis Module 3 Final Presentation
87. The Change Project Statement … if you can ´t say it in a few words, then keep discussing! Name of Change Project Names of Change Project team members What are the drivers for your Change Project? What will be the change resulting from your Change Project? How will you measure the impact of your Change Project? When do you expect to see results from your Change Project?
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89. The Change Project Timeline Module 1 Choosing the Change Project Structuring future work Working in virtual groups Identifying stakeholders & powerful coalition Creating a vision Module 2 Developing an implementation plan Defining impact measurement Working in virtual groups Developing a communication plan Performing a risk analysis Module 3 Final Presentation
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92. Leading and learning Leadership and learning are indispensable to each other.” - John F. Kennedy Leadership, teaching, and learning are inextricably interlinked. - Jack Welch
93. See you in Module 3!! Good luck with your projects!!