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Change Management
Change Management
• Change management means defining and adopting
corporate strategies, structures, procedures and technologies to
deal with changes in internal, external and business
environment.
• This is in contrasts with smaller changes, such as adopting a
new computer procedure.
Organization-wide Versus Subsystem Change
• Organization-wide change might be a major
restructuring, collaboration or rightsizing. Usually,
organizations must undertake organization-wide
change to evolve to a different level in their life cycle
like
• going from a highly reactive work culture to pro-active
,
• cultural change is another example of organization-
wide change.
• Change in a subsystem might include addition or
removal of a product or service, reorganization of a
certain department, or implementation of a new
process to deliver products or services.
Transformational Versus
Incremental Change
• Transformational , radical, fundamental change might be
changing an organization’s structure and culture from the
traditional top-down, hierarchical structure to a large
amount of self-directing teams.
• Business Process Re-engineering, which tries to take apart
the major parts and processes of the organization and then
put them back together in a more optimal fashion.
• Transformational change is sometimes referred to as
quantum change.
• Incremental change might include continuous improvement
as a quality management process or implementation of new
computer system to increase efficiencies. Many times,
organizations experience incremental change and its leaders
do not recognize the change as such.
Remedial Versus
Developmental Change
 Change can be intended to remedy current situations
• Improve the poor performance of a product or the entire
organization
• Reduce burnout in the workplace
• Help the organization to become much more proactive and
less reactive
• Address large budget deficits
 Change can also be developmental
• Expand the amount of customers served,
• Duplicate successful products or services
Unplanned Versus Planned
Change
 Planned change
• occurs when leaders in the organization recognize the need for a
major change and proactively organize a plan to accomplish the
change.
• Planned change occurs with successful implementation of a
Strategic Plan,
• plan for reorganization, or other implementation of a change of
this magnitude.
 Unplanned change
• Usually occurs because of a major, sudden surprise to the
organization, which causes its members to respond in a highly
reactive and disorganized fashion like
• Chief Executive Officer suddenly leaves the organization,
• Significant public relations problems occur, poor product
performance quickly results in loss of customers, or other
disruptive situations arise.
Types of Change
Change in Scale
Where Company wins a large contract or opens a new business
line there will be a need to change the way the business works
due to the increasing size of the organisation like increases in
employees, need for new premises, need for additional vehicles,
changes in management structures etc
Changes in personnel
A more common change event that all organisations will face
from time to time is the need to adapt to changes in the
personnel in key positions within the business. For example, a
change in supervisor may change team dynamics whilst a
change in accountant could include the risk of losing significant
corporate knowledge
Types of Change
Changes in technology
Where there have been improvements in technology like
communications, IT or equipment, there will be a need to
update their systems and train their employees to effectively
manage the change
Changes in service offerings
In circumstances where Company want to change the
business lines that we service then there will be a need to
manage a change process through training existing staff,
recruiting additional staff, updating the business plan and
potentially investing in new equipment and marketing
literature
Types of Change
Legislative change
Changes in laws and regulations could have a significant impact
on how Your Company goes about undertaking its work
Re-freeze
Stabilize the new
equilibrium by
reinforcing new patterns
and institutionalize them
Change
Motivating employee to
align with new
equilibrium , change in
perspective
Un-freeze
Unfreeze the existing
situation or status quo
Kurt Lewin’s Three-Step Change Theory
Step-I Step-II Step-III
Un-Freeze
Human behaviour is based on a quasi-stationary equilibrium supported by a complex field of forces.
Before old behaviour can be discarded/unlearnt and new behaviour successfully adopted, the
equilibrium needs to be destabilized /unfrozen.
This would not be easy or that the same techniques could be applied in all situations: the unfreezing
of the present level may involve quite different problems in different cases
To break open the shell of Complacency and self-righteousness it is sometimes necessary to bring
about an emotional stir up. The stages mentioned below are important to navigate through
• Inspiring Others
• Defining the Strategic Plan
• Effective Communication
• Consistent Support
• Ability to Sustain Energy Long-Term
• Diagnose the problem.
• Assess the motivation and capacity for change.
• Assess the resources and motivation of the change agent. This includes the
change agent’s commitment to change, power, and stamina.
• Choose progressive change objects. In this step, action plans are developed
and strategies are established.
• The role of the change agents should be selected and clearly understood by all
parties so that expectations are clear.
• Maintain the change communication, feedback, and group coordination
• Gradually terminate from the helping relationship. The change agent should
gradually withdraw from their role over time. This will occur when the change
becomes part of the organizational culture.
Inspiring Others
Precontemplation
Contemplation
The Preparation stage
Action
Maintenance
Stages of Successful behavioural change
• No intention to
change
• Unaware or under-
aware of their
problems
• Denial Phase
• Aware of Problem
• Thinking about
overcoming
• No commitment of
action
• Ambivalent
• Information Gathering
• Planning stage
• 50% people who attempt
behavioural change will
relapse within 21 days as
per study
• Modify their behaviour,
experience or
environment to
overcome problem
• Require considerable
commitment of time &
energy
• Consolidate the
gains
• For addictive
behaviour this stage
extends up to 6
months
Change
Unfreezing is not an end in itself; it Creates motivation to
learn but does not necessarily control or predict the
direction. It is necessary to consider all the forces at work,
and identify and evaluate, the available options . This
Action Research-based learning approach enables groups
and individuals to move to a more acceptable set of
behaviors.
Set of skills required to navigate through change are
• POLITICAL SKILLS
• ANALYTICAL SKILLS
• PEOPLE SKILLS
• SYSTEM SKILLS
• BUSINESS SKILLS
POLITICAL SKILLS
• Organizations are first and foremost social systems. Without people
there
• can be no organization.
• Organizations are mostly and intensely political.
• Lower the stakes, the more intense the politics.
• Change agents dare not join in this game but they had better
understand it.
• This is one area where you must make your own judgments and
keep your own counsel; no one can do it for you.
ANALYTICAL SKILLS
• Solution Engineering
• A lucid, rational, well-argued
• Workflow operations or systems analysis,
• Financial analysis. must be able to start with some financial
• measure or indicator or goal,
PEOPLE SKILLS & Involvement
• The skills most needed in this area are those that typically fall under the
heading of communication or interpersonal skills.
• To be effective, we must be able to listen and listen actively,
• To restate, to reflect, to clarify without interrogating,
• To plant ideas, and to develop them.
• To reconcile and resolve the conflict between and among disparate points
of view.
• Charm is great if you have it, Courtesy is even better.
• A well-paid compliment can buy gratitude, A sincere “Thank you” can
earn respect.
• For overcoming the resistance in organizational change, the employee
involvement is the most oldest and effective strategy in formulating the
planning and implementing change.
• The participation will lead to high quality change and prevail over the
resistance in implementing stage
• By doing this a variety of information and ideas may be generated, which
may contribute the innovations effective and suitable in the situation
• The leaders should educate, communicate, participate, involve, task
support, provide emotional support and incentives, manipulate, co-optate
and coerce the employees about change.
• This can be explained in four (power, information, knowledge and skill,
and rewards)
SYSTEM SKILLS
• To organize is to arrange.
• A system reflects organization and, by the same
token, an organization is a system.
• Soft systems like compensation systems, appraisal
systems, promotion systems, and reward and
incentive
systems.
• people, organizations, industries, economies, and
even nations as socio-technical systems
BUSINESS SKILLS
• Better understand how a business works.
• Understanding of money — where it comes from, where it
goes, how to get it, and how to keep it.
• Knowledge of markets and marketing, products and
product development,
• Customers, sales, selling, buying, hiring, firing
Knowledge Sharing
• In the change process when employees contribute, the knowledge sharing
stage identifies the kind of knowledge that generates the value of
organization after that generating the mechanism for that knowledge.
• The required knowledge is identified for organizational need which is getting
from two sources of external as renting or consultancy from other companies
or share knowledge by internal source in informal networks among
employees who have expertise
• Knowledge is codified and personalized.
• In codification phase the knowledge is stored which would be used by
appropriate members, The codification of knowledge is called explicit
knowledge which can be easily transferred
• In personalization phase the knowledge is being focused that how to transfer
it from person to person, personalization is called the tacit knowledge which
is not easily transferable
• Motivating change, creating a vision, developing political support,
• Managing the transition and sustaining momentum.
• The motivating change and creating a vision for the unfreezing or current state
of organization
• developing political support and managing the transition for the moving stage
of change and sustaining momentum for the implementation and refreezing
state of the change.
• In change process two factors play important role, the employee’s resistance
and the openness to change
• Resistance to change probably effects the change process which will lead to the
negative outcomes
• Leadership type is vital in change process of organizational change
• Identifies the stakeholders for change process.
Leadership
Re-freeze
• This seeks to stabilize the group at a new quasi-
stationary equilibrium in order to ensure that the
new behaviours are relatively safe from regression.
• The new behaviour must be, to some degree,
congruent with the rest of the behaviour, personality
and environment of the leaner or it will simply lead
to a new round of disconfirmation .
• successful change as a group activity, because unless
group norms and routines are also transformed,
changes to individual behaviour will not be
sustained.
• In organizational terms, refreezing often requires
changes to organizational culture, norms, policies
and practices
Anchor the changes into the culture
• Identity what supports the change.
• Identify barriers to sustaining change.
Develop ways to sustain the change
• Ensure leadership support.
• Create a reward system.
• Establish feedback systems.
• Adapt the organizational structure as necessary.
Provide support and training.
• Keep everyone informed and supported.
Celebrate success!
Change management

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Unlocking the Future - Dr Max Blumberg, Founder of Blumberg Partnership
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Change management

  • 2. Change Management • Change management means defining and adopting corporate strategies, structures, procedures and technologies to deal with changes in internal, external and business environment. • This is in contrasts with smaller changes, such as adopting a new computer procedure.
  • 3. Organization-wide Versus Subsystem Change • Organization-wide change might be a major restructuring, collaboration or rightsizing. Usually, organizations must undertake organization-wide change to evolve to a different level in their life cycle like • going from a highly reactive work culture to pro-active , • cultural change is another example of organization- wide change. • Change in a subsystem might include addition or removal of a product or service, reorganization of a certain department, or implementation of a new process to deliver products or services.
  • 4. Transformational Versus Incremental Change • Transformational , radical, fundamental change might be changing an organization’s structure and culture from the traditional top-down, hierarchical structure to a large amount of self-directing teams. • Business Process Re-engineering, which tries to take apart the major parts and processes of the organization and then put them back together in a more optimal fashion. • Transformational change is sometimes referred to as quantum change. • Incremental change might include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. Many times, organizations experience incremental change and its leaders do not recognize the change as such.
  • 5. Remedial Versus Developmental Change  Change can be intended to remedy current situations • Improve the poor performance of a product or the entire organization • Reduce burnout in the workplace • Help the organization to become much more proactive and less reactive • Address large budget deficits  Change can also be developmental • Expand the amount of customers served, • Duplicate successful products or services
  • 6. Unplanned Versus Planned Change  Planned change • occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change. • Planned change occurs with successful implementation of a Strategic Plan, • plan for reorganization, or other implementation of a change of this magnitude.  Unplanned change • Usually occurs because of a major, sudden surprise to the organization, which causes its members to respond in a highly reactive and disorganized fashion like • Chief Executive Officer suddenly leaves the organization, • Significant public relations problems occur, poor product performance quickly results in loss of customers, or other disruptive situations arise.
  • 7. Types of Change Change in Scale Where Company wins a large contract or opens a new business line there will be a need to change the way the business works due to the increasing size of the organisation like increases in employees, need for new premises, need for additional vehicles, changes in management structures etc Changes in personnel A more common change event that all organisations will face from time to time is the need to adapt to changes in the personnel in key positions within the business. For example, a change in supervisor may change team dynamics whilst a change in accountant could include the risk of losing significant corporate knowledge
  • 8. Types of Change Changes in technology Where there have been improvements in technology like communications, IT or equipment, there will be a need to update their systems and train their employees to effectively manage the change Changes in service offerings In circumstances where Company want to change the business lines that we service then there will be a need to manage a change process through training existing staff, recruiting additional staff, updating the business plan and potentially investing in new equipment and marketing literature
  • 9. Types of Change Legislative change Changes in laws and regulations could have a significant impact on how Your Company goes about undertaking its work
  • 10. Re-freeze Stabilize the new equilibrium by reinforcing new patterns and institutionalize them Change Motivating employee to align with new equilibrium , change in perspective Un-freeze Unfreeze the existing situation or status quo Kurt Lewin’s Three-Step Change Theory Step-I Step-II Step-III
  • 11. Un-Freeze Human behaviour is based on a quasi-stationary equilibrium supported by a complex field of forces. Before old behaviour can be discarded/unlearnt and new behaviour successfully adopted, the equilibrium needs to be destabilized /unfrozen. This would not be easy or that the same techniques could be applied in all situations: the unfreezing of the present level may involve quite different problems in different cases To break open the shell of Complacency and self-righteousness it is sometimes necessary to bring about an emotional stir up. The stages mentioned below are important to navigate through • Inspiring Others • Defining the Strategic Plan • Effective Communication • Consistent Support • Ability to Sustain Energy Long-Term
  • 12. • Diagnose the problem. • Assess the motivation and capacity for change. • Assess the resources and motivation of the change agent. This includes the change agent’s commitment to change, power, and stamina. • Choose progressive change objects. In this step, action plans are developed and strategies are established. • The role of the change agents should be selected and clearly understood by all parties so that expectations are clear. • Maintain the change communication, feedback, and group coordination • Gradually terminate from the helping relationship. The change agent should gradually withdraw from their role over time. This will occur when the change becomes part of the organizational culture. Inspiring Others
  • 13. Precontemplation Contemplation The Preparation stage Action Maintenance Stages of Successful behavioural change • No intention to change • Unaware or under- aware of their problems • Denial Phase • Aware of Problem • Thinking about overcoming • No commitment of action • Ambivalent • Information Gathering • Planning stage • 50% people who attempt behavioural change will relapse within 21 days as per study • Modify their behaviour, experience or environment to overcome problem • Require considerable commitment of time & energy • Consolidate the gains • For addictive behaviour this stage extends up to 6 months
  • 14. Change Unfreezing is not an end in itself; it Creates motivation to learn but does not necessarily control or predict the direction. It is necessary to consider all the forces at work, and identify and evaluate, the available options . This Action Research-based learning approach enables groups and individuals to move to a more acceptable set of behaviors. Set of skills required to navigate through change are • POLITICAL SKILLS • ANALYTICAL SKILLS • PEOPLE SKILLS • SYSTEM SKILLS • BUSINESS SKILLS
  • 15. POLITICAL SKILLS • Organizations are first and foremost social systems. Without people there • can be no organization. • Organizations are mostly and intensely political. • Lower the stakes, the more intense the politics. • Change agents dare not join in this game but they had better understand it. • This is one area where you must make your own judgments and keep your own counsel; no one can do it for you. ANALYTICAL SKILLS • Solution Engineering • A lucid, rational, well-argued • Workflow operations or systems analysis, • Financial analysis. must be able to start with some financial • measure or indicator or goal,
  • 16. PEOPLE SKILLS & Involvement • The skills most needed in this area are those that typically fall under the heading of communication or interpersonal skills. • To be effective, we must be able to listen and listen actively, • To restate, to reflect, to clarify without interrogating, • To plant ideas, and to develop them. • To reconcile and resolve the conflict between and among disparate points of view. • Charm is great if you have it, Courtesy is even better. • A well-paid compliment can buy gratitude, A sincere “Thank you” can earn respect. • For overcoming the resistance in organizational change, the employee involvement is the most oldest and effective strategy in formulating the planning and implementing change. • The participation will lead to high quality change and prevail over the resistance in implementing stage • By doing this a variety of information and ideas may be generated, which may contribute the innovations effective and suitable in the situation • The leaders should educate, communicate, participate, involve, task support, provide emotional support and incentives, manipulate, co-optate and coerce the employees about change. • This can be explained in four (power, information, knowledge and skill, and rewards)
  • 17. SYSTEM SKILLS • To organize is to arrange. • A system reflects organization and, by the same token, an organization is a system. • Soft systems like compensation systems, appraisal systems, promotion systems, and reward and incentive systems. • people, organizations, industries, economies, and even nations as socio-technical systems BUSINESS SKILLS • Better understand how a business works. • Understanding of money — where it comes from, where it goes, how to get it, and how to keep it. • Knowledge of markets and marketing, products and product development, • Customers, sales, selling, buying, hiring, firing
  • 18. Knowledge Sharing • In the change process when employees contribute, the knowledge sharing stage identifies the kind of knowledge that generates the value of organization after that generating the mechanism for that knowledge. • The required knowledge is identified for organizational need which is getting from two sources of external as renting or consultancy from other companies or share knowledge by internal source in informal networks among employees who have expertise • Knowledge is codified and personalized. • In codification phase the knowledge is stored which would be used by appropriate members, The codification of knowledge is called explicit knowledge which can be easily transferred • In personalization phase the knowledge is being focused that how to transfer it from person to person, personalization is called the tacit knowledge which is not easily transferable
  • 19. • Motivating change, creating a vision, developing political support, • Managing the transition and sustaining momentum. • The motivating change and creating a vision for the unfreezing or current state of organization • developing political support and managing the transition for the moving stage of change and sustaining momentum for the implementation and refreezing state of the change. • In change process two factors play important role, the employee’s resistance and the openness to change • Resistance to change probably effects the change process which will lead to the negative outcomes • Leadership type is vital in change process of organizational change • Identifies the stakeholders for change process. Leadership
  • 20. Re-freeze • This seeks to stabilize the group at a new quasi- stationary equilibrium in order to ensure that the new behaviours are relatively safe from regression. • The new behaviour must be, to some degree, congruent with the rest of the behaviour, personality and environment of the leaner or it will simply lead to a new round of disconfirmation . • successful change as a group activity, because unless group norms and routines are also transformed, changes to individual behaviour will not be sustained. • In organizational terms, refreezing often requires changes to organizational culture, norms, policies and practices
  • 21. Anchor the changes into the culture • Identity what supports the change. • Identify barriers to sustaining change. Develop ways to sustain the change • Ensure leadership support. • Create a reward system. • Establish feedback systems. • Adapt the organizational structure as necessary. Provide support and training. • Keep everyone informed and supported. Celebrate success!