1.
CHANGE
MANAGEMENT
“THE GREATEST DISCOVERY OF
ANY GENERATION IS THAT A
HUMAN BEING CAN ALTER HIS
LIFE BY ALTERING HIS
ATTITUDE.”

2.
• In 1997, Jack Welch General Electric CEO then,
decided to send some mortgage and insurance
application work to a small team in Gurgaon.
• By 2002, that work had expanded to 10000
people company and was biggest part of GE
Capital.
• Genpact, the BPO, today is a $1.5 billion
industry. Last estimates, some 2/3 of
outsourced BPO work in the world is serviced
from India by 1.5 million workers.

3.
Change & Change Management.
• Adoption of a new idea or behavior by an
organization.
– Organizations need to continuously adapt to new
situations if they are to survive and prosper
– Constant change keeps organizations agile
– Indicative of “learning” organizations

4.
Shifting
Demographics
World
Technology
Politics
Forces For
Change
Economic
Globalization
Shocks
Competition

5.
Types of changes
• Strategic
• Structural
• Process- oriented
• People centered

6.
ORGANIZING FOR CHANGE…
Doing the right things
Leadership
How you achieve Who is responsible
your goals
Structure for what
Strategy
Purpose
shared vision/
values/goals
Organization Ongoing
Culture systems
Underlying processes
assumptions
that drive behavior
Workforce
Capacity and capabilities of
the people who do the work

7.
HUMAN SIDE OF IT.
• Change is fundamentally about feelings. It needs
people’s heads and hearts together.
• “Winning Attitudes” do make a difference, and it
is important to market new ideas and
approaches within the organization very
carefully.
• Culture and attitude has a very important role to
play.

8.
Issues in Managing Change
• Changing Organizational Cultures
– Cultures are naturally resistant to change.
– Conditions that facilitate cultural change:
• The occurrence of a dramatic crisis
• Leadership changing hands
• A young, flexible, and small organization
• A weak organizational culture

9.
The Road to Cultural Change
• Conduct a cultural analysis to identify cultural elements needing
change.
• Make it clear to employees that the organization’s survival is
legitimately threatened if change is not forthcoming.
• Appoint new leadership with a new vision.
• Initiate a reorganization.
• Introduce new stories and rituals to convey the new vision.
• Change the selection and socialization processes and the evaluation
and reward systems to support the new values.

10.
Issues in Managing Change
• Handling Employee Stress due to Change
– Stress
• The physical and psychological tension an individual
feels when confronted with extraordinary demands,
constraints, or opportunities and their associated
importance and uncertainties.
• Functional Stress
– Stress that has a positive effect on performance.
– How Potential Stress Becomes Actual Stress
• When there is uncertainty over the outcome.
• When the outcome is important.

11.
Causes of Stress

12.
Issues in Managing Change
• Making Change Happen Successfully
– Embrace change—become a change-capable
organization.
– Create a simple, compelling message explaining
why change is necessary.
– Communicate constantly and honestly.
– Foster as much employee participation as
possible—get all employees committed.
– Encourage employees to be flexible.
– Remove those who resist and cannot be changed.

13.
Characteristics of Change-Capable Organizations
• Link the present and • Ensure diverse teams.
the future.
• Shelter breakthroughs
• Make learning a way of
• Integrate technology.
life.
• Build and deepen trust.
• Actively support and
encourage day-to-day
improvements and
changes.

14.
Four Roles in Organizational
Change
Inventor Champion Sponsor Critic
· Develops and · Believes in idea ·High-level · Provides reality
understands · Visualizes benefits manager test
technical aspects of · Confronts who removes · Looks for short-
ideas organization organizational comings
· Does not know how realities of cost, barriers · Defines hard-
to win support for benefits ·Approves and nosed
the idea or make a · Obtains financial protects idea criteria that idea
business of it and political within must pass
support Overcomes organization
obstacles

15.
Types of Changes:
1) Planned
2) Accidental
Organizational
Change
Accidental Changes
• Changing employee demographics
planned Changes
• Performance gaps
• Changes in products and services
• Governmental regulations
• Changes in administrative systems
• Economic competition in the
• Changes in organizational size or
global arena
structure
• Introduction of new technologies
• Advances in information
processing and communication

16.
Types of Planned Changes
Two Types
Operational Change
based on efforts to improve basic work and organizational processes
Transformational Change
involves redesign and renewal of the total organization

17.
Organisational Change
Sequential Process
• Initiation
• Motivation
• Diagnosis
• Information Collection
• Deliberation
• Action Proposal
• Implementation
• Stabilization

18.
Key Roles in Sequential Process of Organizational
Change
Corporate
Management
Involvement
Consultant in process
Counterpart
Implementor
Involvement in task
Implemen.Team
Task forces
Information Collection
Stabilization
Implementation
Action Proposal
Motivation
Diagnosis
Deliberation
Initiation

19.
Lewin’s 3 step Change process.
Unfreezing Changing Refreezing
Unfreezing Old behavior creates motivation to learn.

20.
Lewin’s Three-Step Process
• The first step, “unfreeze” involves the process
of letting go of certain restricting attitudes
during the initial stages of an outdoor
education experience.
• The second step, "change" involves alteration
of self-conceptions and ways of thinking
during the experience.
• The third step, "refreeze" involves solidifying
or crystallizing the changes into a
new, permanent form for the individual

21.
Unfreezing Techniques
people are taken from a state of being unready to change to
being ready and willing to make the first step.
• Burning platform: Expose or create a crisis.
• Challenge: Inspire them to achieve remarkable
things.
• Evidence: Cold, hard data is difficult to ignore.
• Education: Learn them to change.
• Management by Objectives (MBO): Tell people what
to do, but not how.
• Visioning: Form Visions. Visions work to create
change.

22.
Burning Platform
• Show how staying where you are is not an
option, and that doing nothing will result in
disaster.
• Look for a crisis that you can highlight. They
are often lurking nearby, forlorn and
unnoticed.
• You can also engineer your own
crisis that forces change.

23.
Challenge
• Stimulate people into change by challenging
them to achieve something remarkable. Show
confidence in their ability to get out of their
comfort zone and do what has not been done
before.
• Once the group has bought the
challenge, then they will bounce off each
other to make it happen.

24.
Evidence
• Find evidence that supports the need for
change.
• Use data and statistics to create impressive
graphs and charts.
• Cold, hard evidence is a good way of changing
minds as counter-arguments require better
data.

25.
Education
• Teach people about the need for change and
how embracing change is a far more effective
life strategy than staying where they are or
resisting.
• Teach people the methods of change, about
how to be logical and creative in improving
processes and organizations.

26.
Management by Objectives (MBO)
• Set formal objectives for people that they will
have to achieve, but do not tell them how
they have to achieve this.
• Give people objectives that they can only
achieve by working in the intended change.
•Give them relatively free rein in how
they go about achieving the
objectives. Encourage them to 'look
outside the box' for creative new ways
of achieving the objective.

27.
Vision
• Create a motivating vision of the
future.
• Share it with others.
• Live it until it comes true.
• Visions work only when they act to motivate and inspire the
large numbers of people that are needed to make the change
happen.
• For the vision to be motivating, then it must be memorable.
• For it to be memorable, it must be exciting and short.
• To be believed, it must be a regular part of the conversation of
senior people.

28.
Changing Techniques
Once you have unfrozen the people, the next
question is how you keep them going.
• Coaching: Psychological support for executives.
• Facilitation: Use a facilitator to guide team meetings.
• First steps: Make it easy to get going.
• Involvement: Give them an important role.
• Open Space: People talk about what concerns them.
• Step wise change: Break the work into packages.

29.
Coaching
• When you have individual people who are
having difficulty in managing to adapt to
change, be a Coach to them.
• Coaching helps explore deeper motivations
and beliefs about other people, and find
practical ways to change these.

30.
Facilitation
• Use skilled facilitators (HR) to support change
activities.
• Facilitators can be used to guide various group
events, from brainstorming and planning to
improvement projects and change activities.
• Facilitators can also act as team
coaches, helping people to improve within
themselves and work together in better ways.

31.
First Steps.
• Actually starting something is often the
hardest thing. The Greek poet Horace said, ‘He
has half the deed done who has made a
beginning.’
• Make the first steps of change particularly
easy. Make them the most obvious thing to
do.
• Then make the next steps easy that it takes
away all reasonable objections to enacting it.

32.
Involvement
• Get them involved in the change.
• Invite them to participate in discussions.
• Give them things to do.
• When people are a part of something, they
bond with it, making it a part of their identity.

33.
Open space
• It started when Harrison Owen was running conferences and
found that people preferred talking to others during the
breaks than listening to speakers. He then began running
conferences without speakers.
• The underlying philosophy is that trying to control a naturally
chaotic universe just makes things worse. If you want people
to collaborate, the basic principle is to bring them together
and then get out of the way. For managers and facilitators
this can be a very difficult part of the Open Space process. Yet
the most successful Open Spaces are managed with but a very
light touch.
• In change, this is useful for getting people talking together. For
example, you can use it to get people to talk about their fears
and concerns.

34.
Stepwise Change
• Have clear steps in the change. Break the work
into distinct packages and talk about each
separately.
• Communicate about the change not as a
single, but as a set of activities, each of which
gains specific value.

35.
Refreezing techniques
people are taken from a state of being in transition and
moved to a stable and productive state
• Burning bridges: Ensure there is no way back.
• Evidence stream: Show them time and again
that the change is real.
• Institutionalization: Building change into the
formal systems and structures.
• Reward alignment: Align rewards with desired
behaviors.
• Socializing: Build it into the social fabric

36.
Burning the bridges
• When changes are instituted, it is not uncommon for
people to seek ways to go back the old way of
working, hence ensure that there is no way back to
previous ways of working.
• 'Burning bridges' is a deliberate way of preventing
any backsliding by removing any method by which
people can go back.
• Managers who may be not fully committed to the
change are now strongly motivated to continue.

37.
Evidence Stream
• Get people to accept that a change is real by providing a
steady stream of evidence to demonstrate that the
change has happened and is successful.
• Communicate through a range of media. Get people who
have been involved to stand up and tell their stories of
challenge and overcoming adversity.
• Evidence is a powerful tool for persuasion, particularly
when people are doubtful whether something is real.
This is particularly powerful when presented by people
who are trusted by the audience for the information.
• A steady stream of evidence is needed because people
are not always convinced by a few pieces of early
evidence.

38.
Institutionalization
• Make changes stick by building them into the formal
fabric of the organization.
• Make them an organizational standard, building them
into the systems of standards.
• Put them or aspects of them into the primary strategic
plan.
• Build them into people personal objectives.
• Ensure people are assessed against them in personal
reviews.
• The formal systems and structures within the
organization are those which are not optional. People do
them because they are 'business as usual‘.

39.
Reward Alignment.
• When you make a change, ensure that you
align the reward system with the changes that
you want to happen.
• The saying 'Show me how I'm paid and I'll
show you how I behave' is surprisingly
common.

40.
Socialize.
• Seal changes by building them into the social
structures.
• Give social leaders prominent positions in the
change. When they feel ownership for it, they
will talk about it and sell it to others.

41.
Kotter’s Eight-Step Plan for Implementing Change
1. Establish a sense of urgency by creating a compelling reason for why
change is needed.
2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change and strategies for achieving the
vision.
4. Communicate the vision throughout the organization.
5. Empower others to act on the vision by removing barriers to change and
encouraging risk taking and creative problem solving.
6. Plan for, create, and reward short-term “wins” that move the organization
toward the new vision.
7. Consolidate improvements, reassess changes, and make necessary
adjustments in the new programs.
8. Reinforce the changes by demonstrating the relationship between new
behaviors and organizational success.

42.
Case Example
ICICI Bank merger with Bank of Madura (December 2000)
What does it reveal ?
It reveals the importance of change management for the Bank
of Madura and how effective management of change could
bring out best results from the employees in the Bank of
Madura.

43.
ICICI Bank Ltd. Bank of Madura (BoM)
ICICI was established by the Established in 1943, in Madurai,
Government of India in 1955. Tamilnadu. By 2000, it became
the no. 1 in Tamilnadu.
Three times to that of Bank of One third the size of ICICI.
Madura
Staff strength was only 1,400. Staff strength was 2,500.
Departments into individual Management concentrated on
profit centers. the profitability of the overall
bank.