Chapter 14

Managing
Change

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Change Management Case Study

Here's the scenario: You have invested vast amounts
of time and money in the latest software system and
processes; you have trained every employee; and
you have made their lives so much easier (or so you
think.) Yet months later, people still persist in their
old ways: Where are the business improvements you
expected? And when will the disruption you're
experiencing subside?
The fact is that organizations don't just change
because of new systems, processes or new
organization structures. They change because the
people within the organization adapt and change too.
Only when the people within it have made their
own personal transitions can an organization
truly reap the benefits of change.
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CHANGE AT WORK
What is change?
To become different, or to undergo modification.

What is change inside the organization?

Any alteration occurring at work or in the work
environment that affects the way in which
employees must act.

What is Change Management?

Is the application of a structured process, and set
of tools to engage people and work collectively
inside the organization towards the achieve of a
common objective, and realize the benefits
together.
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CHANGE AT WORK

Change can be:

Planned or unplanned
Catastrophic or evolutionary
Positive or negative
Strong or weak
Slow or rapid
Stimulate internally or externally

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CHANGE AT WORK
Where changes originate?
New government laws
New technology
Competitors introduce new services/product
Merger / Acquisitions / Down-sizing
Customer preferences (lifestyle change)
Labor unions for more internal change
Emergence of new Industry or sector
Communities initiate change Energy Conservations

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CHANGE AT WORK
Illustration of Change
using a balloon.

Balloon
represents
your
organization
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At the point of
contact,
change creates
pressure to the
company

Pressure can
weaken the
organization

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Resulting to
catastrophic
results

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CHANGE AT WORK
How do you manage the forces that result to change?
Establish equilibrium in the social structure inside the organization.
-Equilibrium is a state of relative balance between opposing
forces.
-When there is equilibrium during the transition period
employees are able to embrace the changes.

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RESPONSES TO CHANGE
Group Response to Change
People interpret change individually
People in groups show uniform response to the
change.
-we are in this together.
people in a group will act to protect
themselves from disturbance of that balance
due to change.
Inclined to return to the perceived best
way of life when ever change occurs.
Pressure coming from change will elicit a
counter-pressure
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RESPONSES TO CHANGE
Resistance to Change
Why do employees resists?
When job security is threatened
Hinders social interaction (less time to interact)
Reduce their status, competence, or self-esteem
Discredit
Management is changing the process to make us work
harder and earn more profit.
Delay
I will continue doing what I have been doing for 10 years in
this company.
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RESISTANCE TO CHANGE
Regardless of the nature of change, employees will try to
protect themselves from its effects.
Actions of employees to prevent change to happen:
Complaints New process is harder to do
Foot-dragging I will use the machine tomorrow
Passive Resistance Ok, let see how others are doing
Passionate Arguments This is difficult!
Absenteeism or Tardiness - Less interest to go to work
Sabotage - Work slowdown or strike

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CHANGE CURVE MODEL

How to Implement Change:
Planning
Involve employees in all levels when
conducting the planning stage
PROGRESS rather than CHANGE
Focus on the positive side of the
process
Together, develop your PDCA approach
SMART Goals
Activity Plan
Steps to Take
Check the Effects
Sustain the Change
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CHANGE CURVE MODEL

How to Implement Change:
Advertise Your Goals
Communication
Employees should be able to
understand the bigger picture
The over-all impact in their lives
and to the organization
Share the why before the
how
Inform all your employees of your
planned goal.
Make them aware that you will be
expecting great transformation
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CHANGE CURVE MODEL

How to Implement Change:
Allow the Change Curve to Happen
Stage 1 - When a change is first introduced, people's initial
reaction may be shock or denial, as they react to the challenge
to the status quo.
This is a critical stage for communication.
Make sure you communicate often, but also ensure that you
don't overwhelm people: They'll only be able to take in a
limited amount of information at a time. But make sure that
people know where to go for more information if they need
it, and ensure that you take the time to answer any questions
that come up.
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CHANGE CURVE MODEL

How to Implement Change:
Allow the Change Curve to Happen
Stage 2 - People tend to react negatively and
may fear the impact; feel angry; and actively
resist or protest against the changes.
This is the "danger zone." If this stage is
badly managed, the organization may
descend into crisis or chaos.
Develop mechanism for communication
Make sure to address objections
early
Take actions to minimize the
problems that people will experience
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CHANGE CURVE MODEL

How to Implement Change:
Allow the Change Curve to
Happen
Stage 3 Coming out of the
danger zone. People's
acceptance grows, test and explore
what the change means to them.
As the person managing the
changes:
Lay good foundations, make
sure people are well trained
Don't expect people to be 100
percent successful, give room
for error and improvement
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CHANGE CURVE MODEL

How to Implement Change:
Allow the Change Curve to
Happen
Stage 4 People embrace the
improvements to the way they
work.
As someone managing the change:
Start to see the benefits you
worked so hard for.
SGA team or organization
starts to become productive
and efficient, and the positive
effects of change become
apparent.
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CHANGE CURVE MODEL

How to Implement Change:
Stage 5 Celebrate the wins and share the financial benefits!

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LEADERSHIP IN
CHANGE
MANAGEMENT
The Role Of Managers

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LEADERSHIP IN CHANGE MANAGEMENT

Choosing your change manager

Based on research, a hallmark of a successful change
management is a result of the strong involvement of mid-level
managers and those below the CEO.
In those cases, mid-level managers were not merely managing
day-to-day changes, they were leading by working across and
down their organizations.

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LEADERSHIP IN CHANGE MANAGEMENT

Characteristics
of a change
Change leaders
are manager
not only
smart but wise as well
Many change efforts fail because
managers reduce themselves to just
following systems such as TQM or Six
Sigma.
Successful changer leaders, on the
other hand, are not only smart but wise
to know the importance of working
together and involving everyone in
the organization.
They enlightened people to strive
to serve a higher purpose that
transcends profit
maximization.
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LEADERSHIP IN CHANGE MANAGEMENT

Characteristics
Change
leaders
of a changeare
manager
visionaries
Inspire people adopt the
vision to capture peoples
hearts and minds
Shift the mindset they
themselves are open to
asking all questions and
broadly diagnose problems,
and they inspire openness in
the people around them.
Envisioning
and
Articulate the future set
goals that build toward the
larger transformation
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LEADERSHIP IN CHANGE MANAGEMENT

Characteristics of a change manager

Change
leaders
across boundaries

work

Managers can direct line of

communication to top executives, and
to the lower ranks of the organization
as well.
As a master at top-down, bottom-up
and lateral mobilization.

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LEADERSHIP IN CHANGE MANAGEMENT

Characteristics
of
a
change
manager

Change
leaders
inside out.

work

If youre a manager eager to transform

yourself into a change leader, the first step
is finding or making sure you are fully
committed to the work youre doing,
personally and professionally.
Align your personal goals and strengths
with the organizations goals. Start by
making your own personal vision statements
and goals.
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LEADERSHIP IN CHANGE MANAGEMENT

Characteristics of a change manager

Change leaders move fast
Transformation launches must be both bold
and rapid to be successful
Find a bold process of change, like Rapid
Transformation
Launch with a top-down sense of urgency
coupled with changes in performance
incentives and reward system to get
employees on board.
Build across-functional teams, to non-stop
operational execution and dramatic cultural
change
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LEADERSHIP IN CHANGE MANAGEMENT

Characteristics of a change manager

Change leaders move fast
Push yourself to communicate with your
companys executives and the CEO.
Align department goals with managements
goal.
Share vital information like timetables and
performance expectations, for overhauls of
systems, costs requirements.
Share problems encountered, and seek guidance
and support from management
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LEADERSHIP IN CHANGE MANAGEMENT

Characteristics of a change manager

Change leaders move fast
Embrace speed at every possible juncture.
People in the organization tend to relax immediately following a bold
launch.
After several months of involvement in the transformation some
leaders reach their limits in being able to juggle their responsibilities
for day-to-day work and the process of transformation.
Focus on the activity plan and the timelines.
If in the process the first approach failed, plan for rejuvenation, and
repeat process towards change, this time, find gaps that resulted to
failure.
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UNDERSTANDING ORGANIZATIONAL DEVELOPMENT

Strategy For Change Management:
Develop Change Management Plan
Communication plan
Implementation roadmap
Training Tools and Techniques
Coaching and consulting plan
Resistance management plan
Reinforcement planning

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Questions
http://www.mindtools.com/pages/article/newPPM_96.htm

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