Change Management

Imam T Saptono
 12/30/21

About Speaker
Imam T Saptono

Mr. Saptono currently is co-leader of non-organic growth

project at Bank BNI, he was also the Head of Corporate
Secretary division at Permata Bank. His role as corporate
secretary includes responsibilities in investor relations,
media relations, capital market compliance and corporate
administrations.

During his professional career, he has successfully

developed and improved the corporate secretary division at
PT. Bank Permata Tbk and PT. Bank BNITbk. He also
experienced in many corporate actions such as IPO, right
issue, divestment etc.

He received both his graduate ad undergraduate degree

with distinction from IPB and is currently pursuing his
doctorate degree (DBA) from the same distinguished
institution.
Today’s Discussion
• The Change Situation
• Change and Transition
• Why People Resist Change
• Kotter’s 8 Stages
• Popular Mistakes
Who is the master of the World :
Dinosaurs vs Cockroach

Both animals are predicted living at the same period since the fossils are
founded at the same place
• Mamalia mengambil alih ?

• Mamalia pemangsa telur?

• Makanannya tidak ada lagi?

• Hujan meteor di bumi?

• Letusan Gunung Api?

How well do you know this Dinosaurs
• Zenith
• RCA
• GM, Chrysler, Ford
• ITT
• Lehman Brothers, Fannie Mae, Freddie Mac
• Washington Mutual
• Pan Am
• E
The Change Situation
• Change hasn’t changed
• Change upsets our understanding of the the
reality of things
• Change requires risks
• Change unhinges us – it requires new behaviors
• Change threatens us on all levels
It Isn’t the Changes That Do You In... It’s the
Transitions

Change is situational
▫ Move to a new site
▫ Reorganization of roles on the team
▫ Revisions to the pension plan

Transition is psychological
 Has an emotional, feeling component
 “Plans are useless, Planning
is priceless”
- Dwight Eisenhower

Strategy Execution is a Key to Success

 Change !!

• All about see, feel and change

• Re code your change DNA (Rhenald Kasali)
• See, Do, Get (7 Habits – Stephen Covey)

1. Help people see 1. Give people

2. Seeing analysis
something new 2. Data and
hits the analysis
emotions influence how
3. Emotionally we think
charged ideas 3. New thoughts
change behavior change behavior
or reinforce or reinforce
change behavior change behavior
 The Change Curve
Anticipatory
Reactive
Good
Crisis

What needs We need to

Strategic Things are move fast.
to change?
going well.
Performance
Do we really Who can I
Where do we
need to Trust?
start?
change?
Can we Where do we
Can we find
Poor experiment?
an early win? start?

Speed

Source: Nick Fry and Peter Killing, Strategic Analysis and Action,
Fourth Edition, Prentice Hall Canada, 2000
 Strategic Mindsets
STRATEGIC FIT STRATEGIC INTENT
MODEL MODEL

Strategic thinking is driven by Strategic thinking is driven by

the match between current bridging gap between today’s
capabilities and existing reality and tomorrow’s vision
opportunities
Finding ways to leverage
Searching for sustainable resources
advantages
Outpacing competitors in building
Finding protected niches new advantages
Making new industry rules
Source, Hamel and Prahalad, Strategic Intent, HBR
Four Questions that Guide Strategic Choices
WHAT CAN WHAT MIGHT
WE DO? WE DO?
(strengths and (external opportunities
weaknesses) and threats)

STRATEGY

WHAT DO WE WHAT DO OTHERS

WANT TO DO? EXPECT US TO DO?
(organizational and (stakeholder
individual values) expectancies)
Four Related Questions that Guide Strategic Choices
WHAT CAN WHAT MIGHT
WE DO?new
What HowWEdoDO?
we
(strengths anddo we
capabilities (external
create new
opportunities
weaknesses)
want to develop? possibilities
and threat)?

STRATEGY

WHAT What do we
DO WE How do we partner
WANT TOneedDO?to WHAT DO OTHERS
to build shared
learn to and
(organizational care EXPECT US TO DO?
expectancies?
individualabout?
values) (stakeholder
expectancies)
Three Type of Change
Improvement of what is; new state is a prescribed
enhancement of the old state.

Design and implementation of a desired new state; requires

dismantling of the old state and management
of the transition process; managed timetable.

Market requirements force fundamental change in

strategy, operations, and worldview: 1) New state is
unknown. It emerges from visioning, trial and error, and
learnings, 2) New state requires fundamental shift in
mindset, organizing principles, behavior and/or
culture, all designed tosupport new business
directions. Critical mass oforganization must operate
from new mindset and behavior for transformation
to succeed and new business model or direction
to sustain.
 Business imperatives outline what the company
must do strategically to be successful, given its
customers’ changing requirements. (i.e change to
the company’s mission, strategy, goals, products
and services, pricing or branding)

Organizational imperatives specify what must change in

the organization’s structure, systems, processes,
technology, resources, skill base or staffing to
successfully realize its strategic business imperatives.

Cultural Imperatives – Cultural

imperatives denote how the norms, or
collective way of being, working and
relating in the company must change to
The aggregate set of customer support and drive the organization’s new
requirements that determine design, strategy and operations.
what it takes for a business to
Leader and
succeed in its marketplace. (i.e
Employee Mindset –
the actual product or service
Mindset
needs, speed of delivery,
encompasses the
customization capability, level
worldview,
of quality, need for innovation,
assumptions,
level of customer service, etc)
beliefs or mental
models
Leader and Employee Behavior – Collective behavior
creates and expresses an organization’s culture.
Behavior speaks to more than just overt actions; it
describes the style, tone or character
 Outcome Environmental
Disequilibrium
. Decreased
customer
focus
. Increased
Success cost
Syndrome . Less
innovation
. Codification . Capacity-to-act
. Internal focus problems
. Insularity, Denial and
Sustained Declining Defensive
Success arrogance, and Performance
complacency Reactions
Do More of
. Complexity
the Same
. Conservatism
. Disabled
Continue
learning
doing those
things that
contributed The Death Spiral
to success in
the past .
 Why Do People Resist?
• Feel they will suffer • Solicit employee input
• Organization does not • Script a clear, logical
communicate clearly message
• Perceive more work with few • Provide rewards and
opportunities incentives
• Required to give up • Identify new behaviors to
ingrained habits support the change
• Organization lacks adequate • Develop rewards aligned
rewards with the change
• Organization lacks sufficient • Prioritize work based on
resources available resources
 Why Do People Resist?
• Loss of job security • Communicate how
employees and the
• Employees harbor organization will benefit
from renewed relevance
unresolved resentments
• Allow employees to express
their grief
• Change has poor • Acknowledge missteps;
introduction reaffirm commitment and
clarify expectations &
timeline
• Organization has poor • Delegate communication
internal communication tasks to one person/team
Producing change
• Is 80 percent leadership- establishing direction, aligning,
motivating, and inspiring people-

• And 20 percent management - planning, budgeting,

organizing, and problem solving

Unfortunately, in most of the change

efforts, these percentages are
reversed
What is change management?

A structured process and set of tools

for leading the people side of change.
The Change Steps by Kotter
The Change Behavior
The role of Management & Leadership

Produce a degree of
predictability & order and
has the potential to
consistently produce the
short term results
expected by various
stakeholders

Produce change, often to a

dramatic degree, and has
the potential to produce
extremely useful change
▫ Trigger 1: Create a common sense of
urgency
 Identify and discuss anticipation to potential
crises or looming crises, or major
opportunities for change on objective and on
emotional grounds
 Examine market and competitive realities
 Formulate the “why to change”
 Refer to leading and peer scientific research /
models / best practice
 Organizational Change

Unfreezing Changing Refreezing

Empowering Driving Change
and Eliminating Resistance

Lewin’s Three-Step Process

How Strong Are You to Unfreeze the Organization?
FUTURES PUSH AND PULL
PRESENT Ideas, Images, Hopes, Fears

Technology, Demographics,
Economics, Science etc FUTURE

CONSTRAINTS
Motivation Theory by Bechard & Harris (1987)

• Motivation to change
• A = disstatisfaction
• B = future expectation
• C = practicallity
• D = cost
AxBxC > D  Change !!!!!
Types of change strategy,
(Chin & Benne)
Power-coercive

People will change

when made to do so
by those in power
 Rational
People will change if/when they
realize it’s advantageous to
them
 Normative-reeducative

People do what they’re rewarded

for
▫ Trigger 2: Form a Powerful Leadership &
Coalition of Partners
 Assemble a group with enough and potential
power to lead the change effort
 Encourage the group to work together as a
team
 Seek strategic partners outside your
organisation
The Transformation Process

!
UGH
R O
K TH
EA
BUILD UP… BR

Level 5 First Who... Confront the Hedgehog Culture of Technology

Leadership Then What Brutal Facts Concept Discipline Accelerators

Disciplined People Disciplined Thought Disciplined Action

FLYWHEEL
Trigger 3: Create a Vision and
Strategy
• Create a vision to help direct the
change effort
• Develop strategies for achieving
that vision
• Define demonstrative actions 
execution is very important
  Trigger 4 : Lead and
communicate the change
process
 Use every vehicle possible to
Yes
communicate the new vision
Have
necessary
PRO-ACTIVE
RESISTORS
CHANGE
AGENTS
and strategies
attitude and  Your change agents and
BYSTANDERS
skills for
proposed CHANGE change agents in waiting are
change
DEFENSIVE
RESISTORS
AGENTS
IN
the people you rely on
No WAITING  Mixed approach to the
Actively Neutral Strongly
hesitating and the pro-active
Against Supportive resistors.
Commitment to Proposed Change
 The group of the defensive
resistors should not be
targeted
The 4 communicative approaches for change
Cognitive approach: objective data to convince the
‘rationalist’

Learning approach: Training and guidance on best

and promising practices to convince the
‘learning’

Conversational approach: maintain conversational

interaction with stakeholders to
convince the ‘willing’

Coercise approach to the active resistors and non

-willing
 RATIONAL VS POLITICAL VIEWS
OF DECISION MAKING
RATIONAL POLITICAL

Selection
Total information information
available available

Agreement over Disagreement over

organizational goals organizational goals

Agreement over the Disagreement over the

appropriate means appropriate means for
for achieving goals achieving goals

Decision making by
Decision making by negotiation, bargaining
calculated plan and compromise
Remember this…
TELL ME I will forget

SHOW ME I might remember

INVOLVE ME I will never forget

▫ Trigger 5 : Empower staff and
stakeholders to act on the Vision
 Change systems, structures that seriously
undermine the vision
 Encourage risk taking and non-traditional
ideas, activities and actions
 Get rid of obstacles and routines that adverse
change
 Facilitate new behaviours by the example of
the guiding coalition and example
Change : All about the power
 Formal Structure
Authority = Power
M r.B ro w n
P r e s id e n t D ir e c t o r

M s . P in k
I n t e r n a l A u d it o r

M r.G re y M r . B la c k M r.G re e n
M a r k e t in g D ir e c t o r O p e r a t io n D ir e c t o r P e r s o n a l & G A D ir e c t o r

M s . P u r p le M r.T u rq u a s h M r.D a rk M r . B r ig h t M s .B lu e M r.R e d

M a r k e t in g H e a d M a r k e t in g R e s e a r c h / R & D P u r c h a s in g h e a d M a n u fa c t u r in g H e a d A c c o u n t in g h e a d H R D H ead

M s . L ig h t M r.G a te M r.D u m b M s . W in y M s .S u s a n
R e g io n 1 B u y in g L in e 1 B u d g e t in g H R D

M r.H e a v y M r.F e n c e M r.J a m e s M r.C h o w M r . S le e p y

R e g io n 2 W a r e h o u s in g L in e 2 A c c o u n t in g Legal & G A

M s . Q u ic k M r . W in e
R e g io n 3 M a in t e n a n c e
 Hidden/Informal Structure
Authority = Power
University college
Love Affair
M r.B ro w n Families
P r e s id e n t D ir e c t o r
Social Activities
M s . P in k
I n t e r n a l A u d it o r

M r.G re y M r . B la c k M r.G re e n
M a r k e t in g D ir e c t o r O p e r a t io n D ir e c t o r P e r s o n a l & G A D ir e c t o r

M s .P u r p le M r.T u rq u a s h M r.D a rk M r . B r ig h t M s . B lu e M r.R e d

M a r k e t in g H e a d M a r k e tin g R e s e a r c h / R & D P u r c h a s in g h e a d M a n u fa c t u r in g H e a d A c c o u n t in g h e a d H R D H ead

M s . L ig h t M r.G a te M r.D u m b M s .W in y M s .S u s a n
R e g io n 1 B u y in g L in e 1 B u d g e t in g H R D

M r.H e a v y M r.F e n c e M r.J a m e s M r.C h o w M r . S le e p y

R e g io n 2 W a r e h o u s in g L in e 2 A c c o u n t in g Legal & G A

M s . Q u ic k M r . W in e
R e g io n 3 M a in t e n a n c e
Trigger 5 : Ensure resources for Short-term Projects and
Wins
• Ensure budgets and human resources for
demonstrative and innovative projects that have
proven to be successful in other countries
• Ensure budgets and committed staff to initiate risk
projects
• Hire and promote employees who can implement the
vision.(in case you don’t find them within your
organisation, hire expertise for change from outside)
Min
mentality
level
Trigger 6 : Implement Demonstrative Projects and
Instruments
• Plan for publicly visible improvements
• Facilitate and create those improvements and projects
• Encourage demonstrative projects
• Recognise and reward employees involved in the
improvements
Trigger 7 : Evaluate, Consolidate and Institutionalise
New Approaches, Produce More Change
• Use your increased credibility to change policies,
structures and routines that don’t fit the vision
• Reinvigorate the process with new projects, themes
and change agents
• Articulate the connections between the new
behaviours and corporate success
Points to Remember
• Change takes time and persistence
• Individuals go through stages in the change process
• Individuals have different needs at different stages
• Successful change efforts require planning, organization,
resources and action
• Change is more likely to occur when a team is given
responsibility for managing implementation
We Must Focus on 6 Key Areas
Strategy &
Stakeholder
Relations

People Resources &

Knowledge Core
Values
Management Skills
Culture

Operational
Processes &
Structures

Financial and Social Performance

Shaping Strategy in the Face of Uncertainty
Environment Demography
The Economy
Global Commercial
Developments Developments
Infrastructure Media
S&SR
Lifestyles Education
People
Knowledge Values Resources &
Natural Crime
Management Culture Core Skills
World

Operational Climate
Processes &
Structures
Providers
Technology of Finance
Financial and Social Performance

Government Suppliers
Policy
Electronic Interest Public Alternative Workers
Markets Groups Providers
Regulation Expectations Substitutes
& Values
Why The Company Fail

Consequences
• New strategies aren’t
implemented well
• Acquisition don’t achieve
expected synergies
• Reengineering takes too
long & costs too much
• Downsizing doesn’t get
costs under control
• Quality programs don’t
deliver hoped for results
Source of complacency
Organizational
structure that focus
employees narrow
functional goals
Too much happy The absence of a
talk form senior major & visible
manager crisis

A lack of sufficient
Low overall
performance
performance
feedback from
standards
external sources

Internal Too many visible

measurements resources
system that focus Complacency
on the wrong
performance index A kill the
messenger of bad
news, low candor,
low confrontation
culture
Mentality & Turbulence
Repetitive Expanding Changing Discontinue
Turbulence Level

Custodial Production Marketing Strategic

Mentality

Stability Growth Differentiation Strategic

Positioning
Success Function

Repetition Economies Response to Flexibility

Market Success Mentality
Sources of Resistances

Individual
Resistance

ORGANIZATIONAL •POLITICS
•POWER
•CULTURE
 Causes of Past Change Failure

Lack of Clarity on Need,

Change Did not Address Goals and Outcomes
Real Issues for the Front
Line

No Leadership,
Failure to Learn Drive or Ownership
from Past Key
Mistakes Causes of
Failure Insufficient,
Involvement,
Inappropriate Participation and
Timescales, Training and Ownership
Resources
Poor Planning
Failure to Empower
and
the Change Agents
Communications
Ukuran kecerdasan
“

manusia terletak pada

kemampuannya untuk
berubah”

ALBERT EINSTEIN