Chapter 4: Managing Change

Contents
• The meaning of Change
• The reason to Manage change
• Organizational change
• Sources of change
• Types of Change
• Process of Change
• Resistance to Change
• Effective Change Management
• Change management Models
“It is not the strongest of the species that
survives, nor the most intelligent. . . but the
one most responsive to change.”

Charles Darwin
 Managing Change in BPR :What is Change?
• Cummins and Worley (1993) defined change as
something that involves moving from the known
to unknown.
• The Free Dictionary also defines change as a
transition that occurs when something goes from
being the same to being different.
• The fact that change is about moving from a
known state to the unknown, it is difficult to get
the required results from major organizational
changes.
 Why to Manage change ?
• The objective is to maximize the collective benefits for
all people involved in the change and to minimize the
risk of failure.
• Study Results indicated that 82% of survey respondents
identified change management as a priority for their
company.
• 99% expect an increase need for management over the
next three years
• Almost half the companies surveyed (48%) have already
established a change management function somewhere
in their organization, and over a quarter of the rest expect
to launch one within three years.
 Problems if not change managed
 Disinterest in the current or future state
 Arguing about the need for change
 More sick days
 Change not fully implemented
 People finding work around
 People revert to the old way of doing things
 The change being totally scrapped
 Divides are created between ‘us’ and ‘them’
 Lower productivity
 Passive resistance
 Active resistance
 Turnover of valued employees
 Organizational change
What is Organizational Change?
 It is generally considered to be an organization-wide
change, as opposed to smaller changes such as adding
a new person
 It includes the management of changes to the
organizational culture, business processes, physical
environment, job design / responsibilities, staff skills /
knowledge and policies / procedures.
 When the change is fundamental and radical, one
might call it organizational transformation
 Organizational change
• What provokes Organizational Change? Examples:
 Management adopts a strategy to accomplish
some overall goal
 May be provoked by some major outside driving
force, e.g., substantial cuts in funding
 An Organization may wish to evolve to a different
level in their life cycle, e.g. from traditional
government to e-government
 Transition to a new chief executive can provoke
organization-wide change when his or her new
and unique personality pervades the entire
organization
Why is Organization-wide Change difficult to
accomplish? Organizations go through four stages
on the way to achieving their strategic objective:
 Denial
 Resistance
 Exploration
 Renewal

As the Organization works its way through these stages,

there can be a negative impact on Productivity. This is
referred to as the Productivity Dip and is portrayed on
the next slide.
 Sources of change
• Baht (2007) indicated that change comes from two
major sources. He claims that the sources could be from

 External or
 Internal environment of the organization.
Source of change Examples

Social Changes in taste and social values, such as

the increase in health consciousness and
concern about environmental pollution
Technological Increased availability of new production
technologies and information systems
Economic Overall fall in manufacturing: changes in
exchange rates; changes in funding
Political Change in leadership of local authority or
national or international government;
changes in legal requirements
Market demand Decline in demand for particular products
or services
Market supply Merges in retail companies; entry of new
competitor in to the market
Chance Earthquake, fire accident, storm
The internal sources of change could be the introduction of
 New managerial policies or styles
 Systems
 Procedures
 Processes, methods and
 Probably the change of employee attitudes.
 Types of Change

• Planned : deliberate and conscious

• Reactive change : unplanned, spontaneous
• Technological change : change due to technology
• Episodic/Transformational : Infrequent, discontinuous
+ intentional , - radical or second order ,replacement of a
strategy or programme
• Continuous change /Transitional:ongoing, evolving +
cumulative, first order or incremental, quality and project
programmes
 Consideration of change approach
• The degree of the opposition expected;
• The power base of the change initiator;
• The need for information, communication and
commitment when planning and carrying out the
change.
• The nature of the current organization’s culture and its
likely response to change.
 Pre-positioning Implementation Consolidation

• Communications • Reporting
• Background and processes
Change • Communications
Management • Implementing new
training organizational
• Preparations for structure
change • Training Needs
• Job analysis and Analysis
key post • Training
Change

recruitment • HR policy
• Some technical development
changes in line • Implementing • On-going support for change
with business and technical changes • Succession Planning
Change plans in line with • Review of changes and benchmarking
Business and • Communications
Change plans
Phase 1 Phase 2
Phase 3: 19 to 36 months
0 to 6 months 7 to 18 months
Time
 Process of Change
• Process of change should be regarded as a dynamic,
ongoing process rather than an isolated or stand-alone
event.
• When top management announces the introduction of
BPR, it should not view it as an event that took place on
the day of declaration.

• Lewin (1958) developed a model of change process that

is characterized by three phases: the present state, the
transition state, and the desired state.
 Current Present Transition Future
state state state
(phase
I)
How things How things will
How to move
are done be done
from current
today? tomorrow?
to future?
 Why Do We Resist Change
• Change Is a Feature of the Cosmos – It Is Inevitable
• Human Crave Order and Look for It Everywhere
• Human Behavior, in the Aggregate, Defines Culture
• Culture Reflects This Need for Order
– Shared Meaning, Common Languages, Religious or Secular
World-views Help to Make the World Seem Less
Unpredictable Than It Really May Be
• Therefore, Culture “Damps Down” Change
• An employee may be operating on the basis of a desire to

protect what they feel is the best interests of the

organization
• An employee may provoke insightful and well-intended

debate, criticism, or disagreement in order to produce

better understanding as well as additional options and
solutions
 Common Reasons for Change Resistance
• Self-interest
• Fear of the Unknown
• Conscientious Objection or Differing Perceptions
• Suspicion
• Conservatism
• Fear of massive lay-offs
• Fear of losing of authority and control over workers
 Resistance
• How prevalent is Resistance to Change?
– It is generally acknowledged that in an
average organization, when the intention for
change is announced:
• 15% of the workforce is eager to accept it

• 15% of the workforce is dead set against it

• 70% is sitting on the fence, waiting to see

what happens
 The four categories of resistance
• Protesters who openly make their objections known
to the organization and colleagues however once
issues are identified they can be considered and
managed.
• Zombies have no strong opinion and are happy to go
along with any proposed changes without offering
any constructive comment.
• Saboteurs like to show that the old ways were fine
and openly finds fault with any new systems or
process change and seek opportunities to make the
change fail.
• Survivors accept the change and make best use of
any new situation for their own advantage.
Kotter Eight Steps to Successful Change:

John Kotter, Professor at Harvard Business School.

Identified Eight Steps to Successful Change:
1. Create Urgency
2. Form a Powerful Coalition
3. Create a Vision for Change
4. Communicate the Vision
5. Remove Obstacles
6. Create Short-term Wins
7. Build on the Change
8. Anchor the Changes in Corporate Culture
 Managing Episodic change -Lewin
• Episodic, planned, second order or radical

• Unfreezing the existing organisation

• Moving to a new state
• Refreezing in new state
Unfreezing Changing Refreezing
• Instituting or • Reinforcing
• Breaking from the old
establishing the and supporting
ways of doing things, the new ways,
unfreezing the old change,
establishing a strengthening
organizational culture and supporting
by communication vision for change
direction, and the change by
directing people providing new
to the change control and
rewarding
systems
 The ADKAR Model
• ADKAR is a foundational tool for understanding
“how, why and when” to use different change
management tools.
• The five building blocks of successful change
Awareness of the need for change
Desire to participate and support the change
Knowledge on how to change
Ability to implement required skills and behaviors
Reinforcement to sustain the change
 The ADKAR Model

Awareness of the need for change.

• What is the nature of the
change?
• Why is the change happening?
• What is the risk of not changing?
• Think about the change your team is
working on currently .
• Write a number 1 – 5 on the Post-It
note to indicate your Awareness of
this change.
 ADKAR…

Desire to support the change.

• Personal motivation to support the
change
• Organizational drivers to support
change
• Think about the change your team is
working on currently .
• Write a number 1 – 5 on the Post-It
note to indicate your Desire for this
change.
 ADKAR…

Knowledge on how to change

• Knowledge, skills and behaviors re-
quired during and after the change
• Understanding how to change
• Think about the change your team is
working on currently .
• Write a number 1 – 5 on the Post-It
note to indicate your Knowledge
needed to implement this change.
 ADKAR…

Ability to implement new skills.

• Demonstrated ability to implement
the change
• Barriers that may inhibit implement-
ing the change
• Think about the change your team is
working on currently .
• Write a number 1 – 5 on the Post-It
note to indicate your Ability to im-
plement this change.
 ADKAR…

Reinforcement to sustain the change.

• Mechanisms to keep the change in
place
• Recognition, rewards, incentives,
successes
• Think about the change your team is working on
currently .
• Write a number 1 – 5 on the Post-It note to
indicate your feeling of Reinforcement for this
change
 Connecting ADKAR and the current, transition and future states

Current Transition Future

A D A K A R
ADKAR Gap Model

Change

Confusion

Resistance
Fear/
Anxiety
Frustra-
tion
Backslid-
ing
 Developing corrective actions with ADKAR
Gap Corrective actions:
Awareness Management communicates about the business
reasons for change (why, risk of not changing, driv-
ers of change); Face-to-face communications with
immediate supervisors about how the change im-
pacts you directly is what should occur
Desire Look for pockets of resistance and identify the root
cause; discuss your desire for resisting the change
Knowledge Training on how to change and the skills needed af-
ter the change
Ability On-the-job training and job aides to support the
new behaviors; Coaching by supervisors; Trou-
bleshooting
Reinforcement Messages by senior leaders and supervisors that the
change is here to stay; Individual coaching sessions
to identity gaps
 The Effective Management of Change

Effective Change Equals

• Altering Mind-set
• Harnessing Motivation
• Shaping Behavior
 Prerequisites for Change
• Vision: Develop, articulate and communicate a
shared vision of the desired change
• Need: A compelling need has been developed and
is shared
• Means: The practical means to achieve vision:
planned, developed and implemented
• Rewards: Aligned to encourage appropriate
behavior compatible with vision and change
• Feedback: Given Frequently
An Effective Change Sponsor Must Have
• Power: to legitimize change
• Pain: Personal Stake
• Vision: Total in-depth view
• Public/Private Role: Commitment and ability to
support change publicly/ meet privately with agents
• Performance Management: Ability to
reward/confront
• Sacrifice: Pursue change despite personal price
 What Effective Change Leaders Do
• Embrace change when it’s needed
• Develop a vision for change
• Communicate effectively
• Shake things up by challenging status quo and encouraging
others to do the same
• Stay Actively Involved by walking the walk and being visible
about it.
• Direct, Review Implementation of change - continued
participation - never done attitude. Be in position to notice and
coach.
 What Effective Change Leaders Do
• Embrace change when it’s needed
• Develop a vision for change
• Communicate effectively
• Shake things up by challenging status quo and encouraging
others to do the same
• Stay Actively Involved by walking the walk and being visible
about it.
• Direct, Review Implementation of change - continued
participation - never done attitude. Be in position to notice and
coach
 Roles: The Change Players
• Sponsors: Senior management leaders - the
driving force of change - must walk the walk.
• Advocates: Allies of leaders, deploy the vision -
communicate - involve - sell - MOTIVATE
• Agents: Influence sponsors’ commitment, target
resistance, measure readiness, assess existing
people/structures
• Targets: Everyone in organization - develop, train,
reinforce, support
 Role of Consultants
• Assessment of: management, key players, barriers,
opportunities
• Coach/Develop/Train: help people adopt new behavior
• Plan: Assist in process/knowledge
• Values / Vision: Facilitate their development
• Redesign Organizational Factors: Rewards, Reports, Re-
engineer
• Communications: Facilitate the process
• Project Management Assistance
 Major Organizational component affected by change

Mission and Strategy Stakeholders

Technology

Organizational Structure Organization Culture

Reward system

Individual Roles
Management Processes
 Sample Exam
• Traditional performance measures have many
limitations that can mask organizational
performance .Using Your Course concepts of
MBA 713, discuss how we can overcome such
limitations .
• Performance Management
• Traditional Measures and Limitations
• BSC , meaning, Benefits, application