change management 3
TRANSCRIPT
SyllabusModule 1: Introduction to Organizational Change:
Module 2: The Nature of Planned Change
Module 3: The Process of Organizational Development: Diagnosing organizations
Module 4: Designing Interventions
Module 5: Leading and Managing change
Module 6: Strategic Change Interventions
Module 7: Transformational change
Module 8: Continuous change
Module 9: Trans organizational Change
Why is Executing Change so Challenging?• People will resist change. Why? “Uninformed Optimism is always followed by
“Informed Pessimism” and humans will choose the comfort of familiarity over the anxiety that comes with the unknown.
• We live in an era of perpetual change/unrest. We have only just crossed the threshold of perpetual unrest. We need to expect more change.
• We’ve run out of the resources required to deal with change. Absorbing change requires physical, emotional, and intellectual energy.
• We incorrectly focus an inordinate amount of energy into trying to make people feel comfortable during a major change. Reality is they won’t – it is necessary that they make adjustments that will help them succeed in the new environment.
• We focus on getting the change “installed” (e.g. # people trained, spent, computers on desks) and miss “realizing” the return on investment expected from the change (i.e. the fundamental purpose for the change, the outcomes that were promised). People need to be readied to absorb the disruption and adapt to the change.
• Source: Adapted from a presentation by Daryl Conner – Organizational Change: Installation vs. Realization)
Organization Strategies for Successfully Realizing the Results in Change:
• Look for ways to decrease unnecessary demands on existing resources. • To consider the aggregate effect of incremental changes.
• Change projects need to be driven by whether or not they are an organizational imperative.
• Change projects should generate “such value that the cost for failing to implement them would be prohibitively high”.
• Increase the organization’s capacity and resilience for dealing with the disruption of change.
• People need to be able to absorb change if organizations are going to be effective.
• We can increase capacity by carefully and diligently managing the human side of change (i.e. the transition).
• We can increase resilience by seeking out and enhancing personal resilience.
• Follow a process for managing change and transition.• What is changing and the impact of that change on the people.
Managing Change vs. Managing Transition• Change is the shift in the external situation; the thing that has changed. It
can happen fast.
• Transition is the reorientation people need to make in response to the change. This can take time.
• To be successful in both the implementation and in helping people we need to manage both the change and the transition.
• A transition management plan is a necessary component of a changemanagement plan and presumes that the underlying change is being well managed.
• Source: Bridges, William. (1991). Managing Transition: Making the Most of Change.
A well-managed change ensures that:
• There is an identified Executive Sponsor for the change
• Leaders understand the shifting roles of Sponsors, Implementers Agents and Advocates during change
• Change teams are set up as needed (e.g. implementation, transition, communication, etc.)
• The need for the change has been effectively established and communicated to everyone – more than once using a variety of medium.
• The impacts of the planned change - indirect, as well as direct - have been identified and communicated.
• Those who will be impacted by the change have been involved in the planning, or at the very least, will be involved in its implementation.
• The details of the implementation are generally understood as they emerge and are modified to fit changing circumstances
Detail of Steps for Managing Change:
1. Identify/Accept the Need for Change:List the issues, indicators or symptoms
Ask stakeholders to confirm the issues, indicators or symptoms
Decide whether change is necessary
Set up change team(s)/support mechanisms (implementation, transition, communication etc.)
Clarify Roles (Sponsor, Implementer, Agent, Advocate)
Detail of Steps for Managing Change
2. Assess and Define the Change Required:
Identify the preferred future state
Assess the current state
Identify the gap or difference
Clearly define what must be changed
Establish measures of success
Detail of Steps for Managing Change
3. Analyze the Impact of Alternatives and Select the Best:List reasonable alternatives (including making no change)
Assess the cost/benefits, pros/cons, outcomes/risks and potential side effects
Choose the best alternative
Identify restraining and supporting forces (i.e. people, events, rules and policies)
Detail of Steps for Managing Change:
4. Develop the Plan and Strategies:Explain the change and rationale
Describe the current situation vs. the desired future
Explain the options considered and decision
Describe objectives, action plans, and measures of success
Develop strategies: Operational (Physical/Plant Legal, Financial, and Service Issues)
Training and Learning
Human Resource (HR/LR, Staff Transfer, Selection)
Communication
Transition
Team Development
Budget Implications
Detail of Steps for Managing Change
5. Implement the Plan and Strategies:
Enlist others
Determine readiness for change
Prepare and educate those implementing the change
Follow the timetable and sequence of events for communication, training, team development etc.)
Detail of Steps for Managing Change
6. Manage the Transition:
Monitor transition issues and people’s response to the change
Implement strategies to help people with the transition
Recognize results
7. Evaluate the Change:
Monitor progress and debrief
Design and conduct evaluation based on the measure of success
Document and report on the outcome
Adjust or alter based on evaluation
Model for Managing Transition
This model for Managing Transition is influenced by the separate work of Elisabeth Kubler-Ross, Cynthia Scott and William Bridges
Scale of change
• Hammer and Champy (1993) defined BPR as
the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.
• Fundamental rethinking – re-engineering usually refers to changing of significant business processes such as customer service, sales order processing or manufacturing.
• Radical redesign – re-engineering is not involved with minor, incremental change or automation of existing ways of working. It involves a complete rethinking about the way business processes operate.
• Dramatic improvements – the aim of BPR is to achieve improvements measured in tens or hundreds of percent. With automation of existing processes only single figure improvements may be possible.
• Critical contemporary measures of performance – this point refers to the importance of measuring how well the processes operate in terms of the four important measures of cost, quality, service and speed.
Different scales of change
Term Involves Intention Risk of failure
Business
process re-
engineering
Fundamental redesign
of all main company
processes
Large gains in
performance
(>100%?)
Highest
Business
process
improvement
Targets key processes
in sequence for
redesign
(<50%) Medium
Business
process
automation
Automating existing
process
(<20%) Lowest
Project management activities• Estimation – identifying the activities involved in the
project, sometimes referred to as a work breakdown structure (WBS).
• Resource allocation – after the initial WBS, appropriate resources can be allocated to the tasks.
• Schedule/plan – after resource allocation, the amount of time for each task can be determined according to the availability and skills of the people assigned to the tasks.
• Monitoring and control – monitoring involves ensuring the project is working to plan once it has started. Control is taking corrective action if the project deviates from the plan. In particular the project manager will want to hit milestones
An example web site development schedule for the B2C Company
Figure 10.3 An example web site development schedule for The B2C Company
Automating the employee development process
Figure 10.4 Automating the employee development process
Source: Confirmit Copyright © 2003 FIRM
Organisational structures for e-business and e-commerce
Organizational structure Circumstances Advantages Disadvantages
(a) No formal structure
for e-commerce
Initial response to e-commerce
or poor leadership with no
identification of need for
change.
Can achieve rapid response to
e-commerce service
responses (e-mail, phone).
Priorities not decided logically.
Insufficient resources
Poor quality site in terms of
content quality and
customer
(b) A separate
committee or
department manages
and coordinates e-
commerce
Identification of problem and
response in (a)
Coordination and budgeting
and resource allocation
possible.
May be difficult to get
different departments to
deliver their input due to
other commitments
(c) A separate business
unit with independent
budgets
Internet contribution (Chapter
6) is sizeable (>20%)
As for (b), but can set own
targets and not be constrained
by resources. Lower risk
option than (d)
Has to respond to
corporate strategy. Conflict
of interests between
department and traditional
business
(d) A separate operating
company
Major revenue potential or
flotation. Need to differentiate
from parent
As for (c), but can set strategy
independently. Can maximize
market potential
High risk if market potential
is overestimated due to
start-up costs
Summary of alternative organizational structures for e-commerce suggested in Parsons et al.
Figure 10.5 Summary of alternative organizational structures for e-commerce
suggested in Parsons et al. (1996)
Transition curve indicating the reaction of staff through time from when change is first suggested
Transition curve indicating the reaction of staff through time from when change is first suggested
Source: Bocij et al. (2003)
Key staff in systems acceptance• System sponsors
•
• System owners•
• System users•
• Stakeholders•
• Legitimizer•
• Opinion leaders•
The role of organisational culture• Survival (outward-looking, flexible) – the external environment plays a
significant role (an open system) in governing company strategy. The company will likely be driven by customer demands and will be an innovator. It may have a relatively flat structure.
• Productivity (outward-looking, ordered) – interfaces with the external environment are well structured and the company is typically sales-driven and is likely to have a hierarchical structure.
• Human relations (inward-looking, flexible) – this is the organization as family, with interpersonal relations more important than reporting channels, a flatter structure and staff development and empowerment is thought of as important by managers.
• Stability (inward-looking, ordered) – the environment is essentially ignored with managers concentrating on internal efficiency and again managed through a hierarchical structure.