copyright © 2002 by the mcgraw-hill companies, inc. all rights reserved. 18-18- 1 bateman snell...

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

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Bateman Snell

Management

5thEdition

Competingin theNew Era


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Part FiveChapter 18 - Managing and Creating Change

Chapter OutlineBecoming World ClassManaging ChangeShaping the Future


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Learning ObjectivesLearning Objectives

After studying Chapter 18, you will know: what it takes to be world class how to manage change effectively how to best prepare for the future


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Becoming World ClassBecoming World Class

Sustainable, great futures essential characteristics of enduringly great companies

strong core valuesdriven by stretch goalschange continuously

drive for progress via adaptability, experimentation, trial and error, opportunistic thinking, and fast action

focus primarily on beating themselves in sum, great companies have core values, know what they

are and what they mean, and live by them


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Becoming World Class (cont.)Becoming World Class (cont.)The tyranny of the ‘or”

the belief that things must be either A or B, and cannot be both belief that only one goal but not another can be attained often is invalid

always is constraining

The genius of the “and” ability to pursue multiple goals at once

deliver multiple competitive values to customersperform all management functionsreconcile hard-nosed business logic with ethicslead and empower


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Managing ChangeManaging Change

Organizational change is managed effectively when: organization is moved from its current state to a planned

future state the change works as planned the transition is accomplished without excessive costs to the

organization or to individual organizational membersPeople are the key to successful change

people must take an interest and active role in helping the organization as a whole

permanent rekindling of individual creativity and responsibility should be a consequence of change


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Managing Change (cont.)Managing Change (cont.)

Motivating people to change people must be motivated to change

people often resist change General reasons for resistance

Inertia - people don’t want to disturb the status quoTiming - managers should introduce change when people are receptive

Surprise - resistance is likely when change is sudden, unexpected, or extreme

Peer pressure - work teams may band together in opposition to change


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Motivating people to change (cont.) Change-specific reasons for resistance

Self-interest - care less about the organization’s best interest than they do about their own best interests

Misunderstanding - people may resist because they don’t fully understand the purpose of the change

Different assessments - employees receive different - and usually less - information than management receives

such discrepancies cause people to develop different assessments of proposed changes


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Reasons For Resistance To Change

Reasons For Resistance To Change

Resistance to Change

General Reasons For Resistance

Change-specific Reasons for Resistance

Self-Interest MisunderstandingDifferent

Assessments

Inertia Timing SurprisePeer

Pressure


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Implementing ChangeImplementing Change

Unfreezing(breaking fromthe old ways ofdoing things)

Moving(instituting

the changes)

Refreezing(reinforcing andsupporting the

new ways)


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Managing Change (cont.)Managing Change (cont.)Motivating people to change (cont.)

General model for managing resistanceUnfreezing - realizing that current practices are inappropriate and the new behavior must be enacted

performance gap - important contributor to unfreezing the difference between actual performance and the performance

that should or could exist can apply to the organization as a whole or to departments,

groups, or individualsMoving - instituting the change

begins with a vision of where the company is headingRefreezing - strengthening new behaviors that support change

implementing controls that support the change


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Managing Change (cont.)Managing Change (cont.)Motivating people to change (cont.)

Specific approaches to enlist cooperationEducation and communication - communicate not only the nature of the change but its logic

Participation and involvement - listen to the people who are affected by the change

should be involved in the change’s design and implementationFacilitation and support - make the change as easy as possible

provide resources and training needed to carry out the change listen patiently to problems

Negotiation and rewards - change may be resisted until management agrees to one or more concessions

rewards should be restructured to reinforce the change


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Motivating people to change (cont.) Specific approaches to enlist cooperation (cont.)

Manipulation and cooptation - resisting individual given a desirable role in the change process

Coercion - apply punishment or the threat of punishment to those who resist change

each approach has advantages and disadvantages change leaders need to build in stability throughout the

process


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Harmonizing multiple changes total organization change - introducing and sustaining

multiple policies, practices, and procedures across multiple units and levels

such change affects the thinking and behavior of everyone change efforts usually are simultaneous but not coordinated

companies introduce new changes constantly many are perceived to be fads change efforts helped by avoiding fads

management needs to “connect the dots” integrate the various efforts into a coherent picture that people can

see, understand, and get behind


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Leading ChangeLeading Change

Empowering broad-based action

Generating short-term wins

Communicating the change vision

Establishing a sense of urgency

Creating the guiding coalition

Developing a vision and strategy

Consolidating gains and producing more change

Anchoring new approaches in the culture


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Leading change establish a sense of urgency - examine current realities and

pressures in the marketplaceidentify both crises and opportunitiesurgency is driven by compelling business reasons for change

create a guiding coalition - put together a group with enough power to lead the change

over time, support must expand outward and downward developing a vision and strategy - determine the idealized,

expected state of affairs after the change is implementedimage will be a target that can clarify expectations, dispel rumors, and mobilize people’s energies


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Sources Of ComplacencySources Of Complacency

The absence of a majorand visible crisis

Too much happy talkfrom senior management

Too many visible resources

Human nature, with its capacityfor denial, especially if people

are already busy or stressed

Low overall performancestandards

A kill-the-messenger-of-bad-news, low candor, low-

confrontation culture

Organizational structures thatfocus employees on narrowfunctional goals

A lack of sufficientperformance feedback from

external sources

Internal measurement systemsthat focus on the wrongperformance indexes

Complacency


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Managing Change (cont.)Managing Change (cont.)Leading change (cont.)

communicating the change vision - use every possible channel and opportunity

empowering broad-based action - get rid of obstacles to success

encourage risk takingempower people

generate short-term wins - create small victories to demonstrate progress

consolidate gains and produce more change - keep changing things in ways that support the vision

anchor new approaches in the culture


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Shaping The FutureShaping The Future

Reactive change response that occurs when events in the environment have

already affected the firm’s performanceproblem-driven change

Proactive change response that is initiated before a performance gap has

occurredExercising foresight

impossible to the know the future with certainty create core competencies that will allow the firm to respond

to changing customer demands


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Shaping The Future (cont.)Shaping The Future (cont.)

Learning continuously a vital route to renewable competitive advantage requires:

a clear, strategic goal to learn new capabilitiesa commitment to constant experimentation

relentless drive to be better in every way everyone engages in exploration, discovery, and action process generates learning on a more individual level

leads to personal growth and development


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Discover, Act Learning Cycle: Explore,

Discover, Act

Discover

Discover

Discover

Discover

Discover

Explore

Act

Explore

Explore

Explore

Explore

Act

Act

Act

Act

DiscoverAs reality becomes clearer, issues and choices become clearer.People see with new eyes.

ExploreExplore current reality.The aim is to open and honest aboutwhat is happening at present

ActTest solutions, implement a plan,evaluate results, celebrate success,recognize problems.


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Discover, Act (cont.)Learning Cycle: Explore,

Discover, Act (cont.)Pursuing growth

cost cutting sooner or later reaches its limits must be able to go for growth by increasing revenues

easier to get a dollar of profit growth by cutting costs than by raising revenues

Seizing advantage ultimate form of proactive change is to create new markets

and transform industries create new competitive arenas, transform your industry, and

imagine a future that others don’t see


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Discover, Act (cont.)Creating the future

different strategic postures to prepare to compete in an uncertain future

adapters - take the current industry structure, and its future evolution, as givens

choose where and how to competeused by companies in fairly predictable environments

shapers - try to change the structure of their industriescreate a future competitive landscape of their own designrequires high-stake bets


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Vast OpportunityVast Opportunity

Customer typesUnservedServed

Unarticulated

Articulated

Needs

Unexploredopportunities


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Adding Value, PersonallyAdding Value, Personally

Go beyond your job description:• volunteer for projects;• identify problems;• initiate solutions.

Seek out others and share ideas and advice.Offer your opinions and respect those of others.Take an inventory of your skills every few months.Learn something new every week.Discover new ways to make a contribution.Engage in active though and deliberate action.Take risks based on what you know and believe.Recognize, research, and pursue opportunity.Differentiate yourself.


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Discover, Act (cont.)Shaping your own future

Into the futurecommit to lifelong learningrequires occasionally taking risks

moving outside of your “comfort zone”being open to new ideas

Success in the future will come from: shaping the future and adapting to the worldbeing clear about what you want to change and being responsive to others’ perspectives

pursuing your vision and understanding current realitiesleading and learning

copyright © 2002 by the mcgraw-hill companies, inc. all rights reserved. 18-18- 1 bateman snell...

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