leading change in organizations
TRANSCRIPT
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We will discuss two case when wediscuss Chapter 4 Leading Change inOrganizations.
The first will be the Ultimate Office
Products case on pages 102-104.
The second will be the Turnaround atNissan case on pages 306-308, but youonly have to read the case and not the
material in Chapter 11.
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Leading Change
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Case for Analysis:Ultimate Office Products
p. 102-104
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Different Types ofOrganizational Change
1. Change Attitudes
2. Change Roles
3. Change Attitudes and Roles
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Possible Sources of Resistance to Change
Psychological / Internal
Rational
Emotional
Organizational
Satisfaction / complacency with existing situation i.e. not
enough people are unhappy enough Heavy existing workload makes trying new things difficult
Employee cliques and power groups may benefit frommaintain the status quo
Current management systems and reward programs may not
reward new behavior Current structure and peoples competencies dont support
change
Ingrained habits are hard to modify
Current values and beliefs of different people in theorganization may need to change
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Creating Behavioral Change
Change
Leadership
CurrentBehavior
Resistance
To ChangeDesired
Behavior
Existing-
Beliefs
Attitudes Perceptions
New-
Beliefs
Attitudes
Perceptions
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Rational
Dissonance
Self Interest
Emotional
Resentment
Fear
Creating Behavioral Change
Resistance To Change
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Cognitive DissonanceRational Response to Lack of Understanding
and/or Agreement
I dont understand what you want me to do
I dont agree with what you want to do
I dont agree with how it will be done This wont work here
Why change something thats working
Is this really necessary?
Ive heard all this before
This will go away like the other times
Isnt this going to cost more than it is worth?
If it aint broke dont fix it
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Concern For Self InterestRational Response to Lack of Incentive
Whats in it for me where do I fit in?
Will I still have a job or have to move?
Will this change my status or income?
Will this change the people with whom I work?
Will I have to do a lot more?
If I do more will I get paid more?
Will my job be more or less satisfying?
How can I do all this new stuff and get myregular work done too?
Why cant someone else go first to pilot this?
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ResentmentEmotional Response to External Influence
Of external control by someone else
Of increased influence for another unit
Of lack of involvement Of criticism of old ways, values or ideals
Of loss of security
Of others getting credit for new ideas
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FearEmotional Response to Uncertainty and Possible
Failure
Of failure
Of looking badly
Of not being able to adapt Of uncertainty
Of mistrust in change leader
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Creating Behavioral Change
Focus Engagement
Reinforcement
Probability
Of SuccessGoal
Clarity
Sense of
Urgency
Change
Process
Change
Leadership
CurrentBehavior
Resistance
To Change
Rational
Emotional
Desired
Behavior
Existing-
Beliefs
Attitudes Perceptions
New-
Beliefs
Attitudes
Perceptions
= x x
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Implementing Change
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Stages In Change Process
Lewins Force Field Model
1. Unfreezing
2. Changing
3. Refreezing
Driving Forces Resisting Forces
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STAGES OF REACTION TO CHANGE
0
1
Shock Denial Anger Depression Accept ance Underst anding Assililat ion
TIME
PERFORM
ANC
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A Systems ApproachChange Levers McKinsey 7S Model
Shared
Values
Skills
Structure
Strategy
Systems
Staffing
Style
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Guidelines for Implementing Change
1. Guidelines for Political / OrganizationalActions
Determine who can oppose or facilitate change.
Build a broad coalition to support change.
Fill key positions with competent changeagents.
Use task forces to guide implementation.
Make dramatic, symbolic changes that affectwork.
Monitor the progress of change.
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Guidelines for Implementing Change
2. Guidelines for People-Oriented Actions Create a sense of urgency about the need for
change.
Prepare people to adjust to change.
Help people deal with the pain of change.
Provide opportunities for early success.
Keep people informed about the progress of
change. Demonstrate continued commitment to the
change.
Empower people to implement the change.
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Energizing & Sustaining Rapid Change
MAINTAIN
- FOCUS
- COMMITMENT- ALIGNMENT
REVITALIZE
INITIATIVE
REVIEW
GOALS
ASSESS
ORGANIZATION
FORM TEAM &
OVERALL
CHANGESTRATEGY
DEVELOP
INTEGRATED
CHANGE
PLANS
CONTINUOUS
FEEDBACK
&
REASSESSMENT
DEVELOP
&
TEST
MATERIALS
IMPLEMENTCATALYST &
FOSTER
CHAMPIONS
ENGAGE
PEOPLE IN
ALIGNED
ACTIONS
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Shaping The Message To Achieve TheDesired Effect
LOGICAL PERSUASIVE
HIGH - CONVINCING - CONVINCING / CARING- COMPLETE - COMPLEX
RATIONAL - STRESSES REASONS - BLEND OF LOGICAL(DISAGREEMENT & AND INCENTIVES AND EMPATHETIC
SELF INTEREST) INFORMATIONAL EMPATHETIC
- DIRECT - CARING
- SIMPLE - REINFORCEDLOW
-STRESSES NEEDS
-STRESSES SUPPORT
AND PLANS AND RECOGNITION
INDIVIDUAL LOW HIGH
RESISTANCE EMOTIONAL TO CHANGE (RESENTMENT & FEAR)
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Ten Summary Principles For EnergizingChange
1.Present A Compelling Vision
2. Focus On Achieving Excellence And / OrBeing A Winning Organization
3. Visibly Demonstrate On-Going LeadershipCommitment
4. Create An Appropriate Sense Of Urgency
5. Maintain People, Systems And StructuralAlignment Throughout The Change Process
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Ten Summary Principles For EnergizingChange
6.Create Extensive, Two-Way Communications
7. Engage People At All Levels ThroughEducation, Training And Involvement
8. Build Team Culture With A Time Limit ForEither Get On Or Get Off
9. Recognize And Celebrate Success Frequently
10. Build On Existing Strengths And CarryForward Some Tradition While StressingLetting-Go Of Undesirable Past Habits
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Key Thoughts About ImplementingChange
The challenge of leading change is tolight a fire within people
rather than just under them!
People are generally more committed to ideaswhich they themselves discover than bythose coming from the minds of others!
When you always tell people the truthyou never have to worry about remembering
what you said!
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Turnaround at Nissan
What Was the SituationCarlos Ghosn Faced at
Nissan in 1999
What Types of Resistance to
Change Was He Likely to
Face?
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Turnaround at Nissan
What Actions Did Ghosn Take to
Initiate Change?
In What Ways Did
He Behave as a Transformational
Leader?