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7/24/2019 01 Management of Change
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Management
of
Change
Prof Bharat Nadkarni
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Management of Change
What is Business?
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Management of Change
Nothing can be changed
by changing the face...
but everything can be changed
by facing the change...
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Survival Rate for Corporates
Age in Years Percentage surviving
5 3
!" #!
!5 !$
#" !"
#5 %
5" #
%5 !
!"" "&5"
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Innovate or Perish1. Incremental Vs adical change
!. "trategic ty#e of change
$. %echnological change
&. Ne' Product and "ervices
(. )earning organisation
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* +.. , +.. +.. ) +..I
'*##roach or Planning
',e#loyment or Im#lementation
'esult
')earning
'Im#rovement
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Creativit( ) *nnovation
"ystematic redesign of Processes
!& 4liminate
#& Simplif(
3& *ntegrate
$& Automate
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Management of Change
-rganisational ffectiveness
Productivit( Profits 4fficienc(
ualit( Accidents 6ro,th
A+sentism 7urnover 8o+ Satisfaction
Motivation Morale Control
Conflict9Cohesion Readiness Sta+ilit(
6oal Consensus *nternalisation of:rg& 6oals
Role ) NormCongruence
Managerial*nterpersonal Skills
Managerial 7askSkills
*nformation Mgmt) Communications
.le1i+ilit(9Adaptation
7rg ) 2ev4mphasis
Planning ) 6oalSetting
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Management of Change
Who are the "ta/eholders of Business ?
' Shareholders and Promoters
' Customers
' 4mplo(ees
' Suppliers and Partners ;incl Contractors Agents etcs
Stakeholders&?
4ffectiveness of BusinessAchievement of :+@ectives&
4fficienc( in Business
Achievement of Results ,ith the least amount ofResources&
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Management of Change
Innovation
7he N2B Concept
Managing Change
8ack /elsh 7heor(
-rgani0ational ene'al evitalisation
Continuous Process +rought +( internal incum+ents&
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Management of Change
merging Waves
2actor 3esterday %oday
4conom( Protected :pen
Characteristic Monopolistic Competitive
Market Sellers Bu(ers
Pla(ers .e, Several
ind of Pla(ers National 6lo+al
Price evel igh 2ropping
Consumer No choice Multiple Choice7echnolog( o, igh
ualit( Average igh
2eliver( /eeks9Months9Years :ff the shelf
Pricing igh CutDthroat
Needs imited 4nhanced
Response Sluggish uick
Relation Curt Respect
Approach Mass PersonalisedSt(le Arrogant Enderstanding
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Management of Change
Changing Characteristics of Corporates
:ld Ne,
6oal :riented Fision oriented
Price focused Falue focused
Product Gualit( 7otal Gualit(
Product driven Customer drivenShareholder focused Stake holder focused
.inance oriented Speed oriented
4fficient Sta+le *nnovative entrepreneurial
ierarchical .lat empo,eredMachine +ased *nformation +ased
.unctional Cross functional
Rigid Committed .le1i+le learning
ocal9regional9National 6lo+al
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Management of Change
%est 3our Memory
' /hen did (ou last see or hear a+out these0
H 7(pe,riter 9 Stencils 9 C(clost(ling
H 7ele1 9 teleprinter 9 telegramH .ountain pen 9 ink 9 +lotting paper
H Pagers
H Slide rule
H FCRH :n the ,a( out- .a1 9 .ilm roll 9 conventional
telephone
H I to 5
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Management of Change
%he ise ,ecline of+++..
' All species ;and organiJations< go through a common lifeD
c(cle of *ntroduction
gro,th
maturit(
decline
and eventual death&
' 7ransformation ) change management is a+out-
H astening the gro,th phase
H Prolonging life +( arresting the decline phaseHAdapting to emerging opportunities ) threats
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Management of Change
Intriguing Ine#titude
' An oftDrepeated clichK- =7he onl( thing constant in life is
change?' Yet ,e are hopelessl( clums( at managing change&
' Most attempts at change not onl( fail to lead to
improvements +ut also result in organiJational trauma&
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Management of Change
)essons 2rom ,r. Christian Barnard
' 7he recipient of the first heart transplant died ,ithin a
fortnight of his operation&' Cause of death- =ph(siological shock?
' 7he patient>s +od( re@ected the health( transplanted
heart&
' esson learnt- .irst suppress the +od(>s immune s(stemto prepare it to accept an alien organ&
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Management of Change
%he %y#ical Change Process
' A ke( person has a L+rilliant idea>
' :vercome +( the +rilliance of his o,n idea he is in a
tearing hurr( to implement it&' e is totall( insensitive to the Limmune s(stem> of his
organiJation&
' e follo,s through unilaterall(& Result-
H SurpriseHAnger
H Re@ection
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Management of Change
emember 44
' 7he +rilliance of an idea is not enough
' Change strikes fear in the su+conscious minds of thoseaffected +( it&
' 7herefore it must +e communicated ) sold ,ellin order
to +e understood&
' 7he time invested in this preparator( phase ofcommunicating the need for and advantages of change
is vital for the success of an( change effort&
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Management of Change
%he "uccessful *##roach5 I&
' *nform
H ighlight the dangers lurking round the corner
H 4sta+lish the need for change' *nspire
H ighlight the +enefits from change
' *mplement
H *nvolve peopleHAllo, e1periments ) tolerate failures
' *nstitutionaliJe
H Cele+rate successes
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Management of Change
What 3ou Can ,o
' Accept change (ourself
' Communicate communicate ) communicate&' isten& Enderstand and remove fears
' *nvolve people in planning ) implementation
' 2evelop strateg( for overcoming resistance
' elp people learn ne, skills' Challenge complacenc(
H Share information a+out competition 9 threats
H Set high standards of performance
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:rganiJational Change - Prof Bharat Nadkarni
* 67ste# oadma#
' Creating a shared need- Why do it?
' Fisioning- What will it look like when done?
'eading change- Who will be responsible?
' Mo+iliJing commitment- Who else to involve?
' Modif(ing s(stems 9 structures- How will it be
institutionalized?
' Monitoring progress- How will it be measured?' Making it last- How will it get started and last?
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89% )WIN 5 2I), 2-C
%:-35' ! increase the driving forces - generall( seen
that restraining forces also increasesimultaneousl( there+( returning to theeGuili+rium state
'
' # decrease the restraining forces - a change isless resisted ,hen those affected +( it
participate in the change
' *nvolves 3 steps
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89% )WIN 5 2I), 2-C %:-3
' A unfreeJing - creates motivation forchange if people feel uncomforta+le ,ith thepresent situation the( ma( see the need forchange
' B change - assimilation of ne, informatione1posure to ne, concepts development of adifferent perspective
' C freeJing - sta+ilises the change& Changeto +e effective has to +e congruent ,ith aperson>s self concept and values&
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%;M 5 M9*
*nnovations ) 2iscrepancies in the s(stem
' appens sometimes
' appens at some places
' appens to some people
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Thank You
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Competency Clusters
BusinessKnowledge
Communicatio
n
Proactivity
Collaboration
Result Focus
CustomerFocus
Innovation
Leadership
Conceptual Thinking (Futuristic
!" P#$
%daptability
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Management
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:rg& 2ev& ) Change - Prof Bharat Nadkarni
)eading Managing Change for ffective change Mgmt
!& Motivating changea& Creating readiness for change
+& :vercoming resistance to change
#& Creating a visiona& 2escri+ing the core ideolog(
+& Constructing the envisioned future
3& 2eveloping political support
a& Assessing change agent po,er
+& *dentif(ing ke( stakeholders
c& *nfluencing stakeholders
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:rg& 2ev& ) Change - Prof Bharat Nadkarni
)eading Managing Change for ffective change Mgmt
5& Managing the transitiona& Activit( planning
+& Commitment planning
c& Management structures
O& Sustaining momentum
a& Providing resources for change
+& Building a support s(stem for change agents
c& 2eveloping ne, competencies and skills
d& Reinforcing ne, +ehaviours
e& Sta(ing the course