.Organizational Change

Submitted by:APARNA MANGLA2002IPG09

AgendaDefinition of Change ManagementStates of ChangeWhy Change Management is ImportantOvercoming ResistanceOvercoming Potential DifficultiesManaging ChangeImpact of Change on PeopleYour Questions

Change ManagementIs an organized, systematic application of knowledge, tools, and resourcesIntegrates the ability to adapt into Lucas Countys organizational cultureIdentifies patterns and structures of changePredicts issues to accelerate change and minimize problems

Reasons for ChangeCurrent needs have been metNew needs have been identifiedThe environment changes Everything is in a state of flux, including the status quo.-Robert Byrne-

Change from WithoutExternal influencesEconomyBusiness DemographicsHot TopicsAPICS changesChange from WithinInternal influences Size of the boardPersonalities on the boardNumber of undertakings plannedFinancial health

Reacting to ChangeDeny/ignore itRide it outFight itSuffer through itRun from itSeek it outEmbrace it

Elements of ChangeCultureProcessPeople

Process - Change CycleThe Deming Cycle

Process - Plan Recognize the need for changeDecide what needs to change Focus on what you can influenceAsk yourself Where are we?Where do we want to be?How do we get there?PrioritizeYour Strategic Plan is your roadmap

Process - DoDevelop the solutionDocument the changeCommunicate the changeCommunicate the changeExecute the solutionStay committed to the solution

Process - CheckMonitor progressMeasure results against the planSee where youve been Be aware of where you are goingIdentify variances and root causes

Process - ActAdapt quicklyRespond to the measurementsFix what wasnt quite rightSystemize the solutionRe-plan as more change happensBe ready to change quickly and enjoy it!Find the next opportunity for change!

The States of ChangeCurrent StateThe way Lucas County does its business todayIncludes processes, organizational structure, technology, people, and cultureFuture StateThe way Lucas County anticipates doing its business once the change is implementedIncludes new processes, organizational structure, technology, job roles, and cultureTransition PeriodThe time between the current and future states

The States of Change (continued)Transition Period

Why is Change Management Important?People want to be successfulPeople feel successful once they have mastered their environment and believe it is securePeople will resist any change to the work environment that impacts their securityThe biggest reason why organizational change failsNot planning to manage its impact on people

Overcoming ResistanceChange is an eventTo manage change, we must have a clear understanding of our goal and how we will get thereTransition is a processTo manage peoples transitions, we must help them come to terms with the changesThe key to overcoming resistanceHelping peoples transition to the new environmentOrganizations often overlook the transition

Overcoming Potential DifficultiesReasons for FailureA poorly defined vision of the future stateNot integrating major change initiatives into a master planLack of a structured approach to address the people issues surrounding the changeLack of top management supportWhat the County Has DoneClearly defined future statesChange initiatives clearly defined and integrated into project planStructured approach to tackle people issuesChange Management TeamStrong support from Lucas County leaders

Managing ChangeCompleting the PuzzleEducationKnowledge Transfer

Change ManagementStagesEmployee morale fluctuates during each phaseCurrent State Transition Period Future StateMoraleTimeHuman Impact

Reacting to ChangeOstrich (Deny/ignore it)Whenever he thought about it he felt terrible. And so, at last, he came to a fateful decision. He decided not to think about it.-Life 101- Bystander (Ride it out)If you refuse to ride the wave of change, youll find yourself beneath it.-Anonymous, Successories-Resister (Fight it)In a fight between you and the world, bet on the world.-Franz Kafka-

Change at Telus Corp.Telus, the Vancouver-based telecommunications firm, has been forced by deregulation and new technology to dramatically change its culture and practices. I do think the employees of this organization understand the need for change, says CEO Darren Entwistle (shown).CP/Kevin Frayer

A Generic Typology of Organizational ChangeAdaptive ChangeInnovative ChangeRadically Innovative ChangeReintroducing a familiar practiceIntroducing a practice new to the organizationIntroducing a practice new to the industry Degree of complexity, cost, and uncertainty Potential for resistance to changeLowHigh

DesiredConditionsCurrentConditionsBefore ChangeAfter ChangeForce Field Analysis ModelDuring Change

Forces forChangeResistance to ChangeDirect CostsSaving FaceFear of the UnknownBreaking RoutinesIncongruent SystemsIncongruent Team Dynamics

Creating an Urgency for ChangeInform employees about driving forcesMost difficult when organization is doing well Must be real, not contrivedCustomer-driven changeAdverse consequences for firmHuman element energizes employees

Assumptions Underlying Lewins Change ModelThe change process involves learning something new, as well as discontinuing current attitudes, behaviors, and organizational practicesChange will not occur unless there is motivation to changePeople are the hub of all organizational changesResistance to change is found even when the goals are highly desirableEffective change requires reinforcing new behaviors, attitudes, and organizational practices

Lewins Change ModelUnfreezingCreates the motivation to changeEncourages the replacement of old behaviors and attitudes with those desired by managementEntails devising ways to reduce barriers to changeCreates psychological safetyChangingProvides new information, new behavioral models, or new ways of looking at thingsHelps employees learn new concepts or points of viewRole models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate changeRefreezingHelps employees integrate the changed behavior or attitude into their normal way of doing thingsPositive reinforcement is used to reinforce the desired changeCoaching and modeling help reinforce the stability of change

Reducing Restraining Forces at UnileverGary Calveley (right) brought in team coaches to train employees throughout the process of changing Unilevers Elida Faberge factory into Europes best factory. A theatrical production helped to communicate the changes that Calveley was trying to achieve through coaching.Dean Smith/The Camera Crew

Why People Resist Change in the WorkplaceAn individuals predisposition toward changeSurprise and fear of the unknownClimate of mistrustFear of failureLoss of status and/or job security

Why People Resist Change in the Workplace Cont.Peer pressureDisruption of cultural traditions and/or group relationshipsPersonality conflictsLack of tact and/or poor timingNonreinforcing reward systems

The Continuum of Resistance to ChangeEnthusiasticCooperationCooperation under pressure from managementAcceptancePassive resignationIndifferenceApathy or loss of interest in the jobDoing only what is orderedRegressive behaviorNonlearningProtestsWorking to ruleDoing as little as possibleSlowing downPersonal withdrawalCommitting errorsSpoliageDeliberate sabotageAcceptance

Indifference

Passive Resistance

Active Resistance

Highest priority and first strategy for changeImproves urgency to changeReduces uncertainty (fear of unknown)Problems -- time consuming and costlyMinimizing Resistance to Change

CommunicationProvides new knowledge and skillsIncludes coaching and action learningHelps break old routines and adopt new rolesProblems -- potentially time consuming and costlyMinimizing Resistance to Change

CommunicationIncreases ownership of changeHelps saving face and reducing fear of unknownIncludes task forces, search conferencesProblems -- time-consuming, potential conflictMinimizing Resistance to ChangeTraining

CommunicationWhen communication, training, and involvement do not resolve stressPotential benefitsMore motivation to changeLess fear of unknownFewer direct costsProblems -- time-consuming, expensive, doesnt help everyoneMinimizing Resistance to ChangeTrainingEmployee Involvement

CommunicationWhen people clearly lose something and wont otherwise support changeInfluence by exchange-- reduces direct costsProblemsExpensiveIncreases compliance, not commitmentMinimizing Resistance to ChangeTrainingEmployee InvolvementStress Management

CommunicationWhen all else failsAssertive influenceFiring people -- radical form of unlearningProblemsReduces trustMay create more subtle resistanceMinimizing Resistance to ChangeTrainingEmployee InvolvementStress ManagementNegotiation

Refreezing the Desired ConditionsRealigning organizational systems and team dynamics with the desired changesAlter rewards to reinforce new behavioursFeedback systemsHelp employees learn how they are doingProvide support for the new behaviour patterns

A Systems Model of ChangeOrganizing ArrangementsPeopleGoalsSocial FactorsMethodsTarget Elements of ChangeInternal Strengths WeaknessesExternal Opportunities ThreatsInputsInternal Organizational level Department/ group level Individual levelOutputsStrategy

Kotters Eight Steps for Leading Organizational ChangeDescriptionStep

Kotters Eight Steps for Leading Organizational ChangeDescriptionStep

Strategic Vision & Change at CHCCHC Helicopter Corp.s four strategic principles have helped its employees adapt to rapid growth at the St. Johns, Nfld. firm. These principles include safety first, quality service, teamwork, and profitable growth.Courtesy of CHC Helicopter Corp.

Strategic Vision & ChangeNeed a vision of the desired future stateMinimizes employee fear of the unknown Clarifies role perceptions Courtesy of CHC Helicopter Corp.

Change AgentsAnyone who possesses enough knowledge and power to guide and facilitate the change effortChange agents apply transformational leadershipHelp develop a visionCommunicate the visionAct consistently with the visionBuild commitment to the visionCourtesy of CHC Helicopter Corp.

Successfully Diffusing ChangeSuccessful pilot projectReceives visibilityTop management supportLabour union involvementDiffusion strategy described clearlyPilot project people moved to other areas

Action Research PhilosophyChange needs both action and research focusAction orientationSolve problems and change the organizational systemResearch orientationConcepts guide the changeData needed to diagnose problem, identify intervention, evaluate change

EstablishClient-ConsultantRelationsDisengageConsultantsServicesAction Research ProcessDiagnoseNeed forChange

Appreciative Inquiry at Hunter DouglasThe Hunter Douglas Window Fashions Division in Colorado relied on appreciative inquiry as well as a search conference to create a collective vision, re-instill a sense of community among employees, and build leadership within the company. Courtesy of Amanda Trotsen-Bloom

Appreciative Inquiry PhilosophyDirects the groups attention away from its own problems and focuses participants on the groups potential and positive elements.Reframes relationships around the positive rather than being problem orientedCourtesy of Amanda Trotsen-Bloom

Appreciative Inquiry Process

Parallel Learning Structure PhilosophyHighly participative social structures Members representative across the formal hierarchySufficiently free from firms constraintsDevelop solutions for organizational change which are then applied back into the larger organization

OrganizationParallelStructureParallel Learning Structures

Cross-Cultural and Ethical Concerns Cross-Cultural ConcernsLinear and open conflict assumptions different from values in some culturesEthical ConcernsPrivacy rights of individualsManagement powerIndividuals self-esteemConsultants role

REFERENCES:APICS Region VIII Team Workshop Pam Somers, CPIM, Dan Braun, CPIM, CIRMCrystal Janicki, Senior EHR Project AnalystOB by Robert Kreitner and Angelo KinickiOrganizational Behaviour by:Debra L.Nelson and James CampbellOrganizational Behaviour- securing competitive advantage.by: John A.WagnerIII and John R.Hollenbeckhttp://co.lucas.oh.us/Icis/peoplesoft

THANK YOU!!!!!!!

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