Leading Change In Organizations

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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


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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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?

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Leading Change In Organizations