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    MANAGEMENT OF CHANGE

    - A HBR ARTICLE PRESENTATION -

    HOSHEDAR BATLIWALLA

    CMBA2 - 1314

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    "IT’S NOT SO MUCH THAT WE ARE AFRAID OF CHANGE, OR SO MUCH

    IN LOVE WITH THE OLD WAYS, BUT IT’S THE PLACE IN BETWEEN WE

    FEAR... IT’S LIKE BEING IN BETWEEN TRAPEZES... THERE’S NOTHING T O

    HOLD ONTO.“

    - MARILYN FERGUSON(1938-2008, AUTHOR – THE AQUARIAN CONSPIRACY)

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    CHANGE AS A HUMAN PROBLEM

    • CHANGE IS NOT JUST A PROFESSIONAL CONCEPT. CHANGE IS A NATURAL PART

    OF THE HUMAN CONDITION. IT IS LIKELY THAT PEOPLE REACT TO PROFESSIONALCHANGE IN THE SAME WAY AS THEY REACT TO CHANGE IN OTHER ASPECTS OF

    THEIR LIVES, SUCH AS MARRIAGE, ACCIDENTS, GROWING UP ETC.

    • CHANGE IN ONE ASPECT OF A PERSON’S LIFE WILL HAVE AN EFFECT ON, AND

    BE AFFECTED BY, OTHER ASPECTS. REACTIONS TO PROFESSIONAL CHANGE,THEREFORE CAN OFTEN HAVE LITTLE OR NOTHING TO DO WITH THE ACTUAL

    CHANGE ITSELF, BUT MAY BE CONDITIONED BY APPARENTLY UNRELATED

    FACTORS.

    CHANGE POSES A POTENTIAL THREAT TO THE ‘KEY MEANINGS’ OF OUR LIVES.KEY MEANINGS PROVIDE STABILITY AND SECURITY, AND MAKE OUR BEHAVIOUR

    MEANINGFUL. EXAMPLES OF KEY MEANINGS ARE OUR RELATIONSHIPS WITH

    OTHER PEOPLE, OUR PERCEPTION OF OUR STATUS, OUR MORAL OR RELIGIOUS

    VALUES, OUR GROUP ALLEGIANCES, OUR HABITS AND ROUTINES. ANY CHANGE

    POSES A THREAT TO ONE OR MORE OF THESE KEY MEANINGS.

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    THE 8 COMMON ERRORS TOORGANIZATIONAL FAILURE

    • ALLOWING TOO MUCH COMPLACENCY

    • FAILING TO CREATE A SUFFICIENTLY POWERFUL GUIDING

    COALITION

    • UNDERESTIMATING THE POWER OF VISION

    • UNDER COMMUNICATING THE VISION BY A FACTOR OF

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    • PERMITTING OBSTACLES TO BLOCK THE NEW VISION

    FAILING TO CREATE SHORT TERM WINS• DECLARING VICTORY TOO SOON

    • NEGLECTING TO ANCHOR CHANGES FIRMLY IN THE

    CORPORATE CULTURE

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    THE CONSEQUENCES

    • NEW STRATEGIES AREN’T IMPLEMENTED WELL

    • ACQUISITIONS DON’T ACHIEVE EXPECTED SYNERGIES

    • REENGINEERING TAKES TOO LONG AND COSTS TOO MUCH

    • DOWNSIZING DOESN’T GET COSTS UNDER CONTROL

    • QUALITY PROGRAMS DON’T DELIVER HOPED-FOR RESULTS

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    WHO SAID CHANGE CANNOT BE DONE??

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    HOW TO DO IT?THE THOUGHT PROCESS

    SUCCESSFUL CHANGE MANAGEMENT IS MORE THAN A SET OF ACTIVITIES

    OR TOOLS

     – IT IS A WAY OF THINKING AND WORKING.

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    Elizabeth Kübler Ross

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    CHANGE MANAGEMENT = PAIN MANAGEMENT?

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    HTTP://JAKEHUBER.FILES.WORDPRESS.COM/2013/01/1-LEADING-

    CHANGE-WHY-TRANSFORMATION-EFFORTS-FAIL.PDF

    http://jakehuber.files.wordpress.com/2013/01/1-leading-change-why-transformation-efforts-fail.pdfhttp://jakehuber.files.wordpress.com/2013/01/1-leading-change-why-transformation-efforts-fail.pdfhttp://jakehuber.files.wordpress.com/2013/01/1-leading-change-why-transformation-efforts-fail.pdf

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    THE EIGHT STAGE PROCESS OFCREATING MAJOR CHANGE

    Leaders who successfully transform businesses do eight things right (and they do them in the right order)

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    ESTABLISH A SENSE OF URGENCY

    ACTION NEEDED:

    • EXAMINING THE MARKET AND COMPETITIVE REALITIES

    • IDENTIFYING AND DISCUSSING CRISES, POTENTIAL CRISES,

    OR MAJOR OPPORTUNITIES

    PITFALLS:

    • UNDERESTIMATING THE DIFFICULTY OF DRIVING PEOPLE

    FROM THEIR COMFORT ZONES

    • BECOMING PARALYZED BY RISKS

    1

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    FORM A POWERFUL GUIDING COALITION

    ACTION NEEDED:

    • ASSEMBLE A GROUP WITH SHARED COMMITMENT AND

    ENOUGH POWER TO LEAD THE CHANGE EFFORT

    • ENCOURAGE THEM TO WORK AS A TEAM OUTSIDE THE

    NORMAL HIERARCHY

    PITFALLS:

    • NO PRIOR EXPERIENCE IN TEAMWORK AT THE TOP

    • RELEGATING TEAM LEADERSHIP TO AN HR, QUALITY, OR

    STRATEGIC-PLANNING EXECUTIVE RATHER THAN A SENIOR

    LINE MANAGER

    2

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    CREATE A VISION

    ACTION NEEDED:

    • CREATE A VISION TO DIRECT THE CHANGE EFFORT

    • DEVELOP STRATEGIES FOR REALIZING THAT VISION

    PITFALLS:

    • PRESENTING A VISION THAT’S TOO COMPLICATED OR

    VAGUE TO BE COMMUNICATED IN MINUTES

    3

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    COMMUNICATE THE VISION

    ACTION NEEDED:

    • USE EVERY VEHICLE POSSIBLE TO COMMUNICATE THE

    NEW VISION AND STRATEGIES FOR ACHIEVING IT

    • TEACH NEW BEHAVIOURS BY THE EXAMPLE OF THE

    GUIDING COALITION

    PITFALLS:

    • UNDER COMMUNICATING THE VISION

    • BEHAVING IN WAYS ANTITHETICAL TO THE VISION

    4

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    EMPOWER OTHERS TO ACT ON THE VISION

    ACTION NEEDED:• REMOVE OR ALTER SYSTEMS OR STRUCTURES UNDERMINING

    THE VISION

    • ENCOURAGE RISK TAKING AND NON-TRADITIONAL IDEAS,

    ACTIVITIES, AND ACTIONS

    PITFALLS:

    FAILING TO REMOVE POWERFUL INDIVIDUALS WHO RESISTTHE CHANGE EFFORT

    5

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    PLAN FOR AND CREATE SHORT-TERM WINS

    ACTION NEEDED:

    • DEFINE AND ENGINEER VISIBLE PERFORMANCE

    IMPROVEMENTS

    • RECOGNIZE AND REWARD EMPLOYEES CONTRIBUTING TO

    THOSE IMPROVEMENTS

    PITFALLS:

    • LEAVING SHORT-TERM SUCCESSES UP TO CHANCE

    • FAILING TO SCORE SUCCESSES EARLY ENOUGH (12-24

    MONTHS INTO THE CHANGE EFFORT)

    6

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    CONSOLIDATE IMPROVEMENTS ANDPRODUCE MORE CHANGE

    ACTION NEEDED:

    • USE INCREASED CREDIBILITY FROM EARLY WINS TO CHANGE

    SYSTEMS, STRUCTURES, AND POLICIES UNDERMINING THE

    VISION.

    • HIRE, PROMOTE, AND DEVELOP EMPLOYEES WHO CAN

    IMPLEMENT THE VISION

    • REINVIGORATE THE CHANGE PROCESS WITH NEW PROJECTS

    AND CHANGE AGENTS

    PITFALLS:

    • DECLARING VICTORY TOO SOON — WITH THE FIRST

    PERFORMANCE IMPROVEMENT

    • ALLOWING RESISTORS TO CONVINCE “TROOPS” THAT THE WAR

    HAS BEEN WON

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    ACTION NEEDED:

    • ARTICULATE CONNECTIONS BETWEEN NEW BEHAVIOURS

    AND CORPORATE SUCCESS

    • CREATE LEADERSHIP DEVELOPMENT AND SUCCESSION PLANS

    CONSISTENT WITH THE NEW APPROACH

    PITFALLS:• NOT CREATING NEW SOCIAL NORMS AND SHARED VALUES

    CONSISTENT WITH CHANGES

    • PROMOTING PEOPLE INTO LEADERSHIP POSITIONS WHO

    DON’T PERSONIFY THE NEW APPROACH

    8

    INSTITUTIONALIZE NEW APPROACHES

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    MANAGEMENT OF CHANGE

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    THANK YOU