Managing change

What changes do businesses face?

•

Internal

•

External

• Internal/organic growth • New business leader • Takeover • Retrenchment • Change in law • Change in tax • Change in govt • Competitors • Suppliers • Technology Can you give me an example of each of these recently?

What changes do businesses face?

•

Internal

•

External

• Internal/organic growth

– John Lewis,

• New business leader

– M&S

• Change in law

Eurozone? – smoking ban, what if we joined the Labour’s proposed ‘Cadburys’ law

• Takeover

– Cadbury

• Change in tax

– VAT, NIC, 50% tax rate

• Retrenchment • Change in govt

– May 2010!

• Competitors • Suppliers • Technology

– Ipad, I-Apps

How to deal with change

Project champions

• A

project champion

is an individual who has the authority to use resources within or outside an organisation for completion of a given project. • A project champion is chosen by the management so as to ensure supervision of a specific project from start to finish.

Examples of Project Champions

The Business Inspector Duncan Bannatyne seaside rescue Plenty of TV examples of so called Project champions…!

Ruth Watson’s Hotel Rescue

Project champion characteristics • Status – mid or senior level manager… who can push through the vision!

• Good people skills • Committed to pursuing support for the concept of change…. Have a passion to push change through

Project manager

• Project manager – plans organises and carries through the project • Very different to the project champion!

Project Group

How?

• A project group will be given a specific task to take the company forward through whatever change they face, following the vision of the project champion who is usually appointed by the BoD & company CEO.

Links back to:

• Matrix organisation • Empowerment & Enlargement • Consultants

More TV Project managers…

• All these presenters ‘suggest’ to the home owners to employ a project manager.

•

Why?

What benefit would you have from using a project manager?

How to promote change

• Have a clear vision – mission statement!

• Appropriate resources ….

Such as???

–finances –staff –and physical equipment • Trained staff – with expertise • A clear critical path….!

Quick Questions

• What is the difference between project manager & project champion?

• What are the key characteristics needed for a project champion?

Resistance to change

• A degree of resistance is normal since change is: –Disruptive –Stressful • A degree of scepticism can be healthy especially where there are weaknesses in the proposed changes • However resistance will also impede the achievement of organisational objectives

Two types of change

•

Step change

– Dramatic or radical change in one fell swoop – Radical alternation in the organisation – Gets it over with quickly – May require some coercion

Step change

Occurs rapidly

Two types of change

Incremental change

Change occurs over a period of time in incremental stages •

Incremental change

– Ongoing piecemeal change which takes place as part of an organisation’s evolution and development – Tends to more inclusive

New Manager!

• A new manager appointed in 2008 for England football team.

• What type of leader is he? (

business theory please!)

• How did he introduce a new culture to the team?

• Why has Capello been able to bring about such change to the team? (think about past performance/manager) Think about INTERNAL & EXTERNAL factors •

These are ALL the things that you need to bring to an exam essay Q about “the influence a new manager has to change the culture of a business”.

Your task

Case study about Google… in Marcouse textbook p 358-9

Further reading on Project champion • http://www.brighthub.com/office/project management/articles/49034.aspx

• http://tutor2u.net/business/strategy/change -management-implementation.html