Transcript Document

CHANGE MANAGEMENT
Change Management is the move from one defined state to
another-To flexibly adapt the organization to ongoing
external changes or making of changes in a planned and
systematic fashion.
This ... happens all the time
MAMTA ROHIT IDBI Bank
What is ...
Change management is a structured approach to
transitioning individuals, teams, organizations ...
from a current state to a desired future state.
Changes initiatives have been given different
names such as TQM, Six Sigma,Breakthrough
Management,Lean Transformation, BPR and
Operational Excellence
Change Management
The process of change has impact on the whole
organization and on all individuals working there. It
influences
• What the organization does
• The way the organization does things
• The way all business units of the organization
communicate and share information.
Therefore Change management is a basic skill in which
most leaders and managers need to be competent.
This competence is based on five key principles .
They are……
Key Principles
1.What possible reactions could be -Insecurity, lack of
self confidence, that doesn’t concern me, denial,
enthusiasm, saying “good bye”, or even attack. We have
to encourage employees, convince them, give them
information, promise something.
2. Everyone has fundamental needs of visibility, respect,
safety , stability and to maintain personal life. We have
to listen, involve them, give them recognition, support
them.
Contd…
3.Change often involves a loss, and people go
through the "loss curve“ –It could be loss of
Identity, our members, what we already know,
stability, already tested methods, the feeling of
belonging together, title, security.We need to
convert them into ‘win’ by giving examples,
time, flexibility, confidence and new security.
4.We need to be manage expectations realistically .
While we expect acceptance, support,
constructive feedback, teamwork, involvement,
openess for new ideas and friendship, our people
expect the same (mirror effect)
Contd..
5.Fears of loss of groups and leaders, fear of change
itself, fear of fail, fear to loose motivation have to be
dealt with . For this we need to communicate,
understand, talk and respect fears.
Strategies to cope with changes
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Knowledge utilization model
Organisational Development Model
Democratic approach model
Systems approach model
Charismatic leader approach model
Different Models
1.Knowledge utilization model- Knowledge is a magic
stick! With right knowledge we foresee roadblocks
and address them at the outset. We need to train and
support on demand ....
2.Organizational Development Model - Right working
conditions, trust and not too much bureaucracy . Also
adaptable, flexible, responsive organization that
changes gradually, step by step...
3. Democratic Model- Focus is on team working and
Consensus on decisions! Collaboration and
empowerment!
Contd….
4. Systems approach model –Focus on efficient
operations and processes. Right structures and
mechanisms, job descriptions...
5. Charismatic Leader Approach model- Strong and
clear lead. “One man” vision resulting in efficient
instructions, task division...etc.
Barriers to Change
1. Perception Barrier
• Stereotypes in analysis
•Difficulties to identify and to analyze the core of the
problem
•Problems approached with one sided view and lacking
ability to see all sides of the problem
•Information overload
•Mis judgement of information
2. Emotional Barrier
Risk-Aversion
Lack of ability to process incomplete or
contradictory information.
Preference to evaluate existing ideas
instead of generating new Ideas . Early
evaluation may eliminate creative ideas.
Normally people find it easier to reject
rather than support a new idea.
Not taking time for thinking-Most people
don’t want to lean and thing as feel under
pressure to deliver results quickly
3.Cultural Barriers
Taboos restrict analysis of particular issues
and thus change
More focus than imagination – Due to
targeted thinking we happen to be less
imaginative and creative
Reasons and intuition – We feel that logic, fig
critical reasoning and objective analysis are
good things and intuition is sub-optimal
Tradition and Change – Challenging to
overcome traditions especially when
employees do not see the relation between
tradition and an existing problem.
4. Environmental Barriers
Lack of support- Changes are perceived
as threat as it moves the employee and
the organization out of their ‘comfort zone’
Lack of ability to accept criticism- ability to
accept criticism is a major precondition for
establishing trust and for gaining support
Some Managers are successful because
they have good ideas and are able to
implement them . But only those who listen
to their employees , will be able to use their
creatively as well.
5. Cognitive Barriers
Use of wrong terminology- Use of language
and terminology appropriate for receivers
support creativity and motivation
Sticking to strategies- At times they are
applied wrongly- too rigid or not too rigid
Lack of complete and correct informationThe best solution is a balanced mix of
information and creative ideas
Why efforts fail
PERCEPTION
REALITY
MANAGEMENT
OF CHANGE
INFRASTRUCTURE
TECHNOLOGY
Foundation for a successful change
•Commitment of the Top team is a priority
•A supportive team is a must to restructure , redesign,
retool or improve (a group with aligned objectives
which relentlessly drives change , removes barriers and
ensures involvement of the entire organization for a
robust change)
•Senior people have to review their responsibilities ,
attitudes, behaviour, personal leadership styles and
their relationship with each other as they have reached
this position by doing things a particular way
Contd…..
•A true coalition will learn how to work through
conflict to get a shared view as to the best way
forward .Training and development play a critical role
.
•Middle managers need to be on board early and they
should be kept fully informed they facilitate instead of
undermining the change process due to a feeling of
neglect.
•Developing a clear and inspiring vision so that people
can see exciting possibilities and can begin to act in
accordance with them.
Contd…
•Organizations have to over invest in communication to clarify
what will the organization look like during and after the change
programme , what concerns will emerge and how will they be
addressed . It is critical for people to be reminded of the vision
and also how far they have come to help maintain morale and
belief in the change process.
•Create and train the facilitators of change
Change Facilitator Network
What
How
Who
Establishing an internal network of change champions to build awareness
and understanding of change management principles.
Network is established initially by involving client staff in a one day
workshop to explore business change principles and concepts within
the context of the changes sought.
Involve those most impacted by the changes. Develop objective
method for selecting candidates. Select staff of equivalent seniority
and who are well regarded by their peers, are credible, reliable,
eager to learn and be involved, or are “opinion leaders”. Do not
select staff: who are perceived to be management mouthpieces
Kotter’s Eight Stages
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Establish a sense of urgency
Create a guiding coalition
Develop a vision and strategy
Communicate the change vision
Empower employees
Generate short term wins
Consolidate gains for more change
Anchor new approaches
Kotter’s eight errors
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too much complacency
under-powered coalition
under-estimating power of vision
seriously under-communicating vision
permitting obstacles to block change
failing to generate short term wins
declaring victory too soon
not anchoring changes in the culture
Kotter’s five consequence arising
from the eight errors
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new strategies not implemented well
gains do not achieve expected synergies
long time-scales and high costs
down-sizing does not control costs
anticipated results not realised
How do you manage change?
The first thing you do is jump in.
You can't do anything about it from the outside.
• A clear sense of mission or purpose is essential.
• Build a team. "Lone wolves" have their uses,
but managing change isn't one of them. On the other hand,
the right kind of lone wolf makes an excellent temporary team leader.
• Maintain a flat organizational team structure and
rely on minimal and informal reporting requirements.
• Pick people with relevant skills and high energy levels. You'll need both.
• Toss out the rule book. Change, by definition, calls for a configured
response,
not adherence to prefigured routines.
• Shift to an action-feedback model. Plan and act in short intervals.
Do your analysis on the fly. No lengthy up-front studies.
Remember the hare and the tortoise.
• Set flexible priorities. You must have the ability to drop what you're doing
and
tend to something more important.
Managing Resistance To Change
Managing resistance to change:
• Freeze cycle approach (Kurt Lewin 1947 )
Unfreezing
Initial awareness of need for change is developed
Changing
Focus on learning needed new behaviors
Freezing
Reinforcing new learned behaviors by positive
results, feelings of achievement, and rewards from
others.
Managing Resistance To Change
Overcoming resistance
Education &
communication
Participation &
involvement
Facilitation &
support
METHODS
(Kotter & Schlesinger)
Explicit &
implicit coercion
Manipulation &
cooptation
Negotiation &
agreement
Managing Resistance To Change
• Driving forces are factors pressuring for a
particular change
• Restraining forces are factors pressuring against a
change
• The status quo is a condition of equilibrium
between the two forces
• Change occurs by increasing driving or reducing
restraining forces that is reducing resistance to
change
Driving forces for change
Good union relations
Restraining forces against change
Deteriorating company-union relations
Stringent work rules
Foreign competition
Recent losses
Cheaper outside sources
Union desire to save jobs
Company reluctance to save
jobs
Current benefit costs
Current pay costs
Employee absenteeism levels
Company desire for flexibility
in layoff decisions
Small tips on Change Management
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Acting is better than planning
Think big – act small
Go where the energy is
Involve people – build ownership
Make alliances instead of enemies
Help and support is required all the time
Change Organization Culture
Shared goals
“We know where we’re going”
Responsibility for success
“We will make this work”
Collegiality
“We’re in this together”
Continuous improvement
“We can still do better”
Lifelong learning
“Learning is for everyone”
Risk taking
“We learn by trying something new
every day”
Support
“There’s always someone there to help”
Mutual respect
“Everyone has something to offer”
Openness
“We can discuss our differences”
Celebration and humour
“We are a good team”
THANK YOU