LEADING THE CHANGE

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Basic Concepts

 Change:
 The process of becoming different.
 Change Management:
 A structured approach to helping
individuals, groups and organizations
move from a current state to a desired
future state.
 Bringing organizational systems and
processes into line with the current and
future internal and external
environments.
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Change Management &
Leadership

 Change management is the process during which the

changes of a system are implemented in a controlled
manner by following a pre-defined framework.
 Change management is a style of management that
aims to encourage organizations and individuals to
deal effectively with the changes taking place in their
work.
 Change management is a basic skill in which most
leaders and managers need to be competent.
The Framework for Change: 4
Head, Heart & Hands

Change takes place in three arenas

Thinking & Motivation/

understanding Emotion
Why should I
What’s in it
change? HEART
HEAD for me?

Behavior

HANDS
What do I do
differently?
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Change Management

 Change Management exists to

 Minimize disruption and accelerate the acceptance of
change
 Be responsive to questions and give people the information
they need
 Help ingredients realize the benefits of the implementation

Driving Forces

Change Event

Restraining Forces
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Basic Principles of Change
Management

When leaders or managers are planning to manage

change, there are five key principles that need to be
kept in mind:
1. Different people react differently to change.
2. Everyone has fundamental needs that have to be met.
3. Change often involves a loss, and people go through
the "loss curve“.
4. Expectations need to be managed realistically.
5. Fears have to be dealt with.
 An effective Change Management program maximizes
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performance at implementation by minimizing disruption and
accelerating the acceptance of change.

Typical level of performance and motivation in changing environments

Involvement
Awareness
Acceptance

Understanding

Time
Improve
Transition Design Implement
Level of Acceptance
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Types of Organizational Change

1. Anticipatory changes: planned changes based on expected

situations.
2. Reactive changes: changes made in response to unexpected
situations.
3. Incremental changes: subsystem adjustments required to keep the
organization on course.
4. Strategic changes: altering the overall shape or direction of the
organization.
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Forces of Change

External Forces Internal Forces

 Market Place  Changes in
Organisational
 Govt Laws and
Strategies
Regulations
 Workforce change
 Technology
 New Equipment
 Labor market
 Employee Attitude
 Economic Change
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Key Benefits of Change Management

 Reduces Process Inconsistencies

 Strengthens Communication & Visibility of Changes
 Focuses on Business Needs & Impact
 Reduces the Number of Failed Changes and
Rework
 Facilitates Delivery and Planning of Prompt
Changes
 Assesses Risks- quality, time, cost, etc

 Manage employee resistance to change

 Build change competency onto organization
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Management of complex change

ACTION
VISION + SKILLS + INCENTIVES + RESOURCES + PLAN =CHANGE

ACTION
+ SKILLS + INCENTIVES + RESOURCES + PLAN =CONFUSION

+ ACTION
VISION + + INCENTIVES + RESOURCES PLAN =ANXIETY

ACTION
VISION + SKILLS + + RESOURCES + PLAN =GRADUAL
CHANGE
ACTION
VISION + SKILLS + INCENTIVES + + PLAN =FRUSTRAION

VISION SKILLS INCENTIVES RESOURCES =FALSE STARTS

+ + +
 Leading The Change

 John Paul Kotter (born 1947) is a

professor at the Harvard Business
School and author, who is regarded
as an authority on leadership and
change. In particular, he discussed
how the best organizations actually
"do" change.
 Kotter is the author of 15 books, and
his books are in the top 1% of sales
from Amazon.com.His international
bestseller Leading Change, outlined
an actionable, 8-step process for
implementing successful
transformations .
 Creating Major Change
The 8 Stage Process of Creating
Major Change

1. Establishing a Sense of Urgency

2. Creating a Guiding Coalition with
enough power to lead the change
3. Developing a Vision & Strategy
4. Communicating the Change Vision
5. Empowering others to act on vision
6. Generating Short-Term Wins
7. Consolidating improvements,
reassess changes & producing
more change
8. Anchoring new approaches in the
Culture & reinforce the change
 Creating Major Change

1. Establishing a Sense of Urgency

 Examining the market & competitive realities
 Identifying & discussing crisis, potential crisis, major
opportunities

Concepts:

 Create a crisis: highlight major weaknesses, allow errors to compound

 Set goals & targets unrealistically high
 Distribute company-wide performance data highlighting deficiencies to more
employees
 Force interaction with unsatisfied “customers, suppliers, shareholders.”
 Use consultants to force more relevant & honest appraisals
 Bombard people with information on future opportunities, rewards for capitalize on
those opportunities, & potential “lost opportunities.”
 Creating Major Change

2. Creating a Guiding Coalition

 Putting together a group with enough power to lead the
change

4 Key Characteristics of Guiding Coalition:

 Positional Power: Are enough key players on board, especially the main
line managers, so those left out can not easily block progress?
 Expertise: Are the various points of view, relevant to the tasks at hand,
adequately represented so that informed, intelligent decisions can be
made?
 Credibility: Does the group have enough people, with good reputations,
that its pronouncements will be taken serious by the other employees?
 Leadership: Does the group include enough proven leaders to be able to
drive the change process?
 Creating Major Change

3. Developing a Vision & Strategy

 Creating a vision to help direct the change effort
 Developing strategies for achieving that vision

Characteristics of an Effective Vision

 Imaginable: Conveys a picture of what the future will look like
 Desirable: Appeals to the long-term interests of employees,
customers, stakeholders.
 Feasible: Comprises realistic, attainable goals
 Focused: Is clear enough to provide guidance in decision
making
 Flexible: Is it general enough to allow individual initiative &
alternative responses in light of changing condition.
 Communicable: Is easy to communicate, can be successfully
explained within 5 minutes.
 Creating Major Change

4. Communicating the Change Vision

Using every vehicle possible to constantly communicate the new vision &
strategies
 Having the guiding coalition role model the behavior expected of
employees

Key elements in communicating the vision:

 Simplicity. All jargon & technobabble must be eliminated.
 Metaphor, Analogy & Example. A verbal picture is worth a thousand words.
 Multiple Forums. Big meetings & small, memos, newspapers, formal and
informal meetings….
 Repetition. Ideas sink in only after they have been heard many times
 Leadership by Example. Behavior by important people that is inconsistent
with the vision overwhelms other forms of communication.
 Explanation of Seeming Inconsistency. Unaddressed inconsistencies
undermine the credibility of all communications.
 Give & Take. Two way communication is always more powerful and one-
way communication.
 Creating Major Change

5. Empowering Broad-Based Action

 Getting rid of obstacles
 Changing systems or structures that undermine the change vision
 Encouraging risk taking & non-traditional ideas, activities & actions

Empowering People to Effect Change

 Communicate a sensible vision to employees.

 Make sure structures are compatible with the vision.
 Provide the training employees need.
 Align information and personnel systems to the vision.
 Confront supervisors who undercut needed change.
 Creating Major Change

6. Generating Short-Term Wins

 Planning for visible improvements in performance, or “wins”
 Creating those wins
 Visibly recognizing & rewarding people who made the win
possible

1. Provides evidence that sacrifices are worth it.

2. Reward change agents.
3. Helps fine-tune vision & strategies.
4. Keep bosses on board.
5. Build Momentum.
 Creating Major Change

7. Consolidating Gains & Producing More Change

Using increased credibility to change all systems, structures & policies that
don’t fit together and don’t fit the transformation strategy
 Hiring, promoting, & developing people who can implement the change
vision

 More change, not less. The guiding coalition uses the credibility afforded
by the short-term wins to tackle additional and bigger change projects
 More Help. Additional people are brought in, promoted and developed
to help with all the changes
 Leadership from Senior Management. Senior people focus on maintaining
clarity of shared purpose, keeping urgency levels up.
 People management & leadership from below. Lower ranks in the
hierarchy provide both leadership & management for specific projects.
 Reduction of unnecessary interdependencies. To make change easier in
both short/long-term, managers identify and eliminate unnecessary
organizational interdependencies.
 Creating Major Change

8. Anchoring New Approaches in the Culture

Creating better performance through customer- & productivity oriented
behavior, more and better leadership, & more effective management
 Articulating the connections between new behavior & organizational success
 Developing means to ensure leadership development & succession

Concepts:

 Culture changes come last, not first. Most alteration in norms & shared
values come at the end of the transformation process
 Results matter. New approaches usually sink into a culture only after it is
very clear that they work and are superior to the old methods.
 Requires a lot of talk. Without verbal instruction and support, people are
reluctant to admit the validity of new practices.
 May involve turnover. Sometime the only way to change a culture is to
change key people.
 Makes decision on succession crucial. If promotion processes are not
changed to be compatible with the new practices, the old culture will
reassert itself
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