Management of Organizational Change

Successful Change Management

To successfully implement your plans, regardless of whether it is an
organisational change, a change of procedures, a new technology roll out etc.
you will need to ensure that you plan and manage the change.

The most important thing is to manage the people side of your change. Without
the people accepting your plans you are doomed to fail.

Installation of your new organisation, procedures, technology is relatively

simple. Implementation is the difficult part - you must get the people on-board
otherwise your business case RoI is left in tatters on the floor and you have not
delivered. You're fired.

FACT: 28% of corporate system investments are abandoned before completion.

Of those installed, 80% are not used in the intended way or not used at all six
months after installation (Gartner Group).

Doing change management right isn't rocket science. If you think about what
you are doing, if you have a good idea of what a successful outcome looks like,
and if you have the energy and passion to make it happen then you'll be on to a
sure fire winner.

There are five steps to successful change management and I'll be covering each
one in this lens.

Define what your change is

Get the right sponsorship to drive it through
Prepare for the change at a local level
Reinforce behaviours that support the change
Communicate, communicate, communicate

The steps are based on theory that any change management practitioner will be
able to explain. I've added in a little bit of my own real world experience too, so
rest assured that what you read here is proven and does work. Follow some, or
all, of my advice and you'll be a lot closer to success on your next major
programme.

Lewin’s Change Process

Often, the trickiest part of implementing an organizational change is
overcoming employees’ resistance. The change may require the cooperation of
dozens or even hundreds of managers and supervisors, many of whom might
well view the change as detrimental to their well being and peace of mind.
Resistance may therefore be considerable.

Psychologists Kurt Lewin formulated the classic explanation of how to

implement change in the face of resistance. To Lewin, all behaviour in
organizations was a product of two kinds of forces those striving to maintain the
status quo and those pushing for change. Implementing change thus meant
either weakening the status quo forces or building up the forces for change.

Lewin's Force Field Model is an important contribution to the theory of change

management - the part of strategic management that tries to ensure that a
business responds to the environment in which it operates. Remember that:

Change is the result of dissatisfaction with present strategies (performance,

failure to meet objectives etc)

Change doesn't happen by itself - it is essential to develop a vision for a better

alternative

Management have to develop strategies to implement change

There will be resistance to change - it is inevitable, but not impossible to

overcome

Many factors drive change in a business. In his model Lewin identified four

forces which are described below.

In Lewin's model there are forces driving change and forces restraining it.

Where there is equilibrium between the two sets of forces there will be no
change. In order for change to occur the driving force must exceed the
restraining force.

Lewin's analysis can be used to:

Investigate the balance of power involved in an issue

Identify the key stakeholders on the issue

Identify opponents and Allies

Identify how to influence the target groups

Forces For Change Include:

Internal forces for change (from within the business or organization)

A general sense that the business could "do better"

Desire to increase profitability and other performance measures

The need to reorganize to increase efficiency and competitiveness

Natural ageing and decline in a business (e.g. machinery, products)

Conflict between departments

The need for greater flexibility in organizational structures

Concerns about ineffective communication, de-motivation or poor business

relationships

External forces for change (outside the control of the business / organization)

There are many of these, including

Increased demands for higher quality and levels of customer service

Uncertain economic conditions

Greater competition

Higher cost of inputs

Legislation & taxes

Political interests

Ethics & social values

Technological change
Globalisation

Scarcity of natural resources

Changing nature and composition of the workforce

You might conclude from the list of internal and external factors above that
the main pressure for change in a business is usually external. A business
has to be prepared to face the demands of a changing external environment.

Restraining Forces (Making Change Harder)

Despite the potential positive outcomes, change is nearly always resisted. A
degree of resistance is normal since change is:

Disruptive, and Stressful

Some common reasons why change is resisted include:

Parochial self interest

Individuals are concerned with the implications for themselves; their view is
often biased by their perception of a particular situation

Habit

Habit provides both comfort and security

Habits are often well-established and difficult to change

Misunderstanding of the need for or purpose of change

Communications problems

Inadequate information

Low tolerance of change

Sense of insecurity

Different assessment of the situation

Disagreement over the need for change

Disagreement over the advantages and disadvantages

Economic implications

Employees are likely to resist change which is perceived as affecting their pay
or other rewards

Established patterns of working and reward create a vested interest in

maintaining the status quo

Fear of the unknown

Proposed changes which confront people tend to generate fear and anxiety

Introducing new technology or working practices creates uncertainty

Many of the potential restraining forces listed above are personal to an

organization’s employees.

There may also be overall organizational barriers to change, including:

Structural inertia

Existing power structures

Resistance from work groups

Failure of previous change initiatives

Change can also resisted because of the poor way in which change is managed!

For example, a failure by management responsible for the change to:

Explain the need for change

Provide information

Consult, negotiate and offer support and training

Involve people in the process

Build trust and sense of security

Build employee relations

As a result of change resistance and poorly managed change projects, many of
them ultimately fail to achieve their objectives. Amongst the reasons commonly
associated with failed change programmes are:

Employees do not understand the purpose or even the need for change Lack of
planning and preparation Poor communication Employees lack the necessary
skills and/ or there is insufficient training and development offered Lack of
necessary resources Inadequate/inappropriate rewards

Lewin’s Change Process Consist of These Three Steps.

1. Unfreezing: Unfreezing means reducing the forces that are striving to

maintain the status quo, usually by presenting as provocative problem or event
to get people to recognize the need for change and to search for new solutions.
2. Moving means developing new behaviours, values, and attitude, sometimes
through structural changes and sometimes through the sorts of HR-based
organizational change and development techniques explained later in this
article. The aim is to alter people’s behaviour.
3. Refreezing: It is assumed that organizations tend to revert to their former
ways of doing things unless you reinforce the changes. How do you do this? By
refreezing the organization into its new equilibrium. Specifically, instituting
new systems and procedures such as new compensation plans and appraisal
processes to support and maintain the changes.

Successful change agents are observed to employ three distinct but linked
campaigns in their initiatives.

A political campaign creates a coalition strong enough to support and guide the
initiative.

How to Lead the Change

In practice, of course, the challenge is in the details of leading the organizational change. We
can summarize these, in consonance with Kurt Lewin, as follows:

Unfreezing Phase:

Establishing a sense of urgency:

Most CEO’s start by creating a sense of urgency. This often takes creativity. For example, the
CEO might present executives with an analyst’s report describing the firm’s lack of
competitiveness.

Mobilize commitment through joint diagnosis of problems.

Having established a sense of urgency, the leader may then create one or more task forces to
diagnose the problems facing the company. Such teams can produce a shared understanding
of what they can and must improve mobilize commitment.

Moving Phase:

Create a guiding coalition. No one can really implement changes alone. Most CEOs create a
guiding coalition of influential people. They work together as a team to act as missionaries
and implementers.

Develop and communicate a shared vision:

Organizational renewal requires a new leadership vision, a general statement of the

organization’s intended direction that evokes emotion in organization members. For example,
when Barry Gibbons became CEO of Spec’s Music some years ago, his vision of a leaner
Spec’s offering a diversified blend of concerts and retail music helped provide this direction.
The key elements in communicating his vision are:

Keep it simple: Eliminate all jargon and wasted words. For example, we are going to become
faster than anyone else in our industry at satisfying customer needs.

Use multiple forums: Try to use every channel possible – big meetings and small, memos and
newspapers, formal and informal interaction to spread the word.

Use repetition: Ideas sink in deeply only after employees have heard them many times.

Lead by example: Walk your talk — make sure your behaviours and decisions are consistent
with the vision you espouse.

Help employees make the change. Perhaps a lack of skills stands in the way; or policies,
procedures and the organization chart make it difficult to act; or some intransigent managers
actually discourage employees from acting. When he was CEO at the former Allied Signal,
Lawrence Bossidy put every one of his 80,000 people through quality improvement training.
Consolidate gains and produce more change. Aim for attainable short term accomplishments,
and use the credibility from these to change al the systems structures, and policies that don’t
fit well with the company’s new vision. Leaders continue to produce more change by hiring
and promoting new people; by identifying elected employees to champion the continuing
change; and by providing additional opportunities for short term wins by employees.

Refreezing Phase:

Reinforce the new ways of doing things with changes to the company’s systems and
procedures. Use new appraisal systems and incentives to reinforce the desired behaviours.
Change the culture by ensuring that the firm’s managers take steps to role model and
communicate the company’s new values.

Finally, the leader must monitor and assess progress. In brief this involves comparing where
the company is today with where it should be, based on measurable milestones. At Avon, for
instance how many new products has the company introduced? How many new door to door
sales reps has the firm added?

How Organization Can Overcome Resistance to Change

Organizations experience resistance to change because they may not know how to implement
change.  Other reasons for resistance to change are excessive focus on cost, failure to
perceive benefits, lack of coordination and cooperation, uncertainty avoidance, and fear of
loss. 

When managers have an excessive focus on cost, this prevents them from seeing all the
benefits that will be associated with the change.  However, when a firm fails to perceive the
benefits involving change a firm may focus extensively on the negative side of change and
the positive aspects will go unnoticed.  Nevertheless, the lack of coordination and
cooperation in a firm will discourage change.  For example, if the sales department wanted
the human resource department to hire employees with at least five years of experience to
help boost sales and the human resource department disapproves, there is no cooperation
between the two departments. 

On the other hand, organizations may fear uncertainty involving change.  To prevent this, the
firm must communicate everything that is happening and understand the effect change will
have on certain jobs. 

Finally, managers and employees may fear change will deprive them of their jobs or job
status.  Before a change takes place employees need to be involved in the change and the
change should be thought through extensively.  For example, if a grocery store decides to
provide more self checkout than cashiers, they must carefully take into consideration that fact
this idea may reduce the number of employees.
To overcome resistance to change firms can identify a true need for change, find an idea that
fits the need, get top management support, design the change for incremental
implementation, develop plans to overcome resistance to change, create change teams, and
foster idea champions. 

To motivate people to implement change they need to feel a sense of urgency.  People must
feel that change have to take place in order to keep their jobs.  This will motivate
employees to actively engage themselves in the change process.

However, to find an idea that fits the need of change the entire organization should try to
come up with creative solutions.  On the other hand, top managers must support change in
order for it to take place.  Without their support, employees will feels change is not
necessary. 

Nevertheless, change must be a step by step process.  If a big change were to take place
without a sequence, employees will feel overloaded and resist the change.  Nevertheless,
managers should also develop a strategic plan to overcome resistance to change.  One
strategy could be to communicate and train employees regarding the change. 

With communications employees will know why the change is taking place and will not
resist it.  Training employees to deal with new roles with help them feel more comfortable
regarding the change.  On the other hand, creating a change team with the primarily purpose
of enforcing change with help overcome resistance.  Finally, fostering idea champions can
help overcome resistance to change. An idea champion is involved heavily with the change. 
They also carefully monitor the change and do whatever it takes to make sure it takes place.

A marketing campaign taps into employees’ thoughts and feelings that effectively
communicate messages about the prospective programs theme and benefits.

And finally, a military campaign deploys executives’ scarce resources of attention and time
to actually carry out the change. Let us look closely at how to actually lead the organizational
change process.

In practice, leading an organizational change involves a multi-step process starting with the
political aspects of overcoming resistance and creating a guiding coalition.

Establish a sense of urgency. Having become aware of the need to change, most leaders start
by creating a sense of urgency. This step often takes some creativity

Mobilize commitment through joint diagnosis of problems. Having established a sense of

urgency, the leader may then create one or more task forces to diagnose the problems facing
the company. Such teams can produce a shared understanding of what they can and must
improve and thereby the commitment of those who must actually implement the change.
3. Create a guiding coalition. Major transformations like that at Avon are sometimes
associated with just one or two highly visible leaders. But no one can really implement such
changes alone. Most companies create a guiding coalition of influential people, who work
together as a team to act as missionaries and implementers.
4. Develop a shared vision. Organizational renewal also requires a new leadership vision, a
general statement of the organizations intended direction that evokes emotional feelings in
organization members.

5. Communicate the vision. Change expert John Kotter says the real power of a vision is
unleashed only when most of those involved in an enterprise or activity have a common
understanding of its goals and directions. To do this, you have to communicate he vision.

The key elements in doing so include,

Keep it simple: Eliminate all jargon and wasted words. For example: We are going to become
faster than anyone else in our industry at satisfying customer needs

Use multiple forums: Try to use every channel possible big meetings and small, memos and
newspapers, formal and informal interaction to spread the word.

Use repetition: Ideas sink in deeply only after employees have heard them many times.

Lead by example: Walk your talk “make sure your behaviours and decisions are consistent
with the vision you espouse. Help employees to make the change. It’s futile to communicate
your vision and to have employees want to make it a reality, if they haven’t the means to do
so. Perhaps a lack of skills stands in the way; or policies, procedures, and the organization
chart make it difficult to act; or some intransigent managers may actually discourage
employees from acting.

Kotter' Model of Change Management.

Kotter's model of change management is a framework for managing and
implementing change within an organization. It consists of eight steps that
organizations can follow to successfully implement change. The steps include
establishing a sense of urgency, forming a powerful coalition, creating a vision
for change, communicating the vision, empowering others to act on the vision,
creating short-term wins, consolidating gains and producing more change, and
anchoring new approaches in the organization's culture. The model emphasizes
the importance of engaging stakeholders, communicating effectively, and
empowering employees to take ownership of the change process.

What are the right steps and the significance of these

steps? What happens if we miss any step?
The eight steps in Kotter's model of change management are all important and
necessary for a successful change initiative. Here's a brief overview of each step
and its significance:
 1. Establishing a sense of urgency: This step helps to create a compelling
reason for change and motivates people to take action.

2. Forming a powerful coalition: This step involves identifying key

stakeholders and building a team of influential people who can help drive the
change initiative forward.

3. Creating a vision for change: This step involves developing a clear and
compelling picture of what the future will look like after the change is
implemented.

4. Communicating the vision: This step involves communicating the vision and
the urgency for change to all stakeholders in a compelling and consistent
manner.

5. Empowering others to act on the vision: This step involves removing

obstacles and empowering people to take action towards achieving the vision.

6. Creating short-term wins: This step involves celebrating small wins along the
way to keep people motivated and engaged in the change process.

7. Consolidating gains and producing more change: This step involves building
on the momentum of the change initiative and making further progress towards
the vision.

8. Anchoring new approaches in the organization's culture: This step involves

embedding the changes into the organization's culture to ensure that they are
sustained over the long term.

If any of these steps are missed or not given enough attention, it can lead to a
lack of engagement, resistance, and ultimately failure of the change initiative.
For example, if the vision is not communicated effectively, people may not
understand why the change is necessary and may resist it. Similarly, if people
are not empowered to take action, they may feel helpless and disengaged.
Therefore, it is important to follow all the steps in the model to ensure a
successful change initiative.

Compare Lewin's Model with Kotter's Model, noting

the points of similarity and dissimilarity?
Lewin's Model and Kotter's Model are two popular change management models
that share some similarities but also have some notable differences. Here's a
comparison of the two models:

Similarities:

- Both models recognize the importance of creating a sense of urgency and

building a coalition of supporters to drive change.

- Both models emphasize the need to communicate the change vision effectively
to stakeholders.

- Both models acknowledge the importance of empowering people to take

action to achieve the change.

Differences:

- Lewin's Model is a three-step process (unfreeze, change, refreeze), while

Kotter's Model is an eight-step process.

- Lewin's Model places greater emphasis on the initial step of unfreezing the
organization, which involves breaking down existing structures and mindsets to
create a receptive environment for change. Kotter's Model does not have a
specific step dedicated to unfreezing.

- Kotter's Model places greater emphasis on the need to create short-term wins
to build momentum and engagement. Lewin's Model does not have a specific
step dedicated to creating short-term wins.

- Kotter's Model places greater emphasis on anchoring the change into the
organization's culture to ensure long-term sustainability. Lewin's Model does
not have a specific step dedicated to this.

Overall, both models provide a useful framework for managing change, but
they have different strengths and weaknesses depending on the specific context
and needs of the organization. Lewin's Model is more focused on the initial
process of breaking down existing structures and mindsets, while Kotter's
Model is more focused on building momentum and anchoring the change into
the organization's culture.

Are there any other Models for Change Management ?

Yes, there are several other models for change management. Some of the
popular ones are:

1. Prosci's ADKAR Model: This model focuses on the individual's change

journey and outlines the five stages of awareness, desire, knowledge, ability,
and reinforcement.

2. McKinsey 7-S Model: This model focuses on the seven interdependent

elements of an organization - strategy, structure, systems, style, staff, skills, and
shared values - and how they need to be aligned for successful change.

3. Bridges' Transition Model: This model focuses on the psychological and

emotional aspects of change and outlines the three stages of endings, neutral
zone, and new beginnings.

4. The Continuous Improvement Model: This model emphasizes the

importance of continuous improvement and incremental change rather than
radical change. It involves identifying areas for improvement, testing potential
solutions, and implementing changes gradually over time.

There are many other models for change management, and choosing the right
one depends on the specific needs and context of the organization.

What did Milton Friedman have to say regarding

Change Management?
Milton Friedman, an American economist and Nobel laureate, was known for
his advocacy of free-market capitalism and minimal government intervention.
He did not specifically address the topic of managing change, but his views on
economics and business can provide some insights.

One of Friedman's famous quotes is "Only a crisis - actual or perceived -

produces real change. When that crisis occurs, the actions that are taken depend
on the ideas that are lying around." This suggests that change may be driven by
external factors such as economic crises or market disruptions, and that the
ideas and solutions that emerge during these times will shape the direction of
change.

Friedman also believed in the importance of market forces as the primary

driver of change. In his view, competition and innovation are the key drivers of
progress in business and society, and government intervention should be
minimal in order to allow markets to function efficiently.
Overall, Friedman's views on change management emphasize the importance of
market-driven solutions and innovation, and suggest that change is often driven
by external factors that require adaptation and flexibility.

What are the various responses to change,

burning bridge etc?
There are several responses that individuals or organizations may have to
change, including:

1. Burning Bridges: This is when a person or organization completely cuts ties

with the past and embraces the change wholeheartedly. It can be an effective
way to commit to the new direction and prevent any temptation to revert to old
ways.

2. Denial: This is when a person or organization refuses to acknowledge the

change and may try to maintain the status quo. This response can be harmful if
the change is necessary for growth or survival.

3. Resistance: This is when a person or organization actively opposes the

change and may try to sabotage it. This response can be problematic and may
require intervention to address.

4. Acceptance: This is when a person or organization recognizes the change

and adapts to it. This response is often the most effective way to manage change
and move forward.

5. Exploration: This is when a person or organization uses the change as an

opportunity to try new things and innovate. This response can be positive if the
change is seen as a chance for growth and improvement.

6. Compromise: This is when a person or organization seeks a middle ground

between the old ways and the new direction. This response can be effective if it
allows for a smoother transition and buy-in from all parties involved.

Overall, the response to change will depend on the individual or organization

and the specific circumstances of the change. It is important to recognize the
change, assess the potential impacts, and choose a response that will facilitate
the most positive outcome.