Change Management

Anil Shah
Change Management
Agenda

1. Changes in General

1.1 Examples
1.2 The Natural Principle of Change

2. Change Management

2.1 Definition & Purpose

2.2 The Importance of "Soft Facts" in the Change Process
2.3 The Possible Causes of Changes & Crisis
2.4 The Phases of the Change Process
2.5 Resistance in the Change Process
2.6 Communication as a Means of Reducing Resistance
2.7 The Role of the Superior in the Change Process

3. Summary
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 " Wind of change "

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 When the wind of change blows,
some build walls,
others build windmills.
(Chinese proverb)

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Change Management
1.1 Examples of Changes

In the past: Today:

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Change Management
1.1 Examples of Changes

In the past: Today:

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Change Management
1.1 Examples of Changes

In the past: Today:

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Change Management
1.1 Examples of Changes

In the past: Today:

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Change Management
1.1 Examples of Changes

In the past: Today:

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Change Management
1.1 Examples of Changes

In the past: Today:

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Change Management
1.1 Examples of Changes

In the past: Today:

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Change Management
1.2 The Natural Principle of Change

Nature
Evolution

Seasons

Animal kingdom

Human
Maturity

Life events

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Change Management
Finding No. 1

Aha!
Change is
natural and
ever-present!

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Change Management
Finding No. 2

Aha!
Changes
in a private and professional
sphere can be an example
and a motivation!

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Change Management
2.1 Definition

Change management is a planned

process whereby the organizational,
process related, cultural and behavioral
aspects within the change framework are
completely considered (hard and soft
facts) and integrated into a target based
process.
Source : Porsche Consulting GmbH

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Change Management
2.1 Purpose

Complete consideration
(hard & soft facts)
- organizational
- process related
- cultural
- behavioral aspects

Target based

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Change Management
2.2 The Importance of "Soft facts"

The Iceberg-Principle
Logical, rational
Consciously
Material
Hard facts Exterior
Facts
Technical competence

Emotional
Unconsciously
Intangible
Soft facts Interior
Feelings
Social competence

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Change Management
2.2 The Habitual Circle
Effort

Danger Risk
Feeling of safety

Success Calmness
Fear Pain

Security Order

Convenience
Activity
Insecurity

Unpredictability

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Change Management
2.2 The Habitual Circle
Effort

Danger Risk

Fear Pain

Change
Crisis Change
Crisis

Insecurity Activity

Unpredictability

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Change Management
2.3 The Possible Causes of Changes & Crisis

Competition (new/existing competitors)

Changed customer expectations

Change
Negotiating power of suppliers

Changes in the political environment Organization

A change in the social environment (e.g. trends) Change

Changes in the economic environment (e.g. recession)

Costs too high, level of inventories too high

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Change Management
Finding No. 3

Aha! A crisis is an
essential
part of
change!

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Change Management
2.4 The Phases of the Change Process

Source: Prof. Malik, MSZG, according to S.A. Spencer/J.D. Adams, Life Changes (1992)

November 3, 2008 Source: Porsche Consulting

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Change Management
Finding No. 4

Aha!
A change process always
undergoes several phases
that require a lot of time and
staying power!

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Change Management
2.5 Resistance

Source: Prof. Malik, MSZG, according to S.A. Spencer/J.D. Adams, Life Changes (1992)

November 3, 2008 Source: Porsche Consulting

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Change Management
2.5 General Symptoms of Resistance

Verbal Nonverbal
(Talking) (Behavior)
Active Opposition: Agitation:
(Fight) Counter arguments Disturbance
Accusations Argument
Threats Intrigues
Condemnation Rumors
Stubborn bureaucracy Formation of cliques
Passive Evasion: Sluggishness:
(Flee) Silence Inattentiveness
Fooling around Tiredness
Belittling Absenteeism
Ridiculing Withdrawn
Debating unimportant Illness
points
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Change Management
2.5 Basic Principles for Handling Resistance

Source: K. Doppler/C. Lauterburg, Change Management (2006)

November 3, 2008 Source: Porsche Consulting

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Change Management
Finding No. 5

Aha!
There is no
change
without resistance!

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Change Management
2.6 Communication as a Means of Reducing Resistance

Punctual, selective and continuous communication gives orientation regarding

time, contents and personal effect

Key questions of a communication concept:

When does the change begin?
Orientation regarding -
What does happen when?
time
How long does the change process take?

What changes exactly?

Orientation regarding -
What does not change?
content
What needs to be done?

Who shows the direction?

Orientation regarding -
Who is responsible?
personal
What meaning does the change have for me?
November 3, 2008 Source: Porsche Consulting
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Change Management
2.6 Communication as a Means of Reducing Resistance

To inform your employees is insufficient -

If you want a radical change you have to involve the person concerned

November 3, 2008 Source: Porsche Consulting

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Change Management
Finding No. 6

Continuous
Aha!
communication and
involvement help to
reduce
resistance!
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Change Management
2.7 The Role of the Superior

Active handling of resistance, continuous communication and

leadership are the key tasks of a change process

Establish the direction

Develop a vision and define strategy

Act as a role model

Form a culture and show the changes

Make the change possible

Inform and enable employees

Being active
Move out of your own comfort-zone
November 3, 2008 Based on: Porsche Consulting
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Change Management
Finding No. 7

The tasks of the manager

Aha!
in the change process:

Setting the direction

Acting as a role model
Being a facilitator for change
Being active

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Change Management
3. Overview of the Findings

1. Change is natural and ever-present!

2. Changes in a private and professional sphere
can be an example and a motivation!
3. A crisis is an essential part of change!
4. A change process always undergoes several phases,
that require a lot of time and staying power!
5. There is no change without resistance!
6. Continuous communication & involvement
help to reduce resistance!
7. The tasks of the manager in the change process:
- Setting the direction
- Acting as a role model
- Being a facilitator for change
- Being active
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Change Management
3. Summary

Crisis
Danger
Chance
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Change Management
3. Summary

Change is the future!

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 Thank you for your attention!

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