Professional Documents
Culture Documents
Organizational Change Management
Organizational Change Management
Management
Abdelmutalab Ibrahim
Agenda
Learning Objectives
• Overview
• Change Strategies
• Questions?
• True or False:
• People have a natural resistance to
change.
• People get bored with routine and
seek out new experiences.
• Older people are more resistance to
change.
ResistanceResistance
by Employees
By Employees 82%
Inadequate Inadequate
Sponsorship
Sponsorship 72%
Unrealistic Expectations
Unrealistic Expectations 65%
Business
BusinessCase notCompelling
Case not 46%
Compelling
Project Team Lacked /Skills
Scope Expansion Uncertainty 44%
ScopeProject
Expansion /
Team Lacked Skills 44%
Uncertainty
No Organizational Change
No Organizational Change Plan 43%
Plan
Silos/No
Silos Horizontal
/ No HorizontalProcess
Process View 41%
View Source: Deloitte CIO Survey
IT Perspective not Integrated
IT Perspective not Integrated 36% Change Leadership issues are noted in
RED
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
% of Firms
"Everybody has accepted by now that change is
unavoidable But that still implies that change is like
death and taxes it should be postponed as long as
possible and no change would be vastly preferable.
But in a period of upheaval, such as the one we are
living in, change is the norm."
–Peter F. Drucker
People don't resist change. They resist being changed!"
— Peter Senge
"Even those who fancy themselves the most progressive will fight
against other kinds of progress, for each of us is convinced that our
way is the best way."
— Louis L'Amour
The Lonely Men
12
Organizational Change Management
Goal
Organizational Culture
Damage to
Healthy health
pressure
Break
Amount of Stress
Amount of Change 21
Change and Self Esteem
• Significant organisational changes
create a decline in self esteem for many
of those who are directly affected
• Rebuilding the self esteem of employees
may be a key factor in helping them to
recover their performance
22
The Coping Cycle
Denial
Internalising
Defence
Adapting
Discarding
23
The Coping Cycle -
Stage 1 - Denial
• People tend to prefer the present
circumstances to any proposed changes,
even if they had previously complained
about them!
• Sudden changes can result in mental
paralysis
• There is a feeling of being under threat
• People will look for excuses why change is
not necessary and may pretend that the
change won’t really happen
24
The Coping Cycle -
Stage 2 - Defence
• When people are faced with the
realities of new circumstances
they may become depressed and
frustrated, not knowing how to
deal with the changes
• They may try to defend their job
territory
• They may try to reject new
practices and approaches
25
The Coping Cycle - Stage 3 -
Discarding the Past
• People eventually let go of (discard)
the past
• They may need support and the
opportunity to get used to the new
systems
• They come to see the changes as
inevitable and/or necessary
• They are ready and brave enough to
try to make the new systems work
• They need time to ‘grow’ into the new
situation and recover a sense of self
esteem. 26
The Coping Cycle -
Stage 4 - Adaptation
• People learn to adapt to the new
situation and try out new
behaviours
• Technical and operational
problems are identified and
modifications made to deal with
them
• People continue to try to make
things work and need the time and
space to be able to do this 27
The Coping Cycle - Stage 5 -
Internalisation
28
Resistance to Change
The tendency for employees to be unwilling to
go along with organizational changes, either
because of individual fears of the unknown,
or organizational impediments.
Related Topics:
– Individual barriers to change
– Organizational barriers to change
– Readiness for change
– Overcoming resistance to change
Karan Watson
Sources of
Resistance to Change
Power-Cut
Parochial self-interest Loss
Demolition
Ignorance
Misunderstanding and lack of trust Mistrust, fear of unknown
Disbelief
Contradictory assessments
Inadequacy
Comparison
• Silence,
• Deflect,
• Criticism,
• Confusion,
• Denial,
• Easy agreement
Structural inertia
Work group inertia
Threats to existing
balance of power
Previously
unsuccessful
change efforts
any person,
person group or organization
who can be positively or negatively
impacted by,
by or cause an impact on,on
the actions or activities proposed
What is Stakeholder Analysis ?
–The Stakeholder Analysis is a method for identifying
internal and external stakeholders, their concern and
objectives, their potential influence, and how to deal
with them.
Why use it ?
–Managing the stakeholders relationships is an
important key in reaching a successful change
outcome. The analysis is an important part of defining
the change purpose, objectives and success criteria -
in general and in respect of the key stakeholders. The
analysis is a part of the foundation for developing
communication plans with the internal and external
stakeholders.
Stakeholder Analysis
Purpose: To identify:
28 - 30 September, 2005 49
Putrajaya, Malaysia
Stakeholder Analysis Process
1. Identify Stakeholders
2. Analyze Needs and Wants
3. Identify Barriers to Change
4. Best Means for Communication
5. Ideas for Participation and Leveraging their
Skills and Knowledge
2.Estimate attitude
Mark degree of confidence in estimate
3.Estimate Influence
Mark degree of confidence in estimate
53
Merger Scenario
• You are the owner of a privately owned business in Halifax with a
significant market share in Ontario, Quebec and Atlantic. You have
worked out a deal with a Calgary based company with products in
the same sector (but not a competitor) to merge into a Canada-wide
public company. There are about 200 employees in each company.
Your operations overlap in the Ontario and Quebec markets, each
with sales and distribution offices in Toronto, London, Montreal, and
Quebec. Your primary assumptions for this merger are to increase
market share for each product line while at the same time improving
costs by consolidation of some assets and reduction in overheads.
You expect some reduction in total staff at first but you anticipate
that the new company will grow at a rate of at least 10% per year
after the merger is complete.
18-58
18-59
Quasi-
Stationary
Equilibrium
Driving Forces
Restraining Driving
Forces
Forces
Restraining
Forces
Current Driving
Conditions Forces
Driving
Forces
66
Phases of planned change
Phases of planned change
– Unfreezing
• The phase in which a situation is prepared for change
and felt needs for change are developed.
– Changing
• The phase in which something new takes place in the
system, and change is actually implemented.
– Refreezing
• The phase of stabilizing the change and creating the
conditions for its long-term continuity.
67
Management 9/e - Chapter 12
Lewin’s three phases of organizational change.
68
Change Strategies
Gerry Giffin
Helping Change Management Skills Workshop July 13, 2006 69
Organizations
Organizational Change Strategies
72
Management 9/e - Chapter 12
How can planned organizational change be managed?
8. Make it Stick
Implementing & Sustaining
Transformation
7. Sustain the Change
Engaging & Enabling the
Whole Organization 6. Create Short-term Wins
5. Plan/Organize/Enable Action
Creating a Climate for
Change 4. Communicate for Buy-in
People start telling each other, “let’s go, we need to change things!”
Create a Sense of Shared Need
1 [Note: This is the most important step. If you lose urgency the change effort grinds
and Urgency
to a halt, maintain it and you will be able to navigate the remaining 7 Steps.]
A group powerful enough to guide a big change is formed and they start to work
Create the Vision and Build the
2 together well. The guiding team develops the right vision and strategy for the
Guiding Team
change and begins to engage key stakeholders.
The guiding team identifies the organizational and personal impacts required to
3 Define the Change Impacts
realize the vision.
4 Communicate for Buy-In People begin to buy into the change and this shows in their behavior
5 Plan/Organize/Enable Action More people feel able to act, and do act, on the vision.
Momentum builds, as more and more people try to fulfill the vision, while fewer
6 Create Short-term Wins
and fewer resist change
7 Sustain the Change People make wave after wave of changes until the vision is fulfilled
People keep behaving in new ways despite the pull of tradition, turnover of
8 Make It Stick
change leaders, etc.
Based on Kotter, John P. Leading Change. Boston: Harvard Business School Press
Tools & Accelerators for Each Step
8. Make it
Stick
7. Sustain the
Change
Change
6.
6. Create
Create Short-
Short- •• Targeted
• Persuasion
• Negotiation
• Consensus
• Involvement
• Know your Supervisor
• “Change Agent” in your Profession
Becoming A Change Agent
– Competence
• You need to have/get the skills to get it done
– Passion
• The mystery glue that holds it together
• Provides the extra drive to make it real
• Clothing
– FitLogic
• Internet
– Privacy, Inc.
• FitLogic
– Develop a standardized fit system by age, ethnicity,
and product preferences
• Privacy, Inc.
– Develop virtual email and credit card ability to
preserve personal information online
– Educate public re: differences of security and
privacy
© The Weklar Consulting Group 2004
Becoming A Change Agent
• Monitoring Accountability
– Effective Strategy Execution Requires
• Strong Project Management
• Assigning responsibility for each activity
– Timelines need to be established
• Good Communication among and between all
team members
• Ability to be flexible and “refine” programs when
issues become apparent
• Continually motivate and focus on Mission
© The Weklar Consulting Group 2004
Becoming A Change Agent
Making An Impact
• Educate, Educate, Educate
– Use all vehicles (networks,media)
• Overcoming Objections
– Yes—It can be done!
107