Ethiopian Public Administration,

Governance and Ethics

Fundamentals of Change Management

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 Guiding Questions

• What is change? And change

management?
• Why change?
• How to manage change?

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 Contents
1. Definition of Change and change management
2. Purpose of Change
3. Change Management Models

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 Definition of Change
• Change is the process of alteration or transformation
that individuals, groups and organizations undergo in
response to internal and external factors.
• Organizational Change refers to "the movement of an
organization away from its present state towards
some desired future state to increase its
effectiveness” (Broome: 1998).

Present How? Future

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 Definition of Change Management
• Change management is the process of planning,
directing and controlling all activities involved in a
state of change to ensure that change programs
meet preset objectives and goals.
• Change management is an important issue in all
industries and organizations. It is of relevance to a
wide range of situations at all levels from individual,
team and organization to leadership.

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 Purpose of Change
Why change is necessary or important to
organizations?
• Environmental change: to adapt to
environmental change, organizations must
develop new products, services, modify their
structure, introduce new technology, or change
work methods and change employee’s behavior.
• To meet changing customer needs
• To meet changing market conditions
• To respond to internal pressures
• To take advantages of new opportunities 6
Effectiveness of Change

Not all changes are actually effective. Some changes

may fail.
Effectiveness of change is going to be seen when the
following points are achieved.
Change is achieved when the organization is moved
from a less desired state to a more desired one; and
the indicators for this are:
• Organization meets planned expectation
• No undue costs to the organization
• No undue costs to the individuals

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Why Change programs fail?
• Change programs are common but research
indicates that two-thirds of all organizational
changes fail
• Several of the most common reasons for failed
change programs include:
– lack of commitment from the top
– change overload
– lack of incentives tied to the change initiative
– lack of training

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Cont’d…
 Communication breakdown
 lack of space and support

 unclear objectives

 lack of performance measures, and

 underestimating emotions

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Targets for Organizational Change
• The five major areas of change include:
– Strategy – develop new visions, missions,
strategic plans
– Structure – add a new department or division,
or consolidate two existing ones
– People – replace a person or change
knowledge, skills, attitudes, or behaviors
– Technology – upgrade a data processing system
– Management –encourage participation by
those involved in solution of problems
 Approaches or Strategies for
Organization Change
• The planned changes are
sought through the following
three Strategies/Approaches:
–Structural changes
–Technological changes
–Value centered changes
 3. Models of Change
• Kurt Lewin has proposed two models of
change in 1951. These are:
- Force field analysis
- A three step change process
1. Force field analysis
• By force field analysis, we have three step
change process which involves an interplay
of multiple opposing forces.

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 Models of Change…
• These forces are driving forces, restraining forces and
the role of change manager in the interaction
between these two forces (interaction management).

Driving Forces
Forces Interaction Restraining
Mgt.

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 Models of Change…

The steps of change as put forward in the Force field analysis are:
•The first step is identifying and analyzing driving & restraining
forces.
• The second step is assessing which forces are critical.
- Not all forces are equally important in driving or holding the
change back.
•The third and foremost important step is increasing the critical
driving forces and decreasing the critical restraining forces.

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 Models of Change…
• Force field analysis: Example

Driving Forces Restraining forces

e.g., e.g.,
• Experienced • Fear of unknown
workforce (fear of loss of job)
• Committed work • Unskilled, obsolete
force human resource
• Flexible • Loss of influence
organizational (may be from top
culture management)

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 Models of Change…
2. Three phases (steps) of change theory
• This theory is about unfreezing, changing and
refreezing.
• What do we unfreeze? What do we change? What
do we refreeze?
• Lewin thinks that any change suffers from three
problems.
1) unwillingness to change
2) Inability to change
3) Inability to sustain the change

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 Models of Change…
• Lewins 3 Phases Change Theory

Unfreeze Change Refreeze

•Behavior
Raised State of •Change
advocated and stabilized
Tension
implementation
Climate adapted •Desired
begins
to minimize Attitudes
resistance Changes tested
•Values
Dissatisfaction and adapted for
internalized
with status quo desired results
& reinforced

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 Models of Change…
Illustration

A Awareness of the need for change

Desire to support and participate in
D change

K Knowledge of how to change

A Ability to implement change

R Reinforcement to sustain change

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Kotter’s 8 Step Change Model

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Eight Step Change Model
Build a
Create
guiding
urgency
team

Make Create a
change vision for
stick change

Don’t let Remove obstacles /

up communicate

Create
Empower
short-
action
term wins
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 1

CREATE URGENCY

Helping others see the need for change &

the importance of acting quickly

Slide 21
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 2

BUILD A GUIDING TEAM

Ensuring there is a powerful group, with the appropriate leadership skills, credibility & authority to guide the change process

Slide 22
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 3

CREATE A VISION FOR CHANGE

Creating a picture of the future & how it

will be different from the past

Slide 23
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 4

COMMUNICATE THE CHANGE VISION

Ensuring everyone understands

& accepts the vision

Slide 24
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 5

REMOVE OBSTACLES

Removing the barriers to making change successful

Slide 25
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 6

CREATE ‘SHORT TERM WINS’

Create clear, visible success stories early in the process

Slide 26
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 7

CONSOLIDATE GAINS &

PRODUCE MORE CHANGE – DON’T LET UP

Recognise more change opportunities following the

‘quick wins’ to take full advantage of the momentum for change

Slide 27
 KOTTER’S MODEL -
THE 8 STAGE PROCESS

STEP 8

ANCHOR THE NEW APPROACHES

IN THE CULTURE

Ensure the new ways of behaving are recognised & rewarded to embed the change into the organisational culture

Slide 28
Ethiopian Public Administration,
Governance and Ethics

Reasons for Public Sector Reforms

and Change Management
Approaches In Ethiopia

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 Public Sector Reforms…

Guiding Questions
• Why change is necessary for Ethiopian public
sector?
• What changes have so far taken place in Ethiopian
public sector?
• What change management approaches and tools
have been implemented to improve the quality of
public service in Ethiopian public sector? And how
do you evaluate their results?
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 Public Sector Reforms…
Contents
1. Reasons for change in Ethiopian public sector
2. Changes in the Ethiopian Public Sector
3. Change Management Approaches

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 Reasons for Changes in the Ethiopian Public Sector

•Reasons for change in the Ethiopian public

sector, as the research conducted by
Meshesha (2002), include:
Excessive politicization of the Civil Service
Erosion of the Merit Principle
Non-transparency and unaccountability of the
civil service to the people it serves
–Unethical practices
–Highly centralized administration
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 Cont’d…
•So, these and others were the major problems that the then
Ethiopian public sector is said to have and with these
problems, it was hard to contribute as much it was expected
to the national socio-economic development.
Conclusion
-For the researcher, the Ethiopian public sector was found to
be of poor capacity to implement the government policy.
-It doesn’t have actually the necessary requirements in terms
of attitude, knowledge and skill base so that it can not
contribute to the fast socio-economic growth which can take
Ethiopia from low income county to middle income
country.

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 Cont’d…

• In addition to the above problems, there were also

Weak human power base
- The weak human power base which actually is not
referring to the number, but it refer to the quality of the
workforce.
Lack amenability to change
- Whatever change it is going to be thought about , the
Ethiopian public sector was thought to be change immune
(change resistant).
-Therefore, from this we can understand the need for
change! 34
 2. Change Management Approachs
Guiding Questions
- How can we bring about the necessary change?
- What tools do we have to apply?
we can think of such approaches like,
• Decentralization
• Performance management
• Balanced Score Card
• Benchmarking
• Total Quality Management (TQM)
• Business Process Reengineering (BPR)
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 Change Management Approach…
Lets know discuss each approach one by one .
1. Decentralization
-The public sector was highly centralized for
administration, then the possible solution is to
decentralize the administrative system so that
we can solve the problems associated with
highly centralized public service delivery.
Decentralization is:
- Sharing power with and devolving authority to
lower tiers of government.
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 Change Management Approach…
- It is a worldwide trend which most countries
in the world is actually approaching by
simply pushing power to where the work is
going to be really done.
- Ethiopia follows a policy of decentralization
since 2002 and to this effect, local authorities
and communities are empowered.

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 Change Management Approach…
Example
Imagine that all the HRM functions except
attendance keeping & payroll are handled at MoE
level for all universities. HRP, recruitment &
selection, T & D, Promotion, etc are centrally done.
• Here what do you expect?
• Would it be easy for one to address what each
particular university needs depending on its
reality?
• Would the decisions that centrally have been
passed fit the interest of each university?
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 Change Management Approach…

• Would each university be committed to

implement what is centrally planned?
These questions always remain unanswered
where decentralization is not possible.
• As a result, decisions are slow & inaccurate,
and local needs are hard to address.
•This and the like situations dictate the need
for decentralization.

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 Change Management Approach…

2. Performance Management (PM)

• The public sector was not merit based.
• Thus, we can bring about better merit based human
power management that can serve the public in an
efficient and effective manner through the application of
Performance Management .
•This is about managing the achievement of assigned
duties and tasks by employees.
• Performance management is not new as a tool/system in
private sectors.
• But, it is new to be applied in the public sectors.
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 Change Management Approach…
• This particular system is aimed at the attainment of an
organization’s mission.
• Performance can be conceptualized from three view points:
 Organizational
 Departmental/Divisional
 Individual

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 Change Management Approach…
Example
- Think of the formats and techniques you use to
appraise your subordinates in those institutions you
were working before.
And think of how those formats were just designed.
What behavior do they measure or evaluate? Why and
how are they going to be used by managers ?
The following form is a simple illustration of how
performance management can be designed especially
to manage individual performance.

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 Change Management Approach…

Criteria High Medium Low

Competency ______ _______ ______

Courtesy ______ _______ ______

• We have to have a certain criteria against which we
are going to evaluate the performance of individuals.
And that criteria is going to measured along certain
scales which can be put as high, medium and low.

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 Change Management Approach…
• What is going to be measured as high, medium or
low is simply the criteria.
• Examples of criteria along which you can measure
ones own performance is competency. Competency
means the combinations of the skill, knowledge and
attitude that an individual has or required to perform
a certain job.
• In addition to competency, there is also need to
know whether somebody is courteously giving or
offering the service has to be measured. This
courtesy is going to be measured in the same scale.
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 Change Management Approach…
• So that, the response you get from this measurement
is used for further decisions like,
- whether you need to give competency based
training to employees who is rated low, or
- whether to promote those who have better
competency and so on.
• Still what matters is how you are going to use the
performance evaluation results in correcting the
weaknesses of the organization or the division or the
individual said to undergo this given evaluation.

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 Change Management Approach…
3. Balanced Score Card (BSC)
• The other change management approach that
was taken into Ethiopian public sector reform
was the Balanced Score Card.
• BSC and performance management share many
features but, BSC has come to correct some of
the weakness of the application of PM system.
•The more recent approach that can bring about
all rounded measurement of and development of
human power is Balanced Score Card.
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 Change Management Approach…
• BSC focuses on:
 Critical few strategic matters which was not true for
PM
 Aligning individual performance with
organizational goals more by simply focusing on
few strategic matters that the organization needs to
focus on.
 Translating organization’s vision in to concrete
actions and results through physical and spiritual
cascading
 Linking intangible assets with expected tangible
results like the quality of leadership, the skill and
attitude of employees. 47
 Change Management Approach…
 Thinking beyond financial bottom lines
contrary to the PM which help us to see how
employees’ capacity and leadership
capability can be improved, evaluated and
managed.
 Promoting process efficiency and a culture
of performance.
 Addressing issues consisting of financial
aspects, internal processes, customers
needs and leadership capacity or learning
and development.
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 Change Management Approach…
4. Benchmarking
• This is currently being practiced by most public sectors.
• This particular change management approach is about
identifying the best practices somewhere in any organization
or in our country or in the world, and analyze it and
contextualize to one self so as to make your service delivery
system better.
- Identifying is not an end by itself but it is a means towards
comparing the performance between different organizations.
Finally after comparing, it is about emulating (copying) the
best practices, contextualizing it and owning.

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 Change Management Approach…
5. Total quality management (TQM)
•This is also another approach of change management
which actually is about:
- quality management
- meeting customer needs and expectations through
company wide participation.
• This can be simply possible by TQM by continuously
improving ones own processes.
• Everyone has a customer and is responsible for
quality.

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 Cont’d…
• The basic concepts of TQM are:
– Everyone has a customer
– Adopt a partnering philosophy with suppliers
– Everyone is responsible for quality
– Focus on preventing problems not fixing them
– Teamwork
– Works according to synergy effect
– Addresses 2 P’S and 1 t
– Processes fail most of the time not people
– Top Management must lead
– Middle management must support 51
Change Management Approach…

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 Change Management Approach…
6. Public - Private Sector Partnership (PPP)
• Two parties are here. Public and private.
• Here, the justification is the not only government can
cover whatever services the citizens need. Then, the
idea was that, what if we engage the private sector in
the process of delivering the services that the public
need and the tool was called Public - Private Sector
Partnership (PPP).
• How would it be possible to participate the private
sector?
• Let us discuss the following concepts:
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 Change Management Approach…
1. Privatization
- Change the ownership title of some of public organizations
through leasing, renting, at times through selling. Then, the
private would have chances to buy or to get on lease. So
that they are owned and operated by the private sector but
still serving the citizen of the same country Ethiopia.
2. Joint ventures
- Meaning both the government and the private sector own
different entities or organizations delivering services or
producing goods as per the reasons for participation of the
government.

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 Change Management Approach…
Here, the government is going to do some part of the job
and the private sector is going to do another part of the
same job.
3. Contracting out services
In an already government owned organizations if not all,
some of the services will be contracted out. Meaning, you
call up on the private to deliver some part of the services.
This is subcontracting or contracting out a very limited
portion of the total service that the public organizations
deliver.
E.g., the security service delivered by private agency in
Black Lion Hospital.
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 Change Management Approach…
4. Concession
This is giving especial considerations for private sectors.
For example, buying materials only from specified
privately owned enterprises by the government to
encourage them.
The government may buy some materials from micro and
small enterprises to motivate them. This enterprises may
be encouraged in terms of marketing, tax exemption and
credit service, etc.

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 Change Management Approach…
5.Enabling policy environment for the private sector to
function properly.
- Making conducive environment where the private sector can be
motivated and supported, and engaged in investing their wealth in
serving the public.
•Concerning the PPP, it is good to take one example about how well
the PPP regarding delivery of the higher education service improved
the quality as well as the accessibility of the service to those who
deserves it.
For example, before the private sectors are allowed to engage in
establishing universities to deliver higher education service, you can
imagine how many private universities were there and how many
Ethiopian graduates of high school have had opportunities to

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 Change Management Approach…

join universities.
• Just after the permission for the private sectors to engage
in investment on higher education service, the number of
universities are being increased. They are serving the
same purpose that the public universities serve.
• The public universities are also start to compete with the
private universities to improve their services.
• By doing so, the government has managed to bring out
greater accessibility of the higher education service as
well as better quality in the same field.
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 Change Management Approach…
7. Business Process Reengineering (Hammer)
• This is a recent phenomena in Ethiopian public sectors.
• It is about fundamental rethinking and radical redesigning
ones own business processes so that better performance
will come in the process of delivering service.
• BPR has some form of relationships with TQM but it is
drastically different from TQM. In a sense that, TQM was
about continuously improving quality through continuous
improvement of process, but BPR doesn’t accept this kind of
improvement.
• It says things should not be improved continuously but one
time fundamentally and radically. Radical change, not
incremental.
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 Change Management Approach…
• BPR actually aims to achieve dramatic improvement in
critical contemporary measures of performance such
as:
(a) Cost (b) Quality (c)Service (d) Speed
• BPR has to result in better cost meaning lower cost,
better quality, better services to the customers and
faster service delivery by any measure. In short, it has to
result in better customer satisfaction.

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 Management of Change
Some of the techniques/strategies used to overcome
resistance to change are:
Education and communication: educating and
communicating people who resist change using one- to
one discussion, conference, broachers and reports
Participation and involvement: involving those who
resist change in designing and implementation of change
Facilitation and support: facilitating grounds for change
by providing training, counseling so that barriers to
change can be prevented
Negotiation and agreement: when necessary
management offer incentives ( bonus, wage, salary and
recognition) for cooperation with the change
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 cont’d
Manipulation and cooptation: giving an informal group
leader a desirable role in the designing and
implementation of a potential change. It is a tactic of
neutralizing or wining over a minority by assimilating
them in to established groups
Explicit and implicit coercion: applying punishment to
those who resist change.

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 Minimizing Resistance to Change

Communication
Coercion

Training
Manipulation &co-operation Minimizing
Resistance
to Change Employee
Involvement
Negotiation
Stress
Management

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