CHANGE MANAGEMENT
NIGEL H. TOMLINSON CHIEF EXECUTIVE
SHEFFIELD CHAMBER OF COMMERCE & INDUSTRY
Some Thoughts About Change
Things do not change; we change. Henry David Thoreau
We must be the change we wish to see in the world. Gandhi
There is a better way for everything. Find it!. Thomas Edison Everyone thinks of changing the world, but no-one thinks of changing himself. Leo Tolstoy We do not succeed in changing things according to our desire, but gradually our desire changes. Proust And if not nowwhen? Talmud Treat people as if they were what they ought to be and you help them to become what they are capable of being. Goethe
The Imperative of Change
Expect nothing; be prepared for anything Samurai saying
At this time there are six major external changes which influence organisations:
1. A bigger global market-place made smaller by technology and competition from abroad. Health consciousness as a permanent trend amongst all age groups throughout the developed world.
2. A worldwide recognition of the environment as an influencing variable. 3.
4. The demographic slump in the developed world means there are fewer young people to go round. 5. The changing workplace and skills shortages create a need for non-traditional employees. 6. Women in work and management is an ever increasing trend.
The Major Causes of Change
Think of changes that have occurred in your working life. How often were the following causes of change involved in some way?
Changes in the level of technology used?
Changes in customer expectations or tastes? Changes as a result of competitors activities? Changes as a result of Government legislation?
Changes as a result of alterations in the economy?
The Result: You will change. There is no alternative. The organisation and employees can either be reactive or pro-active.
Those that survive will be world class.
The quality of people and their management is going to make a bigger difference than the quality
of products or the quality of services Rosabeth Moss Kanter
Examples of Environmental Influences
Economic Factors and Restructuring e.g. re-united Germany 1990s
Capital Markets e.g. corporate losses
Labour Market e.g. drive to reduce costs, higher skills
Competition e.g. increase in tendering organic and acquisitive
Economic Forecasting
Financial Policy
Labour Policy & Industrial Relations
Marketing Policy
Demographics e.g. ageing population
Demographic
Lobbying
The Enterprise
Forecasting Environmental Sensing R & D Policy
The Enterprise
Representation Environmental Sensing R & D Policy
Government e.g. national and transnational budgets, interest rates, employment law
Purchasing Policy
Socio-Cultural e.g. quality of life, health, mobility
Technology e.g. reduces product life cycle, investment costs increase
Ecology e.g. environmental laws and protection
Supplies e.g. raw materials scarcity, supply and demand
The Major Obstacles to Change
I do not know the key to success, but the key to failure is trying to please everybody Bill Cosby People being too close to see what the problem is.
Those who are part of the problem.
Being unwilling to confront issues when status and remuneration are involved.
Those who are part of the power system being examined.
Those who are afraid to challenge the needs and demands of superiors.
Those who quite simply do not like change or having to think about something. Habit is either the best of servants or the worst of masters. Nathaniel Emmons
The Sheffield/South Yorkshire Scenario
The Past
Sheffield was the industrial and commercial powerhouse of its region. Heavy dependence on, and dominance by, Steel, Heavy Engineering and Mining.
High proportion of small/medium/large family-owned companies operating a paternalistic management style. Exclusive reliance upon authority which only encouraged counter measures, minimal performance, even open rebellion.
Lack of innovation and acceptance of new ideas and/or technology whilst the competition embraced them. Heavily Unionised with specific and rigid job demarcation, workforce with narrow skills base. City/Town Councils and Government constantly at odds with one another. Public and Private Sector saw no need to co-operate. Highly reactive to external and internal issues and forces.
Result: Uncompetitive, outdated, lack of investment and left in the political and business wilderness. We needed to move to be World Class.
The Sheffield/South Yorkshire Scenario
The Present
Mines and steel mills closed - Rationalisation through technology improvements, changes in demand and competition. Thriving Medical, IT, Service Cultural and Sports related sectors. Over 70% of businesses are micros (1-10) or SMEs (10-199). Almost all of our large producers are owned by foreign companies. New entrepreneurial spirit has led to innovation, technologies and ideas to allow companies to compete. Job demarcation is giving way to transferability of skills, skills base being increased, flexible manufacturing systems being designed and adopted. Change of Government with a very different agenda. Sheffield City Council Executive working closely with business sector and beginning to revolutionise its own work practices. Public and Private Sector have come together in Sheffield First Partnership, South Yorkshire Forum to achieve Objective 1 status. Much more proactive approach across the region to secure inward investment, re-development, reduce social exclusion and promote change.
Result: We are still behind the pace setters but we have a better chance of catching up.
Where did we go wrong?
We had highly mechanistic organisations characterised by:
Task differentiation and specialisation.
Hierarchy for co-ordination of tasks, control and communications.
Control of all communications from the top, information provided on a need-to-know basis.
Interaction and emphasis placed on vertical reporting lines. Loyalty to the organisation and its officers. Value placed on internal knowledge and experience. We needed to have organic organisations characterised by: Continuous assessment of task allocation through interaction to utilise knowledge which solves real problems. The use of expertise power relationships and commitment to total task. Sharing of responsibility. Open and widely used communication patterns which incorporate horizontal and diagonal as well as vertical channels. Commitment to task accomplishment, development and growth of the organisation rather than loyalty to officials. Value placed on general and transferable skills which are relevant to the organisation.
What makes a Change Environment
1. There must be agreed requirements (Internal/External) - all employees develop willingness to provide service - establish needs.
2.
3. 4.
Customer requirements must be met first time, every time.
Quality improvements to reduce waste and total costs - everyone uses their time effectively and more meaningfully. A focus on the prevention of problems, reduce fire-fighting manner - Preventative rather than reactive.
5.
6. 7. 8. 9.
Improvement can only result from initial management action, but everyone must be encouraged to participate in shaping the process.
Every job must add value - Overall enhancement of quality of work and personal quality of life. Everybody must be involved from all levels and across all functions. A culture of continuous improvement must be established. An emphasis on measurement to assess and meet improvements in processes.
10. An emphasis must be placed on promoting creativity - the most valuable organisational resource is the human element NOT technology. Attitude is the key. An understanding that there is NO finishing line.
A FRAMEWORK FOR MANAGING STRATEGIC CHANGE Effective change management is a continuous process of confrontation, identification, evaluation and action James McCalman & Robert Paton Understanding processes of strategic change
Diagnosing strategic change needs
Managing the strategic change process
Styles of managing change
Changing organisational routines
Symbolic activity
Political activity
Leadership and change agency
As designed by Kindercare Inc, USA
The Seven Dynamics of Change (i)
1 2 3 4 People will feel awkward, ill at ease and self conscious People will think about what they have to give up People will feel alone, even if everyone else is going through the change People can handle only so much change
5
6
People are at different levels of readiness for change
People will be concerned that they dont have enough resources (time, money, skills etc)
If you take the pressure off, people will then revert back to old behaviour
The Seven Dynamics of Change (ii)
Strategies for dealing with each dynamic in a work related situation 1 People will feel awkward, ill at ease and self conscious Acknowledge it 2 People will think about what they have to give up Dont just sell people the benefits. Legitimise the losses and time for people to mourn the loss 3 People will feel alone, even if everyone else is going through the change Structure activities which create involvement. Encourage the sharing of ideas and working together. Instil the idea of joint working and support
People can handle only so much change
Set priorities and keep an eye on the outcome
People are at different levels of readiness for change Dont label or pick on people. Recognise that some people are risk takers and others take longer to feel secure
People will be concerned that they dont have enough resources (time, money, skills etc) Encourage and support creative problem solving
If you take the pressure off, people will then revert back to old behaviour Keep a focus on maintaining the change and manage the journey as well as the outcome. Build in slippage
STYLES OF MANAGING CHANGE
Implementation: Style Educations and Communication Means/Context Mutual trust/respect Small group briefings Small group/task force involvement Benefits Problems Time consuming Direction or progress may be unclear Time consuming Solutions/outcomes within existing paradigm Circumstances of Effectiveness
Overcoming lack of (or mis) information Increasing ownership of a decision or process May improve quality of decision Process is guided/controlled but involvement takes place
Incremental change or global change with long time horizon
Participation
Intervention
Change agents retains coordination/control, delegates aspects of change Exploit power through edict or imposition of change
Risk of perceive manipulation
Incremental or noncrisis global change
Coercion/edict
May be successful in crises or states of confusion
Least successful unless crisis
Crisis, rapid global change or change in established autocratic cultures
Organisational Resistance to Change
It is widely assumed that resistance to change is a common and natural phenomenon A Huczynski
The strategic direction of an organisation builds up a MOMENTUM of its
own which may be reinforced by ongoing success
The CULTURE of the organisation is likely to support this momentum of strategy. These two factors when linked may result in ORGANISATIONAL INERTIA when it comes to change
Faced with change there may be POLITICAL resistance within and around the
organisation
Machiavelli on Change and the Political Process
There is nothing more difficult than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and only lukewarm support is forthcoming from those who would prosper under the new. Their support is lukewarm partly from fear of their adversaries, who have the existing laws on their side, and partly because men are generally incredulous, never really trusting new things unless they have tested them by experience. In consequence, whenever those who oppose the changes can do so, they attack vigorously, and the defense made by the others is only lukewarm. So both the innovator and his friends could come to grief Source: The Prince by Niccolo Machiavelli Machiavellis 3 Principles: Establish whether you are in the position, in case of need, to maintain yourself alone, or whether you need the protection of others Esteem your nobles (managers), but do not make yourself hated by the populace (general staff) Follow the example of Ferdinand, King of Aragon and Spain, who continually contrived great things which have kept his subjects minds uncertain and astonished, and occupied in watching their result
McClellands Motivation Model
Direction Towards Motivated by Power Description Winning, beating everyone else, being the boss, top dog in charge
Away from
Power
Away from losing, having to take orders or being second best
Towards
Affiliation
Want to be loved, liked, popular, being part of the group
Away from
Affiliation
Fear that people wont like me, wont want me around. Not being part of the group
Towards
Achievement
Succeeding at whatever goal I have set myself
Away from
Achievement
Fear of not succeeding of failure
Implementation:
Unfreezing & the Management of Change
Organisational Symptoms Rumours and signals Questions and challenges Stages Unfreezing Mechanisms Pressures for Conformity Early signals made sense of within paradigm
Felt need for change
Organisational Anticipation
Political pressures not to rock the boat
Competing views of causes of problems and remedies Information collection
Organisational Flux
Information Building
Information made sense of within paradigm Resistance to new ideas
Political testing of support New ideas tested out
Experimentation Refreezing (the signalling or confirmation of change)
Gerry Johnson & Kevan Scholes Corporate Strategy
What are you worth?
Whatever your age, your upbringing, or your education, what you are made of is mostly unused potential George Leonard
In simple terms ...
Enough fat to make 7 bars of soap Enough iron to make one medium size nail Enough sugar to sweeten 7 cups of tea Enough lime to whitewash a chicken coop Enough phosphorous to make 2,200 match tips Enough magnesium to make a dose of salts Enough potash to explode a toy car Enough sulphur to clear a dog of fleas What are you really worth to the organisation? As an: innovative team playing reliable flexible disciplined results orientated person ...
You are worth your weight in gold!!
Some Thoughts About Attitude
Your work is to discover your work, and then with all your heart, to give yourself to it. Buddha One of the most important factors, not only in military matters but in life as a whole, is the ability to direct ones whole energies towards the fulfillment of a particular task. Field Marshall E Rommel
Once you say you are going to settle for second, thats what happens to you. John F Kennedy
Its your attitude, not your aptitude, which determines your altitude in life. Anonymous Im a great believer in luck, and I find the harder I work, the more I have of it. Thomas Jefferson The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty. Winston Churchill
KAIZEN - The Ki Principle
KI (crisis)
KI KEN KI KAI
DANGER = THREAT =
GOOD CHANCE = OPPORTUNITY =
DEAD END
SUCCESS
IT IS ALL ABOUT ATTITUDE!!
KAIZEN - Cultural Differences
The Western Perception
Top Management - Middle Management Supervisors - Staff Results: Exclusion Top down dictatorship Poor morale Communication through the grapevine
Innovation
Maintenance
The Japanese Perception
Top Management - Middle Management Supervisors - Staff Results: Participation & involvement Enhanced morale Increasing communication Improvement in discipline Better time management Greater skills development
Innovation
Maintenance
GENERAL IMPROVEMENTS IN ATTITUDE
KAIZEN - the Values
KAIZEN Means: Improvement Ongoing improvement including everyone!!
KAIZEN Philosophy:
KAIZENS Focus:
Simplicity - That our way of life be it working or social or home deserves to be constantly improved.
Improvement through Adaptability/Teamwork/Attention to detail People orientation/Open and shared information Cross functional orientation/Comprehensive feedback Building on existing technology/Systems
KAIZENS Requirements: Inherent desire for quality A belief that it will pay in the long run Behavioural change Positive attitude to change and improvement Missionary zeal A clear understanding that there is No End It is Continuous
KAIZEN - What Does It Do?
It demands continuous improvement in:
Customer orientation Total Quality Control Suggestions/Ideas Productivity Zero defects Small group activity Co-operative communications Transferability of skills
In order to eliminate: Muda (Waste) - Muri (Excess) - Mura (Uneveness) In:
Manpower Technique Method Time Facilities Way of thinking Output
KAIZEN - How?
1) Team Briefing 2) Training - Driven from the top-down and available to all
3) Objectives ie:
S - Specific M - Measurable A - Agreed R - Realistic T - Timebound i - Improvements in ones own work
ii - Saving in energy, material and other resources iii - Improvements in the working environment iv - Improvements in systems v - Improvements in office work vi - Improvements in the quality of our products and services vii - Ideas for new products and services viii - Improvements in customer service and customer relations ix - Others
4) Suggestions
KAIZEN - How?
ie: Consideration is given to any change/suggestion if it contributes to these goals: i - Making the job easier ii - Removing the drudgery from the job iii - Removing nuisance from the job iv - Making the job more productive v - Improving product and service quality vi - Saving time and cost No suggestions means No need for improvement which means You do not recognise the problem or You are comfortable passing the buck to Your colleagues and customers alike !! KAIZEN suggestions must be supported from the bottom up - WHY? - because the BEST solutions for IMPROVEMENT come from those closest to the PROBLEM!
KAIZEN - How?
Who Who does it? Who is doing it? Who should be doing it? Who else can do it? Who else should do it? When What What to do? What is being done? What should be done? What else can be done? What else should be done? Why Where Where to do it? Where is it done? Where should it be done? Where else can it be done? Where else should it be done? How
When to do it? When is it done? When should it be done? What other time can it be done? What other time should It be done?
Why does he do it? Why do it? Why do it there? Why do it then? Why do it that way?
How to do it? How is it done? How should it be done? How can this method be used in other areas? Is there any other way to do it?
The overall result - a never ending programme of:
Perceptiveness - Idea development - Decision making - Implementation - Effect
The S.P.E.A.K.E.R. Model
Specific
Positive
Evidence Awareness Knowledge Ecology Responsibility
POWER taking SPEAKER further
Any project or change can be taken through SPEAKER to check it out. You can then use the POWER model. By going through the POWER process first you have a lot of information that will help you to firm up your SPEAKER Outcome.
P resent Situation O utcome W hy E ffects R esources
Tell me and I will forget. Show me and I will remember. Involve me and I will understand
Confucius
Ten Key Factors in Effective Change Management
1. Change is all pervasive. 2. Effective change needs active senior management support. 3. Change is a multi-disciplinary activity. 4. Change is about people, pure and simple. 5. Change is about success. 6. Change is a perpetual process. 7. Effective change requires competent change agents. 8. In terms of methodology, there is no one best way. 9. Change is about ownership. 10. Change is about fun, challenge and opportunity.
CONCLUSION: It must be a continuous process of: Confrontation Identification Evaluation Action.
15 Key Competencies required for Effective Change Management
If you can imagine it you can achieve it, if you can dream it you can become it Goals 1 2 3 Roles 4 5 6 Team-building abilities, bringing together key stakeholders, establishing and maintaining appropriate contacts Networking skills in establishing and maintaining appropriate contacts Tolerance of ambiguity, to function comfortably, patiently and effectively in an uncertain environment Sensitivity to changes in key personnel, top management perceptions and market conditions, and to the way in which these impact on the goals of the project Clarity in specifying goals, in defining the achievable Flexibility in responding to changes, perhaps requiring major shifts in project goals and management style, and risk taking William Arthur Ward
Communication 7 Communication skills to transmit effectively the need for change, project goals and individual tasks/responsibilities 8 9 10 Interpersonal skills particularly in identifying the concerns of others Personal enthusiasm, in expressing plans and ideas Stimulating motivation and commitment in others involved
15 Key Competencies required for Effective Change Management (ii)
Negotiation 11 Selling plans and ideas, by creating a desirable and challenging future vision 12 Negotiating with key players for resources, procedural changes and conflict resolution
Managing Up 13 Potential awareness, in identifying potential coalitions and balancing conflicting goals and perceptions
14 Influencing skills, to gain commitment to project plans and ideas from potential sceptics and resisters
15 Overall perspectives, to stand back and take a broader view of priorities
D Buchanan & D Boddy The Expertise of the Change Agent: Public Performance and Backstage Activity
WHAT ATTRIBUTES DOES A LEADER REQUIRE IN THE NEW MILLENNIUM?
Managers deal with complexities, Leaders deal with change Richard Branson
Integrity (not necessarily honesty) Charisma Builds Trust
Decisive Visionary Holistic
Pragmatic (but not duplicitous)
Socially Aware Politely Autocratic Sense of Timing
Adaptable
Communicative Presentation
Attributes will always be moulded and dictated by the environment
13 Fatal Errors Managers make
If at first you dont succeed, try, try and try again. Then quit. No use being a damn fool about it
W. C. Fields Refuse to accept personal change 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Fail to develop people Try to control results instead of influencing thinking Join the wrong crowd Manage everyone the same way Forget the importance of profit Concentrate on problems rather than objectives Be a buddy, not a boss Fail to set standards Fail to train your people Condone incompetence Recognise only top performers Try to manipulate people Source: W Steven Brown, President of the Fortune Group
What Does Change Provide
It provides an organisation with an opportunity to be a world class player through an environment of ... Excellence Persistence Belief Attitude Imagination Courage Teamwork Desire Goals It does not provide an organisation with a promise or a certainty of becoming a world class player. SOME FURTHER THOUGHTS A mind that is stretched to a new idea never returns to its original dimension Oliver Wendell Homes There are precious few Einsteins among us. Most brilliance arises from ordinary people working together in extraordinary ways. Roger Von Oech Dont find fault, find a remedy. Henry Ford
We will either find a way, or make one. Hannibal
He who stops being better stops being good. Oliver Cromwell In every passionate pursuit, the pursuit counts more than the object being pursued. Bruce Lee
Successful Change Management
A Perspective Jumping to conclusions, is the only exercise some people get Anonymous 1. 2. It is not about job cuts It is about eliminating the work..eliminating the job
3.
4. 5. 6. 7. 8. 9. 10.
It is not more for less..but more often more for the same
It is about doing the job faster It is a journey..not a leap It is largely incrementalnot a leap It is easy to say..but hard to do It is as much to do with culture..as process It results in everything being at the elbow It will lead to: a. Motivated and aligned employees
b.
c.
Accountability to deliver
Closing the skills gap
but todays solutions are tomorrows problems Allan Leighton, Chairman The Royal Mail
Its Not My Job
This is a story about four people, named Everybody, Somebody, Anybody, and Nobody. There was an important job to be done and Everybody was sure that Somebody would do it. Anybody could have done it, but Nobody did it. Somebody got angry about that, because it was Everybodys job. Everybody thought Anybody could do it but Nobody realised that Everybody wouldnt do it. It ended up that Everybody blamed Somebody, when Nobody did what Anybody could have. The success of a team depends upon how well the members play together and this means being willing to lose ones identity for the sake of the team Unknown
Conclusions
Those organisations that manage change effectively are more like open learning systems
Sensitivity to the external environment is part of the organisations culture
It is dangerous to think of change management as a prescribed set of activities. It differs by organisation and by market
Strategic change is inextricably linked with operational change It is imperative that change is continued and incremental and becomes a way of life e.g. Kaizen
Human resource management must be an integral component of the change process
Above all: Consistency, Direction, Strategy, Feasibility, Clarify
With one aim: Competitive Advantage
Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us. As we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear. Our presence automatically liberates others Nelson Mandella
Final Thoughts
In the traditional bureaucratic corporation, roles were so circumscribed that most relationships tended to be rather formal and impersonal. Narrowly defined jobs constricted by rules and procedures also tended to stifle initiatives and creativity, and the atmosphere was emotionally repressive. The postentrepreneurial corporation, in contrast, with its stress on teamwork and co-operation.brings people closer together, making the personal dimension of relationships more important Rosabeth Moss Kanter
You firmly believe that sound management means executives on one side and workers on the other, on one side men who think and on the other men who can only work. For you, management is the art of smoothly transferring the executives ideas into the workers hands.
We are beyond this; business as we know, is so complex and difficult, the survival of organisations so hazardous in an environment increasingly unpredictable, competitive and fraught with danger, that their continued existence depends on their ability to constantly change through the mobilisation of every ounce of intelligence. Konosuke Matsushita
