Organizational Change and Development - Module 1 - MG University - Organizational Change and Development - Manu Melwin Joy
- 1. Organizational Change Module 1 – MG University
- 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – [email protected]
- 3. Contents • Organizational Change: Meaning- Necessity for Change- Classification of change-factors affecting change. • Model of Organizational change- Kurt Lewin Three Stage Model and Force Field Analysis- Systems theory, 7 Stage models, Burke-Litwin model, Porras and Robbortson. • Change Agent-Role and Skills of a change Agent.HR Role as change agent. • Resistance to Change and minimizing the resistance. • Impact of change on Human Resources Planning. • Quality consciousness as an emerging catalyst for change.
- 4. Continuous Change at Nokia • Nokia has continually adapted to its changing environment. • The Finnish company began as a pulp and paper mill in 1865, then moved into rubber, cable wiring, and computer monitors. • In the 1980s, Nokia executives sensed an emerging market for wireless communication. • Today, Nokia is a world leader in cellular telephones.
- 5. Organizational Change: An International Phenomenon 0 10 20 30 40 50 60 70 80 0 10 20 30 40 50 60 70 80 Percentage of Respondents by Country International expansion Reduction in employment Mergers, divestitures, acquisitions Major restructuring Hungary Mexico S. Korea Germany United States Japan (Source: Kanten, R., 1991.)
- 6. Organizational Change • Organizational change occurs when business strategies or major sections of an organization are altered. • It is defined as a change that has significant effects on the way work is performed in an organization.
- 7. Organizational Change • Organizational change may be apparent when there is a gap between how the work area is operating and how it should be operating to ensure successful future growth. • Organizational change may be a result of the work area identifying goals that they want to achieve.
- 8. Change management • Change management is a structured approach to shifting individuals, teams and organisations from a current state to a desired future state. • It is an organisational process aimed at helping employees to accept and embrace changes in their current business environment.
- 9. Change management • Kotter defines change management as the utilization of basic structures and tools to control any organizational change effort. • Goal of change management is to minimize the change impacts on workers and avoid distractions.
- 10. Speed of Change Criteria to Consider Urgency Degree of support Amount and complexity of change Competitive environment Knowledge and skills available Financial and other resources
- 11. Characteristics of OC • Change happen for the pressure of both internal and external forces in the organization. • Change in any part of the organization affect the whole organization. • Change may affect people , structure, technology, and other element of the organization. • Change also affect the rate of speed and degree of significance of the organization. • Change may be reactive or proactive.
- 12. Forms of change
- 13. Planned change • It is a change resulting from a deliberate decision to alter the organization. • Companies that wish to move from a traditional hierarchical structure to one that facilitates self-managed teams must use a proactive, carefully orchestrated approach. • Not all changes are planned.
- 14. Unplanned change • It is imposed on the organization and is often unforeseen. • Changes in government regulations and changes in the economy, for example, are often unplanned. • Responsiveness to unplanned change requires tremendous flexibility and adaptability on the part of the organizations. • Managers must be prepared to handle both planned and unplanned forms of change in organizations.
- 15. Radical Change • It is a process by which firms regain competitive advantage after it has been lost or threatened significantly. • The type and extent of change undertaken depends upon the firm’s resources and capabilities; its competitive environment; and its leadership. • Radical change is divergent, meant to fundamentally change the firm’s processes, systems, structures, strategies, and core values.”
- 16. Transformational change • Transformational change occurs when organizations incur drastic changes and must essentially transform themselves. • This can occur when an organization faces different technologies, significant changes in supply and demand, unexpected losses etc.
- 17. Change agents • Change agents are responsible for managing change activities. • They see a future for the organization, which others have not identified, and they are able to motivate, invent and implement this vision. • Change agents can be managers or non-managers, current or new employees, or outside consultants.
- 18. Change agents • Jim Canterucci defines change leaders on five levels. • Although he mainly focuses on leadership capabilities and qualifications, his system can easily be transferred to change projects with varying importance. • The leader of an organization- wide restructuring project will need different capabilities than the one who is responsible for clearly defined project on departmental level.
- 19. Change agents • Level I - Accepts the need for change, communicates and defends the need for change throughout the organization, creates an open and receptive environment. • à small change initiatives with clear direction
- 20. Change agents • Level II - Defines and initiates change, identifies leverage points for change in processes and work habits • à change projects at local level
- 21. Change agents • Level III - Leads change, translate the vision of the organization into the context of a specific change initiative and bring this message to the entire organization, redirects approaches in the face of new opportunities • à transformation of a central vision into change initiatives and organization-wide communication
- 22. Change agents • Level IV - Manages complex change, understands the cultural dynamics of the current state of an organization, creates a strategic practical course, balancing the current reality with the need for rapid adoption of the desired future reality • à generates change with a high degree of transformation
- 23. Change agents • Level V - Champions change, challenges the status quo by comparing it to an ideal or a vision of change, causes crisis in order to support dramatic actions and change efforts, transforms the organization • à Ability to revolutionize organizations
- 24. Forces for change • Given a choice, most organizations prefer stability to change because the more predictable and routine activities are, the higher the level of efficiency that can be obtained. Thus, the status quo is preferred in many cases. • But organizations are not static; they are continuously changing in response to a variety of forces coming from both inside and outside. For leaders, the challenge is to anticipate and direct change processes so that the performance is improved.
- 25. Forces for change FORCES FOR CHANGE EXTERNAL FORCES INTERNAL FORCES
- 26. External forces • The major external forces for change are:- – Nature of the workforce: Almost every organization must adjust to a multicultural environment, demographic changes, immigration and outsourcing. – Technology is continually changing jobs and organization. Ex: faster, cheaper and more mobile computers and handheld devices. – Economic shocks: rise and fall of global housing market, financial sector collapse, global recession.
- 27. External forces • Competition is changing. Competitors are as likely to come from across the ocean as from across town. Ex: increased government regulation of commerce. • Social trends don’t remain static. Companies must continually adjust product and marketing strategies to be sensitive to changing social trends. The State Bank of India did the same when it started a zero-balance bank account program for villagers.
- 28. Internal forces • Declining effectiveness is a pressure to change. • A company that experiences its third quarterly loss within a fiscal year is undoubtedly motivated to do something about it. • Some companies react by instituting layoffs and massive cost – cutting programs, whereas others look at the bigger picture, view the loss as symptomatic of an underlying problem, and seek the cause of the problem.
- 29. Internal forces • A crisis situation also may stimulate change in an organization. • Strikes or walkouts may lead management to change the wage structure. • The resignation of a key decision-maker is one crisis that causes the company to rethink the composition of its management team and its role in the organization. • A much-publicized crisis that led to change with Exxon was the oil spill accident with Exxon’s Valdez oil tanker. The accident brought about many changes in Exxon’s environmental policies.
- 30. Internal forces • Changes in the work climate at an organization can also stimulate change. • A workforce that seems lethargic, unmotivated, and dissatisfied is a symptom that must be addressed. • This symptom is common in organizations that have experienced layoffs. • Workers who have escaped a layoff may grieve for those who have lost their jobs and may find it hard to continue to be productive. • They may fear that they will be laid off as well, and many feel insecure in their jobs.
- 31. The Evolution of Starbucks Exploring Behavior in Action In the beginning they had only just a shop that sold some selected coffee beans. As Starbucks growing, they realized that the informal techniques were not sufficient and needed to have a more formalized with people and places. Now Starbucks was the biggest coffee chain network in the world with more than 15000 shops in over 44 countries. And they grown too fast. They adopting the Italian culture and make some important changes in organization. Howard Schultz Dave Olsen Dawn Pinaud
- 32. Experiencing Strategic OB Coca-Cola Is Finding a New Fizz Neville Isdell Sandy Douglas Coca-Cola is changing its culture, and also enhance its product line to better satisfy the demand of customers.
- 33. Resistance to Change Three Factors Organizational Resistance Group Resistance Effort to block new ways of doing things Individual Resistance
- 34. Individual Resistance • Individual sources of resistance to change reside in basic human characteristics such as perceptions, personalities & needs. • Reasons of individual resistance: • Economic Reason –The economic reason of resistance to change usually focus on: • Fear of technological unemployment. • Fear of reduced work hours & consequently less pay. • Fear of demotion & thus reduced pay.
- 35. Individual Resistance • Fear of Loss- When a change is impending, some employees may fear losing their jobs, status particularly when an advanced technology is introduced. • Security – people with a high need for security are likely to resist change because it threatens their feeling of safety. • Status quo- change may pose disturbance to the existing comforts of status quo.
- 36. Individual Resistance • Peer Pressure- individual employees may be prepared to accept change but refuse to accept it for the sake of the group. • Disruption of Interpersonal Relation- employees may resist change that threatens to limit meaningful interpersonal relationships on the job. • Social Displacement- Introduction of change often results in disturbance of the existing social relationships. Change may also result in breaking up of work groups.
- 37. Group Resistance • Organizations, by their very nature are conservative. They actively resist change. Reason of organizational resistance • Resource constraint: resources are major constraints for many organizations. The necessary financial , material & human resources may not be available to the organization to make the needed changes.
- 38. Group Resistance • Structural inertia – some organizational structures have in- built mechanism for resistance to change. Eg in bureaucratic structure where jobs are narrowly defined & lines of authority are clearly spelled out, change would be difficult.
- 39. Organizational Resistance • Organizational resistance means the change is resisted at the level of the organization itself. • Some organization are so designed that they resist new ideas, this is specifically true in case of organization which are conservative in nature. • Majority of the business firm are also resistance to changes.
- 40. Organizational Resistance • The major reason for organizational resistance are:- • Threat to power • Group inertia • Organizational structure • Threat to specialization • Resource constants • Sunk costs
- 41. Communication • Highest priority and first strategy for change • Improves urgency to change • Reduces uncertainty (fear of unknown) • Problems -- time consuming and costly Minimizing Resistance to Change
- 42. Communication • Provides new knowledge and skills • Includes coaching and action learning • Helps break old routines and adopt new roles • Problems -- potentially time consuming and costly Minimizing Resistance to Change Training
- 43. Communication • Increases ownership of change • Helps saving face and reducing fear of unknown • Includes task forces, search conferences • Problems -- time- consuming, potential conflict Minimizing Resistance to Change Training Employee Involvement
- 44. Communication • When communication, training, and involvement do not resolve stress • Potential benefits –More motivation to change –Less fear of unknown –Fewer direct costs • Problems -- time- consuming, expensive, doesn’t help everyone Minimizing Resistance to Change Training Employee Involvement Stress Management
- 45. Communication • When people clearly lose something and won’t otherwise support change • Influence by exchange-- reduces direct costs • Problems –Expensive –Increases compliance, not commitment Minimizing Resistance to Change Training Employee Involvement Stress Management Negotiation
- 46. Communication • When all else fails • Assertive influence • Firing people -- radical form of “unlearning” • Problems –Reduces trust –May create more subtle resistance Minimizing Resistance to Change Training Employee Involvement Stress Management Negotiation Coercion
- 47. APPROACHES TO MANAGING ORGANISATIONAL CHANGE
- 48. Three stage model • One of the cornerstone models for understanding organizational change was developed by Kurt Lewin back in the 1940s, and still holds true today. • His model is known as Unfreeze – Change – Refreeze, refers to the three-stage process of change he describes. • Kurt Lewin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice.
- 49. Three stage model Unfreezing RefreezingMoving • Provide rationale for change • Create minor levels of guilt/anxiety about not changing • Create sense of psychological safety concerning change • Provide information that suspects proposed changes • Bring about actual shifts in behavior • Implement new evaluation systems • Implement new hiring and promotion systems Kurt Lewin
- 51. Three stage model • Unfreezing is the process which involves finding a method of making it possible for people to let go of an old pattern that was counterproductive in some way. • Unfreezing is necessary to overcome the strains of individual resistance and group conformity. • Unfreezing can be achieved by the use of these three methods. – Increase the driving forces that direct behavior away from the existing situation or status quo. – Decrease the restraining forces that negatively affect the movement from the existing equilibrium. – Find a combination of the two methods listed above.
- 52. Three stage model • Movement stage involves a process of change in thoughts, feeling, behavior, or all three, that is in some way more liberating or more productive. • Once team members have opened up their minds, change can start. The change process can be dynamic and, if it is to be effective, it will probably take some time and involve a transition period. • In order to gain efficiency, people will have to take on new tasks and responsibilities, which entail a learning curve that will at first slow the organization down. • A change process has to be viewed as an investment, both in terms of time and the allocation of resources: after the new organization and processes have been rolled out.
- 53. Three stage model • Change will only reach its full effect if it’s made permanent. Once the organizational changes have been made and the structure has regained its effectiveness, efforts should be made to cement them and make sure the new organization reaches the standard. • “Re-freezing” gives people the opportunity to thrive in the new organization and take full advantage of the change.
- 54. Changing People: Some Basic Steps Recognizing the need for change Attempting to create a new state of affairs Incorporating the changes, creating and maintaining a new organizational system Step 1: Unfreezing Step 3: Refreezing Step 2: Changing
- 55. Case study • The oil company had three divisional offices in the West, located in Seattle, San Francisco, and Los Angeles. • The decision was made to consolidate the divisions in to a single regional office to be located in San Francisco. • The reorganization meant transferring over 150 employees, eliminating some duplicate managerial positions, and instituting a new hierarchy of command
- 56. UNFREEZING • The status quo can be considered to be an equilibrium state. To move from this equilibrium to overcome the pressures of both individual resistance and group conformity unfreezing is necessary. It can be achieved in one of three ways. • The driving forces, which direct behavior away from the status quo, can be increased. • The restraining forces, which hinder movement from the existing equilibrium, can be decreased. • A third alternative is to combine the first two approaches.
- 57. Movement • The oil company’s management could expect employee resistance to the consolidation. To deal with that resistance, management could use positive incentive to encourage employees to accept the change, such as these; • Increase in pay can be offered to those who accept the transfer. • The company can pay liberal moving expenses. • Management might offer low cost mortgage funds to allow employees to buy new homes in San Francisco.
- 58. Movement • Employees could be counseled individually. Each employee’s concerns and apprehensions could be heard and specifically clarified. • Assuming that most of the fears are unjustified, the counselor could assure the employees that there was nothing to fear and then demonstrate, through tangible evidence, that restraining forces are unwarranted. • If resistance is extremely high, management mat have to resort to both reducing resistance and increasing the attractiveness of the alternative if the unfreezing is to be successful. • To be effective, change has to happen quickly. Organizations that build up to change do less well than those that get to and through the movement stage quickly.
- 59. Refreezing • Once the consolidation change has been implemented, if it is to be successful, the new situation needs to be refrozen so that it can be sustained over time. • Unless this last step is taken, there is a very high chance that the change will be short lived and that employees will attempt to revert to the previous equilibrium state. • The objective of refreezing, then, is to stabilize the new situation by balancing the driving and restraining forces.
- 60. Force Field Analysis • It provides a framework for looking at the factors (forces) that influence a situation, originally social situations. • It looks at forces that are either driving movement toward a goal (helping forces) or blocking movement toward a goal (hindering forces). • The principle, developed by Kurt Lewin.
- 62. Force Field Analysis • Driving forces are forces that push in a direction that causes change to occur. • Driving forces facilitate change because they push the person in the desired direction. • They cause a shift in the equilibrium towards change.
- 63. Force Field Analysis • Restraining forces are forces that counter driving forces. • Restraining forces hinder change because they push the person in the opposition direction • Restraining forces cause a shift in the equilibrium which opposes change.
- 64. Force Field Analysis • Equilibrium is a state of being where driving forces equal restraining forces and no change occurs • Equilibrium can be raised or lowered by changes that occur between the driving and restraining forces.
- 65. Desired Conditions Current Conditions Before Change After Change Driving Forces Restraining Forces Force Field Analysis During Change Driving Forces Restraining Forces Driving Forces Restraining Forces
- 66. KOTTER’S EIGHT STEP MODEL • 30 years of research by leadership guru Dr. John Kotter have proven that 70% of all major change efforts in organizations fail. • Why do they fail? • Because organizations often do not take the holistic approach required to see the change through. • However, by following the 8 Step Process outlined by Professor Kotter, organizations can avoid failure and become adept at change. By improving their ability to change, organizations can increase their chances of success, both today and in the future.
- 67. KOTTER’S EIGHT STEP MODEL • In “Leading Change” (1996), Dr. John Kotter outlined an 8-Stage Process to Creating Major Change:
- 68. Step 1: Create Urgency • Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. • Open an honest and convincing dialogue about what's happening in the marketplace and with your competition. • What you can do: – Identify potential threats, and develop scenarios showing what could happen in the future. – Examine opportunities that should be, or could be, exploited. – Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking.
- 69. Step 2: Form a Powerful Coalition • Bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. • Once formed, your "change coalition" needs to work as a team. • What you can do: – Identify the true leaders in your organization. – Ask for an emotional commitment from these key people. – Work on team building within your change coalition. – Check your team for weak areas.
- 70. Step 3: Create a Vision for Change • Link ideas and concepts to an overall vision. • A clear vision can help everyone understand why you're asking them to do something. • What you can do: – Determine the values that are central to the change. – Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization. – Create a strategy to execute that vision.
- 71. Step 4: Communicate the Vision • Communicate the vision more frequently and powerfully, and embed it within everything that you do. • Use the vision daily to make decisions and solve problems. When you keep it fresh on everyone's minds, they'll remember it and respond to it. • What you can do: – Talk often about your change vision. – Openly and honestly address peoples' concerns and anxieties. – Apply your vision to all aspects of operations – from training to performance reviews. – Tie everything back to the vision.
- 72. Step 5: Remove Obstacles • Put in place the structure for change, and continually check for barriers to it. • Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. • What you can do: – Identify, or hire, change leaders whose main roles are to deliver the change. – Recognize and reward people for making change happen. - Identify people who are resisting the change. – Take action to quickly remove barriers (human or otherwise).
- 73. Step 6: Create Short-term Wins • Create short-term targets – not just one long-term goal. • Each "win" that you produce can further motivate the entire staff. • What you can do: – Look for sure-fire projects that you can implement without help from any strong critics of the change. – Don't choose early targets that are expensive. – Reward the people who help you meet the targets.
- 74. Step 7: Build on the Change • Each success provides an opportunity to build on what went right and identify what you can improve. • What you can do: – After every win, analyze what went right and what needs improving. – Set goals to continue building on the momentum you've achieved. – Keep ideas fresh by bringing in new change agents and leaders for your change coalition.
- 75. Step 8: Anchor the Changes in Corporate Culture • Make continuous efforts to ensure that the change is seen in every aspect of your organization. • It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. • What you can do: – Talk about progress every chance you get. - Include the change ideals and values when hiring and training new staff. – Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten.
- 76. Systems Theory • Systems Theory was first introduced by Van Bertalanffy (1950) and was introduced into the organisational setting by Kataz and Khan (1966). • Systems theory is an approach to organisations which likens the enterprise to an organism with interdependent parts, each with its own specific function and interrelated responsibilities.
- 77. Systems Theory • The system may be the whole organisation, a division, department or team; but whether the whole or a part, it is important for the OD practitioner to understand how the system operates, and the relationship the parts of the organisation have.
- 78. Systems Theory • The emphasis in OD is that that real systems are open to, and interact with, their environments, and it is possible to acquire new properties through emergence, resulting in continual evolution. • Rather than reducing an organisation to the properties of its parts or elements, systems theory focuses on the arrangement of and relations between the parts which connect them into a whole.
- 79. Systems Theory • The organization is an open system, which interacts with the environment and is continually adapting and improving. • The organisation influences and is influenced by the environment in which it operates • If an organisation is to be effective it must pay attention to the external environment, and take steps to adjust itself to accommodate the changes in order to remain relevant • All part of the organisation are interconnected and interdependent • If one part of the system is affected, all parts are. • It is not possible to know everything about the system, but if you look hard enough there are plenty of clues.
- 80. Burke-Litwin change model • The Burke-Litwin change model revolves around defining and establishing a cause-and-effect relationship between 12 organizational dimensions that are key to organizational change. • Let’s take a look at how this change model can make the process easier.
- 82. Burke-Litwin change model • External Environment: The key external factors that have an impact on the organization must be identified and their direct and indirect impact on the organization should be clearly established. • Mission and Strategy: the vision, mission and the strategy of the organization, as defined by the top management should be examined in terms of the employees’ point-of-view about them.
- 83. Burke-Litwin change model • Leadership: A study of the leadership structure of the organization should be carried out, which clearly identifies the chief role models in the organization. • Organizational Culture: An organizational culture study should seek information on the explicit as well as the implied rules, regulations, customs, principles and values that influence the organizational behavior.
- 84. Burke-Litwin change model • Structure: The study of structure should not be confined to hierarchical structure; rather it should be a function based structure focusing on the responsibiliity , authority, communication, decision making and control structure that exists between the people of the organization. • Systems: Systems includes all types of policies and procedures with regards to both the people and the operations of the organization.
- 85. Burke-Litwin change model • Management Practices: This would entail a study of how well the mangers conform to the organization’s strategy when dealing with employees and the resources. • Work Unit Climate: It is a collective study of how the employees think, feel and what do they expect. The kind of relationships the employees share with their team members and members of other teams is also an important aspect of work unit climate.
- 86. Burke-Litwin change model • Tasks and Skills: This involves understanding what a specific job position demands and the kind of skills and knowledge that an employee must have in order to fulfill the task responsibilities of that job position. It’s important to see how well jobs and employees have been matched. • Individual Values and Needs: This dimension seeks to explore the employee’s opinion about their work so as to identify the quality factors that will result in job enrichment and better job satisfaction.
- 87. Burke-Litwin change model • Motivation Level: Identifying the motivation level of the employees will make it easier to determine how willingly they would put in their efforts to achieve organizational goals. This would also involve identifying motivational triggers. • Individual and Overall Performance: This dimension takes into account the level of performance, on individual and organizational levels, in key areas like productivity, quality, efficiency, budget and customer satisfaction etc.
- 88. Porras & Robertson Model • Porras & Robertson outline four types of organizational change based on the category of change (planned or unplanned) and its order (first or second).
- 89. Porras & Robertson Model • Planned change originates with a decision made by the organization itself with the deliberate purpose of improving its functioning. • It is also common to engage an outside resource to help in the processes of making these improvements. • Planned change is typically initiated to respond to new external demands imposed upon the organization. • Planned change will often affect many unforeseen segments of the organization.
- 90. Porras & Robertson Model • Unplanned change is change that originates outside of the organizational system and to which the organization must respond. • This adaptive response is often focused on the alteration of relatively clearly defined and narrow segments of the organization. • It is spontaneous, evolutionary, fortuitous, or accidental.
- 91. Porras & Robertson Model • First-order change, linear and continuous in nature, involves alterations in system characteristics without any shift in either fundamental assumptions about key organizational cause-and- effect relationships or in the basic paradigm used by the system to guide its functioning.
- 92. Porras & Robertson Model • Second-order change is a multi-dimensional, multi- level, qualitative, discontinuous, radical organizational change involving a paradigmatic shift.
- 93. Factors constituting an organizational work setting
- 94. Impact of change on Human Resources Planning • Human resources planning are a process that identifies current and future human resources needs for an organization to achieve its goals. • Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization.
- 95. Impact of change on Human Resources Planning • Aging worker populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning.
- 97. Quality consciousness • The term “quality consciousness” was first used n a 1947 keynote by C.R. Sheaffer to the first convention of the American Society for Quality Control (ASQC), the predecessor to ASQ.
- 98. Quality consciousness • Quality consciousness can be summed up by the “3 A’s” – Awareness, Alignment, and Attention. • Quality consciousness implies awareness of yourself and the environment around you (including what constitutes quality and high performance for people, processes and products – most importantly, YOU).
- 99. Quality consciousness • It also suggests that you must achieve alignment of your consciousness with the consciousness of the organization, which will aid in full activity and engagement of the senses. • Your attention must be selectively focused onto what you can accomplish in the present moment according to that alignment
- 100. Case study Strategic Change Management
- 101. Scenario #1: “Greener Telco” Scenario #1 refers to Bell Canada’s Zero Waste program, which successfully changed wasteful employee behaviours by altering the causes of those behaviours. Courtesy of Bell Canada
- 102. Bell Canada’s Change Strategy Courtesy of Bell Canada Relied on the MARS model to alter behaviour: Motivation -- employee involvement, respected steering committee Ability -- taught paper reduction, email, food disposal Role perc. -- communicated importance of reducing waste Situation -- Created barriers to wasteful behaviour, eg. removed garbage bins
- 103. Courtesy of Continental Airlines Scenario #2: “Go Forward Airline” Scenario #2 refers to Continental Airline’s “Go Forward” change strategy, which catapulted the company “from worst to first” within a couple of years.
- 104. Continental Airlines’ Change Strategy Communicate, communicate, communicate Introduced 15 performance measures Established stretch goals (repainting planes in 6 months) Replaced 50 of 61 executives Rewarded new goals (on-time arrival, stock price) Customers as drivers of change Courtesy of Continental Airlines
Editor's Notes
- #11: Criteria to consider flies in from left with a whoosh sound. Arrows come in on mouse clicks followed automatically by the text after one second, Urgency – If the change is urgent, a faster pace is warranted. Degree of support – If the change is supported by a wide variety of people at the outset, a faster pace can be used. Amount and complexity of change – If the change is small and simple, a faster pace often can be used, but if the change is large, more time may be required. Competitive environment – If competitors are poised to take advantage of existing weaknesses, a faster pace should be considered. Knowledge and skills available – If the knowledge and skills required by the new approach exist in the firm or can be easily acquired, a faster pace can be used. Financial and other resources – If the resources required by the change are on hand or easily acquired, a faster pace can be considered.
- #33: Coca Cola logo has a soda can fizz sound when it enters. The other graphics follow automatically. Text comes in on mouse clicks.
- #34: Banner stretches across on mouse click and hides on next mouse click. Man with four factors dissolves in on mouse click. Time bombs zoom in automatically at one second intervals. Resistance to change – Efforts to block the introduction of new approaches. Some of these efforts are passive in nature, involving such tactics as verbally supporting the change while continuing to work in the old ways; other efforts are active in nature, involving tactics such as organized protests and sabotage. Lack of understanding – Communicate clearly what the change entails. Different assessments – Include potential or actual resisters in the decision-making process. Self-interest – Reason with resistors, transfer or coerce them. Low tolerance for change – Offer or assure support for the resistors during the learning process.
- #50: “Unfreezing” starts on mouse click followed by text after one second. Arrow starts on mouse click followed by “moving” and then text after one second each. Arrow starts on mouse click followed by “refreezing” and text after one second each. Unfreezing – A phase in the change process in which leaders help managers and associates move beyond the past by providing a rationale for change, by creating guilt and/or anxiety, and by creating a sense of psychological safety concerning the change. Tactics for unfreezing include: Reminding individuals that they have successfully changed in the past Communicating to individuals that managers and associates in other organizations in similar circumstances have successfully changed Letting individuals know that support and training will be available for the specific changes to be made Moving – A phase in the change process in which leaders help to implement new approaches by providing information that supports proposed changes and by providing resources and training to bring about actual shifts in behavior. Refreezing - A phase in the change process in which leaders lock in new approaches by implementing evaluation systems that track expected behaviors, by creating reward systems that reinforce expected behaviors, and by ensuring that hiring and promotion systems support the new demands.