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Change Management . Imam T Saptono. About Speaker. Imam T Saptono

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change management

Change Management

Imam T Saptono

about speaker
About Speaker

Imam T Saptono

Mr. Saptono currently is co-leader of non-organic growth project at Bank BNI, he was also the Head of Corporate Secretary division at Permata Bank. His role as corporate secretary includes responsibilities in investor relations, media relations, capital market compliance and corporate administrations.

During his professional career, he has successfully developed and improved the corporate secretary division at PT. Bank Permata Tbk and PT. Bank BNITbk. He also experienced in many corporate actions such as IPO, right issue, divestment etc.

He received both his graduate ad undergraduate degree with distinction from IPB and is currently pursuing his doctorate degree (DBA) from the same distinguished institution.

today s discussion
Today’s Discussion
  • The Change Situation
  • Change and Transition
  • Why People Resist Change
  • Kotter’s 8 Stages
  • Popular Mistakes
who is the master of the world dinosaurs vs cockroach
Who is the master of the World : Dinosaurs vs Cockroach

Both animals are predicted living at the same period since the fossils are founded at the same place

slide5

Mamalia mengambil alih ?

  • Mamalia pemangsa telur?
  • Makanannya tidak ada lagi?
  • Hujan meteor di bumi?
  • Letusan Gunung Api?
how well do you know this dinosaurs
How well do you know this Dinosaurs
  • Zenith
  • RCA
  • GM, Chrysler, Ford
  • ITT
  • Lehman Brothers, Fannie Mae, Freddie Mac
  • Washington Mutual
  • Pan Am
  • E
the change situation
The Change Situation
  • Change hasn’t changed
  • Change upsets our understanding of the the reality of things
  • Change requires risks
  • Change unhinges us – it requires new behaviors
  • Change threatens us on all levels
it isn t the changes that do you in it s the transitions
It Isn’t the Changes That Do You In... It’s the Transitions

Change is situational

  • Move to a new site
  • Reorganization of roles on the team
  • Revisions to the pension plan
  • Transition is psychological
    • Has an emotional, feeling component
slide9

“Plans are useless, Planning is priceless”

- Dwight Eisenhower

Strategy Execution is a Key to Success

change
Change !!

All about see, feel and change

Re code your change DNA (Rhenald Kasali)

See, Do, Get (7 Habits – Stephen Covey)

  • Help people see
  • Seeing something new hits the emotions
  • Emotionally charged ideas change behavior or reinforce change behavior
  • Give people analysis
  • Data and analysis influence how we think
  • New thoughts change behavior or reinforce change behavior
the change curve
The Change Curve

Anticipatory

Reactive

Good

Crisis

We need to

move fast.

Who can I

Trust?

Where do we

start?

What needs

to change?

Where do we

start?

Can we find

an early win?

Strategic

Performance

Things are

going well.

Do we really

need to

change?

Can we

experiment?

Poor

Speed

Source: Nick Fry and Peter Killing, Strategic Analysis and Action,

Fourth Edition, Prentice Hall Canada, 2000

slide12

Strategic Mindsets

STRATEGIC INTENT

MODEL

STRATEGIC FIT

MODEL

Strategic thinking is driven by bridging gap between today’s reality and tomorrow’s vision

Finding ways to leverage resources

Outpacing competitors in building new advantages

Making new industry rules

Strategic thinking is driven by the match between current capabilities and existing opportunities

Searching for sustainable advantages

Finding protected niches

Source, Hamel and Prahalad, Strategic Intent, HBR

slide13

Four Questions that Guide Strategic Choices

WHAT CAN

WE DO?

(strengths and

weaknesses)

WHAT MIGHT

WE DO?

(external opportunities

and threats)

STRATEGY

WHAT DO WE

WANT TO DO?

(organizational and

individual values)

WHAT DO OTHERS

EXPECT US TO DO?

(stakeholder

expectancies)

slide14

Four Related Questions that Guide Strategic Choices

WHAT CAN

WE DO?

(strengths and

weaknesses)

WHAT MIGHT

WE DO?

(external opportunities

and threat)

What new

capabilities do we

want to develop?

How do we

create new

possibilities?

STRATEGY

What do we

need to

learn to care

about?

How do we partner

to build shared

expectancies?

WHAT DO WE

WANT TO DO?

(organizational and

individual values)

WHAT DO OTHERS

EXPECT US TO DO?

(stakeholder

expectancies)

three type of change
Three Type of Change

Improvement of what is; new state is a prescribed

enhancement of the old state.

Design and implementation of a desired new state; requires dismantling of the old state and management

of the transition process; managed timetable.

Market requirements force fundamental change in

strategy, operations, and worldview: 1) New state is

unknown. It emerges from visioning, trial and error, and

learnings, 2) New state requires fundamental shift in

mindset, organizing principles, behavior and/or

culture, all designed tosupport new business

directions. Critical mass oforganization must operate

from new mindset and behavior for transformation

to succeed and new business model or direction

to sustain.

slide16

Business imperatives outline what the company must do strategically to be successful, given its customers’ changing requirements. (i.e change to the company’s mission, strategy, goals, products and services, pricing or branding)

Organizational imperatives specify what must change in the organization’s structure, systems, processes, technology, resources, skill base or staffing to successfully realize its strategic business imperatives.

Cultural Imperatives – Cultural imperatives denote how the norms, or collective way of being, working and relating in the company must change to support and drive the organization’s new design, strategy and operations.

The aggregate set of customer requirements that determine what it takes for a business to succeed in its marketplace. (i.e the actual product or service needs, speed of delivery, customization capability, level of quality, need for innovation, level of customer service, etc)

Leader and Employee Mindset – Mindset encompasses the worldview, assumptions, beliefs or mental models

Leader and Employee Behavior – Collective behavior creates and expresses an organization’s culture. Behavior speaks to more than just overt actions; it describes the style, tone or character

slide17

The Success Syndrome

Outcome

. Decreased

customer

focus

. Increased

cost

. Less

innovation

. Capacity-to-act

problems

Environmental

Disequilibrium

Success

Syndrome

. Codification

. Internal focus

. Insularity,

arrogance, and

complacency

. Complexity

. Conservatism

. Disabled

learning

Denial and

Defensive

Reactions

Sustained

Success

Declining

Performance

Do More of

the Same

Continue

doing those

things that

contributed

to success in

the past .

The Death Spiral

why do people resist
Feel they will suffer

Organization does not communicate clearly

Perceive more work with few opportunities

Required to give up ingrained habits

Organization lacks adequate rewards

Organization lacks sufficient resources

Solicit employee input

Script a clear, logical message

Provide rewards and incentives

Identify new behaviors to support the change

Develop rewards aligned with the change

Prioritize work based on available resources

Why Do People Resist?
why do people resist19
Loss of job security

Employees harbor unresolved resentments

Change has poor introduction

Organization has poor internal communication

Communicate how employees and the organization will benefit from renewed relevance

Allow employees to express their grief

Acknowledge missteps; reaffirm commitment and clarify expectations & timeline

Delegate communication tasks to one person/team

Why Do People Resist?
producing change
Producing change
  • Is 80 percent leadership- establishing direction, aligning, motivating, and inspiring people-
  • And 20 percent management - planning, budgeting, organizing, and problem solving

Unfortunately, in most of the change efforts, these percentages are reversed

what is change management
What is change management?

A structured process and set of tools

for leading the people side of change.

the role of management leadership
The role of Management & Leadership

Produce a degree of predictability & order and has the potential to consistently produce the short term results expected by various stakeholders

Produce change, often to a dramatic degree, and has the potential to produce extremely useful change

slide25

Trigger 1: Create a common sense of urgency

    • Identify and discuss anticipation to potential crises or looming crises, or major opportunities for change on objective and on emotional grounds
    • Examine market and competitive realities
    • Formulate the “why to change”
    • Refer to leading and peer scientific research / models / best practice
slide26

Lewin’s Three-Step Process

Organizational Change

Changing

Refreezing

Unfreezing

Empowering Driving Change and Eliminating Resistance

futures push and pull
FUTURES PUSH AND PULL

Ideas, Images, Hopes, Fears

PRESENT

FUTURE

Technology, Demographics, Economics, Science etc

CONSTRAINTS

motivation theory by bechard harris 1987
Motivation Theory by Bechard & Harris (1987)
  • Motivation to change
  • A = disstatisfaction
  • B = future expectation
  • C = practicallity
  • D = cost

AxBxC > D  Change !!!!!

types of change strategy chin benne power coercive
Types of change strategy,(Chin & Benne) Power-coercive

People will change when made to do so by those in power

rational
Rational

People will change if/when they realize it’s advantageous to them

normative reeducative
Normative-reeducative

People do what they’re rewarded for

slide33

Trigger 2: Form a Powerful Leadership & Coalition of Partners

    • Assemble a group with enough and potential power to lead the change effort
    • Encourage the group to work together as a team
    • Seek strategic partners outside your organisation
the transformation process
The Transformation Process

BREAKTHROUGH !

BUILD UP…

Confront the

Brutal Facts

Level 5

Leadership

First Who...

Then What

Hedgehog

Concept

Culture of

Discipline

Technology

Accelerators

Disciplined People

Disciplined Thought

Disciplined Action

FLYWHEEL

slide35

Trigger 3: Create a Vision and Strategy

    • Create a vision to help direct the change effort
    • Develop strategies for achieving that vision
    • Define demonstrative actions  execution is very important
slide36

Trigger 4 : Lead and communicate the change process

    • Use every vehicle possible to communicate the new vision and strategies
    • Your change agents and change agents in waiting are the people you rely on
    • Mixed approach to the hesitating and the pro-active resistors.
    • The group of the defensive resistors should not be targeted
slide37

The 4 communicative approaches for change

Cognitive approach: objective datato convince the ‘rationalist’

Learning approach: Training and guidance on best and promising practices to convince the ‘learning’

Conversational approach: maintain conversational interaction with stakeholders to convince the ‘willing’

Coercise approach to the active resistors and non -willing

slide38

Disagreement over organizational goals

Total information available

Agreement over organizational goals

Decision making by calculated plan

Agreement over the appropriate means for achieving goals

RATIONAL VS POLITICAL VIEWS

OF DECISION MAKING

RATIONAL

POLITICAL

Selection information available

Disagreement over the appropriate means for achieving goals

Decision making by negotiation, bargaining and compromise

remember this

I will forget

TELL ME

Remember this…

I might remember

SHOW ME

I will never forget

INVOLVE ME

slide40

Trigger 5 : Empower staff and stakeholders to act on the Vision

    • Change systems, structures that seriously undermine the vision
    • Encourage risk taking and non-traditional ideas, activities and actions
    • Get rid of obstacles and routines that adverse change
    • Facilitate new behaviours by the example of the guiding coalition and example
hidden informal structure authority power
Hidden/Informal StructureAuthority = Power

University college

Love Affair

Families

Social Activities

slide44

Trigger 5 : Ensure resources for Short-term Projects and Wins

    • Ensure budgets and human resources for demonstrative and innovative projects that have proven to be successful in other countries
    • Ensure budgets and committed staff to initiate risk projects
    • Hire and promote employees who can implement the vision.(in case you don’t find them within your organisation, hire expertise for change from outside)
slide46

Trigger 6 : Implement Demonstrative Projects and Instruments

    • Plan for publicly visible improvements
    • Facilitate and create those improvements and projects
    • Encourage demonstrative projects
    • Recognise and reward employees involved in the improvements
slide47

Trigger 7 : Evaluate, Consolidate and Institutionalise New Approaches, Produce More Change

    • Use your increased credibility to change policies, structures and routines that don’t fit the vision
    • Reinvigorate the process with new projects, themes and change agents
    • Articulate the connections between the new behaviours and corporate success
points to remember
Points to Remember
  • Change takes time and persistence
  • Individuals go through stages in the change process
  • Individuals have different needs at different stages
  • Successful change efforts require planning, organization, resources and action
  • Change is more likely to occur when a team is given responsibility for managing implementation
we must focus on 6 key areas
We Must Focus on 6 Key Areas

Strategy & Stakeholder Relations

Resources &

Core

Skills

People

Values

Culture

Knowledge

Management

Operational

Processes &

Structures

Financial and Social Performance

shaping strategy in the face of uncertainty
Shaping Strategy in the Face of Uncertainty

S&SR

People

Values

Culture

Knowledge

Management

Resources &

Core Skills

Operational

Processes &

Structures

Financial and Social Performance

Demography

Environment

The Economy

Commercial Developments

Global Developments

Infrastructure

Media

Education

Lifestyles

Crime

Natural World

Climate

Providers of Finance

Technology

Government Policy

Suppliers

Workers

Electronic Markets

Alternative Providers

Interest Groups

Public Expectations & Values

Regulation

Substitutes

why the company fail
Why The Company Fail
  • Consequences
  • New strategies aren’t implemented well
  • Acquisition don’t achieve expected synergies
  • Reengineering takes too long & costs too much
  • Downsizing doesn’t get costs under control
  • Quality programs don’t deliver hoped for results
source of complacency
Source of complacency

Organizational structure that focus employees narrow functional goals

Too much happy talk form senior manager

The absence of a major & visible crisis

A lack of sufficient performance feedback from external sources

Low overall performance standards

Too many visible resources

Internal measurements system that focus on the wrong performance index

Complacency

A kill the messenger of bad news, low candor, low confrontation culture

mentality turbulence
Mentality & Turbulence

Repetitive

Expanding

Changing

Discontinue

Turbulence Level

Production

Marketing

Strategic

Custodial

Mentality

Growth

Differentiation

Strategic Positioning

Stability

Success Function

Economies

Response to Market

Flexibility

Repetition

Success Mentality

sources of resistances
Sources of Resistances

Individual Resistance

  • POLITICS
  • POWER
  • CULTURE

ORGANIZATIONAL

slide55

Lack of Clarity on Need, Goals and Outcomes

Change Did not Address Real Issues for the Front Line

No Leadership,

Drive or Ownership

Failure to Learn from Past Mistakes

Insufficient, Involvement, Participation and Ownership

Inappropriate Timescales, Training and Resources

Poor Planning and Communications

Failure to Empower the Change Agents

Causes of Past Change Failure

Key

Causes of

Failure

thank you
Thank You

“Ukuran kecerdasan manusia terletak pada kemampuannya untuk berubah”

ALBERT EINSTEIN

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