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Chapter 2

Chapter 2. Hitt Black Porter. Managing Change. m a n a g e m e n t. Learning Objectives. Explain why personal change is critical to managerial success Describe the general process of change Discuss three common failures of change

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Chapter 2

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  1. Chapter 2 Hitt Black Porter Managing Change m a n a g e m e n t

  2. Learning Objectives • Explain why personal change is critical to managerial success • Describe the general process of change • Discuss three common failures of change • Describe the general process of enhancing change success After studying this chapter, you should be able to:

  3. Nature of Change • It is easier to deal with predictable change than unpredictable change • Change may be increasingly unpredictable 12% 28% 60% Highly unpredictable Unpredictable Predictable Highly predictable Adapted from Exhibit 2.1: Predictability of Change

  4. Rate of Change • If rate of change is increasing: managers benefit by increasing their ability to anticipate change • If change is somewhat unpredictable: managers benefit from increasing their ability to respond quickly to changes 13% 87% Increase Decrease Stay the same Adapted from Exhibit 2.2: Rate of Change

  5. 0% 10% 20% 30% 40% 0% Managerial Competency for Leading Change Excellent Good Fair Poor Does not have the leaders to do it 5% 35% 39% 20% 1% Adapted from Exhibit 2.3: Prevalence of Change Management Capability

  6. Managerial Competency for Leading Change • Leading change is a critical managerial activity • Senior executives do not see an ample supply of lower level managers with this skill

  7. Forces for Change: External Forces • New competition • Technology • Shift in customer preference • Change in regulations • Change in general economic environment

  8. Forces for Change: Internal Forces • Change in internal environment • Change in leadership

  9. Forces for Change: Three Conclusions At the micro level it is important to have an understanding of • The general process of change • The general forces for change failure • The keys for successful change

  10. Process of Change • Change goes through three distinctive phases • Unfreezing • Movement • Refreezing

  11. Phase 1: Unfreezing • Habits are strongly patterned ways behaving • We can also have patterned ways of viewing and interpreting events • To change a patterned way of behaving or thinking, that pattern must be “unfrozen”

  12. Phase 2: Movement • Major determinants of movement • Level of certainty or uncertainty associated with the change • Magnitude of the change

  13. Phase 3: Refreezing • Habitual behaviors and perceptions are strong • Change may not be permanent • After a change is made, actions should be taken to prevent reversion to old patterns • Reinforce the change until it becomes more established

  14. Forces for Failure Done well Right Thing Wrong Thing 3. Refreeze 1. Unfreeze Done poorly 2. Movement Adapted from Exhibit 2.4: Change Failure Framework

  15. Unfreezing: The Failure to See • The power of past mental maps • The longer a mental map has been successful, the harder it is to see the need for a new one • Overly simplistic view of the past and future • Difference in the context may not be seen • Maintaining equilibrium • People resist pressures to change in order to maintain equilibrium

  16. Movement: The Failure to Move • Change uncertainty • Lacking clear alternatives, people may intensify their efforts doing what they know • Outcome uncertainty • Lacking clear answers are to questions, people are less likely to change

  17. Movement: The Failure to Move • Requirement uncertainty • Believing they may lack essential skills, knowledge, or tools, people are unlikely to make a needed change, even if a great reward awaits them for changing

  18. Refreezing: The Failure to Finish • Most significant change does not produce instant, positive consequences • The lack of reinforcement of the new behaviors allows old behaviors to reappear

  19. Overcoming the Failure to See • Create high contrast • Focus people’s attention on key differences • Focus on the core contrasts • Help people see and remember those key differences (create images) Adapted from Exhibit 2.5: Declining Contrast

  20. Overcoming the Failure to See • Create confrontation • Managers often have to confront their people with the key contrasts between the past, present, and future • Present the contrasts repeatedly • Inescapable experiences • Involve as many of the senses—touch, smell, sight, sound, taste—as possible

  21. Overcoming the Failure to Move • Educate employees as to the desired change • Help employees see the new destination • Help them see the anticipated benefits of going there

  22. Overcoming the Failure to Move • Know and understand what it takes to execute the change • Assess the level of employee capabilities • Provide training, tools, or other resources

  23. Overcoming the Failure to Finish • Create early wins and reinforce desired behavior • Help people see the progress of the change • Inform them of their personal progress • Inform them of collective progress • Repeat messages of old and new maps often

  24. Overcoming the Failure to Finish • Create high impact, inescapable confrontations • Involve as many of the senses as possible • Physically assure experiences cannot be avoided

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