Change Management & Management of Strategic Change Carmelita Charles Week5

1. Change Management & Management of Strategic Change Carmelita Charles Week5

2. Objectives • By the end of this lesson you will be able to; • Explain the concepts of change and transitions • Understand how individual perceptions inform change processes • Explain the various models and approaches to managing individuals through organisational change • Identify strategies for leading people through change

3. Exercise Describe a Change project/process that you’ve been involved with:-  How was it introduced to you? What happened? Did the change work? What would you do differently to lead change for yourself and others? What type of leadership was at the helm ?

5. It’s been difficult for 500 years! ‘It should be borne in mind that there is nothing more difficult to handle, more doubtful of success, and more dangerous to carry through than initiating changes in a state’s constitution. The innovator makes enemies of all those who prospered under the old order, 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.’ Niccolo Machiavelli 1513 – The Prince (Translation: George Bull, Penguin, 1961)

6. The Pyramid of Resistance Cultural Alignment Performance Management Alignment Shared vision and business case for change Skill Development Programme Role Models Effective communication Involvement / Engagement Leadership activity & visibility

7. The keys to Successful Change % of senior executives mentioning these as important in an American Association Survey of Fortune 500 companies in the USA (1995)

8. Effective Change Management is a critical success factor Top 10 Barriers to Success 82% Resistance to Change 72% Inadequate Sponsorship 65% Unrealistic Expectations 54% Poor Project Management 46% Case for Change not Compelling 44% Project Team Lacked Skills 44% Scope Expansion / Uncertainty 43% No Change Management Program 41% Not Horizontal Process View 36% IT Perspective not Integrated 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % of Firms Source: D&T 1995 CIO Survey .

9. EXPLAINING PROCESSES OF INDIVIDUAL CHANGE • Elrod and Tippett (2002) • Lewin’s (1947) Three-Step model • Kubler-Ross (1969) On Death and Dying • Marris (1974) Loss and Change • Rashford & Coghlan (1989) Denying, dodging, doing and sustaining

10. Kubler-Ross Presenter / Location / Date

11. BECKHARD MODEL 2 • Vision • what will it be like • how will we be • what shape • what will it feel like External threat Change Team P Transitional Bridge Current state Future state How do we understand what this is? P P P Organisational analysis The case for change

12. Richard Beckhard A+B+C+D>X A= shared Vision B=Dissatisfaction with the status quo C= First practical steps D= Competency X= Fear ( cost of change) Presenter / Location / Date

13. MANAGING INDIVIDUALS THROUGH ORGANISATIONAL CHANGE • Bridges (1986) transition management • Conner (1998) a perpetual student of human transitions • Balogun and Hope Hailey (2008)  some change processes concentrate on attempting to change the values of employees, others emphasise behavioural change, while others seek to change the performance objectives or outputs of employees.

14. THE CHANGE EQUATION(1) Developed by David Gleicher A = the individual's level of dissatisfaction with things the way they are now B = the individual's vision of a better future C = an acceptable first step D = the cost to the individual of making the change Individuals will resist change unless: A + B + OD

15. THE CHANGE EQUATION (2) Individuals will resist change unless: A + B + OD Some people sharpen the tool by stating a corollary thus: AxBxCX) The basis of the pseudo-mathematics is that making a change always costs an individual something, represented by "D". It may be money, resources, it often is time and can be psychological trivia or trauma.

16. THE CHANGE EQUATION (2) Individuals will resist change unless: A + B + OD Some people sharpen the tool by stating a corollary thus: AxBxCX) The basis of the pseudo-mathematics is that making a change always costs an individual something, represented by "D". It may be money, resources, it often is time and can be psychological trivia or trauma.

17. Implementingand sustainingchange Engaging and enablingthe whole organization Creating aclimate for change 8 1 2 3 4 5 6 7 Create Short-term Wins Increase Urgency Build the Guiding Team Get the Right Vision Communicate for Buy-in Empower Action Don’t Let Up Make it Stick Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press. 2002. “Eight Steps of Change”

18. LEADING CHANGE • Kotter (1996, p26), a great advocate of leadership, asserted that ‘successful transformation is 70 to 90 per cent leadership and only 10 to 30 per cent management.’ • In 1995, ‘Leading change: Why transformation efforts fail’ appeared in Harvard Business Review. 1. Establishing a sense of urgency 2. Creating the guiding coalition 3. Developing a vision and strategy 4. Communicating the change vision

19. LEADING CHANGE 5. Empowering broad-based action 6. Generating short-term wins 7. Consolidating gains and producing more change 8. Anchoring new approaches in the culture • Caldwell (2003) undertook original research in order to establish whether change leaders and change managers’ roles were different. • Caldwell suggests that we need both change leadership and change management in order to effectively deliver change.

20. Kotter’s Eight- Stage Process • Establishing a Sense of Urgency • Creating the guiding coalition • Developing a Vision and Strategy • Communicating the Vision • Empowering Employees for Broad Based Action • Gathering Short Term Wins • Consolidating Gains and Producing More Change Presenter / Location / Date

21. Transition Management- William Bridges Change vs Transition Change – is a shift in the external situation/ environment Transition- is the psychological reorientation in response to change Change and Transition are not the same Presenter / Location / Date

22. Fundamental difference between Change and Transition • Change • External • Situational • Event based • Defined by outcomes • Can occur quickly • Transition • Internal • Psychological • Experienced based • Defined by process • Always takes time Presenter / Location / Date

23. Resistance • It is the transition not change that people fight against • Loss of their identity and world • Disorientation of the neural zone • Risk of failing in a new beginning Presenter / Location / Date

24. PHASES OF TRANSITION MANAGEMENT ENDINGS NEUTRAL ZONE NEWBEGINNING

25. Early adopters Positive Followers resistors Negative resistors Champions Deadbeats How can you apply this (from marketing) to your organisational change?

26. KEY CONCEPTS IN THE PROCESS OF CHANGE • People change only when they want to; - develop a personal need for change • People commit themselves to a course of action only when they have understood it and had the opportunity to influence it;- a commitment to the course of action • Changes remain only if those who change learn how they have changed and what it takes to maintain change;- the required skills to maintain that course once implemented

28. MICRO LEVEL • Who are the key groups? • What is their attitude towards change? • What will be the type of transition these people/ groups go through? • What type of transition/ownership management should we put in place? • What capacity building programme might we need? • How to keep the psychological contract with those who leave/those who survive? • Who are the key groups? • What is their attitude towards change? • What will be the type of transition these people/groups go through? • What type of transition/ownership management should we put in place? • What capacity building programme might we need? • How to keep the psychological contract with those who leave/those who survive?

29. CHANGE AT MACRO LEVEL • Work out the business case (logic of change) • What is the vision of change? • How far between where we are & where we want to be? • Is it transactional or transformational change? Implications? • State of readiness/capacity of the organisation - freezing, movement, re-freezing (Kurt Lewin)…or just slush? • Primary focus of intervention - Technical, political, cultural? • Implication of change area for rest of organisation • Systemic alignment - lack explains 90% of change failure

30. METHODS TO TALK ABOUT THE CHANGE(S) • List/mindmap all the reasons for the change • Draw/envisage - if the change project is successful, what will it look like in a few years’ time • Describe what is A (now) & what is B - change is about getting from A to B

31. TRANSACTIONAL (CLIMATE) CHANGE • Logic is internal climate affects individual & organisational performance • Requires a shift in behaviour • Focus on structure, systems, management practices, motivation, task requirements, individual needs & welfare

32. Capability of changing • Accessibility of the obstacle • Readiness for change • Leverage

33. FOCUS OF INTERVENTION • Technical • Political • Cultural

34. The 2 C’s Connection Concern Communicate the 4 P’s Purpose Plan Show the Picture Allocate the Part SIGNS OF WELL MANAGED NEUTRAL ZONES

35. SIGNS OF WELL MANAGED ENDINGS • People understand what is over and what isn’t • Symbolic boundary actions have been used • Constant communication of information • Losses have been acknowledged • Grieving has been permitted and facilitated

36. CRITICAL PERSPECTIVE • The major academic challenge to Kotter’s vision of leading change is: where is the evidence? • Does not contain a list of supporting references at the end of the book and in the body of the book there are only cursory references to Kotter’s earlier publications. • There is no explicit evidence of successful organisational change arising out of following the eight steps. • The book does not acknowledge the importance of context in processes of organisational change. • Culture, power, communications and employee relations are dealt with in a very simplistic manner in the book.

37. LEADERSHIP AND CHANGE Does Leadership make a difference? Presenter / Location / Date

38. EVALUATING THE OUTCOMES OF MANAGING CHANGE ‘The brutal fact is that about 70 per cent of all change initiatives fail.’ (Beer and Nohria, 2000a, p133)

39. EVALUATING THE OUTCOMES OF MANAGING CHANGE Explaining why organisational change fails: • Frequency • Implementation • Top Down/Bottom Up • Cultural challenges • People problems • Power and politics

40. EVALUATING THE OUTCOMES OF MANAGING CHANGE Potential pitfalls of evaluating organisational change outcomes • The context specific nature of managing change • The latent and espoused rationales of a change initiative • The unintended consequences of a change initiative • The multidimensional/interdependent nature of a change initiative.

41. What is Change Leadership? Successful Change Leadership is about getting individuals and groups to do things differently, to change the way they behave and to implement the changes associated with new systems and processes. Any transformation programme will create significant organisational and individual change challenges. Staff will quickly realize that their roles and responsibilities are going to change significantly, and that job shifts may result. It is vital for the leadership to understand the human dynamics of change and to act upon it. This task is particularly challenging as people respond both on a rational and emotional basis.

42. Tenacity Ability to inspire through role modelling and influencing Authenticity, credibility & trustworthiness Ability to see the big picture - strategic Outcome focus Organised / project management skills Stakeholder management ability Key attributes of an effective change leader (1)

43. Research / evidence based practice focus Measurement focus – quantitative & qualitative Understanding of cultures and how to redesign them Understanding of structures and how to redesign them Understanding of procedures and how to redesign them Key attributes of an effective change leader (2)

44. Ability to balance ‘hurry up and get results’ with ‘slow down and check what we are doing’ Creativity and innovation Ability to build and support team development Ability to enable people development Comfort with ‘soft systems’ (a set of component plans, structures & practices that are often messy and random because people are involved!) Key attributes of an effective change leader (3)

45. The Commitment Curve illustrates the different stages of change that people go through for sustainable transformation An important thing to remember is that not everyone needs to get to the top level of commitment immediately! This is the way I do things Achieving commitment This is the way we do things I’ll do it the new way I’ll look at doing it the new way Achieving acceptance I know the implications for me Setting the scene I know what it is I know something is changing

46. Critical Success Factors for Sustainable Change Clear Shared Vision Leader & Stakeholder Commitment Individual & Team Capability Change Management Process Case for Change Effective Communication Cultural Fit Performance Measures LASTING CHANGE + + + + + + + = No Action = No Direction = No Ownership = No Role Models = No Knowledge = No Willingness = Not Lasting = No Results = SUSTAINABLE CHANGE =

47. A “people-driven” approach to problem solving is required for truly successful change results Traditional approach Analysis-Think-Change Recommended approach See-Feel-Change Focus: Give People Analysis • Information is gathered and analysed, reports are written, and presentations are made As a result: • The information and analysis change people’s thinking • New thoughts change behaviour or reinforce changed behaviour Focus: Help People See • Compelling, eye-catching, dramatic situations are created to help others visualise problems, or solutions As a result: • Seeing something new hits people on a deeper, emotional level. This helps reduce emotions that block change and enhance those that support it • Emotionally charged ideas change behaviour or reinforce changed behaviour In the most successful change cases, individuals had a sense of passion. On the other hand, where change was less successful, individuals tended to intellectualise the change. Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press. 2002

48. Reference • Adams, Hayes and Hopson (1976) Transitions: Understanding and Managing Personal Change, Martin Robertson, London • Beckhard,R , Harris R.T(1987) Organisational Transitions : Understanding complex change. Addison-Wesley; 2 edition. • Cameron, E & Green, M (2004) Making Sense of Change Management, KoganPage, London • Jarrett M, (2009) Changeability: why some companies are ready for change and others aren’t, FT Prentice Hall, Harlow Great Britain • Green, M (2007) Change Management Masterclass, Kogan Page, London • Kotter, J (2012) Leading Change, Harvard Review Press • Kubler Ross, E (1969) On Death and Dying, Macmillan, New York

49. Next session Power, Politics & Organisational Change Question: How Powerful are you? Reading: French, J.R.P., Jr., & Raven, B. (1959). The bases of social power. In D. Cartwright (Ed.), Studies in social power. Ann Arbor, MI: Institute for Social Research, The University of Michigan.