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1.8 change and Management of Change Chapter 8
Change • Change is the continuous adoption of business strategies and structures in response to internal pressures or external forces. • How has MPHS changed since your freshman year and why?
External Causes • Globalization: interdependence between countries economies (new opportunities and new markets) • Technological advances (computers, iphones, robotics) • Fiscal policy, interest rates, business cycle (boom or recessions, disposable income) • Legal changes (changes in laws) • Competitors’ actions (new products, lower prices) • Environmental factors (going green, concern for climate change)
Internal Causes • Organizational Changes(Delayering-flattening the org chart) • Relocation (moving operations) • Cost-Cutting to improve competitiveness (investment in equipment rather than labor, closing ineffective operations, consolidations)
Strategies to Reduce Impact of Change 4 Questions to help you manage change • Is the change anticipated or unexpected? • Is the change likely to be dramatic or have a less significant impact on business • Have managers planned for change? • To what extent can change be controlled by management?
Stages of Change Checklist • Things to consider before and as your organization embarks on change • 1. Where are we now and why is change necessary?
Stages of Change Checklist • 2. New vision and objectives • Have they been developed and communicated?
Stages of Change Checklist • 3. Are resources in place to enable change? • If change cannot be completed, poor results are likely.
Stages of Change Checklist • 4. Give maximum warning • Staff should not be surprised by change.
Stages of Change Checklist • 5. Involve staff in the change plan and its implementation. • Change will more likely be accepted if staff is involved.
Stages of Change Checklist • 6. Communicate • Communicate with staff at all stages.
Stages of Change Checklist • 7. Introduce initial changes that bring quick results. • Positive experience fosters more change with less ill effects.
Stages of Change Checklist • 8. Focus on Training • Helps staff feel involved in the change process.
Stages of Change Checklist • 9. Sell the benefits of change. • When positive changes benefits employees and stakeholders – that is a good thing and needs to be explained.
Stages of Change Checklist • 10. Always remember the individual. • “Soft” approach will make employees feel supported and will create loyalty.
Stages of Change Checklist • 11. Check on people through the change process • How are people coping? A sink or swim philosophy could be damaging.
Lewin’s Force Field 2 opposing forces: • Driving ForcesHelps push organizations towards change • Restraining ForcesMight prevent organizations from reaching their “change” goal
Lewin’s Force Field Driving Forces Increased administrative efficiency 3 Improved customer service 3 Improved internal communications 2 Improved supplier communication 2 New IT System Restraining Forces Cost of IT System 4 Staff losses 3 Staff concern about new technology 2 Environmental impact 2 Total 10 Total 11 Rating system of 1-5 (1 being low; 5 being) creates a numerical system to evaluate the forces.
Project Champion • A person assigned to support and drive the project forward.
Project Group • Small groups that are used to recommend solutions on the path to change.