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CHANGE MANAGEMENT

CHANGE MANAGEMENT Change Management is the move from one defined state to another-To flexibly adapt the organization to ongoing external changes or making of changes in a planned and systematic fashion. This ... happens all the time MAMTA ROHIT IDBI Bank. What is .

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CHANGE MANAGEMENT

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  1. CHANGE MANAGEMENT Change Management is the move from one defined state to another-To flexibly adapt the organization to ongoing external changes or making of changes in a planned and systematic fashion. This ... happens all the time MAMTA ROHIT IDBI Bank

  2. What is ... Change management is a structured approach to transitioning individuals, teams,organizations ... from a current state to a desired future state. Changes initiatives have been given different names such as TQM, Six Sigma,Breakthrough Management,Lean Transformation, BPR and Operational Excellence

  3. Change Management • The process of change has impact on the whole organization and on all individuals working there. It influences • What the organization does • The way the organization does things • The way all business units of the organization communicate and share information. • Therefore Change management is a basic skill in which most leaders andmanagers need to be competent.This competence is based on five key principles . They are……

  4. Key Principles 1.What possible reactions could be -Insecurity, lack of selfconfidence, that doesn’t concern me, denial, enthusiasm, saying “good bye”, or even attack. We have to encourage employees, convince them, give them information, promise something. 2. Everyone has fundamental needs of visibility, respect, safety , stability and to maintain personal life. We have to listen, involve them, give them recognition, support them.

  5. Contd… • 3.Change often involves a loss, and people go through the "loss curve“ –It could be loss of Identity, our members, what we already know, stability,already tested methods, the feeling of belonging together, title, security.We need to convert them into ‘win’ by giving examples, time, flexibility, confidence and new security. • 4.We need to be manage expectations realistically . While we expect acceptance, support, constructive feedback, teamwork, involvement, openess for new ideas and friendship, our people expect the same (mirror effect)

  6. Contd.. • 5.Fears of loss of groups and leaders, fear of change itself, fear of fail, fear to loose motivation have to be dealt with . For this we need to communicate, understand, talk and respect fears.

  7. Strategies to cope with changes • Knowledge utilization model • Organisational Development Model • Democratic approach model • Systems approach model • Charismatic leader approach model

  8. Different Models 1.Knowledge utilization model- Knowledge is a magicstick! With right knowledge we foresee roadblocks and address them at the outset. We need to train and support on demand .... 2.Organizational Development Model - Right working conditions, trust and not too much bureaucracy . Also adaptable, flexible, responsive organization that changes gradually, step by step... 3. Democratic Model- Focus is on team working and Consensus on decisions!Collaboration and empowerment!

  9. Contd…. 4. Systems approach model –Focus on efficient operations and processes. Right structures and mechanisms, job descriptions... 5. Charismatic Leader Approach model- Strong and clear lead.“One man” vision resulting in efficient instructions, task division...etc.

  10. Barriers to Change • 1. Perception Barrier • Stereotypes in analysis • Difficulties to identify and to analyze the core of the problem • Problems approached with one sided view and lacking ability to see all sides of the problem • Information overload • Mis judgement of information

  11. 2. Emotional Barrier • Risk-Aversion • Lack of ability to process incomplete or contradictory information. • Preference to evaluate existing ideas instead of generating new Ideas . Early evaluation may eliminate creative ideas. Normally people find it easier to reject rather than support a new idea. • Not taking time for thinking-Most people don’t want to lean and thing as feel under pressure to deliver results quickly

  12. 3.Cultural Barriers • Taboos restrict analysis of particular issues and thus change • More focus than imagination – Due to targeted thinking we happen to be less imaginative and creative • Reasons and intuition – We feel that logic, fig critical reasoning and objective analysis are good things and intuition is sub-optimal • Tradition and Change – Challenging to overcome traditions especially when employees do not see the relation between tradition and an existing problem.

  13. 4. Environmental Barriers • Lack of support- Changes are perceived as threat as it moves the employee and the organization out of their ‘comfort zone’ • Lack of ability to accept criticism- ability to accept criticism is a major precondition for establishing trust and for gaining support • Some Managers are successful because they have good ideas and are able to implement them . But only those who listen to their employees , will be able to use their creatively as well.

  14. 5. Cognitive Barriers • Use of wrong terminology- Use of language and terminology appropriate for receivers support creativity and motivation • Sticking to strategies- At times they are applied wrongly- too rigid or not too rigid • Lack of complete and correct information-The best solution is a balanced mix of information and creative ideas

  15. Why efforts fail PERCEPTION REALITY MANAGEMENT OF CHANGE INFRASTRUCTURE TECHNOLOGY

  16. Foundation for a successful change • Commitment of the Top team is a priority • A supportive team is a must to restructure , redesign, retool or improve (a group with aligned objectives which relentlessly drives change , removes barriers and ensures involvement of the entire organization for a robust change) • Senior people have to review their responsibilities , attitudes, behaviour, personal leadership styles and their relationship with each other as they have reached this position by doing things a particular way

  17. Contd….. • A true coalition will learn how to work through conflict to get a shared view as to the best way forward .Training and development play a critical role . • Middle managers need to be on board early and they should be kept fully informed they facilitate instead of undermining the change process due to a feeling of neglect. • Developing a clear and inspiring vision so that people can see exciting possibilities and can begin to act in accordance with them.

  18. Contd… • Organizations have to over invest in communication to clarify what will the organization look like during and after the change programme , what concerns will emerge and how will they be addressed . It is critical for people to be reminded of the vision and also how far they have come to help maintain morale and belief in the change process. • Create and train the facilitators of change

  19. Change Facilitator Network What Establishing an internal network of change champions to build awareness and understanding of change management principles. Network is established initially by involving client staff in a one day workshop to explore business change principles and concepts within the context of the changes sought. How Involve those most impacted by the changes. Develop objective method for selecting candidates. Select staff of equivalent seniority and who are well regarded by their peers, are credible, reliable, eager to learn and be involved, or are “opinion leaders”. Do not select staff: who are perceived to be management mouthpieces Who

  20. Kotter’s Eight Stages • Establish a sense of urgency • Create a guiding coalition • Develop a vision and strategy • Communicate the change vision • Empower employees • Generate short term wins • Consolidate gains for more change • Anchor new approaches

  21. Kotter’s eight errors • too much complacency • under-powered coalition • under-estimating power of vision • seriously under-communicating vision • permitting obstacles to block change • failing to generate short term wins • declaring victory too soon • not anchoring changes in the culture

  22. Kotter’s five consequence arising from the eight errors • new strategies not implemented well • gains do not achieve expected synergies • long time-scales and high costs • down-sizing does not control costs • anticipated results not realised

  23. How do you manage change? • The first thing you do is jump in. You can't do anything about it from the outside. • A clear sense of mission or purpose is essential. • Build a team. "Lone wolves" have their uses, but managing change isn't one of them. On the other hand, the right kind of lone wolf makes an excellent temporary team leader. • Maintain a flat organizational team structure and rely on minimal and informal reporting requirements. • Pick people with relevant skills and high energy levels. You'll need both. • Toss out the rule book. Change, by definition, calls for a configured response, not adherence to prefigured routines. • Shift to an action-feedback model. Plan and act in short intervals. Do your analysis on the fly. No lengthy up-front studies. Remember the hare and the tortoise. • Set flexible priorities. You must have the ability to drop what you're doing and tend to something more important.

  24. Managing Resistance To Change • Managing resistance to change: • Freeze cycle approach (Kurt Lewin 1947 ) • Unfreezing • Initial awareness of need for change is developed • Changing • Focus on learning needed new behaviors • Freezing • Reinforcing new learned behaviors by positive results, feelings of achievement, and rewards from others.

  25. Managing Resistance To Change Overcoming resistance Participation & involvement Education & communication METHODS (Kotter & Schlesinger) Facilitation & support Explicit & implicit coercion Negotiation & agreement Manipulation & cooptation

  26. Managing Resistance To Change • Driving forces are factors pressuring for a particular change • Restraining forces are factors pressuring against a change • The status quo is a condition of equilibrium between the two forces • Change occurs by increasing driving or reducing restraining forces that is reducing resistance to change

  27. Driving forces for change Restraining forces against change Deteriorating company-union relations Good union relations Stringent work rules Foreign competition Current benefit costs Recent losses Cheaper outside sources Current pay costs Union desire to save jobs Employee absenteeism levels Company reluctance to save jobs Company desire for flexibility in layoff decisions

  28. Small tips on Change Management • Acting is better than planning • Think big – act small • Go where the energy is • Involve people – build ownership • Make alliances instead of enemies • Help and support is required all the time

  29. Change Organization Culture

  30. THANK YOU

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