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ORGANISATIONAL CHANGE: FACTORS AND APPROACHES

HEENA MIRCHANDANI (127611)


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HIMANSHU GARG (127613) JYOTI SATSANGI (127615) VINEET HARIT (127647)


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Introduction
Change is one of the most important characteristic features of modern organizations. Every organization must develop adaptability to change lest it may be swept away by forces of change. There are many forces which act on the organization and make change not only desirable but also inevitable. These forces include technology, market forces and general socio-economic environment. These are the external forces which necessitate change in internal organizational variables like machinery, equipment and processes, policies and procedures, structural relationships etc. Any factor in the internal environment that affects the way the organization carries out its activities is also a force of change. Management policies and practices and employees attitudes and behaviour are the most important forces which pressurize the organization for change.

Meaning of change
The term organizational change implies the creation of imbalances in the existing pattern of situation. When an organization operates and functions for a long time, an adjustment between its technical, human and structural set-up is established. It tends to approximate equilibrium in relation to its environment. In other words, organization members evolve a tentative set of relations with the environment. They have an adjustment with their job, working conditions, friends and colleagues etc. Change requires individuals to make new adjustments and the fear of adjustment gives rise to the problem of resistance to change. Keith Davis has explained the effect of work change with the help of an experiment using an air filled balloon. When a finger (which represents change) is pressed against the exterior of the balloon (which represents the organization), the contour visibly changes at the point of impact. Thus a pressure representing change produces an obvious deviation at the point of pressure. But simultaneously the entire balloon (organization) is affected and stretched slightly. So it may be generalized that the whole organization tends to be affected by change in any part of it. Change is a continuous phenomenon of organizational life. The survival and growth of an organization depends to a great extent on its ability to cope with change required by forces operating within its boundaries and in its external environment. An organization is an open system, which means that 6

it has a constant interactional and independent relationship with its environment.

Nature of change
Organizational change denotes any alteration which occurs in the overall work environment of an organization. It has following characteristics: Change results from the pressure of forces both outside and inside the organization The whole organization tends to be affected by change in any part of it.
Change takes place in all parts of the organization, but at varying rates

of speed and degrees of significance.

Forces for change


All organizations depend on and must interact with their external environment in order to survive and grow. They get inputs from their environment, transform then through various processes and export outputs to the environment. They take what environment gives and give what environment wants. Thus, organizations are constantly responding to their external environment by making necessary changes in the internal forces.

External forces
Technology:-rapid technological changes are responsible for changing

the nature of jobs performed at all levels of organization. The computer technology and automation have made a remarkable impact on the functioning of organizations in the recent times. Technological advancement continues to demand the managers attention as a pressure for change.
Marketing conditions:-marketing conditions are in the process of rapid

change as the needs, desires and expectations of consumers change frequently. Moreover, there is tough competition between sellers in the market. The market is flooded with new products and innovations every 6

day. New media of advertisement and publicity are being evolved for influencing the customers. All these factors put great pressure on the modern organizations to change their technologies and marketing strategies.
Social

changes:- because of spread of education, knowledge explosion and governments efforts, social changes are taking place at a fast pace. The drive for social equality has posed new challenges for the management. The management has to follow social norms in shaping its employment, marketing and other policies.
Political

and legal forces:- political forces within and outside thecountry have an important influence on large business houses , particularly the transnational corporations. The relation between government and business houses has become very complex in modern times. Many laws have been passed to regulate the activities of the corporate sector. The organizations have no control over the political and legal forces, but they have to adapt to meet the pressures of these forces.

Internal forces
Change in operative personnel: the profile of the workforce is changing

fast. The new workers have better educational qualifications, place greater emphasis on human values and question authority of managers. Their behaviour is very complex and leading them for the attainment of organizational goals is really a challenge. The changing expectations of personnel certainly act as a pressure that has to be handled properly by the organizations.
Change in managerial personnel: new managers replace the existing

ones due to retirement, transfer and promotion. As a result new values and ideas enter the organization. Changes take place in the informal relationships also. This may lead to important changes in the organization in terms of organization design, allocation of work to individual. Delegation of authority etc.
Deficiencies in existing structure: there may be deficiencies in the

present organizational setup in the form of unmanageable span of management, larger number of managerial levels, and lack in coordination between various departments and so on. However the need 6

for change in such cases goes unrecognized until some major crisis occurs.
Chain effect of change: quiteoften, a change sets off a sequence of

related and supporting changes. This is known as domino effect. Therefore, repercussions of any change must be studied and analysed adequately before it is introduced.
Fear of inflexibility: dynamic managers introduce change to avoid

developing inflexibility in the organization. The rationale behind this is that organizational members develop liking for change and they do not resist changes unnecessarily whenever need arises in the future.

Levels of Organizational Change


The various types of organizational changes are;

1. Individual Level Change


Individual level changes may take place due to changes in job assignment, transfer of an employee to a different location or the changes in the maturity level of a person which occurs over a passage of time. The general opinion is that change at the individual will not have the significant implications for the organization. But this is not correct because individual level changes will have impact on the group which in turn will influence the whole organization. Therefore, a manager should never treat the employees in isolation but he 6

must understand that the individual level change will have repercussions beyond the individual.

2. Group Level Change


Management must consider group factors while implementing any change, because most of the organizational changes have their major effects at the group level. The groups in the organization can be formal groups or informal groups. Formal groups can always resist change for example; the trade unions can very strongly resist the changes proposed by the management. Informal groups can pose a major barrier to change because of the inherent strength they contain. Changes at the group level can affect the work flows, job design, social organization, influence and status systems and communication patterns. The groups, particularly the informal groups have a lot of influence on the individual members of the group. As such by effective implementing change at the group level, resistance at the individual level can be frequently overcome.

3. Organizational Level Change


The organizational change involves major programmes which affect both the individuals and the groups. Decisions regarding such changes are made by the senior management. These changes occur over long periods of time and require considerable planning for implementation. A few different types of organization level changes are: Strategic change: Strategic change is the change in the very basic objectives or mission of the organization. A simple objective may have to be changed to multiple objectives. For example, a lot of Indian companies are being modified to accommodate various aspects of global culture brought in by the multinational or transnational corporations. Structural change: Organizational structure is the pattern of relationships among various positions and among various position holders. Structural change involves changing the internal structure of the organization. This change may be in the whole set of relationships, work assignments and authority structure. Change in organization structure is required because old relationships and interactions no longer remain valid and useful in the changed circumstances.

Process oriented change: These changes relate to the recent technological developments, information processing and automation. This will involve replacing or retraining personnel, heavy capital equipment investment and operational changes. All this will affect the organizational culture and as a result the behaviour pattern of the individuals. People oriented change: People oriented changes are directed towards performance improvement, group cohesion, dedication, and loyalty to the organizations as well as developing a sense of self-actualisation among members. This can be made possible by closer interaction with employees and by special behavioural training and modification sessions. To conclude, we can say that changes at any level affect the other levels. The strength of the effect will depend on the level or source of change.

Types of organizational changes


Organizational changes may be of four types:

Anticipatory or proactive change: anticipatory changes are made

with an intention to take advantage of favourable situation which is likely to arise. Such changes are systematically planned because the managers monitor the situation regularly and whenever he expects change he attempts to make a change in the organization as to get its benefits.
Reactive change: such changes are forced in the organization by

unexpected environmental pressures. In order to cope with changing environment reactive changes are made in the organization. Such changes are generally made for survival of the organization. Sometimes these changes are made to exploit new opportunities as provided by changing environment.
Incremental change: incremental changes are those changes which

are made with an intention to maintain functioning of the organization on its chosen path. For example, marketing strategy may be changed because of growing competition. It is also called piecemeal change as change is made in one of the sub system of the organization and other systems remain unaffected. Adjustments in other sub-systems may be carried out from time to time so as to secure smooth functioning of the whole organization.
Strategic change: strategic changes are more basic in nature. These

changes have great influence on the overall functioning of the organisation. They alter the direction of the organization. For example, adoption of new technology, change in location of plant, diversification of organizational operations, and sale of a loss-making unit are changes of strategic nature.

Causes of human resistance to change


People resist change to protect themselves from the real or perceived effects of change. Man by nature resists what is unfamiliar to him. This is partly because he fears the new and unknown and partly because of adopting of new ideas is a pain taking process. The resistance to change or opposition to change may be logical and justified in some cases. Sometimes people do not resist change. The may oppose the change agent or mode of implementing the change. Resistance to change may be caused by:

Economic factors
Workers apprehend technological unemployment Workers fear that they will be idle for a major portion of their time due to higher efficiency of new technology Workers are afraid of demotion as they do not have the new skills required for the performance of new jobs.

Psychological factors
It is human psychology to maintain status quo. Human beings resist change by nature Workers may apprehend boredom in new jobs because of increased automation. Workers may be lazy and reluctant to learn new things
Workers do not have complete knowledge about the change. They may

make their own assumptions about change. The assumptions may be totally illogical

Social reasons
It may be felt by workers that their status may go down as a result of

introduction of new technology

Changes may require new social adjustments which are not liked by the workers. Workers as a group oppose change as they are unfamiliar with the change Workers resist changes which are brought about without consulting them.

Strategies to overcome resistance to change


Since it is natural for human beings to resist change, the main problem in introducing and implementing change is to overcome resistance to change. Efforts for overcoming resistance to change can be made both at the individual level and the group level. The techniques that can be used to overcome resistance to change are:
Education and communication: One of the simplest techniques to

overcome resistance to change is to inform people about the change. People can be educated to become familiar with the nature and process of change. Communication of change is very useful because many people resist change due to lack of information or misunderstanding. While communicating change a manager should explain What the change is? Why the change is needed? When it is to be introduced? How it will be implemented? How the change will be beneficial to all? This would help people to visualize the need for and logic to change. They would appreciate the change much better and will accept it easily. 6

Participation and involvement: The management should discuss

the change with the subordinates because people who have an opportunity to participate in planning for change will have some feelings of commanding their own destiny and not of being pushed around like so many pawns on the chessboard. Participation will give the people involved a feeling of importance. They are likely to be more committed to the change if they are convinced about therationale of change. On the other hand a change imposed from above is likely to make people feel that their knowledge and skill are being ignored. Education and training: In order to successfully implement the change subordinates must be indoctrinated in new relationships, taught new skills helped to change attitudes, given the information they need to understand where the fit into the picture and how they will be expected to operate under the new set up. The educational class can be aided by training classes, meetings and conferences.
Facilitation and support: Easing the change process and providing

support for those caught up in it is another way managers can deal with resistance to change. These include listening, providing guidance, allowing time off after a difficult period, and offering facilitative and emotional support. Facilitative support means removing physical barriers in implementing change by providing appropriate training, tools, materials etc. emotional support is provided by showing personal concerns to the subordinates during periods of stress and attains.
Negotiation and agreement: Negotiation with resistors and offering

them incentives may be a useful technique foe overcoming resistance. Examples are union agreements etc. it may become relatively easier to avoid major resistance through negotiation.
Manipulation and co-optation: Sometimes, managers covertly steer

individuals or groups away from resistance to change. They may manipulate worker by releasing information selectively or by consciously structuring the sequence of events. Or they may co-opt an individual, perhaps a key person within a group, by giving him or her desirable role in designing or carrying out the change process.
Explicit and implicit coercion: Managers may force people to go

along with a change by implicit or explicit threats involving loss of jobs, lack of promotion and the like. Managers may dismiss or transfer 6

employees who stand in the way of change. As with manipulation and co-option, such methods, though not uncommon, are risky and make it more difficult to gain support for future change efforts.

Management of change
Management of change is a very complex process. It involves the following steps:
Identifying

the need for change: At the first change the management should attempt to identify the need for change. The need for change is identified in terms of those internal as well as external factors which necessitate the change. The manager may get the required information regarding the need for change either from the feedback process in control system or he may monitor the system on regular basis to get such information. between the desired situation and the existing situation would help in laying down the goals of change. It should be noted that because of changing environment, existing goals of organization may become outdated and the organization can survive only with a new set of goals.

Developing the objective for change: An analysis of the gap

Determining the type of change: Once the need and objective of

the change have been determined, it is necessary to determine about the type of change to be introduced and implemented in the organization. Generally change is required in three major elements of the organization-structure, technology and people.
Planning the change: This is perhaps the most crucial phase in the

management of change. It involves finding answers to questions like when to bring change, how to bring change and who will bring change. While dealing with the time dimension of change, it is necessary to consider likely reactions to change. Time required persuading people to accept the change, counselling and training people to make them competent for the new situation etc. for deciding the method and procedure for change a logical sequence of steps may be created. Who will bring the change means selecting a change agent.
Implementation of change: Once the change plan is prepared it is

necessary to communicate it to all within the organization. It is to be done with the purpose to convince the members about change. Proper 6

communication may help in reducing resistance and seeking necessary support or implementing the change. Along with communication the resources may be allocated and all other administrative arrangements may be made for the execution of plan of change.
Follow-up and feedback: Proper follow-up action is necessary to

ensure that change is progressing in the right direction. Constant monitoring is desirable to identify and tackle the problems created by change. Feedback received from the initial attempt of change may be used to modify the sub sequential change programme.

APPROACHES TO CHANGE MANAGEMENT


The various approaches to change management are: Lewins change management model Force field analysis Kotters 8 step change model Bridges transition model ADKAR Model McKinsey 7S Framework

Lewin's Change Management Model


One of the cornerstone models for understanding organizational change was developed by Kurt Lewin back in the 1940s, and still holds true today. His model is known as Unfreeze Change Refreeze, refers to the three-stage process of change he describes. Lewin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice. Understanding Lewin's Model If you have a large cube of ice, but realize that what you want is a cone of ice, what do you do? First you must melt the ice to make it amenable to change (unfreeze). Then you must mould the iced water into the shape you want (change). Finally, you must solidify the new shape (refreeze).

By looking at change as process with distinct stages, you can prepare yourself for what is coming and make a plan to manage the transition looking before you leap, so to speak. All too often, people go into change blindly, causing much unnecessary turmoil and chaos. To begin any successful change process, you must first start by understanding why the change must take place. As Lewin put it, "Motivation for change must be generated before change can occur. One must be helped to re-examine many cherished assumptions about oneself and one's relations to others." This is the unfreezing stage from which change begins.

Unfreeze
This first stage of change involves preparing the organization to accept that change is necessary, which involves break down the existing status quo before you can build up a new way of operating. Key to this is developing a compelling message showing why the existing way of doing things cannot continue. This is easiest to frame when you can point to declining sales figures, poor financial results, worrying customer satisfaction surveys, or suchlike: These show that things have to change in a way that everyone can understand. To prepare the organization successfully, you need to start at its core you need to challenge the beliefs, values, attitudes, and behaviours that currently define it. Using the analogy of a building, you must examine and be prepared to change the existing foundations as they might not support addon storeys; unless this is done, the whole building may risk collapse.This first part of the change process is usually the most difficult and stressful. When you start cutting down the "way things are done", you put everyone and everything off balance. You may evoke strong reactions in people, and that's exactly what needs to done. By forcing the organization to re-examine its core, you effectively create a (controlled) crisis, which in turn can build a strong motivation to seek out a new equilibrium. Without this motivation, you won't get the buy-in and participation necessary to effect any meaningful change.

Change
After the uncertainty created in the unfreeze stage, the change stage is where people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction. The transition from unfreeze to change does not happen overnight: People take time to embrace the new direction and participate proactively in the change. A related change model, the Change Curve, focuses on the specific issue of personal transitions in a changing environment and is useful for understanding this specific aspect in more detail.In order to accept the change and contribute to making the change successful, people need to understand how the changes will benefit them. Not everyone will fall in line just because the change is necessary and will benefit the company. This is a common assumption and pitfall that should be avoided.

Refreeze
When the changes are taking shape and people have embraced the new ways of working, the organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart, consistent job descriptions, and so on. The refreeze stage also needs to help people and the organization internalize or institutionalize the changes. This means making sure that the changes are used all the time; and that they are incorporated into everyday business. With a new sense of stability, employees feel confident and comfortable with the new ways of working. The rationale for creating a new sense of stability in our every changing world is often questioned. Even though change is a constant in many organizations, this refreezing stage is still important. Without it, employees get caught in a transition trap where they aren't sure how things should be done, so nothing ever gets done to full capacity. In the absence of a new frozen state, it is very difficult to tackle the next change initiative effectively. How do you go about convincing people that something needs changing if you haven't allowed the most recent changes to sink in? Change will be perceived as change for change's sake, and the motivation required to implement new changes simply won't be there.As part of the Refreezing process, make sure that you celebrate the success of the change this helps people to find closure, thanks them for enduring a painful time, and helps them believe that future change will be successful.

Kotter's 8-Step Change Model


Implementing change powerfully and successfully
There are many theories about how to "do" change. Many originate with leadership and change management guru, John Kotter. A professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change." We look at his eight steps for leading change below.

Step 1: Create Urgency


For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. This isn't simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about what's happening in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself. What you can do:

Identify potential threats, and develop scenarios showing what could happen in the future. Examine opportunities that should be, or could be, exploited. Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking. Request support from customers, outside stakeholders and industry people to strengthen your argument.

Step 2: Form a Powerful Coalition


Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough you have to lead it. You can find effective change leaders throughout your organization they don't necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. Once formed, your "change coalition" needs to work as a team, continuing to build urgency and momentum around the need for change. What you can do:

Identify the true leaders in your organization. Ask for an emotional commitment from these key people. Work on team building within your change coalition. Check your team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company.

Step 3: Create a Vision for Change


When you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember. A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense. What you can do:

Determine the values that are central to the change. 6

Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization. Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five minutes or less. Practice your "vision speech" often.

Step 4: Communicate the Vision


What you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do. Don't just call special meetings to communicate your vision. Instead, talk about it every chance you get. Use the vision daily to make decisions and solve problems. When you keep it fresh on everyone's minds, they'll remember it and respond to it. It's also important to "walk the talk." What you do is far more important and believable than what you say. Demonstrate the kind of behaviour that you want from others. What you can do:

Talk often about your change vision. Openly and honestly address peoples' concerns and anxieties. Apply your vision to all aspects of operations from training to performance reviews. Tie everything back to the vision. Lead by example.

Step 5: Remove Obstacles


If you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting. But is anyone resisting the change? And are there processes or structures that are getting in its way? Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. 6

What you can do:


Identify, or hire, change leaders whose main roles are to deliver the change. Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision. Recognize and reward people for making change happen. Identify people who are resisting the change, and help them see what's needed. Take action to quickly remove barriers (human or otherwise).

Step 6: Create Short-term Wins


Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress. Create short-term targets not just one long-term goal. You want each smaller target to be achievable, with little room for failure. Your change team may have to work very hard to come up with these targets, but each "win" that you produce can further motivate the entire staff.

What you can do:


Look for sure-fire projects that you can implement without help from any strong critics of the change. Don't choose early targets that are expensive. You want to be able to justify the investment in each project. Thoroughly analyse the potential pros and cons of your targets. If you don't succeed with an early goal, it can hurt your entire change initiative. Reward the people who help you meet the targets.

Step 7: Build on the Change


Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. 6

Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve. What you can do:

After every win, analyse what went right and what needs improving. Set goals to continue building on the momentum you've achieved. Learn about kaizen, the idea of continuous improvement. Keep ideas fresh by bringing in new change agents and leaders for your change coalition.

Step 8: Anchor the Changes in Corporate Culture


Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started. What you can do:

Talk about progress every chance you get. Tell success stories about the change process, and repeat other stories that you hear. Include the change ideals and values when hiring and training new staff. Publicly recognize key members of your original change coalition, and make sure the rest of the staff new and old remembers their contributions. Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten.

Bridges' Transition Model


About the Model
The Transition Model was created by change consultant, William Bridges, and was published in his 1991 book "Managing Transitions." The main strength of the model is that it focuses on transition, not change. The difference between these is subtle but important. Change is something that happens to people, even if they don't agree with it. Transition, on the 6

other hand, is internal: it's what happens in people's minds as they go through change. Change can happen very quickly, while transition usually occurs more slowly. The model highlights three stages of transition that people go through when they experience change. These are: 1. Ending, Losing, and Letting Go. 2. The Neutral Zone. 3. The New Beginning. Bridges says that people will go through each stage at their own pace. For example, those who are comfortable with the change will likely move ahead to stage three quickly, while others will linger at stages one or two.

Stage 1: Ending, Losing, and Letting Go


People enter this initial stage of transition when you first present them with change. This stage is often marked with resistance and emotional upheaval, because people are being forced to let go of something that they are comfortable with. At this stage, people may experience these emotions:

Fear. Denial. Anger. Sadness. Disorientation. Frustration. Uncertainty. A sense of loss.

People have to accept that something is ending before they can begin to accept the new idea. If you don't acknowledge the emotions that people are going through, you'll likely encounter resistance throughout the entire change process.

Guiding People Through Stage One


It's important to accept people's resistance, and understand their emotions. Allow them time to accept the change and let go, and try to get everyone to talk about what they're feeling. In these conversations, make sure that you listen empathically and communicate openly about what's going to happen. 6

Emphasize how people will be able to apply their skills, experience, and knowledge once you've implemented the change. Explain how you'll give them what they need (for instance, training and resources) to work effectively in the new environment. People often fear what they don't understand, so the more you can educate them about a positive future, and communicate how their knowledge and skills are an essential part of getting there, the likelier they are to move on to the next stage.

Stage 2: The Neutral Zone


In this stage, people affected by the change are often confused, uncertain, and impatient. Depending on how well you're managing the change, they may also experience a higher workload as they get used to new systems and new ways of working. Think of this phase as the bridge between the old and the new; in some ways, people will still be attached to the old, while they are also trying to adapt to the new. Here, people might experience:

Resentment towards the change initiative. Low morale and low productivity. Anxiety about their role, status or identity. Scepticism about the change initiative.

Despite these, this stage can also be one of great creativity, innovation, and renewal. This is a great time to encourage people to try new ways of thinking or working.

Guiding People through Stage Two


Your guidance is incredibly important as people go through this neutral period. This can be an uncomfortable time, because it can seem unproductive, and it can seem that little progress is being made. Because people might feel a bit lost, provide them with a solid sense of direction. Remind them of team goals, and encourage them to talk about what they're feeling. Meet with your people frequently to give feedback on how they're performing, especially with regard to change. It's also important to set shortterm goals during this stage, so that people can experience some quick 6

wins; this will help to improve motivation as well as giving everyone a positive perception of the change effort. Also, do what you can to boost morale and continue to remind people of how they can contribute to the success of the change. If required, you may also want to help people manage their workloads, either by deprioritizing some types of work, or by bringing in extra resources.

Stage 3: The New Beginning


The last transition stage is a time of acceptance and energy. People have begun to embrace the change initiative. They're building the skills they need to work successfully in the new way, and they're starting to see early wins from their efforts. At this stage, people are likely to experience:

High energy. Openness to learning. Renewed commitment to the group or their role.

Guiding People through Stage Three


As people begin to adopt the change, it's essential that you help them sustain it. Use techniques like Management by Objectives to link people's personal goals to the long-term objectives of the organization, and regularly highlight stories of success brought about by the change. Take time to celebrate the change you've all gone through, and reward your team for all their hard work. However, don't become too complacent remember that not everyone will reach this stage at the same time, and also remember that people can slip back to previous stages if they think that the change isn't working.

FORCE FIELD ANALYSIS


Kurt Lewin introduced force field analysis for implementing change. Force field analysis identifies What forces are likely to push the change (driving forces) What forces are likely to restrain the change (restraining forces) The number and strength of the driving and restraining forces must be identified. According to force field theory, the present situation in which change has to be attempted is a quasi-static equilibrium of driving and restraining forces. Organizational stability or quasistatic equilibrium occurs when the driving and restraining forces balance each other in such a way so as to maintain a constant level of functioning for a while. The present equilibrium can be changed by strengthening the driving forces or by wreaking the restraining forces. All these resources reside in a group. Lewin propounded that it is usually easier to change individuals formed into a group rather than to change any of them separately. As long as group standards are unchanged, the individual will resist changes more strongly the farther he is to depart from group standards. If the group standards are changed, the resistance which is due to the relation between individual and group standards will be eliminated. The implication of force field analysis for the manager is that before embarking on a change strategy, he must properly identify and evaluate the forces favouring change (driving forces) and those opposing changes (restraining forces). This will enable him to remove the hindrances that block change efforts. He will not waste his time and energy on those forces over which has no control. Under the framework of force-field analysis, a manager should take the following steps: Recognize the driving and restraining forces- the first step toward organizational change involves scanning of major changes in the environment and problem within the organization. In order to recognize the pressures to change, managers need to develop a keen sensitivity towards the external and internal environment. Similarly, the managers should identify the forces which are likely to resist change.

Increasing the driving forces-once the need for change is identified, it needs to be communicated to the people concerned. If members know why the change is needed, they are more likely to adopt it. Manage the restraining forces- people resist change because they perceive it to be harmful to them. It is, therefore, essential that they are made aware of its benefits. Rewards may be linked to willingness to change and resistance to change may be punished. Unfreezing may be affected by encouraging the driving forces which take the behaviour away from the status quo. Alternatively steps may be taken to overcome the restraining forceswhich tend to perpetuate the status quo. Several techniques are unavailable for unfreezing, e.g. education, communication, participation in decision-making etc. Driving forces (forces for change) Organizations managing to survive in the long-run adapt to new external and internal environment conditions (sometimes whether the participants and power holders want or not). This suggests that change can come in two ways: involuntarily or voluntarily. Involuntary changes arise for many reasons, but quite commonly as a result of personnel turnover. Another need for change is experienced by organizational participants in the form of pressures or anxieties, which are created by the discrepancies between the desired or potential level of organization functioning and the actual or predicted level. The examples of driving forces are:
Dissatisfaction with the present equilibrium, i.e. need for change is felt

Conflicts in the organization Changes in organizational goals Difference in personal and organizational goals Desire for innovation Low productivity and rising costs Restraining forces (forces for stability)

In an organization resistances to change may arise from personal and organizational sources. Resistance from either sector can be fully intentional, in which case the change agent may find a rational model of the change process useful, or the resistance can be somewhat unintentional and require additional measures to bring it to the surface. Personal sources of resistance: Individuals may resist change in general for various reasons of which they may or may not be aware. Conscious resistance presumably arises when an individual perceives a change as a threat to the security of personal advantages associated with the statu quo. Conversely, resistance may arise as a result of anticipated disadvantages that accompany change. Organizational sources of resistance: There are several obstacles to change inherent in the organization. Such barriers to change include resource limitations, sunk costs, accumulation of official constraints, unofficial and unplanned constraints on behaviour and inter-organisational agreements.

ADKAR: Simple, Powerful, Action Oriented Model for Change


The ADKAR model of change is a practical answer to effective change management for individuals and organisations. While many change management projects focus on the steps necessary for organisational change, ADKAR emphasises that successful organisational change occurs only when each person is able to transition successfully. It makes sense then that this model, developed by Jeff Hiatt, CEO of Prosci Change Management, and first published in 2003, focuses on 5 actions and outcomes necessary for successful individual change, and therefore successful organisational change.

The ADKAR model of change management Hiatt refers to each of these five actions as building blocks for successful individual change, and therefore successful organisational change. As the graphic indicates theprocess is sequential. In other words each step must be completed before moving on to the next. Hiatt emphasises that it is not possible to achieve success in one area unless the previous action has been addressed.

The ADKAR model consists of five sequential steps or actions:

Awareness of the need for change


Understanding why change is necessary is the first key aspect of successful change. This step explains the reasoning and thought that underlies a required change. Planned communication is essential. When this step is successfully completed the individual (employee) will fully understand why change is necessary.

Desire to participate in and support the change


In this step the individual is able to reach a point where they make a personal decision to support the change and participate in the change. Naturally a desire to support and be part of the change can only happen after full awareness of the need for change is established. Building desire is partly achieved by addressing incentives for the individual and creating a desire to be a part of the change.

Knowledge on how to change


The third building block of the model, providing knowledge about the 6

change, can be achieved through normal training and education methods. Other methods of transferring knowledge, such as coaching, forums and mentoring, are equally useful, so don't limit this process to formal training. Two types of knowledge need to be addressed: knowledge on how to change (what to do during the transition) and knowledge on how to perform once the change is implemented.

Ability to implement required skills and behaviours


In the ADKAR model Ability is the difference between theory and practice. Once knowledge on how to change is in place (theory) the practice, or actual performance of the individual, needs to be supported. This can take some time and can be achieved through practice, coaching and feedback.

Reinforcement to sustain the change


This final stage of the model is an essential component in which efforts to sustain the change are emphasised. Ensuring that changes stay in place and that individuals do not revert to old ways can be achieved through positive feedback, rewards, recognition, measuring performance and taking corrective actions. This is often the part of change management that is most difficult as organisations are already moving towards the next change. In fact, the Kurt Lewin change management model receives the most criticism in this area. However, for successful change, reinforcement is essential to ensure that changes are maintained and new outcomes can be measured.

McKinsey 7S Framework

The McKinsey 7S Framework is a management model developed by wellknown business consultants Robert H. Waterman, Jr. and Tom Peters in the 1980s. The 7S are structure, strategy, systems, skills, style, staff and shared values. The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually reinforcing and the model is most often used as a tool to assess and monitor changes in the internal situation of an organization. The 7-S diagram illustrates the multiplicity interconnectedness of elements that define an organization's ability to change. The theory helped to change manager's thinking about how companies could be improved. It says that it is not just a matter of devising a new strategy and following it through. Nor is it a matter of setting up new systems and letting them generate improvements. Hard Elements

Strategy Structure Systems

Soft Elements

Shared Values Skills 6

Style Staff

Shared Values
Shared values are commonly held beliefs, mindsets, and assumptions that shape how an organization behaves its corporate culture. Shared values are what engender trust. They are an interconnecting center of the 7Ss model. Values are the identity by which a company is known throughout its business areas, what the organization stands for and what it believes in, it central beliefs and attitudes. These values must be explicitly stated as both corporate objectives and individual values.

Structure
Structure is the organizational chart and associated information that shows who reports to whom and how tasks are both divided up and integrated. In other words, structures describe the hierarchy of authority and accountability in an organization, the way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures - pyramidal, matrix or networked ones - to accomplish their goals.

Strategy
Strategies are plans an organization formulates to reach identified goals, and a set of decisions and actions aimed at gaining a sustainable advantage over the competition.

Systems
Systems define the flow of activities involved in the daily operation of business, including its core processes and its support systems. They refer to the procedures, processes and routines that are used to manage the organization and characterize how important work is to be done. Systems include:

Business System Business Process Management System (BPMS) Management information system Innovation system Performance management system Financial system/capital allocation system 6

Compensation system/reward system Customer satisfaction monitoring system

Style
"Style" refers to the cultural style of the organization, how key managers behave in achieving the organization's goals, how managers collectively spend their time and attention, and how they use symbolic behaviour. How management acts is more important that what management says.

Staff
"Staff" refers to the number and types of personnel within the organization and how companies develop employees and shape basic values.

Skills
"Skills" refer to the dominant distinctive capabilities and competencies of the personnel or of the organization as a whole.

How Cisco IT Implemented Organizational Change and Advanced Services for Operational Success
New organizational framework greatly improves operations.
An enterprise with 300 locations in 90 countries, Cisco has 46 data centers and server rooms supporting the 65,000-plus employees. Fourteen of the data centers/server rooms are production or customer-facing and 32 are used for product development. Like most IT organizations of large enterprises, Cisco IT used a traditional siloed organizational structure, with staffers doing both implementational as well as operational work, often having to drop operational projects to complete deployments. With the traditional organizational arrangement, there was much duplication of effort and lack of focus across the organization. In many cases, employees were unaware of the duplication that existed across the organization. The original organizational model included regional network teams and regional voice teams that were responsible for all aspects of implementing and operating their environments and services.

NDCS (Network and data centre services) Pre-existing Traditional Model: With two separate service organizations, there was much duplication and lack of focus.

CHALLENGE
Cisco ITs Network and Data Center Services (NDCS) organization needed focus. NDCS engaged Cisco Advanced Services Network Availability Improvement Services organization (NAIS) to identify the areas that needed to be changed and recommend how to proceed. The charter of Cisco Advanced Services NAIS is to leverage Cisco and industry network leading practices to achieve a highly available, reliable operations infrastructure. NAIS assesses and remediates the people, process, and tools needed to mitigate operational risk and network complexity by running an Operational Risk Management Analysis (ORMA). The ORMA is a Cisco support deliverable that outlines a roadmap for operational excellence and availability via a best-practice approach to network design, tools, process, and expertise. Cisco Advanced Services NAIS bases the identification and ongoing improvement of best practices upon its ongoing support experience, industry guidance, and the accepted Cisco network design principles for all networks demanding high availability. Over the past eight years, NAIS has worked with more than 300 customers, evaluating the critical areas of: 1. Managing Service Support 2. Managing Change 3. Managing Service Performance 4. Managing Service Resiliency 6

5. Staffing and Expertise NAIS begins the process by interviewing business and IT leaders and senior engineers, and then gathers technical, process, tools, and organizational documents and templates. After an assessment of the current state, NAIS outlines a detailed remediation plan to achieve business and availability goals, and prepares an achievable vision and roadmap. After the ORMA report was performed in 2006, it was apparent to Cisco Vice President of IT NDCS John Manville that organizational changes were needed to drive the team to provide the additional scalability and agility that Ciscos business required. The Network and Data Center organization could not accommodate the kind of growth and technology evolution that Cisco and Cisco IT were expecting, says Manville. The existing resources were not structured to support this, and there was significant duplication of work and processes. These would likely be strained, possibly to the breaking point, with even a minimal amount of growth. It was time to think outside of the traditional IT box, and restructure the organization to accommodate the rapidly changing IT needs. The processes had to be consolidated and simplified, and communication/collaboration vehicles were needed. However, a change of this nature was not inconsequential; it would have a ripple effect throughout Cisco ITs data centers and global wide.

SOLUTION
An organizational restructure to Ciscos IT NDCS group solved the business problem. In Ciscos second quarter of fiscal year 2008 (CY08 fourth quarter), Manville restructured NDCS to map to its own lifecycle business model, typically used by Cisco Services for customer network implementation. With more than 400 employees in NDCS, this was a substantial restructuring.

Cisco Lifecycle Methodology: Cisco IT NDCS now uses this framework for its organizational structure.

The Cisco lifecycle methodology is comprised of six phases, all closely related: Prepare, Plan, Design, Implement, Operate, and Optimize. The lifecycle phases are implemented as follows:

Prepare phase: Business agility starts with preparation: anticipating the


broad vision, requirements, and technologies needed to build and sustain a competitive advantage. In the Prepare phase, the organization determines a business case and financial rationale to support the adoption of new technology. By carefully anticipating future needs and developing both a technology strategy and a high-level architecture to meet those needs, a business is better equipped to contain costs during deployment and operations.

Plan phase: Successful technology deployment depends upon an


accurate assessment of the organizations current network, security state, and overall readiness to support the proposed solution. In the Plan phase, the organization ascertains whether it has adequate resources to manage a technology deployment project to completion. To evaluate and improve network security, the IT department tests its network for vulnerability to intruders and outside networks. IT then develops a detailed project plan to identify resources, potential difficulties, individual responsibilities, and the critical tasks necessary to deliver the final project on time and on budget.

Design phase: Developing a detailed design is essential to reducing risk,

delays, and the total cost of network deployments. A design aligned with business goals and technical requirements can improve network performance while supporting high availability, reliability, security, and scalability. Day-to-day operations and network management processes need to be anticipated, and, when necessary, custom applications need to be created to integrate new systems into existing infrastructure. The design phase can also guide and accelerate successful implementation with a plan to stage, configure, test, and validate network operations.

Implement phase: A network is essential to any successful organization,

and it must deliver vital services without disruption. In the implement phase, the organization works to integrate devices and new capabilities in accordance with the design, without compromising network availability or performance. After identifying and resolving potential problems, the organization attempts to speed return on investment with an efficient migration and successful implementation, including installing, configuring, integrating, testing, and commissioning all systems. After the network operation is validated, the organization can begin expanding and improving IT staff skills to further increase productivity and reduce system downtime.

Operate phase: Network operations represent a significant portion of IT

budgets, so it is important to be able to reduce operating expenses while continually enhancing performance. Throughout the operate phase, the IT department proactively monitors the health and vital signs of the network to improve service quality, reduce disruptions, mitigate outages, and maintain high availability, reliability, and security. By providing an efficient framework and operational tools to respond to problems, a company can avoid costly downtime and business interruption. Expert operations also enable an organization to accommodate upgrades, moves, additions, and changes, while effectively reducing operating costs.

Optimize phase: A good business never stops looking for a competitive


advantage. That is why continuous improvement is a mainstay of the lifecycle. Optimization is the continuous process of planning, designing, and implementing incremental improvements to existing processes. Have business goals or technical requirements changed? Is a new capability or enhanced performance recommended? As the organization looks to optimize its network and prepares to adapt to changing needs, the lifecycle begins anew, continually evolving the network and improving results.

Testing the Lifecycle Methodology within Cisco IT NDCS


6

Ciscos new NDCS organization includes administration on both the front end (via the Program Office) and the back end (via the Business Office), and incorporates Ciscos Lifecycle Model NDCS New Lifecycle Model: Cisco IT NDCSs current organizational structure provides focus. While the original organization model included regional network and voice teams responsible for implementing and operating their environments and services, the new organizational model splits out the Implement phase from the Operate phase for both the network and voice areas

RESULTS
The restructuring, together with the NAIS ORMA report affected change in NDCS. Over the past two years, NDCS has deepened its relationship with Cisco IT advanced services for significant results. Overall, the operational maturity comparison of 2006 to 2008 shows dramatic improvement in each of the five areas. Before using the lifecycle methodology, NDCS had: An average of approximately 150 client-impacting incidents per quarter Total impacting outage duration of 1000-plus hours per quarter A defective root cause percentage consistently above 40 percent The Cisco lifecycle methodology now provides a focus on operational excellence with these results: Incidents have decreased to approximately 70 per quarter The total impacting outage duration has been reduced to 300 impact hours per quarter 6

The defective root cause percentage is now consistently below 10 percent. Meanwhile, demonstrating quantitative positive linear results, Cisco NDCS has achieved customer satisfaction scores of 4.856, with 5 being the best possible score Service-Level Agreements. Ciscos percentage of cases that were satisfied within the alotted SLA timeframe has risen from 60 percent to 90 percent since the NDCS restructuring

References

http://en.wikipedia.org/wiki/Change_management

searchcio.techtarget.com/.../organizational-change-manage. www.mckinseyquarterly.com/Organization/Change_Management http://www.google.co.in/url?

url=http://www.mindtools.com/pages/main/newMN_PPM.htm&rct=j&sa =X&ei=JTapUOmfHouPrgfHkYHwCQ&ved=0CIQBEOkFKAAwCw&q=org anizational+change+management&usg=AFQjCNGvHRPZqv8CAVY2i1_ZDKYtgwTpw&cad=rja


managementhelp.org/organizationalchange/index.htm www.organizedchange.com/village.htm http://www.cisco.com/web/about/ciscoitatwork/downloads/ciscoitatwor

k/pdf/NDCS_Restructuring_AdvSvcs_Case_study.pdf Organizational Behaviour -Stephen P. Robbins -Timothy A. Judge