alter a more formal word for ‘change’: His election could alter the balance of power in

the region.
adjust to change something slightly so that it is exactly the way you want it: You adjust
the volume using the remote control.Can you adjust the height of the seat?
adapt to change something to deal with a specific situation: The recipes can be
adapted for vegetarians.They need to adapt their military forces to the needs of the
post-Cold War situation.
convert to change something so that it can be used for a different purpose: We’re
going to convert the spare room into a study.
modify to make small changes, for example to a machine or system, in order to make
something suitable for a different situation: The exhaust system has to be modified to
meet new emission standards.
transform to change something completely so that it looks or works much
better: Putting in a larger kitchen has completely transformed the house.new
discoveries that could transform the way we treat cancer
vary to make continuous or repeated changes to something: It’s important to vary your
diet.
 When/Why Change is required
Globalization and constant innovation of technology result in a constantly evolving business
environment. Phenomena such as social media and mobile adaptability have revolutionized
business and the effect of this is an ever-increasing need for change, and therefore change
management. The growth in technology also has a secondary effect of increasing the availability
and therefore accountability of knowledge. Easily accessible information has resulted in
unprecedented scrutiny from stockholders and the media and pressure on management.
With the business environment experiencing so much change, organizations must then learn to
become comfortable with change as well. Therefore, the ability to manage and adapt to
organizational change is an essential ability required in the workplace today. Yet, major and rapid
organizational change is profoundly difficult because the structure, culture, and routines of
organizations often reflect a persistent and difficult-to-remove "imprint" of past periods, which are
resistant to radical change even as the current environment of the organization changes rapidly.[17]
Due to the growth of technology, modern organizational change is largely motivated by exterior
innovations rather than internal factors. When these developments occur, the organizations that
adapt quickest create a competitive advantage for themselves, while the companies that refuse to
change get left behind.[18] This can result in drastic profit and/or market share losses.
Organizational change directly affects all departments and employees. The entire company must
learn how to handle changes to the organization. The effectiveness of change management can
have a strong positive or negative impact on employee morale.
 The Concept of Change

 Change is a process, not an event. It can

be planned or unplanned and can be
influenced by forces inside and outside of
an organisation.
 Factors Affecting the Change Process
 Capacity for change

 Forces that positively influence change

 Forces that negatively influence change

 Theories that inform change

Steps in the Change Process

 Establishing the vision

 Determining the state of existing programs

 Identifying a process that can be

used to achieve the vision
 Risk
 Risk is the potential of gaining or losing something of
value.[1] Values (such as physical health, social status,
emotional well-being, or financial wealth) can be gained
or lost when taking risk resulting from a given action or
inaction, foreseen or unforeseen. Risk can also be
defined as the intentional interaction
with uncertainty.[2] Uncertainty is a potential,
unpredictable, and uncontrollable outcome; risk is a
consequence of action taken in spite of uncertainty.[3]
 Risk perception is the subjective judgment people make
about the severity and probability of a risk, and may
vary person to person. Any human endeavor carries
some risk, but some are much riskier than others.[4]
Risks in Change Process
 Economic risk[edit]
 Economic risks can be manifested in lower incomes or higher expenditures than
expected. The causes can be many, for instance, the hike in the price for raw
materials, the lapsing of deadlines for construction of a new operating facility,
disruptions in a production process, emergence of a serious competitor on the
market, the loss of key personnel, the change of a political regime, or natural
disasters.
 Health[edit]
 Risks in personal health may be reduced by primary prevention actions that
decrease early causes of illness or by secondary prevention actions after a person
has clearly measured clinical signs or symptoms recognized as risk factors.
Tertiary prevention reduces the negative impact of an already established disease
by restoring function and reducing disease-related complications. Ethical medical
practice requires careful discussion of risk factors with individual patients to
obtain informed consent for secondary and tertiary prevention efforts, whereas
public health efforts in primary prevention require education of the entire population
at risk. In each case, careful communication about risk factors, likely outcomes
and certainty must distinguish between causal events that must be decreased and
associated events that may be merely consequences rather than causes.
 In epidemiology, the lifetime risk of an effect is the cumulative incidence, also
called incidence proportion over an entire lifetime.[11]
 Health, safety, and environment[edit]
 In terms of occupational health & safety management, the term 'risk' may be defined as the
most likely consequence of a hazard, combined with the likelihood or probability of it occurring.
 Health, safety, and environment (HSE) are separate practice areas; however, they are often
linked. The reason for this is typically to do with organizational management structures;
however, there are strong links among these disciplines. One of the strongest links between
these is that a single risk event may have impacts in all three areas, albeit over differing
timescales. For example, the uncontrolled release of radiation or a toxic chemical may have
immediate short-term safety consequences, more protracted health impacts, and much longer-
term environmental impacts. Events such as Chernobyl, for example, caused immediate deaths,
and in the longer term, deaths from cancers, and left a lasting environmental impact leading to
birth defects, impacts on wildlife, etc.
 Over time, a form of risk analysis called environmental risk analysis has developed.
Environmental risk analysis is a field of study that attempts to understand events and activities
that bring risk to human health or the environment.[12]
 Human health and environmental risk is the likelihood of an adverse outcome (See adverse
outcome pathway). As such, risk is a function of hazard and exposure. Hazard is the intrinsic
danger or harm that is posed, e.g. the toxicity of a chemical compound. Exposure is the likely
contact with that hazard. Therefore, the risk of even a very hazardous substance approaches
zero as the exposure nears zero, given a person's (or other organism's) biological makeup,
activities and location (See exposome).[13] Another example of health risks are when certain
behaviors, such as risky sexual behaviors, increase the likelihood of contracting HIV.[14]
 Social Aspects of Risk[edit]
 Individual risk perception and risk taking can also be influenced by social factors. A study using
representative household data in the US, Italy and Austria finds evidence that risk taking levels
can be influenced by the immediate social environment and by the welfare regime of a state (i.e.
different support networks). The study also finds that these factors can interact.[15]
 Information technology and information security[edit]
 Main article: IT risk
 Information technology risk, or IT risk, IT-related risk, is a risk related
to information technology. This relatively new term was developed as a result of an
increasing awareness that information security is simply one facet of a multitude of
risks that are relevant to IT and the real world processes it supports.
 The increasing dependencies of modern society on information and computers
networks (both in private and public sectors, including military)[16][17][18] has led to new
terms like IT risk and Cyberwarfare.
 Main articles: Information assurance and Information security
 .
 Insurance[edit]
 Insurance is a risk treatment option which involves risk sharing. It can be considered
as a form of contingent capital and is akin to purchasing an option in which the buyer
pays a small premium to be protected from a potential large loss.
 Insurance risk is often taken by insurance companies, who then bear a pool of risks
including market risk, credit risk, operational risk, interest rate risk, mortality risk,
longevity risks, etc.[20]
 In human services[edit]
 The experience of many people who rely on human
services for support is that 'risk' is often used as a reason
to prevent them from gaining further independence or
fully accessing the community, and that these services
are often unnecessarily risk averse.[21] "People's
autonomy used to be compromised by institution walls,
now it's too often our risk management practices",
according to John O'Brien.[22] Michael Fischer and Ewan
Ferlie (2013) find that contradictions between formal risk
controls and the role of subjective factors in human
services (such as the role of emotions and ideology) can
undermine service values, so producing tensions and
even intractable and 'heated' conflict.[23]
 Finance[edit]
 Main article: Financial risk
 In finance, risk is the chance that the return achieved on an investment will be different from that expected, and also takes into account
the size of the difference. This includes the possibility of losing some or all of the original investment. In a view advocated by
Damodaran, risk includes not only "downside risk" but also "upside risk" (returns that exceed expectations).[24]Some regard
the standard deviation of the historical returns or average returns of a specific investment as providing some historical measure of risk;
see modern portfolio theory. Financial risk may be market-dependent, determined by numerous market factors, or operational,
resulting from fraudulent behavior (e.g. Bernard Madoff). Recent studies suggest that endocrine levels may play a role in risk-taking in
financial decision-making.[25][26]
 A fundamental idea in finance is the relationship between risk and return (see modern portfolio theory). The greater the potential return
one might seek, the greater the risk that one generally assumes. A free market reflects this principle in the pricing of an instrument:
strong demand for a safer instrument drives its price higher (and its return correspondingly lower) while weak demand for a riskier
instrument drives its price lower (and its potential return thereby higher). For example, a US Treasury bond is considered to be one of
the safest investments. In comparison to an investment or speculative grade corporate bond, US Treasury notes and bonds yield lower
rates of return. The reason for this is that a corporation is more likely to default on debt than the U.S. government. Because the risk of
investing in a corporate bond is higher, investors are offered a correspondingly higher rate of return.
 A popular risk measure is value-at-risk (VaR).
 There are different types of VaR: long term VaR, marginal VaR, factor VaR and shock VaR. The latter is used in measuring risk during
the extreme market stress conditions.
 In finance, risk has no single definition.
 Artzner et al.[27] write "we call risk the investor's future net worth". In Novak [28] "risk is a possibility of an undesirable event".
 In financial markets, one may need to measure credit risk, information timing and source risk, probability model risk, operational risk
and legal risk if there are regulatory or civil actions taken as a result of "investor's regret".
 With the advent of automation in financial markets, the concept of "real-time risk" has gained a lot of attention. Aldridge and
Krawciw[29] define real-time risk as the probability of instantaneous or near-instantaneous loss, and can be due to flash crashes, other
market crises, malicious activity by selected market participants and other events. A well-cited example[30] of real-time risk was a US
$440 million loss incurred within 30 minutes by Knight Capital Group (KCG) on August 1, 2012; the culprit was a poorly-tested runaway
algorithm deployed by the firm. Regulators have taken notice of real-time risk as well. Basel III[31] requires real-time risk management
framework for bank stability.
 It is not always obvious if financial instruments are "hedging" (purchasing/selling a financial instrument specifically to reduce or cancel
out the risk in another investment) or "speculation" (increasing measurable risk and exposing the investor to catastrophic loss in pursuit
of very high windfalls that increase expected value).
 Some people may be "risk seeking", i.e. their utility function's second derivative is positive. Such an individual willingly pays a premium
to assume risk (e.g. buys a lottery ticket).
 Human factors[edit]
 Main articles: Decision theory and Prospect theory
 One of the growing areas of focus in risk management is the field of human factors where behavioral and
organizational psychology underpin our understanding of risk based decision making. This field considers
questions such as "how do we make risk based decisions?", "why are we irrationally more scared of sharks and
terrorists than we are of motor vehicles and medications?"
 In decision theory, regret (and anticipation of regret) can play a significant part in decision-making, distinct
from risk aversion[34](preferring the status quo in case one becomes worse off).
 Framing[35] is a fundamental problem with all forms of risk assessment. In particular, because of bounded
rationality (our brains get overloaded, so we take mental shortcuts), the risk of extreme events is discounted
because the probability is too low to evaluate intuitively. As an example, one of the leading causes of death
is road accidents caused by drunk driving – partly because any given driver frames the problem by largely or
totally ignoring the risk of a serious or fatal accident.
 For instance, an extremely disturbing event (an attack by hijacking, or moral hazards) may be ignored in
analysis despite the fact it has occurred and has a nonzero probability. Or, an event that everyone agrees is
inevitable may be ruled out of analysis due to greed or an unwillingness to admit that it is believed to be
inevitable. These human tendencies for error and wishful thinking often affect even the most rigorous
applications of the scientific method and are a major concern of the philosophy of science.
 All decision-making under uncertainty must consider cognitive bias, cultural bias, and notational bias: No group
of people assessing risk is immune to "groupthink": acceptance of obviously wrong answers simply because it is
socially painful to disagree, where there are conflicts of interest.
 Framing involves other information that affects the outcome of a risky decision. The right prefrontal cortex has
been shown to take a more global perspective[36] while greater left prefrontal activity relates to local or focal
processing.[37]
 From the Theory of Leaky Modules[38] McElroy and Seta proposed that they could predictably alter the framing
effect by the selective manipulation of regional prefrontal activity with finger tapping or monaural
listening.[39] The result was as expected. Rightward tapping or listening had the effect of narrowing attention
such that the frame was ignored. This is a practical way of manipulating regional cortical activation to affect risky
decisions, especially because directed tapping or listening is easily done.
 Maintenance[edit]
 The concept of risk-based maintenance is an
advanced form of Reliability centered maintenance.
In case of chemical industries, apart from
probability of failure, consequences of failure is
also very important. Therefore, the selection of
maintenance policies should be based on risk,
instead of reliability. Risk-based maintenance
methodology acts as a tool for maintenance
planning and decision making to reduce the
probability of failure and its consequences. In risk-
based maintenance decision making, the
maintenance resources can be utilized optimally
based on the risk class (high, medium, or low) of
equipment or machines, to achieve tolerable risk
criteria.[41]
 Conclusion
 You know that change management methodology
can help you successfully implement changes. But,
how does it help mitigate the risks of change?
Learn more here.
 Overview
 In the previous article in this series, you learned
what change management methodology is and
how it can bring structure to any changes being
made in your organization. But what are the risks
involved in implementing changes?
 In this article, you will learn about the inherent risks
of implementing any change and how change
management can help you deal with these risks.
 Perhaps the biggest and most obvious resistance that you
will encounter is going to come from your employees
themselves. Most people do not like change. They are used
to how things are done and want to keep it that way. Plus, a
large percentage of your employees are not invested in the
organization and a couple may even be trying to sabotage
you. This resistance could lead to failure almost immediately.
Getting these people involved early and helping them
understand why the change is necessary is probably the
best way to deal with this situation. Make them an invested
partner in the change and the motivators.
 Many employees do not like change for the simple fact that
they are not confident that they will be able to perform the
new tasks satisfactorily. Give them plenty of training, and
maybe even provide some one-on-one counseling to make
them feel more comfortable with the new trajectory.
 You need to also follow up with employees once the change
has been implemented. Often, employees will fall back into
their old routines, which could lead to failure.

 Classifying the Change

 Magnitude of the change

 Degree of difficulty in making the change

 Classifying the Change

 First-order or continuous change

 Second-order or discontinuous change

First-order or Continuous
Change

 Change occurs without a disruption to the system.

The system remains stable, and the equilibrium is
maintained.
Second-order or
Discontinuous Change

 The equilibrium of the system is disrupted as the

fundamental properties of the system are changed.
Readiness for the desired
change
 The Capacity for Change

 The level of dissatisfaction the stakeholders are

experiencing with current conditions

 The short and long term costs

 The extent to which individuals understand the

vision to be achieved by the change
The Capacity for Change
 The consequences of the change

 The degree of difficulty in making the change

 The Capacity for Change
 For the school leader to make change that is
effective and sustained, producing the least amount
of conflict, the school must have a capacity for
change.
 The Capacity for Change

 If the capacity for the desired change is

absent, the leader can build capacity.
 Building a Capacity for Change

 Establish effective lines of

communication.
 Secure community support.
 Acquire support for the new program
concept.
 Drive fear out of the schoolhouse.
 Building A Capacity For Change

 Work out bargaining agreements.

 Acquire necessary approval from all
agencies.
 Identify sources of needed resources.
 Become knowledgeable of effective
change strategies.
Informing Capacity Building
 Change Theories and Strategies
 Change Agentry

 Participatory Change

 Data-Driven Change
Assessing the environment in
which the change is to occur
 Force Field Analysis

 The environment in which change occurs contains

a force field.
 Force Field Analysis

 Driving Forces

 Restraining Forces
 Driving Forces

 Driving forces move one toward the desired

change.
 Restraining Forces

 Restraining forces resist the desired change,

inhibiting its attainment.
 A State of Equilibrium
 People are viewed as constantly seeking a balance
between the power of the two forces, which allows
the status quo to be maintained in a frozen state of
existence.
 A State of Equilibrium
 When one of the forces is substantially altered,
reflecting a change in the power status of the other,
the state of equilibrium is “unfrozen,” and there is a
break in the status quo.
Driving Forces
Restraining Forces

Restraining Forces
 Empirical–Rational
A Non-coercive Approach

 The leader assembles and presents the necessary

information regarding the desired change.
 Normative–Re-educative
A Consensus Approach

 The leader seeks change using a consensus

approach.
Normative–Re-educative

 Group activities are initiated to bring about changes

in the norms of the group through changes in
attitudes, values, skills, and relationships.
 Power–Coercive
Using the Leader’s Power Base

 The leader uses his/her power to bring about the

desired change.
Building Change Capacity
Fullan’s Change Agentry Theory

 The leader establishes readiness for change by

identifying and creating four leadership capacities.

 These leadership capacities must be compatible

with four organizational capacities.
 Leadership Capacities
 Personal vision

 Inquiry

 Mastery

 Collaboration