CHANGE MANAGEMENT Yatin Kumar

Preet Ratan Singh

“Due to increasingly dynamic environments organizations
are continually confronted with the need to implement
changes in strategy, structure, processes, and culture”

- Daniel T. Holt
WHAT IS CHANGE MANAGEMENT?
Change is a part of our life now and without adopting changes we cannot succeed. It
is very important to change in a systematic way.
In simple terms change management is the task of managing change.
Change management is a systematic approach to dealing with change, both from the
perspective of an organization and on the individual level.
Change management means defining and adopting corporate strategies, structures,
procedures and technologies to deal with changes in external conditions and the
business environment.
WHY CHANGE?
Without change, businesses would likely lose their competitive edge and fail to meet
the needs of what most hope to be a growing base of loyal customers.
Companies that refuse to embrace change may disappear.
Change is difficult, resistance may come from employees who are generally sceptical
of change initiatives, especially if they have lived through botched implementations in
the past.
Successful organizational change requires top management leadership and a clear
explanation of how the changes can help employees do their jobs more efficiently.
MODEL OF ORGANISATIONAL CHANGE
According to Larry Greiner (HBS) a successful organisation change program passes through a 6 stage change process:
1. Pressure and Arousal : The 2 types of pressures faced by organisation are internal (low employee morale,
interdepartmental conflicts etc.) and external (lower sales, lower profits etc.), these factors pressurize top
management to seek organisational change.
2. Intervention and Reorientation : The pressures described above triggers change of leadership at the top. The
person who is chosen as new leader is likely to reorient the power structure in the organisation.
3. Diagnosis and Recognition : The new leader will start collecting data relating to all aspects of the organisation
function. He also interacts with all section of employees to seek first hand information. These actions help in
determining the root cause of poor performance.
4. Intervention and Commitment : In this stage search for solution to above problems starts. All employees
participate in this effort (shared effort), this helps in greater organisational commitment.
5. Experimentation and Research : All solutions thus offered are evaluated again with the involvement of employees.
6. Reinforcement and Acceptance : If any solution is found out to be positive then it is accepted by every employee.
The above model helps managers to understand the scientific process of change
management.
The most important aspect in this model is shared power i.e. every employee should
be involved in identifying, analysis, and applying solutions as a part of the solution of
change management.
JOHN KOTTER MODEL OF CHANGE
1. CREATE A SENSE OF URGENCY : Help others see the need for change through a bold,
aspirational opportunity statement that communicates the importance of acting
immediately.
2. BUILD A GUIDING COALITION : A volunteer army needs a coalition of effective people –
born of its own ranks – to guide it, coordinate it, and communicate its activities.
3. FORM A STRATEGIC VISION AND INITIATIVES : Clarify how the future will be different
from the past and how you can make that future a reality through initiatives linked directly
to the vision.
4. ENLIST A VOLUNTEER ARMY : Large-scale change can only occur when massive numbers of
people rally around a common opportunity.
They must be bought-in and urgent to drive change – moving in the same direction.
CONTD.
5. ENABLE ACTION BY REMOVING BARRIERS : Removing barriers such as inefficient processes
and hierarchies provides the freedom necessary to work across silos and generate real
impact.
6. GENERATE SHORT-TERM WINS : Wins are the molecules of results. They must be
recognized, collected and communicated – early and often – to track progress and
energize volunteers to persist.
7. SUSTAIN ACCELERATION : Press harder after the first successes. Your increasing credibility
can improve systems, structures and policies. Be relentless with initiating change after
change until the vision is a reality.
8. INSTITUTE CHANGE : Articulate the connections between the new behaviors and
organizational success, making sure they continue until they become strong enough to
replace old habits.
COMMON ERRORS IN ORGANISATIONAL CHANGE
EFFORTS AND HOW TO RECTIFY THEM
1. Failing to provide a powerful guiding coalition : There is a need to gather a large initial
core believers, that can help in guiding the rest of the people to change.
2. Under communicating the vision : Lots of communication is necessary for change to succeed.
3. Permitting obstacles to block vision : Obstacles or difficulties associated with change are a
fact but they need to be confronted and overcome so that you can succeed.
4. Failure to create short term wins : Change is hard. So, to keep up the momentum focus on
generating some early wins in the process. This will have a positive effect on motivation
and momentum.
5. Declaring victory too soon : If you relax too soon it’s really easy to go back into your old
ways. Real change takes time so give it time to sink in.
6. Neglecting to anchor changes firmly in corporate culture : In order for change to be
effective, it needs to become “the way we do things around here”, supported by policies,
procedures, behaviours, routines etc.
12 STEP MODEL FOR ORGANISATIONAL CHANGE
AND RENEWAL
1. Involve senior executives in identifying vision, values, and critical success factor for
benchmarking so that every one comes to know the priority.
2. Establish an advisory council of representatives of senior executives for guidance,
to establish accountability.
3. Clarify role, responsibility of each function so that resources and support are
given to effort.
4. Create an executive development strategy that fits in the business.
5. Focus efforts on determining the crucial success factors for achieving the strategic
business plan.
6. Do not expect too much soon, and understand the impact of change process on
roles, structure and work practices.
12 STEP MODEL FOR ORGANISATIONAL CHANGE
AND RENEWAL (CONTD.)
7. Provide awareness of competitive threat.
8. Learn from others and find a way to transfer that learning to other parts of the
business.
9. Start in friendly areas where success can be achieved and support gained for test
development.
10. Take adequate time to plan and involve key people in determining change.
11. Communicate idea that change is an ongoing process and not just a program.
12. Integrate directed and non directed elements of change.
POTENTIAL OBSTACLES OF CHANGE
1. It always takes longer : It takes long time to change than expected. Its hard to
change a habit that has been developed for years. But the people need
everything in a hurry and in short term.
2. Exaggerated expectations, everyone wants everything, now : Deliver some
progress and people wants lots of progress immediately.
3. Carping sceptics : There are a lot of sceptics in every organisation, they are often
loud and persistent in carrying negative comments.
4. Procrastination : Vision supporting activities are too easily postponed. They are
difficult to do and are often not viewed as a part of individuals job.
5. Imperfection : Learn to accept failures, a vision does not guarantee perfection.
You and your people will make mistake. Expect it, accept it and move on.
HR MODEL TO MANAGE CHALLENGES OF CHANGE
Any organisation that attempts change may encounter many challenges, the success or failure of
change lies in handling these challenges.
These are the challenges that an organisation must be prepared for when change is attempted:
1. Reaching an appropriate balance between managing the change and managing the stability
of the organisation.
2. Ensuring appropriate use of special role, study groups, transition teams.
3. Continually evaluating both total effort and individual part in improvement.
4. Establishing and maintaining continuity of leadership during the change process.
5. Appropriately allocating rewards and punishment.
6. Ensuring adequate information flow among various parts of organisation.
7. Constantly monitoring the system in order to ensure the people know what is happening during
the change process.
MC KINSEY VS MOVEMENT MODEL OF CHANGE
Parameter Mc Kinsey Model
Definition of issued By top management, often
through external consultants
Designing of change Centralised and according to a
blue print
Kind of leadership Transactional (centering around
incentives, rewards and
punishments), change is initiated
at top level
Motivation Extrinsic : based on incentives
Approach Professional oriented approach
that can provide immediate
results but may last for short
durations
Movement Model
Done involving stakeholders
Interactive and participative
Transformational (envisioning,
mobilising, and empowering)
Intrinsic : powered by
identification
Relationship oriented approach,
may not provide results
immediately but these may last
for a long term
COOPERS AND LYBRAND MODEL
Communicate with employees fully and honestly, describe them about the change and the
reasons for the change.
Assess employee readiness for change.
Remove unnecessary barriers to change, such as rules and regulations that make no sense in
view of the planned changes.
Engage in test projects to determine the effectiveness of change and then report the results of
these projects to all employees (even if the results are not the ones anticipated).
Demonstrate leadership's commitment to change by engaging in behaviours desired of
employees, and make it clear that management is totally committed to the change and
expects the employees to be as well.
Develop ways to help make the proposed changes more acceptable to employees.
COOPERS AND LYBRAND MODEL (CONTD.)
Maintain absolute honesty and integrity at all times.
Determine in advance exactly how employees will have to change and what they will
have to do to ensure success for the planned change.
Involve employees in the planned changes as much as possible that is, encourage
them to adopt a positive attitude by giving them a vested interest in success.
Develop HR policies that support the planned change.
Provide ongoing training and education to ensure that employees have the skills
necessary to make the changes.
Reward desired behaviour and establish disincentives for undesired behaviour.
TEN STEP MODEL FOR TRANSITION MANAGEMENT
In simple language communicate the impact of change on the unit and what will be it
result.
Look ahead and identify those individuals and groups that are going to be plunged
into transition by these changes.
Assess the transition-readiness of the organization-as measured by its training and
communication systems, its structural flexibility, its cultural dynamism, and the morale
of its personnel.
Analyze the political implications of the changes you are preparing to make.
Set a challenging but realistic pace for the transitions that the changes are going to
require, even if the time table for the changes themselves (as announced by the
organization's leaders) is unrealistic.
TEN STEP MODEL FOR TRANSITION MANAGEMENT
(CONTD.)
Create a representative group of employees to serve as a transition monitoring team which is
charged with the job of keeping track of what is happening to people during the transition
period.
Identify the new skills and knowledge that will be required for the new beginning, and find or
develop training and educational programmes that will provide them.
Review the communication resources within your unit and between the unit and the rest of the
organization, and make such changes in the communication channels as are necessary to keep
people feeling informed and listened to.
Create incentives, both long term and ad hoc to reward people for doing what the new
situations requires them to do and be.
Plan from the very beginning to celebrate the different phases of transition and to represent it
in symbolic ways.
GROUP MODEL FOR CHANGE
If the group is to be used effectively as a medium of change, those people who are to be
changed and those who are to exert influence for change must have a strong sense of
belonging 1o the same group.
The more attractive the group is to its members the greater the influence that the group can
exert on its members.
In attempts to change attitudes, values or behaviours, the more relevant they are to the basis
of attraction to the group. The greater will be the influence that the group can exert upon
them.
The greater the prestige of a group member in the eyes of the other members, the greater the
influence he/she can exert.
Efforts to change individuals or subparts of a group, which, if successful, would have the result
of making them deviate from Me norms of the group, will encounter strong resistance.
GROUP MODEL FOR CHANGE (CONTD.)
Strong pressure for changes in the group can be established by creating a shared
perception by members of the need for change, thus making the source of pressure
for change lie within Me group ·
Information relating to the need for changes, plans for changes and consequences of
change must be shared by all relevant people in the group.
Changes in one part of a group produce strain in other related pans, which can be
reduced only by eliminating the change or by bringing about readjustments in the
related parts.
THE NEUTRAL ZONE MODEL
Phase-I : Saying Goodbye. It involves motivating people to unlearn and leave the ways and
disengage the methods being followed for accomplishment of their functions. Sometimes, they
may have to be asked Io give those functions themselves. It is like asking people to vacate
their bases in search of new ones.
Phase-II : Shifting to Neutral. This is the most difficult phase in transition. It is a stage that lies
between leaving old and finding new. It generat1es confusion, chaos and uncertainty in the
minds of people. The success of transition and change depends on the effective management
of this phase called as Neutral Zone. This is also an uncomfortable phase that drives people
either Io find new ways or withdraw to old. Therefore, the time to be spent here must be
minimized to the lowest possible.
Phase-III : Moving Forward. As he transition reaches the third stage, there will be people (I)
who are through with new ways, (ii) who are stranded due to frightened neutral zone
syndrome and (iii) who refuse to give their old ways. This phase demands people at neutral
zone must be helped to move to third phase while people at first phase must be pulled. At the
end of third phase, all people must behave in new ways and work on new functions.
MODEL FOR SUCCESSFUL CHANGE AGENT ROLE
Rule-I: Stay alive. It means staying alive with your purpose. A change agent must keep
himself/herself totally involved in the process as a facilitator. It also involves using one's skills,
emotions, position and labels rather than used by them.
Rule-II: Start where the system is: The rule implies that one should diagnose the system in a
systematic manner. The change agent must understand the operating culture, history and dominant
ethos of organization before commencing the actual work. He or she also must build rapport with
people involved in the change process.
Rule-III: Never work uphill. This rule comprises six sub-rules. (i) don't build hills as you go (ii)work in
the most promising arena to start with. (iii) build resources in terms of teams and team operating
procedures. (iv) Don’t over organize as it consumes a lot or valuable time, (v) win-los strategies to
be avoided because they deepen conflict (vi) play god a little.
Rule-IV: innovation requires a good idea, initiative and a few friends. Little that can be achieved
alone and independently. Most of the ideas and initiatives come from collaborations and group
performance. Again, quality of ideas and initiatives depend upon the quality of group members.
Therefore. choose quality people to perform the role of resource persons.
MODEL FOR SUCCESSFUL CHANGE AGENT ROLE
(CONTD.)
Rule V: Load experiments for success. The new things and processes shall be tested first and
experimented on a group that is mast likely to cooperate and succeed the test.
Rule VI: Light many fires. The success of change initiative comes from involvement of many
subsystems in organization. Therefore, efforts shall be made to involve as many people as
possible. Especially, people who will be affected by change must be given adequate
opportunity to participate and own the change process
Rule VII: Keep all optimistic bias. The change agent is usually flooded with, the destructive
aspects of me situations he enters. There will be resentments, indifferences, politicking and
bitter struggles among groups and individuals participating in the change programme.
Change agent must be optimistic of facilitating the group to emerge as united force and shall
not be frustrated.
Rule VIII: capture the moment. Change agent must utilize the situation appropriately for
appropriate purposes. If the timing is not proper, even the best of intentions with best of
intentions can fail to yield any results.
THANK YOU