Managing Change BMG383J4

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Managing Change (BMG383J4)
The Business Institute in partnership with
Bankmore Development Centre Advanced Diploma in
Management Practice
19 September 2006

• Joy Taylor
• j.taylor_at_ulster.ac.uk

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By the end of the day you will be able to

• Identify the rationale for organisational change
• apply change techniques
• define resistance to change and analyse sources
  of resistance
• identify measures for overcoming resistance
• discuss sustaining commitment to change.

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Managing Change Workshop

• Morning
• Types
• Pressures for
• Resistors/Drivers
• The Change Process

• Afternoon
• Cameron High School - Case Study
• Change Curve Model
• The Manager as Change Agent.

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Change . . .

• to make or become different, alter
• to replace or exchange
• to transform or convert

• Innovate
• Variety or novelty

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In the 21st century, for organisations and
individuals alike, . . .
If it aint broke, dont fix it
there is only one certainty nothing is certain
let sleeping dogs lie
and only one constant - change
You cant teach an old dog new tricks
Out of the frying pan into the fire
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If contentment is what you are looking for, you
should have been a dog. Rupert Murdoch.
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Types of Change

• Fundamental
• broad
• core
• Incremental
• limited
• localised

• Proactive
• anticipated
• Reactive
• unanticipated

Planned
Unplanned
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Reactive Change
Resistance to change. Degree of acceptance/
commitment unpredictable.
Unplanned Change
Reactive and unpredictable behaviour
Anxiety, uncertainty
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Proactive Change
Less resistance to change. Degree of
acceptance/ commitment more predictable Anxieties
surfaced early.
Planned Change
Less anxiety More certainty
Proactive and predictable behaviour
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The Nature of Organisational Change

• Change is a process that is rarely contained
  within functional, or specialist, boundaries.

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Stakeholder Model(Doyle, P. 1998. Marketing,
Management and Strategy, p12. Prentice-Hall).
Regular payments Loyal business
Taxes Employment
Job satisfaction Compensation Job security
Power Status Compensation
Quality Service Value
Dividends Capital growth Safe investment
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ACTIVITY

• Create a stakeholder model to represent
• those involved in your organisation
• their expectations and requirements

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The common factor is that when something
changes, whether or not it has been planned or
decided by organisational members, it will have
repercussive effects which will be variously
welcomed, discarded or ignored by people within
and outside the organisation. Their reactions
will in turn affect other things.
Dawson, S. 1992. Analysing Organisations
(Notes). p209.
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The Ripple Effects . . .
CHANGE
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CHANGING MODELS OF STRATEGY(Hodgetts, R M,
Luthans, F and Slocum, J W Jr. (1999)
Strategy and HRM Initiatives for the 00s
Environment Redefining Roles and Boundaries,
Linking Competencies and Resources.
Organizational Dynamics, Autumn. pp7-21)
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The Nature of Organisational Change

• Change is a process that is rarely contained
  within functional, or specialist, boundaries

• Change in one part of an organisation
  invariably affects people and processes
  
  in other parts.

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External Environment
MISSION / GOALS / STRATEGY
Decision/ communication channels
Business Processes
Organisational Change
Organisational structure
Current services/products
People
Jobs/ Role Culture
Technology
Management styles
Knowledge
Skills
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The Nature of Organisational Change

• Change is a process that is rarely contained
  within functional, or specialist, boundaries
• Change in one part of an organisation invariably
  affects people and processes in other parts

• Organisational change can influence, and
  be influenced by, several important features
  of organisational life.

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The Seven S Framework (Waterman, R H, Jr, Peters,
T J and Phillips, J R. 1980. Structure is
not organization, Business Horizons, vol. 23, pp.
14-26.)
Strategy
Skills
Structure
Superordinate goals (Vision)
Staff
Systems
Style
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Pressures for change

• External
• Internal

• Top down
• Bottom up.

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Change Techniques
Managing Change
Implementing change
Planning for change
Pressures for change
Evaluating change
People
PESTLEM
Success Criteria
Roles and Responsibilities
Time
Plan v Actual
Communication
Forcefield analysis
Money
Resistance
Continual Change
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Pressures for Change
Market
Political
Environmental
Economic
Organisation
Legal
Social
Technological
PESTLEM
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The PESTLEM model helps you to-

• identify significant pressures for change that
  has occurred in the past
• think about new opportunities and the conditions
  under which your unit or organisation will be
  operating in a few years time
• construct a long-term forecast for your
  organisation, department or self.

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ACTIVITY
PESTLEM Analysis
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• There is nothing more difficult to plan, more
  doubtful of success, nor more dangerous to manage
  than the creation of a new system,
• for the initiator has the enmity of all who
  would profit by the preservation of the old
  institutions, and merely lukewarm defenders in
  those who gain by the new ones.

Machiavelli
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Forcefield Analysis (Lewin, K. 1951. Field
Theory in Social Science. Harper and Row, New
York)
Restraining forces
Driving forces
EQUILIBRIUM
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Relative strengths
Driving forces
Restraining forces
EQUILIBRIUM
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Relative strengths
Restraining forces
Driving forces
EQUILIBRIUM
No change
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Relative strengths
Restraining forces
Driving forces
Change
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ACTIVITY

• Forcefield Analysis - Christines Dilemma

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Approaches to overcoming resistance to
change(Kotter, J P and Schlesinger, L. A. 1979.
Choosing strategies for change, Harvard
Business Review, March/April, pp. 106-114.)

• Educative
• Facilitative
• Participative

• Persuasive
• Manipulative
• Coercive.
• )

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Change is a process
Desired State
Present State
Transition State
Unfreezing (Pain)
Refreezing (Remedy)
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Some characteristics of the Transition State
Low stability High emotional stress High, often
undirected energy Control becomes a major
issue Past patterns of behaviour become highly
valued Conflict increases.
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Essential elements in the Change
Process(Kanter, R. M. 1984. The Change
Masters Innovation and Entrepreneurship in the
American Corporation, London, Allen Unwin)

• Conceive - have a clear view of what the
  change is that you are trying to bring
  about
• Construct - you must devise systems,
  mechanisms or plans that will allow this
  to happen
• Convert old beliefs, behaviours and
  systems into new ones consistent with your
  required change.

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Stages in the Change Process (Lewin, K. 1951.
Field Theory in Social Science. Harper and
Row, New York)

• Unfreezing the need to change existing
  attitudes towards working practices and
  processes before the change can begin to take
  place
• Changing the implementation stage. Its
  success will depend on the thoroughness
  of the planning and preparation in the first
  stage
• Refreezing consolidation. The change has
  been incorporated into the working
  culture.

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The Three Step Model (Lewin, K. 1951. Field
Theory in Social Science. Harper and Row, New
York)
Disequilibrium
UNFREEZING
Softening of procedures
Equilibrium restored by
Sticking to old ideas and behaviour
Exploring new ideas
CHANGING
Looking at alternative behaviours
Consolidation of ideas and behaviour which
return to the old equilibrium.
Consolidation of new ideas and behaviour
reaching new equilibrium.
REFREEZING
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Integrated Four Phase Model(Bullock Batten,
1985)
Organisation becomes aware of a need for
change Begins to explore the resources needed
EXPLORATION
Information collection Identification of
goals Identification of support required
PLANNING
Action Implementation Evaluation Adjustment Contro
l
ACTION
Integration Feedback Monitoring
behaviour Reinforcing desired behaviour Consolidat
ing behaviour
INTEGRATION
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Levels of Change

• Organisational
• Group or Team
• Individual.

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Levels of Change
Organisation
High
Group
Degree of difficulty
Individual
Low
Length of time
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Jeanie Daniel Duck (Duck, J. D. 2001. The
Change Monster, New York, Crown Publishing)
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Economy, efficiency, and effectiveness do not
just happen. In almost every situation changes
often uncomfortable changes involving people
doing things differently - will be
involved.. The Audit Commission 1986.
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Change, whether in products,services, market
strategies, technological processes or work
practices, are designed and implemented not by
machines, but by people.. (Kanter, R. M.
1984. The Change Masters Innovation and
Entrepreneurship in the American Corporation,
London, Allen Unwin)
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Jeanie Daniel Duck
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Jeanie Daniel Duck
Stagnation The Monster in Hibernation
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Jeanie Daniel Duck
Preparation Waking the Monster
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Jeanie Daniel Duck
Implementation- The Monster Emerges
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Jeanie Daniel Duck
Determination The Monster Roams the
Hallways
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Jeanie Daniel Duck
Fruition The Monster is tamed.
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5 Phases of Change Curve (Duck, 2001)

• Stagnation The Monster in Hibernation
• Preparation Waking the Monster
• Implementation- The Monster Emerges
• Determination The Monster Roams the
  Hallways
• Fruition The Monster is tamed.

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5 Phases Change Curve (Duck, 2001)

• Stagnation - the need for change is reflected
  in the organisations poor performance
• Preparation the decision to change is made
  and the senior management team devises an
  outline of the strategy for change
• Implementation - the plan is put into action
• Determination the decision is made for an
  organisation to go on with the
  implementation of the change programme
• Fruition it all pays off.

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Coping with the Change Curve

• To cope with the Change Monster there has to
  be in the organisation -
• A strategy
• Execution solid basic management
• Heightened sensitivity awareness of emotional
  and behavioural issues.

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For Duck . . .

• Change is inescapably an emotional human
  process that encompasses the whole gambit of
  emotions
• - fear, curiosity, exhaustion, loyalty,
  paranoia, depression, optimism, rage, revelation,
  delight, love........

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According to Duck . . .
If leaders dont take into consideration the
emotional data, all the operational information
and numerical data in the world wont be enough
to turn around an organisation
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As a manager you have a choice. The choice is
not between managing change or not managing
change but between managing change through people
or despite people. In virtually every case, the
former is more successful Rosemary Thomsom 1997.
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ACTIVITY

• Consider Ducks change model -
• What are staff likely to be feeling,
  
  experiencing and doing at each of the five
  stages?
• What can managers do at each stage to make the
  overall change as stress-free and successful as
  possible?
• What impact does the stage of change have on
  communication?

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ACTIVITY (3 groups)
Cameron High School
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Consider the scenario from the perspective of the
Principal and the Board of Governors of the School
Group 1

• Conduct a PESTLEM Analysis
• on the pressures for change that have led to this
  initiative
• on what developments are likely to impact on this
  issue over the next 5 - 10 years.

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Consider the scenario from the perspective of the
Principal and the Board of Governors of the School
Group 2

• Using the Seven Ss Framework anticipate the
  likely impact on the school of the implementing
  the consultants proposed changes.

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Consider the scenario from the perspective of the
Principal and the Board of Governors of the School
Group 3

• Using Forcefield Analysis
• identify the key driving and resisting forces
• specify the relative strength and difficulty to
  overcome of each
• state what approach(es) would you propose using
  to overcome each of the resisting forces?

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Innovation checklist(Riddle, D. 2000.
Managing Change in Your Organization.
International Trade Forum, issue 2. Pp26-28)
Yes 1 point

• Is innovation stated as part of your corporate
  objectives and business plan?
• Do you have at least two experiments or pilots of
  new service concepts being conducted at any one
  time?
• Do you regularly review your portfolio of service
  offerings to make sure that they are balanced in
  terms of novelty/innovation and risk?

• Is your objective to be the market leader by
  exceeding the value added of your main
  competitors?
• Does your financial reporting system reflect
  innovation as an investment rather than a cost?
• Are you attracted by new technologies and
  considering how to apply them to your business?

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Innovation checklist(Riddle, D. 2000.
Managing Change in Your Organization.
International Trade Forum, issue 2. Pp26-28)
Yes 1 point

• Do you provide support to staff who try out new
  ideas even if the ideas fail?
• Do you have a procedure for having staff mystery
  shop the competition and report back?
• Do you provide training for staff in
  innovation-related skills?
• Do you expect to get at least 55 of export
  revenues from innovation services?

• Scoring
• 9 - 10 Great job!
• 7 - 8 Strong foundation
• 5 - 6 Some support, but could do better
• 1 - 4 Need to develop a more proactive role

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How will you change?
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Thank you

• Safe home