Contents of the ReportContents of the Report

Change & Change Management DefinedChange & Change Management Defined

Why Study Change?Why Study Change?

Drivers of ChangeDrivers of Change

Barriers to ChangeBarriers to Change

Analyzing your organization for change Analyzing your organization for change readinessreadiness

Change SolutionsChange Solutions

Definition of ChangeDefinition of Change

to make different in some particular to make different in some particular to make radically different to make radically different to give a different position, course, or direction to to give a different position, course, or direction to to replace with another to replace with another to make a shift from one to another to make a shift from one to another to exchange for an equivalent sum or comparable to exchange for an equivalent sum or comparable

item item to undergo a modification of to undergo a modification of to undergo transformation, transition or substitution to undergo transformation, transition or substitution

Change ManagementChange Management

From the meaning of From the meaning of the two root words,the two root words,

change management change management can be explained ascan be explained as

thethe process of process of developing a planneddeveloping a planned

approach to change in approach to change in an organizationan organization

Why Study Change?Why Study Change?

Why study Change?Why study Change?

Sigmoid CurveSigmoid Curve

A Sigmoid curve is anA Sigmoid curve is an

S-shaped graph thatS-shaped graph that

represents any event inrepresents any event in

an organization over aan organization over a

period of time, fromperiod of time, from

birth to death birth to death

3 Phases of the Sigmoid Curve3 Phases of the Sigmoid Curve

BeginningBeginning

DevelopmentDevelopment

TransformationTransformation

Drivers of ChangeDrivers of Change

Status QuoExternal Pressures

Poor Performance

Internal Dissatisfaction

External PressuresExternal Pressures

Changes introduced by competitors Changes introduced by competitors Change brought about by political or Change brought about by political or

economic circumstanceseconomic circumstances Changes in marketplace perceptionsChanges in marketplace perceptions Technological changeTechnological change

Poor PerformancePoor Performance

Not producing enough financial surplus or Not producing enough financial surplus or failing to control costs within budget setsfailing to control costs within budget sets

Allowing costs to increase out of controlAllowing costs to increase out of control

Failing to achieve sales/income or output Failing to achieve sales/income or output targets targets

Increasing customer complaintsIncreasing customer complaints

Internal DissatisfactionInternal Dissatisfaction

Development of pay conditionsDevelopment of pay conditions

Operational processesOperational processes

Old or new equipmentOld or new equipment

Policy changesPolicy changes

Specific individuals, or groups of Specific individuals, or groups of employeesemployees

othersothers

Barriers to ChangeBarriers to Change

Organizational Organizational BarriersBarriers

Individual Individual BarriersBarriers

Drivers of ChangeDrivers of Change

Status Quo

Ingrained Culture

Inappropriate Structures

Poor Communications

Unclear Objectives

People Perceptions

Organizational BarriersOrganizational Barriers

Unclear ObjectivesUnclear Objectives

Inappropriate StructuresInappropriate Structures

Poor CommunicationsPoor Communications

Individual / People BarriersIndividual / People Barriers

Individual PerceptionsIndividual Perceptions Fear of the UnknownFear of the Unknown Perceived BenefitsPerceived Benefits ParochialismParochialism TrustTrust Dealing with people perceptionsDealing with people perceptions

Ingrained CultureIngrained Culture

Analyzing your OrganizationAnalyzing your Organization

Organizational CultureOrganizational Culture

National or regional National or regional

Corporate or organizationalCorporate or organizational

ProfessionalProfessional

Where to look when Investigating Where to look when Investigating your company’s Cultureyour company’s Culture

Historical perspectivesHistorical perspectives

Control characteristicsControl characteristics

Communication systemsCommunication systems

ImageImage

People systemsPeople systems

Implementing ChangeImplementing Change

Skills Needed to Implement Skills Needed to Implement Change Successfully Change Successfully

Political Skills Political Skills

Analytical SkillsAnalytical Skills

People SkillsPeople Skills

System / Technical SkillsSystem / Technical Skills

Business SkillsBusiness Skills

Change Management StrategiesChange Management Strategies

StrategyStrategy DescriptionDescription

Empirical-Empirical-

RationalRational

People are rational and will follow their self-People are rational and will follow their self-interest. Change is based on the communication interest. Change is based on the communication of information and the proffering of incentives. of information and the proffering of incentives.

Normative-Normative-ReeducativeReeducative

People are social beings and will adhere to People are social beings and will adhere to cultural norms and values. Change is based on cultural norms and values. Change is based on redefining existing norms and values, and redefining existing norms and values, and developing commitments to new ones. developing commitments to new ones.

Power-Power-

CoerciveCoercive

People are basically compliant and will generally People are basically compliant and will generally do what they are told or can be made to do. do what they are told or can be made to do. Change is based on the exercise of authority. Change is based on the exercise of authority.

Environmental-Environmental-AdaptiveAdaptive

People oppose disruption but they adapt readily People oppose disruption but they adapt readily to new circumstances. Change is based on to new circumstances. Change is based on building a new organization and gradually building a new organization and gradually transferring people from the old to the new one transferring people from the old to the new one

Factors in Selecting a Factors in Selecting a Change StrategyChange Strategy

Degree of ResistanceDegree of Resistance

Target PopulationTarget Population

The StakesThe Stakes

The Time FrameThe Time Frame

ExpertiseExpertise

DependencyDependency

Miscellaneous Tips Miscellaneous Tips on Handling Changeon Handling Change

Jump inJump inA clear sense of mission or purpose is essential. A clear sense of mission or purpose is essential. Build a teamBuild a teamMaintain a flat organizational team structure and rely on Maintain a flat organizational team structure and rely on minimal and informal reporting requirements. minimal and informal reporting requirements. Pick people with relevant skills and high energy levelsPick people with relevant skills and high energy levelsToss out the rulebookToss out the rulebookShift to an action-feedback modelShift to an action-feedback modelSet flexible prioritiesSet flexible prioritiesTreat everything as a temporary measureTreat everything as a temporary measureAsk for volunteersAsk for volunteersGive the team members whatever they ask for — except Give the team members whatever they ask for — except authorityauthorityConcentrate dispersed knowledgeConcentrate dispersed knowledge