Module 5 Change Leadership

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    Module 5. Leading ChangeModule 5. Leading ChangeModule 5. Leading ChangeModule 5. Leading Change

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    ObjectivesObjectives Understand the forces and drivers for Change

    Understand the Principles of Change Understand strategies of managing and leading

    change

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    When the rate of change outside

    exceeds the rate of changeinside the end is in sight

    Rate of ChangeRate of Change

    Jack WelchJack Welch

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    Forces for ChangeForces for Change Knowledge Economy

    Virtual Organisations Mergers and Acquisitions

    Digital convergence

    Privatisations

    ....are transforming the world ofbusiness

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    Two Sides of ChangeTwo Sides of ChangeTechnical Side of ChangeTechnical Side of Change Human Side of ChangeHuman Side of Change

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    Principles of ChangePrinciples of Change

    1.1. Change is a process that can be enabled, notChange is a process that can be enabled, not

    managedmanaged

    2.2. The change process must be linked to business andThe change process must be linked to business and

    performance goalsperformance goals

    3.3. Building capacity to change is a strategic imperativeBuilding capacity to change is a strategic imperative

    4.4. Building capacity for change is an evolutionaryBuilding capacity for change is an evolutionary

    processprocess

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    Principles of ChangePrinciples of Change

    5.5. Effective change process require a systemic view ofEffective change process require a systemic view of

    the organizationthe organization

    6.6. The change process involves both organizational andThe change process involves both organizational and

    personal transitionspersonal transitions

    7.7. Behavioral change is function of perceived need andBehavioral change is function of perceived need and

    occurs at the emotional, not the intellectual levelsoccurs at the emotional, not the intellectual levels

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    Principles of ChangePrinciples of Change

    8.8. Resistance to change is predictable reaction to anResistance to change is predictable reaction to an

    emotional process and depends on a personsemotional process and depends on a persons

    perception of a change situationperception of a change situation

    .. an u o c ange ena emen es prac cesan u o c ange ena emen es prac ces

    account for the success of most change processesaccount for the success of most change processes

    10.10. Change strategies are situationalChange strategies are situational

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    Effective

    1. Motivation Change

    2. Creating Vision of

    Change

    Five activities Contributing to EffectiveFive activities Contributing to Effective

    Change in ManagementChange in Management

    angeManagement

    3. Developing PoliticalSupport

    4. Managing the

    Transition of Change

    5. Sustaining

    Momentum

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    Below the surface of theBelow the surface of theChange ManagementChange Management

    IcebergIceberg

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    Below the surface of the ChangeBelow the surface of the Change

    Management IcebergManagement Iceberg

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    Motivation chan e

    Sensitive

    organizationsto pressure for

    change

    1. Motivating Change1. Motivating Change

    and creatingreadiness for

    change

    Revealdiscrepancies

    between current

    and desired states

    Convey credible

    positive

    expectations for

    the change

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    Individual ResistanceIndividual Resistance

    Habit

    Economic

    Factors

    Job Security

    Selective

    Information

    Processing

    IndividualIndividualResistanceResistance

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    Threat to Established

    Power Relationship

    Threat to Established

    Resource Allocations

    Organization ResistanceOrganization Resistance

    OrganizationOrganizationResistanceResistance

    Structural Inertia

    Limited Focus of

    Change

    Group Inertia

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    Denial CommitmentDenial Commitment

    Four Phases to TransitionFour Phases to Transition

    Past FuturePast Future

    Resistance ExplorationResistance Exploration

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    Attitude Curve in Response toAttitude Curve in Response to

    ChangeChange

    GDI Development (Pty)Ltd

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    How good things wereHow good things were

    Denial

    AngerAnger

    Resistance

    Some of the Signs in Each PhaseSome of the Signs in Each Phase

    It cant happen hereIt cant happen here

    NumbnessNumbness

    EverythingEverything--asas--usualusual

    attitudeattitude Refusing to hear newRefusing to hear new

    informationinformation

    StubbornnessStubbornness

    Blaming othersBlaming others

    ComplainingComplaining

    Getting sickGetting sick Doubting your abilityDoubting your ability

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    Whats going to happenWhats going to happen

    to me?to me?

    Seeing possibilitiesSeeing possibilities

    ChaosChaos

    Where I am headedWhere I am headed

    FocusFocus

    TeamworkTeamwork

    VisionVision

    Some of the Signs in Each PhaseSome of the Signs in Each Phase

    Exploration Commitment

    IndecisivenessIndecisiveness Unfocused workUnfocused work

    EnergyEnergy

    Clarifying goalsClarifying goals

    Seeing resourcesSeeing resources

    Exploring alternativesExploring alternatives

    CooperationCooperation

    BalanceBalance

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    Education and

    Communication

    Negotiation

    Overcoming resistance to ChangeOvercoming resistance to Change

    Resistance toResistance toChangeChange

    Involvement andcooptation

    Facilitation

    and Support

    Coercion

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    Bold andBold and

    ValuedValued

    OutcomesOutcomes

    2. Create Vision of Change2. Create Vision of Change

    ons ruc ng eons ruc ng e

    Envisioned futureEnvisioned futureDesiredDesired

    FutureFuture

    StateState

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    Assessing Change

    Agent Power

    3. Developing Political Support3. Developing Political Support

    Political

    Support

    Identifying KeyStakeholder

    Influencing

    Stakeholders

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    These are individuals or groups withThese are individuals or groups with

    the power to determine that a changethe power to determine that a changewill occurwill occur

    Change

    Sponsor

    Roles in Organization ChangeRoles in Organization Change

    These are individuals or groupsThese are individuals or groups

    These are individuals or groups who areThese are individuals or groups who are

    asked to change something (knowledge,asked to change something (knowledge,skills, or behavior) as a result of theskills, or behavior) as a result of the

    cchangehange

    Agents

    Change

    Target

    responsible for seeing that a previouslyresponsible for seeing that a previouslydetermined change occursdetermined change occurs

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    Power

    3. Influencing Key Stakeholders3. Influencing Key Stakeholders

    What is their source of power?What is their source of power?

    What they can control: money, time,What they can control: money, time,

    resources, people, information?resources, people, information?

    Who they can influence: friends,Who they can influence: friends,

    A set of questions designed to profile an individual stakeholder:A set of questions designed to profile an individual stakeholder:

    What is their

    Style of using

    power?

    Reluctant and occasionalReluctant and occasional

    Make response to threatsMake response to threats

    Assertive and directAssertive and direct

    Deception and subtletyDeception and subtlety

    admirers, those who feel obligationadmirers, those who feel obligation

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    How does thechange really

    affect them?

    Influencing Key StakeholdersInfluencing Key Stakeholders

    Changes their power?Changes their power?

    Affects other needsAffects other needs

    Affects goals, objectives andAffects goals, objectives and

    interestsinterests

    Effect of ChangeEffect of Change

    What is their

    likely response

    to the change?

    Opposition, uncertainty or support?Opposition, uncertainty or support?

    Action now or wait and see ?Action now or wait and see ?

    Open action or hidden action?Open action or hidden action?

    Individual action or acting withIndividual action or acting with

    others?others?

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    What would bethe impact of

    their response?

    Influencing Key StakeholdersInfluencing Key Stakeholders

    Significant or limited?Significant or limited?

    Local or widespread?Local or widespread?

    Recoverable or permanent?Recoverable or permanent?

    Effect of ChangeEffect of Change

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    What wouldmake them

    more supportive

    of the chan e?

    Influencing Key StakeholdersInfluencing Key Stakeholders

    Information / understanding?Information / understanding?

    Involvement and ownership?Involvement and ownership?

    Changes in planned actions?Changes in planned actions?

    Direction from more than seniorDirection from more than senior

    Influencing Key StakeholdersInfluencing Key Stakeholders

    What is their

    likely responseto the change?

    Personal threat?Personal threat?

    NonNon--involvement in decisions?involvement in decisions? Personal rivalries?Personal rivalries?

    Insufficient evidence in in trialInsufficient evidence in in trial

    period (defined by them)?period (defined by them)?

    managers?managers? Evidence of success of the change?Evidence of success of the change?

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    Current

    State

    Desired Future

    State

    4. Managing the Transition4. Managing the Transition

    TransitionTransition

    StateState

    Activity PlanningActivity Planning

    Change Management TeamChange Management Team

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    Head

    (Executive Sponsor)

    Head organization

    Development

    Change Management Team: Roles ExampleChange Management Team: Roles Example

    Corporate Management

    Key project accountability and ownership

    Report CEO on project outcomes/success

    Coordinate overall change program

    Develop clear change strategies for change

    (Change Leaders)

    Communication Role

    (Change Agents)

    Human Resources Role

    (Change Agents)

    Develop individual and team change capability

    Provide clear communication to all key

    stakeholders on change related issues

    Develop 2-way communication channels to

    foster ongoing organization change

    Provide expert HR advice on personal

    transitions and support

    Provide Change Office & project based HR

    infrastructure

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    Understands Appreciates AnticipatesUnderstands Appreciates Anticipates

    change diversity and manageschange diversity and manages

    dynamics resistancedynamics resistance

    Critical Skills of Change AgentsCritical Skills of Change Agents

    Has high Understands ManagesHas high Understands Manages

    credibility power and multiple taskscredibility power and multiple tasks

    influenceinfluence

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    Providing Resource

    forChange

    Building a Support

    System for Change

    5. Sustaining Momentum5. Sustaining Momentum

    SustainingSustaining

    MomentumMomentum

    Agents

    Developing New

    Competences and

    Skills

    Reinforcing NewBehaviors

    Staying the Course

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    1. Motivating Change

    2. Creating Vision of

    Change

    Five Activities Contributing to Effective ChangeFive Activities Contributing to Effective Change

    ManagementManagement

    SustainingSustaining

    MomentumMomentum

    3. DevelopingPolitical Support

    4. Managing the

    Transition of Change

    5. Sustaining

    Momentum

    ChangeManagement

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    Elements of ChangeElements of Change

    na emenna emen

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    Change

    Architecture

    Communication

    Leadership

    Capacity

    Team & individual

    Capacity

    Elements of Change EnablementElements of Change Enablement

    Change

    Performance

    Management

    OrganizationalTransition

    Cultural

    Capacity

    PersonalTransition

    rocess

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    Change

    Architecture

    Change EnablementChange Enablement Best PracticesBest Practices

    There is an explicit strategy andThere is an explicit strategy and

    structure which define the nature andstructure which define the nature and

    ssequence of specific activities andequence of specific activities andresources required to facilitate theresources required to facilitate the

    cchange process.hange process.

    CommunicationAn infrastructure and plan is in place toAn infrastructure and plan is in place to

    build awareness of change goals,build awareness of change goals,

    communicate progress towardcommunicate progress toward

    attainment of these goals and encourageattainment of these goals and encourage

    collective ownership of the change processcollective ownership of the change process

    and outcomes.and outcomes.

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    Performance

    Management

    Change EnablementChange Enablement Best PracticesBest Practices

    Human Resources processesHuman Resources processes recruiting,recruiting,

    ttraining, measuring and rewardingraining, measuring and rewarding areare

    aaligned to drive new behaviors in supportligned to drive new behaviors in supportof the business visionof the business vision

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    Leadership

    Capacity

    Change EnablementChange Enablement Best PracticesBest Practices

    Leaders values and behaviors areLeaders values and behaviors are

    aligned with the business vision;aligned with the business vision;

    leaders possess the skills to drive theleaders possess the skills to drive thechange process to completion, andchange process to completion, and

    accept the responsibility for doing soaccept the responsibility for doing so

    Team &

    Individual

    Capacity

    Actions have been taken to increaseActions have been taken to increase

    individuals and teams ability to enact theindividuals and teams ability to enact the

    business vision and operate effectively inbusiness vision and operate effectively in

    the new environment.the new environment.

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    Cultural

    Capacity

    Change EnablementChange Enablement Best PracticesBest Practices

    The organization has the assessed theThe organization has the assessed the

    alignment of the current culture with thealignment of the current culture with the

    change process built new values andchange process built new values andbehaviors as appropriate to support it.behaviors as appropriate to support it.

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    ChangeChange

    LeadershipLeadership