16

Leading Change

Chapter Objectives

Recognize social and economic pressures for change in today’s organizations.

Implement the eight-stage model of planned major change and use everyday strategies for gradual change.

Use techniques of communication, training and participation to overcome resistance to change.

Effectively and humanely address the negative impact of change.

Expand your own and others’ creativity and facilitate organizational innovation.

Change

Leadership about change rather than stability

More so in recent times Old patterns of behavior and attitudes

no longer work No guarantee that new ways will

succeed: uncertainty

Key characteristics of leaders with successful change projects Define themselves as change leaders Demonstrate courage Believe in employees’ capacity to assume

responsibility Able to assimilate and articulate values

that promote adaptability Recognize & learn from own mistakes Capable of managing complexity,

uncertainty and ambiguity Have vision and can describe it in vivid

terms

Ex. 16.1 Forces Driving the Need for Major Organizational Change

Globalization, technological change, e-business, increased competition, changing markets

More threatsMore domestic competitionIncreased speedInternational competition

More opportunitiesBigger marketsFewer barriersMore international markets

More large-scale change in organizations

ReengineeringHorizontal organizing – teamsNetworksQuality programsNew technologies and products

Mergers, joint venturesConsortiaVirtual and global teamsStrategic changeCultural changeLearning organization

Ex. 16.2 The Eight-Stage Model of Planned Organizational Change

1. Establish a sense of urgency

2. Form a powerful guiding coalition

3. Develop a compelling vision and strategy

4. Communicate the vision widely

5. Empower employees to act on the vision

6. Generate short-term wins

7. Consolidate gains, create greater change

8. Institutionalize changes in the org. culture

The Eight-Stage Model

Establish a sense of urgency: nothing like crises/threats to thaw resistance to change

Establish coalition: with enough power to guide change; then developing teamwork

Developing vision/strategy: compelling vision motivates people

Communicate the vision/strategy: at this stage, use coalition of change-agents; they set example by modeling new behaviors

The Eight-Stage Model (Contd)

Empower employees to act on vision: getting rid of obstacles; give knowledge, resources & discretion

Generate short-term wins: celebrate employees who do well towards change

Consolidate improvements: build on credibility achieved by short-term wins to attack larger problems

Institutionalize new approaches in the culture

On a daily basis, can use other measures for incremental

change: Disruptive self-expression: doing

something (reflects values you want to introduce) yourself that others would notice

Verbal Jujitsu: Turn opponent’s negative attitudes/behaviors to opportunities

Variable-term opportunism: Strategic alliance building

Ex. 16.3 A Range of Everyday Change Strategies

PrivateLeader working alone

PublicLeader working with others

Disruptive self-

expression

Variable-term opportunism

Verbal Jujitsu

Strategic alliance-building

Personal Compact: understanding why people resist

change

•The reciprocal obligations and commitments that define the relationship between employees and the organization• People resist changes that violate the personal compact

Personal Compact

Employees perceive that change violates PC because: Self interest: they think that change will

take away something of value to them – power, prestige, pay, etc

Uncertainty: how change will affect them

Different assessments & goals: people may assess change differently than those who propose it

Overcoming resistance

Using 8-stage model; daily strategies Also:

Communication & Training: open, honest communication – reduces uncertainty and gives some measure of “control”. Training to equip employees with changed conditions

Participation & involvement: creates buy-in & commitment (but can be time consuming)

Coercion: works when time is critical/in crisis; but not good in long-term – employees may sabotage changes

Downsizing

*Change not always good

*Downsizing: Intentionally reducing the size of a company’s workforce -Involve employees-Communicate more, not less-Provide assistance to displaced workers-Help survivors thrive

Innovation Terms

Creativity The generation of new ideas that result in

improved efficiency and effectiveness of the organization

Idea Incubator A safe harbor where ideas from employees

throughout the organization can be developed without interference from company bureaucracy or politics

Innovation Terms (contd.)

Corporate Entrepreneurship Internal entrepreneurial spirit that includes

values of exploration, experimentation, and risk taking

Idea Champions People who passionately believe in a new idea

and actively work to overcome obstacles and resistance

Innovation: necessary elements in the organization

Alignment: for creativity to benefit the organization, need for people’s interests to align with organization goals

Self-initiated activity: Leaders can unleash deep-seated motivations for creativity & innovation (use idea champions)

Unofficial activity: allow employees leeway to experiment & dream (free-time)

Diverse stimuli: invite people for talks, job rotation, etc

Internal communication: frequent contact with interdisciplinary networks

Ex. 16.4 Characteristics of Innovative Organizations and Creative People

Social competence

Emotionally expressive

Loves people

Within-company communication

Open-mindedness

Conceptual fluency

Enjoys variety

Diverse stimuli

Self-confidence

Nonconformity

Curiosity

Unofficial activity

Interdependence

Persistence

Energy

Self-initiated activity

Commitment

Focused approach

Alignment

The Creative IndividualThe Innovative Organization

Ex. 16.5 Stages in the Creative Process

Recognition of problem/opportunity

Evaluation and implementation

Insight Incubation

Information gathering

Creative Process: notes

Stage 3 (incubation): allows subconscious to mull over it. Sleep. Routine, mindless activity.

Stage 4 (Insight): while watching TV. Showering. Try day-dreaming.

Stage 5 (Evaluation): keep fit. Eat right. Take note of intuitive hunches