Change is the Future

Dr. Kenneth Lui-ming NGIEDr. Kenneth Lui-ming NGIE

2

Agenda1. Introduction2. Realities of change3. Barriers and consideration of change4. Leadership model5. New approaches for the new era of rapid

change6. Strategic analysis tools

3

ObjectivesAble to understand1. what is change 2. change cycle3. reasons of failure4. causes of resistance5. change equations6. three-circle framework7. components of change strategy8. change agent9. how can we support change

4

What is Change?

“Change is a simple process. At least, it’s simple to describe. It occurs whenever we replace the old with the new. Change is about traveling from the old to the new, leaving yesterday behind in exchange for a new tomorrow” (de Jager, 2001, p.24).

Change is not a linear process.

Change in one part of an organization affects the other parts (Ripple Effect).

It is often a combination of change initiators and change resistors that creates the celebration of successful change.

(Lawrie, 1990; de Jager, 2001; Kotter, 2007; Britt and Thomas, 2007)

5

Success Rate

In 1996, John Kotter’s research revealed that only 30% of change programs succeeded.

In 2008, a McKinsey survey revealed the same success rate.

“70% of the time, when significant change is needed, people back away, go into denial, try but fail rather miserably, or stop, exhausted, after achieving half of what they want, using twice the budgeted time and money” (Kotter and Whitehead, 2010, p.181).

(Jarrett, 2008; Aiken and Keller, 2009; Kotter and Whitehead, 2010)

6

Causes of Resistance

Fear of unknown Fear of failure Threats to status Loss of power and influence Lack of information and/or clarity Lack of perceived benefits Most people are naturally concerned about how

they can change, especially if the change involves learning something new and risking failure.

“Resistance is a natural part of the change process. Employees resist change because they are human, not because they are disloyal or incompetent” (Lewis, et al., 2010, p12).

(de Jager, 2001; Bagranoff, et al., 2002; Proctor and Doukakis, 2003; Lewis, et al., 2010)

7

Reasons of Failure Lack of strong, consistent management support Lack of motivation Lack of skill Lack of training Lack of vision Lack of change agents to facilitate change

process Project scope too large for the available

resources Poor communication No preparation for a change culture

(Easton and van Ryckeghem, 2010; Lee and Faulkner,

2010 )

8

Change Cycle

ANNOUNCEMENT

SHOCK

DENIAL

DEPRESSION

ANGER

BARGAINING

TESTING

ACCEPTANCE

LETTING GO – LOSS,DENIAL, ANGER,

ANXIETY,WITHDRAWAL

NEUTRAL ZONE –FEAR, UNCERTAINTY,CONFUSION, GUILT

BEGINININGS –ANTICIPATION,NEW FRAME OF

REFERENCE,NEW SENSE OF COMPETENCE

(Source: Adapted from Austin and Currie, 2003, p.233)

A CB

9

Three-Stage Model of Change

INITIAL LEVEL

NEW LEVEL

Fe

ar

Visio

n

Su

rvival

Prid

e

Va

lue

sS

elf In

tere

st

(A) Unfreeze

(B) Change

(C) Refreeze

Restraining Force

Restraining Force

Restraining Force

Driving Force

Driving Force

Driving Force

(Source: Adapted from Kajewski, et al., 2010, p.32)

10

Change Equation1960’s 2000’s

(D * V * F) > R

Dissatisfaction

Vision

First Step

Resistance to Change

(A * B * D) > X

Level of dissatisfaction with the status quo

Clear desired status

Practical first step toward the desired state

The cost of Change

A

B

D

X

D

V

F

R

Burke’s Formula (Burke, 2008) Gleicher's Formula (Beckhard, 1969)

11

Cost of Change

MostModerateLeast

ANTICIPATORY Change

REACTIVE Change

CRISIS Change

COST

DIFFICULTY

Most Difficult

Difficult

Easiest

(Source: Adapted from Kajewski, et al., 2010, p.23)

12

Dissatisfaction and Risk Matrix

High Degree of Success

Moderate Success

Moderate Success

Low to No Success

Level of Dissatisfactionwith the status quo

Low

Low High

High

Perceived Personal Risk

(Source: Adapted from Eaton, 2010, p.39)

13

Consideration of Change

1. Why should the old status quo be changed? (The answer will help determine how people will react to the change)

2. What is the cost in making the transition from the old way of doing things to the new way? (Cost of training, cost of low morale, cost of new hires / people leaving, cost of emotional destroying)

3. Is the cost justified by the incremental benefits of the new change?

4. Does the proposed change reinforce existing core values?

(de Jager, 2001)

14

The Principle of Changing Process

Nothing is fixed and static in an absolute way. Even our experience is provisional rather than permanent.

“It is obvious and palpable that our state of mind is never precisely the same ... When the identical fact recurs, we must think of it in a fresh manner, see it under a somewhat different angle, apprehend it in different relations from those in which it last appeared” (James, W, 1905, p.156).

(James, W, 1905; Parlett, 1991)

15

Components of Change Strategy

Pressure for Change

Clear, SharedVision

InternalCapacity

Agreed Programme

• Establishing an enough sense of urgency; rationale of change; constructive storytelling

• Direction; communicating the vision; creating a guiding coalition

• Competence, skill; knowledge; role modeling; top-down approach; leadership

• Implementation plan; commitment; reinforcement; empowerment

Diefenbach, T. , 2007; Burke, W. W., 2008; Eaton, 2010; Kotter, J., P. and Whitehead, L. A., 2010

16

Successful ChangePressure for

Change

Pressure for Change

Pressure for Change

Pressure for Change

Pressure for Change

Clear, SharedVision

Clear, SharedVision

Clear, SharedVision

Clear, SharedVision

Clear, SharedVision

InternalCapacity

InternalCapacity

InternalCapacity

InternalCapacity

InternalCapacity

Agreed Programme

Agreed Programme

Agreed Programme

Agreed Programme

Agreed Programme

Successful Change

Bottom of In-tray

Fast Start that Fades

Anxiety & Frustration

Haphazard Efforts

(Source: Adapted from Eaton, 2010, p.39)

=

=

=

=

=

17

Three-circle Framework

Focus

CapabilityWill

Strengths, Competences

Direction, Vision

Leadership, Self-confidence,

Commitment

(Source: Adapted from Drew and Smith, 1998, p.669)

18

Vision Every change process has an intended

destination which is described by a vision.

The vision is the only thing that keeps people moving forward in spite of obstacles.

Rule of Thumb – If you can’t communicate the vision to someone in five minutes or less and get a reaction that signifies both understanding and interest, you should not be able to initiate the change process smoothly.

(Kotter, 2007; Bishop and Strong, 2010)

19

Communication

Communication, properly-done, causes trust.

The effect of good communication is to increase employees’ trust of the leader, and loyalty.

The most important part of communication is not sharing information, it is listening. Listening for the aspirations and fears of people being affected. After listening, the most important part of communication is not sending out information, but returning to the vision.

(Ball, et al., 2006; Bishop and Strong, 2010)

20

Change Agent

A change agent is one who promotes a change process. It is because of this important function that the role of a change agent should be taken up by a “manager” who is therefore associated with the success of change.

A change agent is to motivate people by preparing them for change, to build trust and actively participate in problems solving.

“Lower level managers have power in affecting employees’ responses to a new policy. During the change process, it is this lower level of management that have tremendous power in determining the fate of a change progression. It is for this reason that first line managers are so powerful in the change equation” (Brunetto and Farr-Wharton, 2005, p.221-226).

(Saka, 2003; Kritsoins, 2004; Brunetto and Farr-Wharton, 2005)

21

Training Training can foster better teamwork and trust

among employees and corporate leaders.

Training new skills is likely to change employees’ beliefs and attitudes.

“Training directed at lower ranked officers will have limited impact unless training/education/values development is firstly directed at senior management and first line managers” (Brunetto and Farr-Wharton, 2005, p.236).

22

P.O.L.I.C.E. Leadership Model P : Planning O : Organizing L : Leadership & accountability I : Information & communication/Implementation C : Control E : Ethics & integrity / Evaluation

Change is primarily about leadership which is to show the ways of affecting the hearts and minds of people so that they can work together towards a common goal.

(Gill, 2003; Keller, 2008)

23

Cultural Change Cultural elements include values and attitudes

(for police culture, e.g. manliness, internal solidarity, bravery, authoritarianism), but also ideas, assumptions or unconscious thought processes (for police culture, e.g. the use of stereotypes), beliefs, symbols, rituals. Cultural elements in a police environment also include the line of command or hierarchy.

Changing culture is a matter of changing values, beliefs, attitudes etc. It is about changing hearts, minds and souls of employees.

(Gill, 2003; Easton and van Ryckeghem, 2010; Kajewski, et al., 2010)

24

Interpersonal Leader Winning Hearts and Minds by the FACT and

RESPECT

Fairness

Attitude

Communication

Trust

Respect

Empathy

Sensitivity

Participation

Empowerment

Care

Training

(Verrier and Smith, 2005; Smith and Louw, 2007)

25

The 3 E’s of Fairness

If unfairly treated, employees are less likely to perform to their full potential

Explanation Everyone should understand

Expectation of Clarity Standard of Judgment

Engagement Encouraging involvement and refutation

(Mauborgne and Kim, 2005, p.175-176; Kajewski, et al., 2010, p.41)

26

Trust, Care and Respect

Relieving employees’ anxieties by establishing trust and respect through dialogue.

To keep people moving forward requires they be treated with respect and understand.

Reciprocity theory stresses the importance of trust. Trust and reciprocity elicit cooperation.

Trust is associated with confidence that other people care about our physical and psychological wellbeing.

Leaders can increase trust by enhancing transparency and participation.

(Kahan, 2003; Proctor and Doukakis, 2003; Lewis, et al., 2010)

27

Preparedness for Change

“One cannot manage change. One can only be ahead of it” (Drucker, 1999, p.73).

“Change comes from the two sources:(1) Change from the world is inbound. We have little or no control of it.(2) Change that created by us is outbound. We attempt to influence the world toward a more preferable future” (Bishop and Strong, 2010, p.100).

“Chance favours the prepared mind” (Louis Pasteur, 1822-1895).

28

Strategic Analysis Tools

1. TOWS Matrix “TOWS (threats-opportunities-weaknesses-

strengths) is used because changes occur so rapidly that a particular advantage can be rendered meaningless in a very short space of time” (Kotler and Kartajaya, 2000, p.98).

2. Feedback Analysis “Whenever one makes a key decision, and

whenever one does a key action, one writes down what one experts will happen. And nine months or twelve months later, one then feeds back from results to expectations” (Drucker, 2001, p.218).

29

Demonstration

S W

O T

T O

W S

Internal

External

ChangeExternal

Internal

Year Decision

2010 2011 2012

Variable No.1

Variable No.2

Variable No.3

(Kotler and Kartajaya, 2000; Drucker, 2001)

Preview

Preview

Preview

Review

Review

Review Review

Review

Review

30

An Inside-Out Life Approach

“What can I contribute that will significantly affect the performance and the results of the institution I serve?” (Drucker, 2001, p.207).

From: What’s-in-it-for-me? Want-to-have

attitude Win-lose Telling attitude Avoiding change

To: How can I add value? Want-to-be attitude Win-Win Seeking to listen and

understand attitude Seeing change as

opportunity and looking for change

(Drucker, 1999, 2001; Verrier and Smith, 2005)

31

References

1. Aiken, C. and Keller, S. (2009) The irrational side of change management, The McKinsey Quarterly, 2, 2, pp. 101-109.2. Austin, J. and Currie, B. (2003) Changing organisations for a knowledge economy: The theory and practice of change

management, Journal of Facilities Management, 2, 3, pp. 229-243.3. Bagranoff, N., A. , Eighme, J. E. and Kahl Jr, H. (2002) Who moved my ledger?, The CPA Journal, 72, 10, pp. 22-26.4. Ball, A. D., Coelho, P. S. and Vilares, M. J. (2006) Service Personalization and Loyalty, Journal of Services Marketing,

20, 6, pp. 391-403.5. Beckhard, R. (1969) Organization Development: Strategies and Models, Addison-Wesley Publishing Company,

Reading, Mass.6. Bishop, P. C. and Strong, K. E. (2010) Why Teach the Future?, Journal of Futures Studies, 14, 4, pp. 99-106.7. Britt, J. and Thomas, B. (2007) A Heart for Change, Healthcare Financial Management, 61, 1, pp. 66-70.8. Brunetto, Y. and Farr-Wharton, R. (2005) The role of management post-NPM in the implementation of new policies

affecting police officers’ practices, Policing: An International Journal of Police Strategies & Management, 28, 2, pp. 221-241.

9. Burke, W. W. (2008) Organization Change Theory and Practice, 2nd Edn, SAGE Publications, London.10. Chan, J. (1996) Changing police culture, The British Journal of Criminology, 36, 1, pp. 109-134.11. de Jager, P. (2001) Resistance to change: A new view of an old problem, The Futurist, 35, 3, pp. 24-27.12. Diefenbach, T. (2007) The managerialistic ideology of organisational change management, Journal of Organizational

Change Management, 20, 1, pp. 126-144.13. Drew, S., A. W. and Smith, P., A. C. (1995) The learning organization: "Change proofing" and strategy, Human

Resource Management International Digest, 3, 3, pp. 7-10.14. Drew, S., A. W. and Smith, P., A. C. (1998) The new logistics management Transformation through organizational

learning, International Journal of Physical Distribution & Logistics Management, 28, 9/10, pp. 666-681.15. Drucker, P., F (1999) Management Challenges for the 21st Century, 1st Edn, HarperCollins, New York.16. Drucker, P. F. (2001) The Essential of Drucker, HarperCollins Publishers Inc., New York.17. Drucker, P. F. and Flaherty, J. E. (1999) Peter Drucker: shaping the managerial mind, Jossey-Bass Inc., California.18. Easton, M. and van Ryckeghem, D., (2010) Conceptualising the role of police culture in change strategies, in Cools, M.,

De Ruyver, B., Easton, M., Pauwels, L., Ponsaers, P., Vande Walle, G., Vander Beken, T., Laenen, F. V., Vermeulen, G. and Vynckier, G. (Eds.), Safety, Societal Problems and Citizens’ Perceptions: New Empirical Data, Theories and Analyses, Maklu & Governance of Security Research Group, Apeldoorn, Portland, pp. 135-153.

19. Eaton, M. (2010) Why change programs fail, Human Resource Management International Digest, 18, 2, pp. 37-42.20. Egan, R. W. and Fjermestad, J. (2006) Change and Resistance: Help for the Practitioner of Change, Proceedings of the

38th Annual Hawaii International Conference on System Sciences, 8, 23, pp. 219-225.21. Gill, R. (2003) Change management - or change leadership?, Journal of Change Management, 3, 4, pp. 307-318.

32

References (cont’d)

22. James, W. (1905) Text Book of Psychology, Macmillan, London.23. Jarrett, M. (2008) The new change equation, Business Strategy Review, 19, 4, pp. 76-81.24. Kahan, D. M. (2003) The Logic of Reciprocity: Trust, Collective Action, and Law, Michigan Law Review, 102, 1,

pp. 71-103. 25. Kajewski, S., Tilley, P., Crawford, J., Remmers, T., Chen, S.-E., Lenard, D., Brewer, G., Gameson, R., Kolomy,

R., Martins, R., Sher, W., Weippert, A., Caldwell, G. and Haug, M. (2010) Industry Culture: A Need for Change, The Australian Cooperative Research Centre for Construction Innovation, Queensland.

26. Keller, M. (2008). Strategic Leadership from The Exuberant Accountant. 27. Kotler, P. and Kartajaya, H. (2000) Repositioning Asia: From Bubble to Sustainable Economy, John Wiley &

Sons (Asia) Pte Ltd, Singapore.28. Kotter, J., P. (2007) Leading Change: Why Transformation Efforts Fail, Harvard Business Review, 85, 1, pp.

96-103.29. Kotter, J., P. and Whitehead, L. A. (2010) Buy-in: saving your good idea from being shot down, Harvard

Business Review Press, Boston, Massachusetts.30. Kritsoins, A. (2004) Comparison of Change Theories, International Journal of Scholarly Academic intellectual

Diversity, 8, 1, pp. 1-7.31. Lawrie, J. (1990) The ABCs of Change Management, Training and Development Journal, 44, 3, pp. 87-89.32. Lee, L. and Faulkner, W. (2010) Turning Good Policies into Good Practice: Why is it so Difficult?, International

Journal of Gender, Science and Technology, 2, 1, pp. 90-99.33. Lewis, E., Romanaggi, D. and Chapple, A. (2010) Successfully managing change during uncertain times,

Strategic HR Review, 9, 2, pp. 12-18 34. Maccoby, M. (2000) Understanding the difference between management and leadership, Research Technology

Management, 43, 1, pp. 57-59.35. Mauborgne, R. and Kim, W. C. (2005) Blue Ocean Strategy : How to Create Uncontested Market Space and

Make the Competition Irrelevant, Harvard Business School Publishing Corporation, Boston.36. Parlett, M. (1991) Reflections on Field Theory, The British Gestalt Journal, 1, 2, pp. 69-91. 37. Proctor, T. and Doukakis, I. (2003) Change management: The role of internal communication and employee

development, Corporate Communications, 8, 4, pp. 268-277.38. Saka, A. (2003) Internal change agents' view of the management of change problem, Journal of

Organizational Change Management, 16, 5, pp. 480-496.39. Smith, D. and Louw, M. (2007) Conceptualisation of the spiritual life dimension: A personal and professional

leadership perspective, Journal of Human Resource Management, 5, 1, pp. 19-27.40. Verrier, D. and Smith, D. (2005) A Personal, Interpersonal and Professional Leadership (PIPL) Model of

Executive Facilitation, Journal of Human Resource Management, 3, 1, pp. 51-60.

33