CHANGE MANAGEMENT- Framework

1. Understanding the Change Process- Toffler’s view and Naisbitt’s

2. What factors are causing these changes?

3. Why is there resistance to Change?

4. How can the resistance be minimized?

5. Planning Organizational Change

6. Change - a challenge to Organisational Leadership

CHANGE MANAGEMENTA. Alvin Toffler’s Analysis1. The fact of change2. Geometrical instead of Arithmetical change3. Speed of travel4. Publishing of books5. The 1 million mile club6. The ‘throw away’ culture7. Mega Cities8. Energy ConsumptionB. Naisbith’s Mega Trends1. Agriculture- Industry-Tertiary2. Villages- towns-cities- mega-cities3. Machines-computerization4. Nationalization-Liberalization- Privatization-Globalization5. Tall organizations to Flat organizations6. Elimination of manual work,clerical work and middle management

work through automation, computerization7. Managing without Management

Change ManagementMan’s existence estimated to be about 50,000 years oldCan be broken up into Lifetimes of 62 years eachOut of the 800 lifetimes, 650 lifetimes have been spent in cavesWe are in the 800th lifetime which is the most significant one and there

has been a major break with the past in terms of :(a) Agriculture has ceased to be the major basis of civilization as less

than 6% of people in the USA are on the land and are feeding 200m Americans and and 160m others. In other progressive countries only 15% are engaged in agriculture.

(b) Mega-Cities 1850- 4 cities with a population of 1m 1900- 19 1960-141(c ) Energy consumption- 18 centuries after Christ- one- half Q( 33m

tons of coal) per century. By 1850 rose to 1Q per century and today it is 10Q per century.Means that half the energy consumed in the last 2000 years by man has been consumed in the last 100 years

CHANGE MANAGEMENT(d) Speed of Transportation 6000 b.c. – camel caravan- 8 m.p.h. 1600 b.c. - chariot - 20 m.p.h. 1784 a.d. - mail coach - 10 m.p.h. 1825 a.d. - steam loco - 13 m.p.h. 1880 a.d. - steam loco(a)- 100 m.p.h. 1938 a.d. - aeroplane - 400 m.p.h. 1960 a.d. - rocket plane - 4000 m.p.h. 60s - satellite - 16000 m.p.h.(e) Printing Prior to 1500 – 1000 titles per year(100 years for 100,000 titles) 1950- 120000 titles per year 1960- century’s work in seven and a half months 1965 – 1000 titles per day

CHANGE MANAGEMENT- Exercise Step 11. Write down 10 things which have changed2. Write down 5 things which have not changed Step 23. Write down 10 points as to what are the factors that is causing this

change Step 34. Write down 10 points as to why there is resistance to change?5. Write down 10 points as to how to reduce resistance to change?

CHANGE MANAGEMENTStages in the Change Process1. Initiation2. Motivation3. Diagnosis4. Information Collection5. Deliberation6. Action Proposal7. Implementation8. Stabilization

Context of the CHANGE

Internal Environment

External Environment

CHANGE MANAGEMENTLEWIN’S CHANGE MODELThe process of Change involves three steps1. UNFREEZING2. CHANGING3. REFREEZINGUnfreezing:Managers must create a need for change(a) Establishing a good relationship with the people involved(b) Helping people realize the present behaviour is ineffective(c) Minimizing the resistance to changeChanging: Managers must implement the change by(a) Identification of more effective behaviour(b) Choosing appropriate changes in tasks, culture, technology and

structure(c) Taking actionRefreezing: Managers must stabilize the change by(a) Creating acceptance and continuity for the new behaviour(b) Providing support(c) Using performance- contingent rewards and positive reinforcement

CHANGE MANAGEMENTGeneral principles of managing CHANGE1. An environment of trust and shared commitment2. Full and genuine participation of all employees concerned3. Team spirit and willingness to accept change4. Incentive schemes to motivate or fair distribution of savings5. A socio-technical approach in work organization to satisfy

individual and organizational needs6. Careful attention to work design,relationships,job contents and

task functions. MANAGER VS TRANSFORMATIONAL LEADER1. Establishing a sense of urgency2. Forming a powerful guiding coalition3. Creating a vision 4. Communicating the vision5. Empowering others to act on the vision 6. Planning for and creating short-term wins7. Consolidating improvements and producing still more change8. Institutionalizing new approaches

Change Management- A Model for Organizational Change

ForcesInitiating Change

ChangeAgent

What is to be Changed?Structure/Technology/O.Processes

Change ProcessUnfreeze Move Refreeze

Implementation TacticsIntervention/Participation

Persuasion/Edict

OrganizationalEffectiveness

Change

FeedbackDeterminants

OrganizationalInitiator

InterventionStrategies

Implementation

Results

Survival Rates of U.S. Corporations Age in Years % Surviving to % Not Surviving this year this year 5 38 62 10 21 79 15 14 86 20 10 90 25 7 93 50 2 98 75 1 99 100 0.5 99.5 100 plus 0 100

EFFECTIVE CHANGE MANAGEMENTMotivating ChangeCreating readiness for changeOvercoming resistance to change

Creating a visionMissionValued outcomesValued conditionsMidpoint goals

Developing Political SupportAssessing change agent powerIdentifying key stake holdersInfluencing stakeholders

Managing the TransitionActivity planningCommitment planningManagement structures

Sustaining MomentumProviding resources for changeBuilding a support system for change agentsDeveloping new competencies and skillsReinforcing new behaviours

EffectiveChange

Management