Change Management

Change ManagementVarun Mathur B54Raghvendra Rathore B59

Change???"Change" is: to give a different position, course, or direction. to make a shift from one to another. to undergo a modification. to undergo transformation, transition or substitution.

Change ManagementChange Management is a structured process that will cause proposed changes to be reviewed for technical and business readiness in a consistent manner that can be relaxed or tightened to adjust to business needs and experiences.The Change Cycle

Kurt Lweins Model of Change

Kurt Lewins model of changeStageCharacteristicsOrganizational impactUnfreezingPeople in the organization made aware of problems/performance gap and need for changeThis diagnosis stage is often driven by a change agent ChangingPeople experiment with new workplace behavior to deal with needed changeThis intervention stage features specific training plans for managers and employeesRefreezingPeople employ new skills and attitudes and are rewarded by organizationChanges are institutionalized in the corporate cultureEight steps to successful change -John P. Kotter

Increase urgency - inspire people to move, make objectives real and relevant.

Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels.

Get the vision right - get the team to establish a simple vision and strategy, focus on emotional and creative aspects necessary to drive service and efficiency.

Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications - make technology work for you rather than against.

Empower action - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognise progress and achievements.

Create short-term wins - Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones.

Don't let up - Foster and encourage determination and persistence - ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones.

Make change stick - Reinforce the value of successful change via recruitment, promotion, new change leaders. Weave change into culture.

Case Study of ICICI Bank

Major ChangeIn May 1996, K.V. Kamath replaced Narayan Vaghul, CEO of India's leading financial services company ICICI

IntroductionCase mainly revolves around the changes brought by K.V Kamath after joining.In May 1996, K.V. Kamath (Kamath) replaced Narayan Vaghul (Vaghul), CEO of India's leading financial services company ICICI.Immediately after taking charge, Kamath introduced massive changes in the organizational structure and the emphasis of the organization changed - from a development bank mode to that of a market-driven financial conglomerate.The first move being the creation ofInfrastructure Group (IIG)Oil & Gas group (O&G)Planning and Treasury department (PTD)'and Structured Products Group (SPG)

ContdICICI set up three new departments:Major Client Group (MCG)Growth Client Group (GCG) andPersonal Finance Group (PFG)

Many other changes took place in later stages ,one of the major one was merger with bank of Madurai

Problems The problem of discontentment among employees.Not a differentiator in terms of customer serviceNon-customer centric approachOne-stop solutions not availableLack of identity after formation of core groups(IIG,O&G,PTD and SPG)Growing unhappiness between employeesRising job-dissatisfaction between MCG & GCG employeesIrregular PBA(Performance based Appraisal)Apprehension of new work culture, uncertainty regarding rural businessImparting New Skills to Existing Employees Training programmes and seminars were conducted

Overseas training programmes.

Introduced a two-year Graduates' Management Training Programme (GMTP) ICICI also reviewed the compensation structure in place.

Two types of remuneration were considered

A contract basis which would attract risk-takers. A tenure-based compensation which would be appealing to employees who wanted security.Results By 2000, ICICI had emerged as the second largest financial institution in India with assets worth Rs 582 billion.

The company had eight subsidiaries providing various financial services.