Managing Change – Process, Types and Challenges

Dr. G C Mohanta, BE, MSc(Engg), MBA, PhD(Mgt)

Professor

Change Management

Change management is an approach to shifting or transitioning individuals, teams & organisations from a current state to a desired future state.

Change management is the process, tools & techniques to manage the people-side of change to achieve the required business outcome(s)

Change Management Process The change management process is the sequence of

steps or activities that a change management team or project leader would follow to apply change management to a project or change.

Change management processes contain the following three phases:

Phase 1 - Preparing for change

Phase 2 - Managing change

Phase 3 - Reinforcing change

Change Management Process

Change Management Process1) Preparing for change (Assessment) Identifying the problem: Opportunity that

necessitates change (symptoms)

Data collection: Gathering structural, technological and people information and effects of these elements on the process

Data analysis: Summarizing the data ( advantages, dis-advantages, risks, and consequences)

Strategic determination: Identifying possible solutions, barriers, strategies

Decide if the change is necessary.

Make others aware of the need for the change.

Swat analysis and basic 4 forces models: (environmental forces ,organizational forces , task demand , personal need.)

Change Management Process (Contd.)

2) Managing change (Planning and Implementation)

State goal and specific measurable objectives and also the time allotted.

Establishing the who, how, what, and when of change. Allocating resources, budget and evaluation methods. Plan for resistance management. Identify areas of support & resistance. Include every one in the planning that will be affected. Establish target dates for implementation. Develop appropriate strategy for alteration. Be available to support others through the process. Evaluate the change then modify if necessary.

Change Management Process (Contd.)

3) Reinforcing change (Evaluation)

Determining effectiveness of change.

Achieved objectives and benefits - qualitative as well as financial and the documented evidences of being achieved.

Stabilize the change: - taking measures to reinforce and maintain the change.

Kurt Lewin’s Change Management Process

Lewin provides a social-psychological view of the change process.

He sees behavior as a dynamic balance of forces working in opposing directions .

Driving forces facilitate change because they push persons in the desired direction .

Restraining forces impede change because they push persons in the opposite direction.

Status quo level is the person balanced state or state of equilibrium between 2 forces.

Kurt Lewin’s Change Management Process

Unfreeze

The existing equilibrium. Motivate persons by getting them ready for change and increase willing to change .

Build trust and recognition for the need to change.

Actively participate in identifying problems and generate alternative solutions.

Is the development through problem awareness of a need for change.

Moving

Work toward change by identifying the problem or the need for change.

Explore the alternatives,

Defining goals & objectivities

Plan how to accomplish the goal &

Implement the plan for change.

Get persons to agree that the status quo is not beneficial to them.

Refreezing

Does the integration of the change happened into ones personality & consequently stabilization of the change happened?

Then reinforce the new patterns of behavior. (Positive change)

New level of equilibrium.

Frequently person tries to return to old behavior after the change effort ceases.(Negative change)

Steps For Successful Change management

Increase urgency : inspire people to move

Build the guiding team : the right people

Get the vision right : simple vision and strategy

Empower action : Remove obstacles

Create short-term wins : Set aims that are easy to achieve

Don't let up : highlight achieved and future milestones

Make change stick : Weave change into culture

Types of Change There are two types of change in an organization:

- Planned change and

- “Emergent” change

Planned change - refers to initiatives that are driven “top-down” in an organization.

Emergent” change - refers to a situation in which change can originate from any level in the organization.

Areas of Change in an Organisation

Strategic

Structural

Process-oriented and

People-centered

Strategic Change

Sometimes in the course of normal business operation it is necessary for management to adjust the firm's strategy to achieve the goals of the company, or even to change the mission statement of the organization in response to demands of the external environments.

Adjusting a company's strategy may involve changing its fundamental approach to doing business: the markets it will target, the kinds of products it will sell, how they will be sold, its overall strategic orientation, the level of global activity, and its various partnerships and other joint‐business arrangements.

Structural Change Organizations often find it necessary to redesign the

structure of the company due to influences from the external environment.

Structural changes involve the hierarchy of authority, goals, structural characteristics, administrative procedures, and management systems.

Almost all change in how an organization is managed falls under the category of structural change.

A structural change may be as simple as implementing a no‐smoking policy, or as involved as restructuring the company to meet the customer needs more effectively.

Process‐oriented Change Organizations may need to reengineer processes to

achieve optimum workflow and productivity.

Process‐oriented change is often related to an organization's production process or how the organization assembles products or delivers services.

The adoption of robotics in a manufacturing plant or of laser‐scanning checkout systems at supermarkets are examples of process‐oriented changes.

People‐centered Change This type of change alters the attitudes, behaviors,

skills, or performance of employees in the company.

Changing people‐centered processes involves communicating, motivating, leading, and interacting within groups.

This focus may entail changing how problems are solved, the way employees learn new skills, and even the very nature of how employees perceive themselves, their jobs, and the organization.

Some people‐centered changes may involve only incremental changes or small improvements in the process.

Reasons for Change Facing increased competition

Smarter and more demanding customers

Less brand loyal

Improvements in operations can simultaneously lower costs and improve customer satisfaction.

Improving operations often dependent on advances in technology

Challenges in Change Management

Planning Without step-by-step planning, change in an organization

is likely to fall apart or cause more problems than benefits.

One need to understand exactly what changes will take place and how those changes will occur.

One need to know if the new system is compatible with the old system.

One also need to assign roles to individuals who are responsible for the change so all duties are covered.

The time line for the change is also a key component.

One need to plan for downtime or difficulties in completing regular work tasks while the change occurs.

Challenges in Change Management (Contd.)

Lack of Consensus If one fails to get everyone on board with the corporate

changes, one is likely to face barriers during the process. The decision to implement changes should come from the

top level of the organization. All management level staff needs to be on board and able to

deal with the changes or one may face dissension within the staff.

One may not have everyone on board right from the beginning.

Showing managers how the changes will affect the company and the steps for implementing the changes helps get them on board if they initially have reservations.

Challenges in Change Management (Contd.)

Communication Failing to communicate with all employees invites rumours

and fear into the workplace. Employees want to know what's going on, whether it is positive

or negative news. The feeling of uncertainty, when management doesn't

communicate, disrupts work and makes employees feel as if they aren't a part of the decision.

Management should keep employees updated regularly about the plans & progress toward the change implementation.

Management should involve all employees as much as possible through meetings or brainstorming sessions to help during the planning phase.

Challenges in Change Management (Contd.)

Employee Resistance In some cases, employees resist change.

They become comfortable with the way the business is run.

They know the expectations and their role within the company.

When a major change disrupts their familiarity, some employees become upset.

They don't want to relearn their jobs or change the way they do things.

Causes for Resistance to Change Lack of trust

Perception that change is not necessary

Perception that change is not possible

Relatively high cost

Fear of personal failure

Loss of status or power

Threats to values and ideas

Social, cultural or organizational disagreements

Resentment of interference

Handling Resistance to Change Supporting employees and providing training for any

new responsibilities

Leadership Commitment

Knowledge of Change

Effective Communication

Active Participation

Building the Requisite Technical Capacity

Coercion

Negotiation

Benefits of Successful ChangeManagement

Enhances institutional best practices

Projects the organization as progressive, forward looking and proactive

Ensures quality service delivery

Earns the institution public goodwill and support

Creates an enabling work environment

Increases employee morale, attitudes and effectiveness