waqas khichi management lecture chp 6
TRANSCRIPT
Chapter 6
Managing Change and Innovation
What is Change?
• Change refers to an event that occurs when something passes from one state or phase to another.
• In another way, Change occurs when one state of equilibrium is disturbed and ends at other state of equilibrium.
Few changes over the yearsFew changes over the years
Nobody can go back and start a new beginning, but anyone can start today and make a new ending.
When change is likely to happen
Organisations go for a change only when above equation holds true for it.C=ChangeD= Dissatisfaction with present state or status quo.V=Vision, Where to go? How to go? What to do?A=Ability, resources, money, time, expertise.FS=First StepR=Resistance
Beckhard’s Change Equation
C={D x V x A x FS > R}
Kurt Lewin’s Formula of Change
Unfreezing
Changing
Refreezing
What is Change Management?
Change Management is management of transition from the present state to desired state.
Present State
Desired State
Transition State
Hence, change management is management of transition between the current and desired state. Any change that does not require management of transition state does not require change management
Current State • Employees (including management and executives!) generally
prefer the current state, because that is where they live
Current State
Transition State
Future State
“better the devil you know is better than the devil you don’t”
Future State • The future state is unknown to the employee; will it be better,
or worse?• This is where Project teams “live”
Current State
Transition State
Future State
Transition State • The transition state creates stress and anxiety
Current State
Transition State
Future State
CHANGE
• External• Organisational• Quicker• More visible• More predictable• Physical• Tangible
• Internal• Personal• Slower• Less visible• Less predictable• Psychological• Intangible
TRANSITION
Change vs. TransitionChange vs. TransitionChange is the shift, transition is the process of one state of being to another
Change vs. TransitionChange vs. Transition
The Change Process • The Calm Waters Metaphor
– Lewin’s description of the change process as a break in the organisation’s equilibrium state.
• Unfreezing the status quo• Changing to a new state• Refreezing to make the change
permanent
• White-Water Rapids Metaphor– The lack of environmental stability
and predictability requires that managers and organisations continually adapt (manage change actively) to survive.
.
Metaphor: a figure of speech in which a word or phrase literally denoting one kind of object or idea is used in place of another to suggest a likeness or analogy between them.“He was drowning in paperwork” is a metaphor in which having to deal with a lot of paperwork is being compared to drowning in an ocean of water
External and Internal Forces for ChangeTypes of forces to consider
Competition Economic Factors Political Factors Available Resources Traditions Vested interests
Introduction of new
technology Organisational structures Relationships Social or organisational
trends Attitudes of people Present or past practices Union Pressures Institutional policies or norms Costs
Organisational Change and Change Agents
• Organisational Change - any alterations in the people, structure, or technology of an organisation.
• Change Agents - persons who act as catalysts and assume the responsibility for managing the change process.
Types of Change Agents• Managers: internal
entrepreneurs• Non-managers: change
specialists• Outside consultants:
change implementation experts
The Three-Step Change Process
Force Field Analysis
Proposed Change
Driving Forces
Restraining Forces
Upgrading
Factory
with new
manufacturing
machinery
1. Customers want new products
2. Improved speed of production
3. Enhanced volume of output
4. Maintenance costs increasing
1. Loss of staff overtime
2. Staff frightened of new technology
3. Environmental impact of new techniques
4. High cost of the technology
5. Disruption
4
2
3
1
3
3
1
3
3Total = 10
Total = 13
Three Types of Change
Types of Change• Structure
– Changing an organisation’s structural components or its structural design
• Technology– Adopting new equipment, tools, or operating methods
that displace old skills and require new ones• Automation - replacing certain tasks done by people with
machines• Computerisation
• People– Changing attitudes, expectations, perceptions, and
behaviours of the workforce
Organisational Development
• Organisational Development (OD) - techniques or programmes to change people and the nature and quality of interpersonal work relationships.
• Global OD - OD techniques that work for U.S. organisations may be inappropriate in other countries and cultures.
Popular OD Techniques
Managing Resistance to Change• Why People Resist Change
– The ambiguity and uncertainty that change introduces
– The comfort of old habits
– A concern over personal loss of status, money, authority, friendships, and personal convenience
– The perception that change is incompatible with the goals and interest of the organisation
ADKR Model
Techniques for Reducing Resistance to Change
Changing Organisational Culture
• Cultures are naturally resistant to change.
• Conditions that facilitate cultural change:– The occurrence of a dramatic crisis
– Leadership changing hands
– A young, flexible, and small organisation
– A weak organisational culture
Changing Culture
Stress and Stressors
• Stress - the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities.
• Stressors - factors that cause stress.
What Causes Stress?
• Role Conflicts - work expectations that are hard to satisfy.
• Role Overload - having more work to accomplish than time permits.
• Role Ambiguity - when role expectations are not clearly understood.
Personal Factors Causing Stress
• Type A personality - people who have a chronic sense of urgency and an excessive competitive drive.
• Type B personality - people who are relaxed and easygoing and accept change easily.
Symptoms of Stress
Stimulating Innovation
• Creativity - the ability to combine ideas in a unique way or to make an unusual association.
• Innovation - turning the outcomes of the creative process into useful products, services, or work methods.
Stimulating Innovation (cont.)
• Idea Champions - individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented.
Change-Capable Organisations
World’s Most Innovative Companies
Innovation Variables
Structural Variables
• Adopt an organic structure
• Make available plentiful resources
• Engage in frequent inter-unit communication
• Minimise extreme time pressures on creative activities
• Provide explicit support for creativity
Cultural Variables• Accept ambiguity• Tolerate the impractical• Have low external controls• Tolerate risk taking• Tolerate conflict• Focus on ends rather than means• Develop an open-system focus• Provide positive feedback
Human Resource Variables
• Actively promote training and development to keep employees’ skills current
• Offer high job security to encourage risk taking
• Encourage individuals to be “champions” of change
• What can happen if change is NOT managed?
• Productivity declines as people become more consumed with the change being introduced.
• Passive resistance festers.• Active resistance emerges and sabotages the change.• Valued employees leave the organization, a very costly
proposition in terms of the lost contribution and the cost to replace them.
• Employees become disinterested in the current state and the future state.
• Employees begin arguing about change and the direction of the company.
• People are left to wonder why the change is happening.• More people begin taking sick days or not showing up
for work.• People find work-around to avoid implementing the
new way of doing things.• Employees revert back to the old way of doing things.• Changes are not fully implemented.• Changes are scrapped and cancelled due to the lack of
support throughout the organization.• Divides are created in the organization between 'us' and
'them'.• The organization builds a history of failed and painful
changes.• Many types of risk are created - risk to the project, to
the organization, to the employees involved and to the individuals supporting or chartering the change
• What can happen if change is EFFECTIVELY managed?
• Employees have a solid understanding of why change is happening.
• Employees engage in both the solution and the change.• Training is used to build knowledge after employees
have made the personal decision to support the change.• Resistance is identified and dealt with early in the
process.• Senior leaders demonstrate their own and the
organization's commitment to the change.• Communications are segmented and customized for
different audiences, answering the questions that they care about.
• Momentum is built throughout different areas and levels within the organization.
• Changes are less painful to the organization and to the employees.
• A coalition of support among senior leaders and managers creates momentum throughout the organization.
• Probability of meeting project objectives is increased.• The organization begins to build a history of successful
change, creating a better 'backdrop' for the next change initiative