Change Management

Change Management What is change management?

Change management is an aspect of management focussing on ensuring that the firm responds to the environment in which it operates Four key features of change management
Change is the result of dissatisfaction with the present strategies It is essential to develop a vision for a better alternative It is necessary to develop strategies to implement change There will be resistance to the proposals at some stage

Change Management_v1

Dr. Harald Fien

Change Management Change often arises from

The development of new products The entry of new competition Changes in consumer tastes & preferences Changes in the cultural, political, economic, legal and social framework Changes in technology leading to technological obsolescence or new product opportunities

Change Management_v1

Dr. Harald Fien

Change Management Change affects all aspect of people management

Change in: Organisational structure Personnel of teams Process Location Work load Work role Work practices Supervision Work teams

Change Management_v1

Dr. Harald Fien

Change Management Forces for change

Internal forces Desire to increase profitability Reorganisation to increase efficiency Conflict between departments To change organisational culture External forces Customer demand Competition Cost of inputs Legislation Tax changes New technology Political Ethics Technological obsolescence

Change Management_v1

Dr. Harald Fien

Change Management Lewins Force Field Analysis

Forces for change

Forces resisting change

Driving forces

Restraining forces

Change Management_v1

Dr. Harald Fien

Change Management Force field analysis

There are forces driving change and forces restraining it Where there is an equilibrium between the two sets of forces there will be no change In order for change to occur the driving force must exceed the restraining force The analysis can be used to:
Investigate the balance of power involved in an issue Identify the key stakeholders on the issue Identify opponents and allies Identify how to influence the target groups

Change Management_v1

Dr. Harald Fien

Change Management Resistance to change has to be expected

A degree of resistance is normal since change is:
Disruptive Stressful

Moreover a degree of scepticism can be healthy especially where there are weaknesses in the proposed changes However resistance will also impede the achievement of organisational objectives

Change Management_v1

Dr. Harald Fien

Change Management Four basic reasons why change is resisted

Kotter and Schlesinger identified basic causes of resistance to change: Parochial self interest
Individuals are more concerned with the implications for themselves

Misunderstanding
Communications problems Inadequate information

Low tolerance of change

Sense of insecurity

Different assessment of the situation

Disagreement over the need for change

-Disagreement over the advantages and disadvantages

Change Management_v1

Dr. Harald Fien

Change Management Some negative comments on proposed changes

My needs are already being met There is no justification for change I dont like the way they propose to do it The risks outweigh the benefits It will now be harder for me to meet my own needs

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Dr. Harald Fien

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Change Management Individual barriers to change

Tradition and set ways: Loyalty to existing relationships Failure to accept the need for change Insecurity Preference for the existing arrangements Break up of work groups Different person ambitions Fear of: Loss of power Loss of skills Loss of income The unknown Redundancy. Inability to perform as well in the new situation

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Dr. Harald Fien

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Change Management Inappropriate change management

Change is often resisted because of failures in the way it is introduced Failure to explain the need for change Failure to provide information Failure to consult, negotiate and offer support and training Lack of involvement in the process Failure to build trust and sense of security Poor employee relations

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Dr. Harald Fien

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Change Management Why change should be welcomed

Change can produce positive benefits for the individual:
Opportunities for personal change and development Provides a new challenge Reduces the boredom of work Opportunity to participate and shape the outcome

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Dr. Harald Fien

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Change Management Lewins change model

This model defines three stages in the process of change:
(1) Unfreezing (2) Change (3) Refreezing

It assists organisation change by:

Allowing the process to be understood Providing milestones for evaluating progress towards the change

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Dr. Harald Fien

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Change Management Unfreezing

This is the shake up phase perhaps triggered by declining sales or profits. The result is an acceptance that the existing structures and ways are not working To get people ready for change it is necessary to develop an awareness of the:
Necessity of change Nature of change needed Methods planned to achieve the change Needs of those affected Ways that progress will be planned and monitored

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Dr. Harald Fien

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Change Management Changing:

This is the process of devising and implement the change:
Define the problem Identify solutions Devise appropriate strategy to implement change Implement solutions

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Dr. Harald Fien

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Change Management Refreezing:

This is the process of maintaining the momentum of change:
Locking in the changes Stabilising the situation Building relationships Consolidating the system Evaluation and support Preventing any going back to the old ways

Refreezing is complete when the new patterns are accepted and followed willingly

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Dr. Harald Fien

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Change Management Two types of change

Step change
Dramatic or radical change in one fell swoop Radical alternation in the organisation Gets it over with quickly May require some coercion

Incremental change
Ongoing piecemeal change which takes place as part of an organisations evolution and development Tends to more inclusive

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Dr. Harald Fien

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Change Management Step v incremental change

Step change Occurs rapidly

Incremental change Change occurs over a period of time in incremental stages

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Change Management_v1

Change Management Lessons Learned

What is change management? What are internal and external forces for change? Explain Lewins Force Field Analysis. Why has resistance to change to be expected? What are the four basic reasons why change is resisted? Explain Lewins change model. Explain the two types of change.

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