2012

PATEL CHIRAG H. ROLL NO 85 MBA (G) (B)

CHANGE MANAGEMENT AND CHANGE AGENT

INTRODUCTION
Change management has typically been defined as a process involving unfreezing, moving, and refreezing values, practices, and procedures within organizations. Unfreezing refers to the creation of a perceived discrepancy between the existing and ideal state of an organization that generates a desire for change and lowers peoples resistance to change. Moving refers to the various processes such as training, education, and restructuring that lead to the development of new behaviors, attitudes, and beliefs. Refreezing regards reestablishing a new state of equilibrium within the organization by stabilizing the new patterns through a variety of support mechanisms.

Role of change management in modern business organizations:

Change Management plays an important role in any organization since the task of managing change is not an easy one. When we say managing change we mean to say that making changes in a planned and systemic fashion. With reference to the IT projects we can say the change in the versions of a project and managing these versions properly. Changes in the organization or a project can be initiated from within the organization or externally. For example a product that is popular among the customers may undergo a change in design based on the triggering factor like a competitive product from some other manufacturer. This is an example of external factor that triggers a change within the organization. How the organization responds to these changes is what that is more concerned. Managing these changes come under change management. Reactive and proactive responses to these changes are possible from an organization.

Nature and importance of forces: Globalization, technological changes, knowledge management and cross boundaries collaboration are four factors that are major forces creating change in organizations today. These changes affect decision-making as organizations are forced to recognize that they need leaders who are innovative, creative visionaries who understand the various environments that their organizations are operating in, and are able to differentiate between these different environments. These environments include: the external or operating environment; the competitive environment (that part of the external environment in which firms that are competing for the same market exist) and the macro environment in which influences such as the economy, government regulations, societal values, demographics and technology come to bear upon an organization. Faced with such complexities leaders need to be equipped with appropriate skill-sets such as flexibility, good communication, and critical thinking and negotiation abilities. They must also be supported with the necessary resources in order to make good decisions that will benefit their organizations.

Globalization A convergence of international activities such as the increase in overseas production of goods and services; increasing consumer demands in emerging markets worldwide; declining barriers to international trade aided by rapidly changing technology, have created a globalized economy in which inter-dependency among countries has emerged as the norm today. Therefore the hiring practices of companies who are seeking the best talent have changed because the best talent might no longer be resident in the home country. Companies have had to calibrate their hiring, training and management practices to meet this challenge. In a world where "Americans too often come across as intrusive, manipulative, and garrulous" (David, 2007, p.291), US organizations have to be respectful of the culture, customs, political, and legal differences of the countries that they are operating in. Some of these customs affect protocol such as the exchange of gifts, the observance of holidays, and labor laws. Even accounting standards vary internationally. Therefore organizations must be sensitive to these differences when formulating operational and human resource (HR) policies for implementation abroad for, in this global environment, it is hardly likely that companies can apply the domestic policies that work at home, abroad.

Technological Change: Technology is like a two-edged sword that can make our lives easier or worse. The Internet has revolutionized the way in which information is exchanged, communication facilitated and commerce conducted. Technology is rapidly changing and effective management demands more knowledge in these areas in order for companies to manage their resources and develop, maintain or keep their competitive edge. While technology has enabled firms to save time and money by conducting business such as negotiations, trade, and commerce in real time, it can also facilitate the dissemination of sensitive information about a company's practices, trade secrets and new product development in a matter of seconds. Hackers can breach a company's security via the internet and put companies at risk. Organizations have responded by having whole new types of departments such as Information Technology (IT) departments, headed by managers with titles such as Chief Information Officer (CIO), to manage both the opportunities and the risks associated with technological changes. Additionally, technology has ushered in an array of high-tech devices that aid and facilitates companies in gathering and managing information, maintaining contact with their employees globally, making and communicating decisions instantaneously. This can be both a boon and a source of stress for managers and leaders who must learn to manage their choice and use of these devices. In a global economy technology can aid in knowledge management

Knowledge Management Driving forces such as shifts in buyer demographics and preferences; technology, product and market innovation; changes in society, consumer attitudes and lifestyle all demand new ideas. This has created a need for knowledge workers. Knowledge workers comprise a company's intellectual capital and are made up of creative people with novel ideas and problem-solving skills. Managing its knowledge assets can give a company a competitive edge as it effectively utilizes the expertise, skills, intellect, and relationships of members of the organization. For example, a company's strategic management efforts can be greatly enhanced when knowledge that is resident in its international talent pool is tapped at its source, since a manager who is "closer to the ground" and part of the local culture might be better able to sense environmental changes than one who is not. Keeping knowledge workers motivated and incentivized by both intrinsic and extrinsic means will cause organizations to re-think and change their benefits and compensation methods and, perhaps, even redefine the traditional view of the employer-employee relationship into something new, such as a companycontractor model, for example.

Cross-boundaries Collaboration An important part of knowledge management is effectively managing organization-wide collaboration. Use of appropriate technology and applications such as a virtual private networks; VoIP, e-mail, social networking websites such as Face Book, and even company-sponsored blogs can facilitate communication between an organization and its stakeholders, and help in different types of internal and external collaborative processes. An example of a tool that can be used in cross-boundaries collaboration might be an easily accessible online database that provides a central source of information to employees, customers, or suppliers.

Types of change diagnosis of organizational capability to change strategy:

Help understand what to change, how and why. Simplify a complex situation. Identify priorities for attention. Highlight various organizational properties (e.g. strategy and structure) and their interconnectedness. Provide a common language with which to discuss organizational characteristics.

Provide a guide to the sequence of actions to take in a change situation. Help us be more efficient and rational as we attempt to understand and change an organization.

Diagnostic model Six-box organizational model: The key focus here is on six variables purpose, structure, rewards, helpful mechanisms, relationship and leadership. This model is useful to maintain awareness of all areas for consideration even though one variable may be identified as the main area for attention.

7-S framework: The 7-S framework: this focuses on seven key components that affect organizational effectiveness structure, systems, style, staff, skills, strategy and superordinates goals. The interconnectedness of these variables is vital to the success of change.

Star model: An organization is effective when the five components of organizational design strategy, structure, processes and later capability, reward systems and people practices are in alignment.

Building culture for change:

Innovation has garnered more headlines recently as one of the core processes that every organization must nurture in order to retain its viability. Innovation in an organization goes beyond simply responding to changeit creates change in the environment that other organizations must respond to, and therefore can become a sustainable competitive advantage . Many organizations employ a top down approach to innovation. Strategy is formulated at the top along with the major initiatives for achieving it. Some of these initiatives will be innovative in nature, related to the development of an innovative process, product or service. Top down approaches may solicit input from deeper in the organization, but the formulation of the innovative ideas remains at the top. Hybrid approaches create a structure in the middle of the organization that encourages innovations from the bottom up and works to shape them into viable business ideas. The approach described in this paper focuses on encouraging a distributed network to form inside the organization that takes on the role of much of the innovation work. Individuals connected to the network generate their own ideas, conduct experiments, log the results, build support, and help transition some of the ideas to formal pilots or direct implementation. The network employs features from several different morphologies and uses some principles from natural selection to recombine and improve ideas throughout the process.

Change agent

Skills Introduction:
In order to be a successful sustainability change agent, an individual must have the following: 1. Knowledge of the environmental, economic, and social issues related to sustainability (understanding); 2. A value system and self-concept to support and under gird the actions of a change agent (motivation); and 3. Change agent abilities (skills). Change Agent Abilities: The following is a listing of change agent abilities compiled from numerous sources. For ease of use, these sources have all been acknowledged at the end of this document.

Change agents are:

Resilient Optimistic Tenacious Committed Passionate Patient Emotionally intelligent Assertive Persuasive Empathetic Authentic Ethical Self-Aware Competent Curious

They can:

Communicate ideas clearly, concisely, and precisely both orally and in writing. Listen to others and incorporate their ideas and perspectives.

Accommodate individual differences (cultural, socioeconomic, global, etc.) in your decisions and actions and be able to negotiate across these differences. Engage in self-assessment, self-reflection, and analysis. Reflect on what is happening to make meaning, gain perspective and understanding. Engage in civil discourse and debate Mediate and resolve conflicts.

They have:

Insights into the functioning and interconnectedness of systems. A commitment to finding solutions to societal problems. Political efficacy, a belief that what they think and do civically and politically matters Integrity Courage An understanding of organic change.

Role of Change agent

A person who implements organizational change must wear many different hats. Effective change agents demonstrate extraordinary versatility within a broad skill set. The following are some of the roles you may play as you influence change in your organization.

The Detective Implementing change is rarely as straightforward as executing obvious activities. Dealing with peoples behaviors and attitudes usually requires digging below the surface to understand the dynamics of the organization. Change agents look for clues that give away what is really preventing change from happening, so they can determine the steps most likely to remove obstacles and bring about success. The Detective is observant and analytical. The Advocate Every organizational change needs someone who speaks up in favor of it and keeps attention on it. Change agents gain support for the initiative and engage people to participate. They also keep beating the drum of change when everyone else is busy with other activities. The Advocate is vocal and persistent. The Counselor Change happens when individuals alter their own activities, behaviors and attitudes. People experience varied emotions as their sense of stability is removed. In most cases, they are required to take risks and step outside their comfort zones. As a change agent, understand the personal implications of people involved, so you can help people feel better about making the changes. The Counselor listens and encourages.

The Facilitator One of the key activities of a change agent is finding ways to help people change. Change agents clarify the change and make it easier to perform. As a facilitator, you design systems, tools, forms, and processes to enable people to succeed as they go through change. The Facilitator is helpful and creative. The Mediator Different groups and individuals undergoing change in an organization frequently have opposing priorities. Change agents manage conflict by helping different parties see the situation from the others point of view, and by finding common goals. They work to improve understanding and reduce friction between multiple parties so they can collaborate to implement change. The Mediator is a peacemaker. The Expert Change agents rely on their expertise to build their authority within the organization. By sharing knowledge, they demonstrate that they can be relied upon to point people in the right direction. Sometimes knowledge transfer occurs directly through training, but it also happens every day in meetings and conversations. The Expert is confident and knowledgeable. The Law A change agent ensures that there are goals, targets, and due dates for the project. Then they keep people on track to achieve them. Change agents find ways to hold people accountable, and make sure that appropriate rewards or punishments are handed out as necessary. The Law is determined and conscientious. As you implement change in your organization, pay attention to the roles you play most often. Determine which hat will make you most effective in different situations. As you increase your versatility, you will improve your effectiveness as a change agent.

Approaches to change process

There are many theories about how to "do" change. Many originate with leadership and change management guru, John kotter. A professor at Harvard Business School and world-renowned change expert, kotter introduced his eight-step change process in his 1995 book, "Leading Change." We look at his eight steps for leading change below. Step 1: Create Urgency For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. This isn't simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about what's happening in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself. What you can do: Identify potential threats, and develop scenarios showing what could happen in the future.

Examine opportunities that should be, or could be, exploited.

Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking. Request support from customers, outside stakeholders and industry people to strengthen your argument.

Step 2: Form a Powerful Coalition Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough you have to lead it. You can find effective change leaders throughout your organization they don't necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. Once formed, your "change coalition" needs to work as a team, continuing to build urgency and momentum around the need for change. What you can do: Identify the true leaders in your organization.

Ask for an emotional commitment from these key people. Work on team building within your change coalition. Check your team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company.

Step 3: Create a Vision for Change When you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember. A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense. What you can do: Determine the values that are central to the change.

Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization. Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five minutes or less. Practice your "vision speech" often.

Step 4: Communicate the Vision What you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do.

Don't just call special meetings to communicate your vision. Instead, talk about it every chance you get. Use the vision daily to make decisions and solve problems. When you keep it fresh on everyone's minds, they'll remember it and respond to it. It's also important to "walk the talk." What you do is far more important and believable than what you say. Demonstrate the kind of behavior that you want from others. What you can do: Talk often about your change vision.

Openly and honestly address peoples' concerns and anxieties. Apply your vision to all aspects of operations from training to performance reviews. Tie everything back to the vision. Lead by example.

Step 5: Remove Obstacles If you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting. But is anyone resisting the change? And are there processes or structures that are getting in its way? Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. What you can do: Identify, or hire, change leaders whose main roles are to deliver the change.

Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision. Recognize and reward people for making change happen. Identify people who are resisting the change, and help them see what's needed. Take action to quickly remove barriers

Step 6: Create Short-term Wins Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have results that your staff can see. Without this, critics and negative thinkers might hurt your progress. Create short-term targets not just one long-term goal. You want each smaller target to be achievable, with little room for failure. Your change team may have to work very hard to come up with these targets, but each "win" that you produce can further motivate the entire staff. What you can do: Look for sure-fire projects that you can implement without help from any strong critics of the change.

Don't choose early targets that are expensive. You want to be able to justify the investment in each project.

Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with an early goal, it can hurt your entire change initiative. Reward the people who help you meet the targets.

Step 7: Build on the Change Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve. What you can do: After every win, analyze what went right and what needs improving.

Set goals to continue building on the momentum you've achieved. Keep ideas fresh by bringing in new change agents and leaders for your change coalition.

Step 8: Anchor the Changes in Corporate Culture Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started. What you can do: Talk about progress every chance you get. Tell success stories about the change process, and repeat other stories that you hear.

Include the change ideals and values when hiring and training new staff. Publicly recognize key members of your original change coalition, and make sure the rest of the staff new and old remembers their contributions. Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten.

Success of change
Change is never going to be easy. But with a well-considered plan, committed employees and a disciplined approach to sustaining progress, you will be successful.

Be truthful and weigh the impacts. Create an inspiring vision. Identify action steps and assign ownership. Plan your work and work your plan. Share your successes. Measure results and re-establish action steps.