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WHAT IS CHANGE?

Change is any alteration in organizational processes

or behaviors required to deal with external pressures
more effectively

“Change is not what it used to be. The status

quo will no longer be the best way forward …
The society which welcomes change can use
that change instead of just reacting to it. “

Charles Handy, 1990

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 CHANGE MANAGEMENT
“Change has no constituency.
People like the status quo.
They like the way it was.”

“If your change isn’t big enough, revolutionary

enough, the bureaucracy can beat you.
When you leaders who confused Popularity with
Leadership, who just nibble away at things,
NOTHING CHANGES.
I think that’s true in countries and in companies. “

“You’ve got to be hard to be soft.” Jack Welch

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 THE WORLD IS CHANGING

•Globalized Business

•Quicker & more effective communication

•Information technology advancement

•Changing world markets and demographics

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 WHY DO ORGANIZATIONS HAVE TO
CHANGE ?
• Lack of focus
- not understanding the direction of the business
• Poor organizational climate
- a physical & mental working environment that resists new ideas
• Inappropriate leadership styles
- leaders who cannot motivate & alter the mindsets of others
• Incoherent organization structures
- inexistence of management on strategy & job outputs
• Outmoded systems & processes
- systems & processes that will not add value in tomorrow’s world
• Dysfunctional reward system
- pay systems that do not encourage the outputs, attitude needed
• Lack of flexibility
- inability to shift the organization from control culture to responsive
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 THE CHANGE WHEEL

Social /
Political
Environmental

Technology Competitors

Demographics/
Work-force Customers

Economics Owners/
Stakeholders

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 MANAGING STRATEGY - CULTURE

Many
Link changes to Reformulate strategy
basic mission and or prepare carefully
fundamental for long-term, difficult
Changes in key organizational norms cultural change
organizational
factors – required to
implement new
strategy
Synergistic – focus Manage around the
or reinforcing culture culture

Few
High Low

Potential compatibility of changes with existing culture

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 THE CHANGE AGENDA
Step 1: Understanding the Driving Forces of Change
- the nature & scope of change affecting the organizations

Step 2: Creating the Organizational Change Vision

- support the change management team (agents of change) by helping
them to create a simple, practical & forceful statement explaining why
change process is necessary & where it will take the organizations in the
long term
Step 3: Creating a Communication Strategy
- develop an effective communication framework

Step 4: Overcoming Resistance

- manage the resistance to change
Step 5: Implementation and Evaluation
- how do we apply the process of change in a way that enhances corporate
performance?
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 Managing Change:
Integrating People & Technology
Organizational Psychological Organizational
Factors Effects Outcomes
(1st order effects) (2nd order effects)

• Challenge • Higher productivity

• Higher quality
• Control • Lower turnover
• Commitment • Innovation
• Task • Job satisfaction
• Role • Congruence • Loyalty
• Relationship • Lower drug abuse
• Culture
• Decision-making • Stress • Lower productivity
• Communication •Threat • Lower quality
• Career • Frustration • Sabotage
• Conflict • Absenteeism
• Uncertainty
• Fatigue • Increased illness
• Boredom • Higher drug abuse

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 Managing Change:
Implementing Technological Change w/in Organizations

Internal Environment Individual Sources

• Company strategy • Habit
• Production process
• Fear of unknown
• Human resources
• Marketing • Economic factors
• Information processing • Personal security
• Profitability
• Education &
R communication
e Reduce / remove • Participation &
s sources of involvement
resistance • Facilitation & support
i • Control & reward
Pressures Need for
s system
Implement Monitor &
for change new technology
t • Negotiation &
technology Control
a agreement
Increase strength
n of pressures for
• Manipulation &
c change
cooperation
• Explicit & implicit
e coercion
External Environment
• Customers Organizational Sources
• Competitors • Power relationship
• Suppliers • Vested interests
• Government • Fixed investments
• Org. Structure
• Unions
• Limited resources

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