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LECTURE 01
LEARNING OBJECTIVES
What is Change
What is Change Management?
The Trap of Success
Megatrends that derive Change
Recognizing the need for change and starting the change process
RECOGNISING THE NEED FOR CHANGE AND
STARTING THE CHANGE PROCESS
THE THEORY & PRACTICE OF CHANGE MANAGEMENT 3RD EDITION, JOHN HAYES, PALGRAVE, 2010 3
RECOGNISING THE NEED FOR CHANGE
Managers may fail to recognise the need for change because they pay
insufficient attention to the wider environment
or
fail to recognise the implications of what is happening around them
THE THEORY & PRACTICE OF CHANGE MANAGEMENT 3RD EDITION, JOHN HAYES, PALGRAVE, 2010 4
Prolonged
The trap of success
(Adapted from Nadler & Shaw 1995)
period of
success
Outcomes Environmental
Disturbance
Decreased
Success customer focus Declining
Syndrome Learning Poor external performance
Increased Cost
Complacency
disabled alignment
Arrogance
Internal focus
Death spiral
Do
Denial
more of &
the rationalisation
same
THE THEORY & PRACTICE OF CHANGE MANAGEMENT 3RD EDITION, JOHN HAYES, PALGRAVE, 2010
5
FALLING APPLE
There are fears it could be the beginning of the end for Apple's
outperformance too. Most recently, Apple fell into bear market
territory for the first time in several years this month. But Apple
shares also saw a significant dip when the group announced its
results in mid-July.
On the face of it, this is slightly baffling. Its results were still well
within its guidance. Certainly, the company missed projections for
revenue forecasts and its iPhone sales were not as strong, but it is
still predicting £1bn in sales for the Apple Watch.
Part of the problem is that Apple has been exceeding expectations
for so long, an expectation that it will beat them all is now baked
into the share price. One analyst suggested Apple shareholders had
become 'spoilt' by the company constantly beating estimates. We
believe it probably is the end of Apple's outperformance.
While there is good new user conversion within the US, outside the
US, it is mostly a replacement cycle. In China, for example, Apple
has been successful at getting the high end of the market, but we
are sceptical about the extent to which it will make inroads further
down the value chain. It has strong competitors in Xiaomi, a privately
owned Chinese electronics company, and others.
INNOVATION
FROM MANUAL WORK TO KNOWLEDGE WORK
0% 20% 40% 60% 80% 100%
1900 17 83
1930 30 70
1970 49 51
2000 62 38
2020 75 25
50-64 65+
30%
20%
10%
0%
2010 2015 2020 2025 2030 2035
-10%
-20%
-30%
GLOBALIZATION
GLOBAL TRADE DEVELOPMENT
WEB 2.0 – USER-GENERATED CONTENT
ORGANIZATIONAL CULTURE
MODEL FOR PLANNED ORGANIZATIONAL CHANGE
Source: Adapted from Larry Short, “Planned Organizational Change,” MSU Business Topics, Autumn 1973,
pp. 53–61 ed. Theodore Herbert, Organizational Behavior: Readings and Cases (New York: McMillan, 1976), p. 351.
TWO VIEWS OF THE CHANGE PROCESS
Source: Robert Kegan and Lisa Lahey, “The Real Reason People Won’t
Change,” Harvard Business Review, November 2001, p. 89.
DEALING WITH CHANGE
KEY STEPS IN CHANGE PROCESS
1- recognizing the need for change and starting the change
process
2- diagnosing what needs to be changed and formulating a
vision of a preferred future state
3- planning how to intervene in order to achieve the desired
change
4- implementing plans and reviewing progress
5- sustaining the change
6- leading and managing the people issues
7- learning