Innovative Practices for Managing Change: Indian Case

By Ashutosh Mishra Deepika Verma BhavyaSingh Bhawana Chauhan

What is Change Management? Change Management Process Major Types of Organizational Change Characteristics of Effective Change Management

Models Of Change Management Overcoming Resistance to Change Indian Case: Tata Consultancy Services(TCS)

What is Change Management?

Change management is structured approach to Shifting /Transitioning Individuals, Teams and Organization from current state to desired future state.

Change Management Process

Change Management process is sequence of steps or activities that a change management team follow to apply change management to change.

Phase 1 Preparing for the change

Preparation,Assessment,StrategyDevelopment

Phase 2 Managing Change

Detailed Planning & Change Management Implementation

Phase 3 Reinforcing Change

Data Gathering, Corrective Actions, Recognition

Major Types of Organizational Change

Organizational-Wide Vs Subsystem Organization-Wide Change is major restructing,collaration or rightsizing. Subsystem is reorganization of certain departments or implementing new process to deliver new products & services.

Transformational Vs Incremental Change Transformational (or radical, fundamental) change is changing Organizations structure and culture from traditional top to bottom hierarchical structure to self-directing teams. Incremental Change is continuous improvement in quality and efficiency of Organization.

Remedial Vs Developmental Change Remedial Change is a remedy for current situation. It is less reactive and proactive. Developmental Change is making a successful situation more successful.

Planned Vs Unplanned Change Planned Change occurs when leaders in an Organization recognize a need for major change and proactively organize a plan to accomplish change. Unplanned Change is usually occurs because of a major, sudden or surprise to Organization which causes its member to respond in highly reactive and unorganized fashion.

Corporate Culture Beliefs and behaviour that determine how organization and its member interact and handle with outside business transactions. It sometime a deciding factor for successful implementation of change . Employee Engagement Involvement of an employee in an organization and his work.

Communication Proper communication channel should be there for flow of information in an organization. Leadership and Change Leader has to convince and motivate employees to accept organizational change with positive approach or challenge for their career growth.

RELATIONSHIP AND POSITIONING OF MAJOR CHANGE MODELS

Lewin Change Management Model Understanding Three Stages of Change

Unfreeze
Determine what needs to change. Ensure there is strong support from upper management Create the need for change. Manage and understand the doubts and concerns

Change
Communicate often how the changes effect everyone Dispel rumours relate the need for change back operational necessities Empower action provide plenty of options for employee involvement Involve people in process generate short term successes to reinforce change

Refreeze
Anchor the changes into the culture. Develop ways to sustain the change. Provide support and training. Celebrate success.

KOTTER'S 8-STEP CHANGE MODEL

Create Urgency Form a powerful coalition Create a vision for change Communicate the vision Remove obstacles Create short-term win Build on change

ADKAR
Diagnose employee resistance to change Help employees transition through change process Create successful plan for personal & professional advancement during change Develop Change Management plan for employees

THE FIVE ELEMENTS OF ADKAR

    

Awareness of the need for change. Desire to make the change happen. Knowledge about how to change. Ability to implement new skills and behaviors. Reinforcement to retain the change once it has been made.

PROGRAMME BASED MODEL

y The

programme processes of establishing a blueprint of the changed organization, with clearly defined benefits of change and thorough attention to the stakeholder mapping and analysis will facilitate the creation of detailed communication strategy that addresses key stakeholder concerns.

 Ignorance: a failure to understand the situation or the problem Mistrust: motives for change are considered suspicious Disbelief: a feeling that the way forward will not work Power-Cut: a fear that sources of influence and control will be eroded.

Sources of Resistance to Change

Loss: change has unacceptable personal costs Inadequacy: the benefits from the change are not seen as sufficient Anxiety: fear of being unable to cope with the new situation.

Sources of Resistance to Change

Comparison: the way forward is disliked because an alternative is preferred Demolition: change threatens the destruction of existing social networks.

Types of Resistance
Functional Resistance
critically assessing whether change will lead to improvements exploring the personal consequences of change.

Dysfunctional Resistance
avoiding dealing with urgent and pressing issues declining to work on what really needs to be done.

Types of Resistance
Dysfunctional Functional Resistance Resistance feelings of regret, blaming and criticising without anxiety or fear proposing to a previous alternatives history of non sabotaging change disclosure and poor working non-collaboration relations. with others.

Stage Process For Dealing With Resistance

Consider Different People Work With Values and Beliefs Understand and Relate to Needs and Problems Tailor Your Message to Your Audience.

Consider Different People

Identify the adopters - the staff the change will affect Identify key professional and organisational groups Identify crucial opinion-leaders in the organisation.

Work With Values and Beliefs

Assess whats important to people with regard to the change at personal, professional and organisational levels Understand and relate to what people consider important.

Understand and Relate To Needs and Problems

For all key players, assess Whats in it for Me? Dont be too precious about the detail of the approach proposed Understand peoples problems and needs from different perspectives.

Tailor Your Message To Your Audience

Do homework - get to know whats important to individuals and groups Keep the message as simple as possible Use case studies and examples to show benefits Highlight multiple pay-offs from change Use both informal & formal communication.

Introduction to TCS
Managed by nearly 25000 people and operate in 55 countries. According to CEO, Mr. S Ramadori transformation is way of life. One needs to be proactive and prepared for the emerging trends of future. Maximum profit generated from USA.

NEED FOR CHANGE

Harness and align the capabilities and ambitions of every employees in a single, unified direction. Identify employees potential . Harmonizing diverse skills to meet vision and mission .

Measures for change

Internal change 1. Introduction of Chief Transformation Officer (CTO) 2. Economic Value Added (EVA) concept 3. Balanced Scorecard (BS) system 4. Reengineering functional practices 5. Assessment centers External Change Globalization

Internal Change
1.

a) b)

Role of CTO Act as a Facilitator and change Agent. Transforming change from a centralized to a distributed, empowered organization.

2)EVA Concept A measure of a companys financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on cash basis) . Also referred as economics profit.
FORMULA EVA= Net operating profit after taxes(NOTAT)- (Capital * cost of capital)

EVA concept use for Performance Measurement System. This EVA model ensure that the compensation packages of employees are determined by the value they bring to the organization . The more they deliver the more are their rewards .

3. a) b)

c)

BS SYSTEM For evaluating companys progress in a achieving goals . Helps to align the functional targets and goals with the organizational objectives. Integrates corporate vision with internal business processes , learning , financial measures and reaching out to the customer.

4) Reengineering Functional PracticesFinance dept. a) Plays a proactive role in MIS by advising on pricing , project profitability and corrective measures for project . b) Adopt activity based costing to look at cost that are a deeper at activity level. c) Helps to create a benchmark. d) Replicate the price estimation process better . e) Work on deputation with expert in finance and treasury and consultancy .

5) Assessment Centre a) Will take a close look at critical roles and functions within TCS. b) Also linked up with the TATA MANAGEMENT TRAINING CENTRE and other management institute across the world to talk upon leadership program.

External Change
GLOBLAZITION It means three things to TCS 1. Ability to deliver globally, 2. The ability to integrate multinational employees into TCS, 3. Localizing delivery to their global customers.

Resistance
Employees accepted the change because a) The change was not thrust upon them . b) Overall development I. Enrichment of capabilities and abilities, II. Communication III. Negotiation Skills IV. Opportunities V. Career option

Thank You

Questions are Welcome