Change Management New

“IF ONE DESIRES A CHANGE, ONE MUST BE THAT CHANGE BEFORE THAT CHANGE CAN TAKE PLACE

-ANONYMOUS

CHANGE MANAGEMENT

Archana Sahana Gitanjali Prithwiraj

WHY CHANGE ?

CHANGE IS THE ONLY THING THAT WILL NEVER CHANGE. SO BETTER ADAPT TO IT.

WHY PEOPLE DON’T CHANGE ? Changing another person is out of your control  We have all been “programmed”  Physical habit  Emotional habits  Changes may lead to anger, hatred, jealousy and violence 

TWO CHANGE MANAGEMENT TRUISMS 1. We prefer the familiar to the comfortable. 2. We prefer the comfortable to the better. So our role is -to make ‘the better’ both familiar and comfortable.

CHANGE MANAGEMENT Managing Change is about helping people adapt to changing practices, processes or environments  There are two approaches to change management. 

THEORY E: ECONOMIC Dramatically and quickly improve shareholder value  Measured by improved cash flow or share price  All implicit contracts between company and employees are suspended; produce or you are gone; failure is NOT an option  All organizational elements are like chess pieces on a chessboard  Non value-add elements are especially valuable  Top-management and ‘inner-circle’ driven  Examples: GE under J. Welsh; IBM under L. Gerstner 

THEORY O Goal is to change  Organizational culture to one supporting learning and high performance  Committed, capable, relatively autonomous employee is best asset Implicit contract can never be broken  May be incompatible with top-down direction  Highly participative from within the ranks  Examples: Schwab, Merck, 3 M, Intel, Microsoft 

E, O WHICH IS BEST? Theory E may lead to short-term gains but  hurts long term  Look at the IBM example  And may backfire  1990s downsizing did not guarantee higher performance  Theory O is a huge, multi-year project  Hybrid approaches generally preferred 

LEADING CHANGE AT P&G P&G CEO Lafley makes changes that began with previous CEO in the 1990s. Significant changes made on structural lines. Previous CEO, Jager, made changes using combative style.

Corporate headquarters undergoing change. Executives have open offices. Division presidents’ offices located with their teams. Changes made without alienating employees

THE CHANGE AT MCDONALD'S health conscious -Redefined its process to make the product. McDonald’s responded with a selection of salads and fruits  more international- Norway serves the grilled salmon McLak, Japan serves green tea-flavored milkshakes  Set standards for these and trained its employees accordingly  Redefined the “hamburger business”. 

SEVEN STEPS TO CREATING CHANGE . Mobilize energy and commitment through joint  identification of problems and solutions  . Develop a shared vision  . Identify the leadership  . Focus on results, not on activities  . Start at the periphery, then let it spread  . Institutionalize success through policies and structures  . Monitor and adjust as you go  People will quit, elements will fail, the setting may change 

RESISTANCE TO CHANGE.. 

Resistance can be Overt  Immediate  Implicit  Deferred 

 Overt

& Immediate – Easily Manageable  Implicit & Deferred – Greater Challenge

SOURCES OF RESISTANCE

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Individual Sources:

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Mindset

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Security

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Economic factors

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Fear of the unknown

OVERCOMING RESISTANCE TO CHANGE Communication  Participation  Counseling  Implementing changes fairly  Selecting the people who accepts change.  Coersion 

FIVE WAYS TO IMPLEMENT CHANGE SUCCESSFULLY 1. 2.

3. 4. 5.

Understand common reactions to change Leverage the involvement of key stakeholders and opinion leaders. Over-communicate the plan. Monitor the change and seek feedback. Your business as an organism… not a machine.

Thank you