Lec -1 Ion Change

EXTERNAL TRIGGERS FOR CHANGE

Developments in technology Developments in new materials Changes in customers’ requirements& tastes Activities & innovations of competitors New legislation & govt policies Changing domestic & global economic & trading conditions Shifts in local, national & international politics Changes in social & cultural values

INTERNAL TRIGGERS FOR CHANGE

New product & service design innovations Low performance & morale, triggering job redesign Appointment of a new senior manager or top management team Inadequate skills & knowledge base, triggering training programmes Office & factory relocation, closer to suppliers & markets Recognition of problems, triggering reallocation of responsibilities Innovations in the manufacturing process New ideas about how to deliver services to customers

❚ In 1947 Lewin introduced the interesting and valuable technique of FORCE FIELD ANALYIS – a change management technique. He argued that the nature & pace of change depended on the balance of driving and restraining forces in relation to a particular change , or “target” situation” DEFINITION Force Field Analysis is a technique for assessing the factors that encourage & the factors that resist movement towards a desired target situation, thus allowing an assessment of the viability of the change, & suggesting action to alter the balance of forces, if necessary.

PLANNED ORGANISATIONAL CHANGE

Planned change: a planned movement occurring from one organisational state to another that has a commitment to producing a specified outcome

Incremental Change - change that aims to improve the existing systems, policies and procedures Strategic Change - Change that aims to extablish new systems, policies or procedures Transformational Change - the transfiguration from one state to another that is fundamentally different

UNFREEZING

MOVE

REFREEZE (Lewin 1951)

Kurt Lewin

❚ Kurt Lewin considered organisational change to have 3 main elements: Unfreezing Transition Refreezing Unfreezing the current state of affairs The transition into the new state/ Change to the new behavior Refreezing or stabilising the changes to make them permanent. (attitudes, beliefs, values)

Overall, planned change is not impossible, but it is often difficult. The key point is that change is an ongoing process, and it is incorrect to think that a visionary end state can be reached in a highly programmed way (Lawler 1986)

To implement and sustain change, four interlocking management processes must take place

❚ ❚ ❚ ❚

Trigger Layer Vision Layer Conversion Layer Maintenance and Renewal Layer

Trigger Layer Opportunity, threat, crisis, clarify, express, communicate Vision Layer Define the future. Challenges, excitement, innovation Conversion Layer Persuade, recruit disciples, detail the structure Maintenance and Renewal Layer Sustain and enhance belief, reinforce and justify, regression avoidance (ritual)

ORGANISATION DEVELOPMENT INTERVENTION

❚ Establish that there is a need ❚ Think it through thoroughly ❚ Discuss it informally with those likely to be affected ❚ Encourage the expression of all objections ❚ Make sure you are willing to undertake change yourself ❚ Monitor the changes and reinforce them at all points (adapted from Pugh 1978)

OD INTERVENTION Phase 1: Entry Explore issues & establish a rapport Phase 2: Formalising the contract A two way process Phase 3: Information gathering & analysis Begin diagnosis phase. Crucial for diplomacy & partiality Phase 4: Feedback Analyse data, summarise & organise it into a format which can be understood by the organisation’s members

Phase 5: Planning the change process Action phase Consultant is an idea generator & a sounding board

Phase 6: Implementing the changes Consultant should still be involved

Phase 7: Assessment Evaluate

RESISTANCE TO CHANGE

An inability, or an unwillingness, to discuss or to accept organizational changes that are perceived in some way damaging or threatening to the individual (Huczynksi & Buchanan 2001)

Bedeian (1980) Four Common Causes of Resistance to Organisational Change

❚ Parochial Self-interest ❚ Misunderstanding & lack of trust ❚ Contradictory Assessments ❚ Low Tolerance for Change

Buchanan, Claydon and Boyle (1999)

The Initiative Fatigue 63% of managers surveyed said that people in their organisations were suffering from it!

Middle Management Burnout!

Tony Eccles (1994): 13 sources

Ignorance Comparison Disbelief Loss Inadequacy Anxiety Demolition Power Cut Contamination Inhibition Mistrust Alienation Frustration

Top Ten Barriers to Change Global Change Management Study 1997 based on Price WaterhouseCoopers & MORI

Competing Resources Functional Boundaries Change Management Skills Middle Management Long IT lead times Communication Employee Opposition HR Issues (people, training) Initiative Fatigue Unrealistic Timetables

Top Ten Success Factors

Ensuring Top Sponsorship Treating People Fairly Involving Employees Giving Quality Communications Providing Sufficient Training Using Clear Performance Measures Building Teams After Change Focusing on Culture & Skill Change Rewarding Success Using Internal Champions

Stakeholder Analysis

❚ Draw up a list of stakeholders affected by the changes proposed ❚ Establish what each will gain or lose if the change goes ahead ❚ Use the potential benefits to strengthen support for the proposals ❚ Find ways to address the concerns of those who feel they will lose out, by altering the nature of the changes proposed, perhaps, or offering to reduce losses in other ways.

George Egan (1994) Nine Types of Stakeholder

❚ ❚ ❚ ❚ ❚ ❚ ❚ ❚ ❚

Partners Allies Fellow Travellers Fencesitters Loose Cannons Opponents Adversaries Bedfellows The Voiceless

Kotter and Schlesinger (1979)

❚ Education and Commitment ❚ Participation and Involvement ❚ Facilitation and Support ❚ Negotiation and Agreement ❚ Manipulation and Co-optation ❚ Implicit and Explicit Coercion

Preconditions for Successful Change Tony Eccles (1994)

Is there pressure for this change? Is there a clear & stated vision of goal? Do we have liaison and trust? Is there the will and power to act? Do we have enough capable people with sufficient resources? ❚ Do we have suitable rewards & defined accountability for actions? ❚ Have we identified actionable first steps? ❚ Does the organisation have a capacity to learn & to adapt? ❚ ❚ ❚ ❚ ❚