Managing the Consequences of
Change
Managing the Consequences
of Change
Aim of session:
To give the Manager a recognition of the
direct and indirect aspects of change
Managing the Consequences
of Change
Learning Outcomes:
At the end of this session the student will be
able to:
 Understand the consequences for the
organisation, or maintaining the status quo
 Appreciate the “ripple effects” of change
throughout an organisation
Managing the Consequences
of Change
Learning Outcomes cont.

Identify the human and financial
implications for the organisation, teams and
individuals
Managing the Consequences
of Change
There is nothing more difficult to plan, more
doubtful of success, nor more dangerous to
manage than the creation of a new system.
For the initiator has the enmity of all who
would profit by the preservation of the old
institutions, and merely lukewarm defenders
in those who should gain by the new ones.
(Machiavelli)
Managing the Consequences
of Change

75% of all transformation efforts fail
 50 – 75% of re-engineering projects fail
 Why?
Managing the Consequences
of Change
Why Failure?
 Ill prepared employees
 Disregarding the domino effect
 Goals set are too far in the future
 Change programme has no clear vision
 Misunderstanding of what change is
 Not a quick fix
Managing the Consequences
of Change
Why Failure? – Individual resistance
 Habit
 Loss of freedom/inconvenience
 Economic implications
 Fear of unknown
 Past security
Managing the Consequences
of Change
Why Failure? – Organisational resistance
 Maintaining stability
 Investment in resources
 Past contracts/agreements
 Threats to power/influence
Managing the Consequences
of Change
The direct and indirect effects and
consequences of change on people,
departments, teams, and the organisation
can cause “stress”.
Managing the Consequences
of Change

What do we mean by “stress”
– A shortened form of “distress”
(Linked to creating nervous tension, worry,
feeling pressured, being tense)
– Perceptions vary
Managing the Consequences
of Change

Stress is a mismatch between what is
demanded of an individual and what they
are able to do
 When a person cannot cope with what is
demanded and cannot deliver what they
have to do, this can lead to feeling
negatively pressured
Managing the Consequences
of Change
Stress is not:
 Routine pressure of work
 Meeting deadlines
 Hard work
 Negotiating, competing, arguing
 Great responsibility
 Boredom or conflict
Managing the Consequences
of Change

Some stress can be positive
– Fight or flight syndrome
– Surge of adrenalin
– Extra boost of energy
NB: if positive stress wears off and turns to
negative stress, then becomes detrimental
Managing the Consequences
of Change
Most environments are stressful to live and
work in!
 We subject ourselves to pressure
 Change in organisations is here to stay
 Not a weakness or a failure to own up to
suffering stress, or stress-related illness
Managing the Consequences
of Change







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Seven most stressful events that could occur in our
lives on a scale of 0-100:
Death of spouse/partner
100
Divorce
73
Marital Separation
65
Jail sentence
63
Death in family
63
Personal injury/serious illness
53
Marriage
50
Managing the Consequences
of Change

Recognising stress is critical in minimising
its detrimental effects on both individual
and the organisation.
 Stress can manifest itself in various ways
 As a Manager, being alert to potential
symptoms is part of Duty of Care
Managing the Consequences
of Change
Symptoms/signs of possible stress displayed:
 Nervousness and anxiety
 Inability to relax
 Impatience and hostility
 Depression, loss of perspective
 Always blaming others
 Insecurity
Managing the Consequences
of Change
Symptoms/signs cont.
 Inability to concentrate
 Forgetfulness
 Loss of humour
 Indecision
 Often ill
 Gaining/losing weight
Managing the Consequences
of Change

Stress can be sub-divided
– Personal versus work related causes
– Internal versus external causes
NB:
In order to manage stress, have to take account
not only of events and circumstances that cause
stress, but how individuals perceive those
circumstances.
Managing the Consequences
of Change
How not to manage stress!
 Starting to smoke/smoking more
 Alcohol
 Working longer hours
 Blaming others
 Being an ostrich
 Self guilt
 Over eating/not eating
Managing the Consequences
of Change

What can you do to assist in minimising
adverse effects of stress?
 Which indicators could you use to measure
any stress in an organisation?
 What could you do to overcome stress at
work in one of your employees?
Managing the Consequences
of Change
Recap Key Points:
 Stress can be defined
 Stress is not always negative
 Everyone suffers a degree of stress
 It is possible to establish whether you are
suffering stress
 As a Manager you are able to reduce stress
levels for employees most of the time
Managing the Consequences
of Change
Key points cont:
 Understand stress has detrimental
consequences
 There are number of different causes of
stress
 Different ways to manage stress
 Managing stress promptly
Managing the Consequences
of Change
The effects of change in an organisation on
individuals
 Teams broken up/reformed - imbalances
 New tasks, new responsibilities
 Staff relocation, travelling times
 Financially detrimental
 Creates “ripple effect”
Managing the Consequences
of Change
Possible effects on individuals cont:
 If change is linked to merger, purchase
– New culture
– New rules, regulation, procedures
– New management
– Perhaps new equipment, products, processes
Managing the Consequences
of Change
Consequences for the organisation of change
or maintaining the status quo. Consider:
 Responding to external pressures/changes
(PESTLE analysis)
 Responding to market forces, competitor
behaviour (SWOT)
 Determining what has to change (if
anything)
Managing the Consequences
of Change
Organisational change/maintaining status quo
Cont.:
 Planning change, allocating resources
 Implementing, contingency, monitoring and
reviewing outcomes
 Being aware of Barriers to Change in
people(resistance) & organisation (why
change fails)
Managing the Consequences
of Change

Being aware of the effect of too much
change, and ripple effect of change
 Being aware of past failures, poorly planned
& implemented change
 Being aware of consequences of not
changing
 Evaluation and consolidation of change
Managing the Consequences
of Change
Evaluation of Change:
 Did change achieve its objectives?
 What was the effect on the organisation’s
performance?
– Internally
– Externally
– Culturally