The Management of Change Research indicates that organisations are undergoing major change approximately once every three years, whilst smaller changes are occurring almost continually. There are no signs that this pace of change will slow down. 2 Many things cause organisational change. These include: 1. 2. 3. 4. challenges of growth, especially global markets changes in strategy technological changes competitive pressures, including mergers and acquisitions 5. customer pressure, particularly shifting markets 6. to learn new organisation behaviour and skills 7. government legislation/initiatives. 3 There are 3 main models 1. Kurt Lewin (USA 1947) 2. Anthony Stafford Beer (UK 1970’s) 3. Patricia Shaw (UK 1990’s to date ) 4 Lewin • A simplistic model but useful for researchers. Static State Static State • There is an implication that “forces” hold the organisation in equilibrium. 5 Lewin’s proposal A 3 stage managerial process of change 1. Unfreezing Creating a level of dissatisfaction with the status quo to create conditions which allow to take place 2. Changing requires organising and mobilising the required to bring about the change resources 3. Freezing (or crystallising) embedding the new ways of working into the organisation. 6 Beer’s model • Change is more complex than suggested by Lewin and need to managed in a way that recognises complexity. • There is a focus on 'task alignment', whereby employees' roles, responsibilities and relationships are seen as key to bring about situations that enforce changed ways of thinking, attitudes and behaving. 7 Beer’s 6 stages of change 1. Mobilise commitment to change through joint diagnosis. 2. Develop a shared vision of how to organise. 3. Foster consensus, competence and commitment to shared vision. 4. Spread the word about the change. 5. Institutionalise the change through formal policies. 6. Monitor and adjust as needed. 8 Shaw’s model is more interesting 1. Change is seen as both complex and also evolutionary. 2. the environment of an organisation is not in equilibrium. 3. As such the change mechanisms within organisations tend to be 'messy' 4. Change operate in reverse to the way outlined by Lewin. It is not appropriate to consider the status quo as an appropriate starting point, 5. Organisations are not static entities. Rather the forces for change are already inherent in the system and emerge as the system adapts to its environment. 9 Different models will have implications on the way organisations and their leaders view change, the way they manage change and the effectiveness of any change initiative. But what change strategy should an organisation adopt? 10 The Information Revolution • Business Process Reengineering and radical change (Hammond & Champy 1990, 1993,1999) • Driven from customer needs? or from shareholders? It derives from a mechanistic view of the organisation. 11 It depends on how you view the organisation • A narrow view of processes means a lack of overall strategy. • A broader view of the organisation suggests that managing change is a response to a more fundamental issue. 12 A firm’s competitive advantage is what it “knows” Is change management really about managing knowledge within the organisation and responding to it? That is, the learning organisation changes organically to the evolving environment. Is organisational change only possible with culture change? 13 They’re not employees: They are people! (Drucker 2002) 14