Mata kuliah : A0012 – Manajemen Umum
Tahun
: 2010
Session 13
CREATING AND MANAGING
CHANGE
Learning Objectives
• After studying Chapter 18, you will know:
– what it takes to be world class
– how to manage change effectively
– how to best prepare for the future
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Outline Materi
•
•
•
Bina Nusantara
Becoming World Class
Managing Change
Shaping the Future
Becoming World Class
• Sustainable, great futures
– essential characteristics of enduringly great companies
• strong core values
• driven by stretch goals
• change continuously
– drive for progress via adaptability, experimentation, trial and error, opportunistic thinking, and fast
action
• focus primarily on beating themselves
– in sum, great companies have core values, know what they are and what they mean, and live
by them
18-4
Becoming World Class (cont.)
• The tyranny of the ‘or”
– the belief that things must be either A or B, and cannot be both
– belief that only one goal but not another can be attained
– often is invalid
• always is constraining
• The genius of the “and”
– ability to pursue multiple goals at once
•
•
•
•
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deliver multiple competitive values to customers
perform all management functions
reconcile hard-nosed business logic with ethics
lead and empower
Managing Change
• Organizational change is managed effectively when:
– organization is moved from its current state to a planned future state
– the change works as planned
– the transition is accomplished without excessive costs to the organization or to individual
organizational members
• People are the key to successful change
– people must take an interest and active role in helping the organization as a whole
– permanent rekindling of individual creativity and responsibility should be a consequence of
change
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Managing Change (cont.)
• Motivating people to change
– people must be motivated to change
• people often resist change
– General reasons for resistance
• Inertia - people don’t want to disturb the status quo
• Timing - managers should introduce change when people are receptive
• Surprise - resistance is likely when change is sudden, unexpected, or
extreme
• Peer pressure - work teams may band together in opposition to change
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Managing Change (cont.)
• Motivating people to change (cont.)
– Change-specific reasons for resistance
• Self-interest - care less about the organization’s best interest than they do
about their own best interests
• Misunderstanding - people may resist because they don’t fully
understand the purpose of the change
• Different assessments - employees receive different - and usually less information than management receives
– such discrepancies cause people to develop different assessments of proposed changes
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Implementing Change
Unfreezing
(breaking from
the old ways of
doing things)
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Moving
(instituting
the changes)
Refreezing
(reinforcing and
supporting the
new ways)
Managing Change (cont.)
• Motivating people to change (cont.)
– General model for managing resistance
• Unfreezing - realizing that current practices are inappropriate and the new
behavior must be enacted
– performance gap - important contributor to unfreezing
» the difference between actual performance and the performance that should or could exist
» can apply to the organization as a whole or to departments, groups, or individuals
• Moving - instituting the change
– begins with a vision of where the company is heading
• Refreezing - strengthening new behaviors that support change
– implementing controls that support the change
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Managing Change (cont.)
• Motivating people to change (cont.)
– Specific approaches to enlist cooperation
• Education and communication - communicate not only the nature of the
change but its logic
• Participation and involvement - listen to the people who are affected by
the change
– should be involved in the change’s design and implementation
• Facilitation and support - make the change as easy as possible
– provide resources and training needed to carry out the change
– listen patiently to problems
• Negotiation and rewards - change may be resisted until management
agrees to one or more concessions
– rewards should be restructured to reinforce the change
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Managing Change (cont.)
• Motivating people to change (cont.)
– Specific approaches to enlist cooperation (cont.)
• Manipulation and cooptation - resisting individual given a desirable
role in the change process
• Coercion - apply punishment or the threat of punishment to those who
resist change
– each approach has advantages and disadvantages
– change leaders need to build in stability throughout the process
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Managing Change (cont.)
• Harmonizing multiple changes
– total organization change - introducing and sustaining multiple policies, practices, and
procedures across multiple units and levels
• such change affects the thinking and behavior of everyone
– change efforts usually are simultaneous but not coordinated
• companies introduce new changes constantly
– many are perceived to be fads
– change efforts helped by avoiding fads
• management needs to “connect the dots”
– integrate the various efforts into a coherent picture that people can see, understand, and get behind
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Leading Change
Establishing a sense of urgency
Creating the guiding coalition
Developing a vision and strategy
Communicating the change vision
Empowering broad-based action
Generating short-term wins
Consolidating gains and producing more change
Anchoring new approaches in the culture
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Managing Change (cont.)
• Leading change
– establish a sense of urgency - examine current realities and pressures in the marketplace
• identify both crises and opportunities
• urgency is driven by compelling business reasons for change
– create a guiding coalition - put together a group with enough power to lead the change
• over time, support must expand outward and downward
– developing a vision and strategy - determine the idealized, expected state of affairs after the
change is implemented
• image will be a target that can clarify expectations, dispel rumors, and
mobilize people’s energies
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Managing Change (cont.)
• Leading change (cont.)
– communicating the change vision - use every possible channel and opportunity
– empowering broad-based action - get rid of obstacles to success
• encourage risk taking
• empower people
– generate short-term wins - create small victories to demonstrate progress
– consolidate gains and produce more change - keep changing things in ways that support the
vision
– anchor new approaches in the culture
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Shaping The Future
• Reactive change
– response that occurs when events in the environment have already affected the firm’s
performance
• problem-driven change
• Proactive change
– response that is initiated before a performance gap has occurred
• Exercising foresight
– impossible to the know the future with certainty
– create core competencies that will allow the firm to respond to changing customer demands
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Shaping The Future (cont.)
• Learning continuously
– a vital route to renewable competitive advantage
– requires:
• a clear, strategic goal to learn new capabilities
• a commitment to constant experimentation
– relentless drive to be better in every way
– everyone engages in exploration, discovery, and action
– process generates learning on a more individual level
• leads to personal growth and development
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Learning Cycle: Explore, Discover, Act (cont.)
• Pursuing growth
– cost cutting sooner or later reaches its limits
– must be able to go for growth by increasing revenues
• easier to get a dollar of profit growth by cutting costs than by raising
revenues
• Seizing advantage
– ultimate form of proactive change is to create new markets and transform industries
– create new competitive arenas, transform your industry, and imagine a future that others don’t
see
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Learning Cycle: Explore, Discover, Act (cont.)
• Creating the future
– different strategic postures to prepare to compete in an uncertain future
– adapters - take the current industry structure, and its future evolution, as givens
• choose where and how to compete
• used by companies in fairly predictable environments
– shapers - try to change the structure of their industries
• create a future competitive landscape of their own design
• requires high-stake bets
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Learning Cycle: Explore, Discover, Act (cont.)
• Shaping your own future
– Into the future
• commit to lifelong learning
• requires occasionally taking risks
– moving outside of your “comfort zone”
• being open to new ideas
– Success in the future will come from:
• shaping the future and adapting to the world
• being clear about what you want to change and being responsive to others’
perspectives
• pursuing your vision and understanding current realities
• leading and learning
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