Managing Change 1 What is Change ? Verb 1 a : to make different in some particular : ALTER <never bothered to change the will> b : to make radically different : TRANSFORM <can't change human nature> c : to give a different position, course, or direction to Noun 1 : the act, process, or result of changing : as a : ALTERATION <a change in the weather> b : TRANSFORMATION <a time of vast social change> <going through changes> c : SUBSTITUTION <a change of scenery> d : the passage of the moon from one monthly revolution to another; also : the passage of the moon from one phase to another 2 What is Managing ? Managing is getting paid for home runs someone else hits -- Casey Stengel When his team won the 1958 World Series, Stengel said “I couldn’t have done it without my players.” The secret of managing is to keep the guys who hate you away from the guys who are undecided -- Casey Stengel The essence of managing is optimizing benefits from taking understood and analyzed risks 3 Risk and Change Do not confuse risk with change Risk is the probability of failing to achieve certain objectives and realizing the associated consequences. Change is a transition between states Risk can be highest when the existing state is maintained Risk-averse organizations are very difficult to change and often fail Risk-averse organizations reward crisis management and punish those who can lead effective change When managed properly, risk is an asset, not a liability 4 Perspectives on Change Change has considerable psychological impact on the human mind. To the fearful it is threatening because it means that things may get worse. To the hopeful it is encouraging because things may get better. To the confident it is inspiring because the challenge exists to make things better. Obviously, then, one’s character and frame of mind determine how readily he brings about change and how he reacts to change that is imposed on him. - K. Whitney Jr., President, Personnel Laboratory Inc., 1967 5 Champions, Sponsors, Agents, and Targets Champions - Initiate the change process. They bring management’s attention to the subject, obtain the blessings of a sponsor, and establish the credibility to get the change program launched Sponsors - People in authority who supply the resources and the official backing to implement the change Change agents - People who lead the change planning and implementation Targets - People who will be expected to change their work habits 6 Key Elements of Change Planning Implementation Communication 7 Phases of Transition Desired State Present State P R O D U C T I V I Y Y Transition State Unfreezing Change Refreezing Time 8 Resistance is Part of Change Expect resistance Deal with it directly Sometimes resistance is disguised Miscommunications can lead to resistance Confusion can lead to resistance 9 Ways to Sabotage Change Let the change come as a complete surprise Don’t allow resistance to be expressed Disregard the emotional components of change Expect everyone to immediately embrace the change Let people know there is something terribly wrong with them if they choose not to change Let the details of change take care of themselves Keep people busy with several changes made all at once Impose change without asking for input Keep people in the dark as to where they stand 10 Change is Good! Organizations that do not change become stagnant People in non-changing organizations become fearful of change--hence risk-averse Risk takers usually leave stagnant organizations, making it harder for the organizations to change Change is (can be?) exciting and invigorating 11 But…There are Perils for Those Who Lead Change !! And it ought to be remembered that there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and lukewarm defenders in those who may do well under the new. This coolness arises partly from fear of the opponents, who have the laws on their side, and partly from the incredulity of men, who do not readily believe in new things until they have had a long experience of them. Thus it happens that whenever those who are hostile have the opportunity to attack they do it like partisans, whilst the others defend lukewarmly, in such wise that the prince is endangered along with them. -- Nicolo Machiavelli, The Prince, 1515 12