Managing
Organizational Change
Today’s Agenda
Know the class
Review the course outline
A case of organization change
In your opinion, what could we study
in a course of change management?
Overview of the syllabus
Images of Managing Change
Why Organizations Change
What Changes in Organizations
Diagnosis for Change
Resistance to Change
Implementing Change
Linking Vision and Change
Strategies and Skills for Communicating
Change
9. Sustaining Change
1.
2.
3.
4.
5.
6.
7.
8.
1-4
Week2: Images of Managing
Change
Each person
 Operates with an image or mental model of
what s/he thinks is achievable.
 Has a different management style and image.
Images
 Illuminate certain aspects of change.
 Take us away from paying attention to certain
aspects.
We will suggest some images and assess the
strengths and weaknesses of different images.
1-5
Week2: Why Organizations
Change

External forces for change
o e.g. new technology
o e.g. geopolitical environment

Internal Forces for change
o e.g. a new CEO
o e.g. growth cycle

Forces for stability
oThink: Do we really need this change? what
are the likely returns (economic, other) of this
change?
1-6
Week3: What Changes in
Organizations

Common types of changes:
◦ Mergers and acquisitions
◦ Downsizing
◦ Technological changes

Proactive Vs. reactive changes

Scale of change
◦ Incremental
◦ transformational
1-7
Week3: Diagnosis for Change

Organization models to assess where changes are
needed in an organization
o
o
o
o
o
o
Strategy
Structure
Operations
Culture
Management behaviours and mindsets
Employee behaviours and mindsets
o
o
o

Communication
Reward mechanisms
Modes of interaction
Component analysis tools to assess the changes
needed in each part of the organization
◦ E.g. force-field (strategy), PESTEL (environment), cultural
web (culture)

Assessing readiness to change
1-8
Week4: Resistance to Change
1.
◦
◦
◦
◦
◦
◦
2.
◦
◦
Why do people resist to change
Experiences with past change
Discomfort with uncertainty
Lack of conviction that change is needed
Perceived negative effect on interests
Lack of clarity as to what is expected
Belief that the timing is wrong
Managing resistance
The resistance cycle
The power of resistance
1-9
Week5,6: Implementing Change
Implementation method is important: A
good idea for change may be badly
managed and fail.
◦
◦
How much do we involve people
When things will be done
Two main approaches:
 Organization development (OD)
Appreciative Inquiry
 Change Management
Contingency approaches
1-10
Week7:Linking Vision and
Change
1.
2.
Content of meaningful visions
Process by which visions are
emerged
Three dilemmas:
1. Does vision drive change or emerge during
change?
2. Visions help or hinder change?
3. Vision belongs to organizations or to
leaders?
1-11
Week8: Guest Speaker
1-12
Week9: Strategies and Skills
for Communicating Change
1.
Strategies for communicating change
◦ What, how, and to whom
◦ Modelling the communication process
◦ How much communication
◦ Selling vs. buying in
◦ Media
2.
Skills for enacting those strategies
◦ Upward (common language)
◦ Downward (listening skills)
◦ with the outside world (corp. reputation)
1-13
Week10: Sustaining Change
Actions to sustain change:
•
•
•
•
Redesign roles and reward systems
Measure progress
Celebrate
Fine-tune
1-14
the things we
need to do to
sustain change
The strategy
and skills we
use and to
communicate
change
Why we think
the organization
needs to change
How change
unfolds and
what change
looks like
How we go
about
diagnosing what
we think needs
to be changed
Images we
have of
ourselves as
managers of
change
influence
The importance
we place on the
role of vision in
change
The underlying
theory we use
to implement
change
The approach
we take to
handling
people’s
reaction to
change
1-15
Stories of Change
Managing Change
• Change can be interpreted in
different ways
• Using the stories of change we
can see how change means
different things to different people
• Using the stories of change we
can see a wide range of issues
that affect why and how change
occurs
1-17
Kodak
• How have past downsizing efforts
affected how Kodak now
approaches downsizing?
• What reactions would employees
be likely to have to the continued
downsizing?
1-18
Kodak
• Managing reactions to change
• Key change issues:
– Both internal and external stakeholders
interpret and react to change differently
– Communication strategies need to be
directed at both groups of stakeholders
– History of past changes influence the
reactions and the way managers deal
with change
1-19
IBM
Change can come from above
and below
 What are the differences between
change from below and change
from above?
 Key change issues:

◦ The diffusion of change helps
consolidate change across the
organization
◦ Symbolic images of change can give
more importance to change from
above for employees
◦ Champions of change gain support
for change
1-20
Hewlett Packard
Managing a merger
 Key change issues:

◦ Organizational politics and lobbying
◦ Merging of cultures as a form of
change
◦ Communicating change to internal
employees and company
stakeholders
◦ Restructuring the organization as a
common type of change
1-21
McDonald’s
External pressures for change
 Key change issues:

◦ The external environment can lead to
organizational changes
◦ Organizations may consider that they
have a social responsibility to the
external community, and this can
lead to pressures for change
◦ Not all planned changes come to
fruition
1-22
Change at Google – New Leadership
http://au.youtube.com/watch?v=WZ83MffY3lI
http://au.youtube.com/watch?v=JV2HcNta1gU&feature=related
For the next session, please:
• Make groups
• Have a copy of the book
• Read Chapter1
 A group for the first case of the book: IBM
 A group for the first case from practice