Change Management
STRATEGIC INTERVENTIONS
 Managing a change process is as vital as the change
itself.
 In recent years, management scholars have explored
the possibilities of employing the techniques of
Organization Development (OD) to effect desired
organizational changes. Properly diagnosing the
change environment allows for the application of
such strategic intervention techniques as role
playing, team development, survey feedback, process
consultation, among others
Strategic Interventions
1.Technostructural interventions
 These focus on improving the organizational
effectiveness and human development by focusing
on technology and structure
 Technostructural interventions the following:
organizational structure, organization systems,
business process redesign, space and physical
settings, socio-technical systems, change
management, job design / enrichment, competencybased management, knowledge management and
organizational learning
2.Management and Leadership Development
Interventions
These types of OD interventions aim to improve
organizational performance by increasing
effectiveness of formal and informal leaders
 Their use is wide spread, and almost all
organizations have programs in place to identify,
measure, and improve the quality of their leaders.
Kormanik (2005) includes the following examples:
executive and professional development, mentoring,
coaching, action learning, action science, MBO,
succession planning, 360 degree feedback,
participative management, technical / skills training
3.Team Development and Group Processes
Interventions
Aim at improving different aspects of a group
performance, such as goal setting, development of
interpersonal relations among team members, role
clarification and analysis, decision making, problem
solving, and communities of practice, among other
4. Individual / Interpersonal Process
Aim at improving organizational performance by
developing specific skills of individuals.
The most common examples of this type of
interventions are learning strategies, life transitions,
mentoring, and interpersonal communications,
among other.
NEED FOR CHANGE
 There are several factors that indicate the need for
change in an organisation.
Changes in the Market
 Changes in customers taste , requirements,
competition and others indicate the need for an
organisation to change its approach or
products/services
Economic Down Down
 Changes in GDP growth reduces the purchasing
power of consumers. Other factors like inflation,
Changes in interest rates in an economy also
triggers change in an organisation.
Other factors
 Competition
 Budget constraints /pressure
 Changes in regulation / legislation
 Changes in Technology
 Changes in organisation size itself
 Mergers and acquisition
 Restructuring operations
Resources implication
 As a result of changes in an organisation, the
following may a rise.
 Restructuring of organisation.
 Interviewing and hiring new staff/ consultants
 Training of the staff.
 New physical assets i.e. equipments , buildings or
machines and hence attracting additional costs to
the organisation.
LEADING STAKEHOLDERS IN DEVELOPING
A STRATEGY FOR CHANGE
 Change of any type affect different types of
stakeholders.
 The effect will depend on the interest and the power
of the stakeholder.
Stakeholder analysis
 It is the process of identifying the individuals or
groups that are likely to affect or be affected by a
proposed action, and sorting them according to their
impact on the action and the impact the action will
have on them
 This information is used to assess how the interests
of those stakeholders should be addressed in a
project plan, policy, program, or other action
Benefits of doing stakeholder analysis
Stakeholder analysis helps with the identification of
the following:
 Stakeholders' interests
 Potential risks
 Key people to be informed about the project during
the execution phase
 Negative stakeholders as well as their adverse effects
on the project
Groups of stakeholders
 Primary stakeholders : are those ultimately affected,
either positively or negatively by an organization's
actions.
 Secondary stakeholders : are the ‘intermediaries’,
that is, persons or organizations who are indirectly
affected by an organization's actions.
 Key stakeholders : (who can also belong to the first
two groups) have significant influence upon or
importance within an organization
Methods of Stakeholder Mapping
 Based on power to influence
 Stakeholder expectations based on value hierarchies
 According to potential for threat and potential for
cooperation
STAKEHOLDER CIRCLE
 The Stakeholder Circle ® is designed to enhance
the management of a business unit, organizational
activity, or project's stakeholder community to the
benefit of the stakeholders and the activity. It is a
proven methodology supported by robust, easy to
use tools.
STEPS IN STAKEHOLDER CIRCLE
1. Identify the stakeholders who
are likely to be affected by the
change
2. Prioritise the stakeholders
according to the need of the
change
Map the stakeholder in terms of
power and interest
 4. Develop engagement strategy
with the stakeholders
 3.
 5.Optimise the support of the
stakeholders
 6.Monitor the changes
METHOD OF INVOLVING
STAKEHOLDERS
 1. Having communications with
individual stakeholder/
consultations
 2.Group meetings
 3. Team building
 4.Coaching
 5. Delegation of responsibilities.
RESISTANCE TO CHANGE
 Most people don't like change because
they don't like being changed. When
change comes into view, fear and
resistance to change follow – often
despite its obvious benefits
 People fight against change because they:
fear to lose something they value, or
don't understand the change and its
implications, or
don't think that the change makes sense, or
find it difficult to cope with either the level
or pace of the change.3
Organisational barriers to change
Structural inertia
Existing power structures
Resistance from work groups
Failure of previous change
initiatives
Individual barriers to change
Tradition and set ways:
Loyalty to existing relationships
Failure to accept the need for change
Insecurity
Preference for the existing arrangements
Break up of work groups
Different person ambitions
 Fear of:
Loss of power
Loss of skills
Loss of income
The unknown
 Redundancy
 Inability to perform as well in the new situation
STRATEGIES FOR MANAGING RESISTANCE
 1. Have open communication or be open.
 2.Education all stakeholders involved.
 3.Involve all stakeholders
 4.Have forums to discuss pertinent issues as regards
to change.
 5. Have a system of giving feedback to stakeholders
 6. Create a sense of ownership from the stakeholders
 7. Have change champions
 8. Communicate the vision for change.
 9. Ensure there is support from all stakeholders.
 10. Focus on the positive benefits of change
 11. Ensure there is training programmes necessary
for successful implementation.
CHANGE IMPLEMENTATION
 A successful change implementation leads to.
 Business Process Re-engineering.
 Learning Organisation
 Delayering
 Kaizan
 Right sizing
 Matrix organisation
 Network organisation
BUSINESS PROCESS RE-ENGINEERING
 Business Process Reengineering (BPR) involves the
fundamental rethinking and radical redesign of
business processes to achieve dramatic
improvements in critical contemporary measures of
performance such as cost, quality, service and speed
A reengineered organization is process oriented,
where:
 Processes are identified and named,
 2) Everyone is aware of the processes they are
involved in,
 3) Process measurement, i.e. monitoring and control,
is performed
LEARNING ORGANISATION
 A learning organization is the term given to a
company that facilitates the learning of its members
and continuously transforms itself.
 Learning organizations develop as a result of the
pressures facing modern organizations and enables
them to remain competitive in the business
environment.
A learning organization has five main features;
systems thinking, personal mastery, mental
models, shared vision and team learning.
BENEFITS OF LEARNING ORGANISATION
 Maintaining levels of innovation and remaining
competitive
 Being better placed to respond to external pressures
 Having the knowledge to better link resources to
customer needs
 Improving quality of outputs at all levels
 Improving corporate image by becoming more
people oriented
 Increasing the pace of change within the
organization
KAIZEN
 Refers to activities that continually improve all
functions, and involves all employees from the CEO
to the assembly line workers
 It also applies to processes, such as purchasing and
logistics, that cross organizational boundaries into
the supply chain
 By improving standardized activities and processes,
kaizen aims to eliminate waste
The five main elements of kaizen
 Teamwork
 Personal discipline
 Improved morale
 Quality circles
 Suggestions for improvement
DELAYERING
 Delayering is a term in management and
corporate restructuring that refers to a planned
reduction in the number of layers of a management
hierarchy
 The purpose is to give the organization a flatter
structure and thereby push decision-making down to
lower managerial levels
 The assumption is that this will produce quicker
decision-making by managers who are closer to their
customers and more in touch with their competitive
environment
 The reasoning behind delayering lies in the belief
that as organizations grow they become
cumbersome, bureaucratic, and inflexible
 Moreover, they can be stultified by rules and
procedures, slow decision-making processes, and a
lack of creativity
Managing Conflict
 Conflict involves incompatible behaviors; one person
interfering, disrupting, or in some other way making
another’s less effective
 A. Understanding Competitive and Cooperative
Conflicts
 1. Competitive Conflicts
Competitive Conflicts occur when two parties believe
that they are right and the other one is wrong and
will not agree in the middle.
A win-lose situation
These conflicts can ruin a relationship and lead to a
dysfunctional, destructive outcome.
 2. Cooperative Conflicts
Cooperative Conflicts occur when two parties agree to
compromise to end a conflict, each party may need to
give up something to get something in return.
 A win-win situation
These conflicts build trust for the future and allows
parties to accomplish their present goals together
MAESURES TO MONITOR PROGRESS
 It is important to monitor the progress that change is
achieving. Some of the method to use are:
 Goal based Evaluation
 Process based evaluation
 Outcome based evaluation
 Regular reports
 Meetings
 Quality circles
 Progress reviews
 Deadlines
 progress