Gweta Markosian
Karim Camara
Renzo Hoogendoorn
Sander Zijlmans
Vincent Tseng
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Introduction
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Relation to Adaptive Cycle
What is Change Management?
Resistance
Internal vs. External Change
Change Management Models
◦ Advantages & disavantages of the different models
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Common Factors to Successful Change
Management
Conclusions
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“It’s such a volatile world that the first resolution for any
business leader coming into 2012 must be to become change
friendly. I can’t think of any sector that could not change
massively within the next year.”William Higham, founder of
future trends consultancy The Next Big Thing
“it is not the strongest species that survive, nor the most
intelligent, but the ones who are most responsive to change”
Charles Darwin
“To cope with a changing world, an entity must develop the
capacity of shifting and changing – of developing new skills and
attitudes; in short, the capability of learning”
A De Gues, The Living Company
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“Change management is a systematic approach to deal with change,
both from the perspective of an organization and on the individual
level” from online Business Dictionary
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1. Employees were not aware of the underlying
business need for change.
2. Lay-offs were announced or feared as part of
the change.
3. Employees were unsure if they had the needed
skills for success in the future state.
4. Individuals were comfortable with the current
state; they wanted to maintain the personal
rewards and sense of accomplishment and
fulfillment provided by the status quo.
5. Employees felt they were being required to do
more with less, or do more for the same pay.
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Advantages
◦ Internal: Internal change has many advantages for an
organization, including increased morale among the employees, a
sense of employee empowerment and control and a high
likelihood of the change becoming permanent. Because the
change originates from the group, it is more easily accepted and
becomes the norm.
◦ External: While external change is harder to accept than internal
change, there are some distinct advantages for external change in
an organization. This type of change can help jump start a
declining organization and can change its course completely.
Another advantage of external organizational change is that many
organizations tend to reach a plateau level if left unchanged for
too long. People become comfortable in their ways and stop
seeking new and better ways to accomplish things.
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Disadvantages
◦ Internal: If a team or organization has a very domineering
member, the internal change will often be a result of that single
person and will therefore be too single-minded to be good for the
organization at large. Additionally, when teams have been
working together for too long in the same environment, the group
mentality can take over and create unproductive change within the
organization.
◦ External: When change is forced on an organization, often the
organization will rebel. One of the main disadvantages of
externally imposed change is that it is unsuccessful in the long
term. Often, external resources can force the change for a while,
but when those people move on to different roles, the
organization will return to its previous behaviors. Additionally, the
change process itself can cause temporary chaos within the
organization and actually reduce productivity for a couple of
weeks or months.
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Returns of investment (ROI)
Quality of the outcome achieved
Efficiency of resources
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1.
2.
3.
4.
Policies to make the future.
Systematic methods to look for and to
anticipate change.
The right way to introduce change both
within and outside the organisation.
Policies to balance change and continuity.
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In order to manage change, several models
have been developed. We will take a look at
some of the most used models. Each approach
has its pros and cons, however their is no
framework that is "best" in all situations.
McKinsey
7-S Model
Lewin's Change Management Model
Kotter's Eight Step Change Model
Nielsen (2008)
quoted that
organizational
change is
complex. Even
little changes
are not easy to
undertake.
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SHARED VALUES: called "super ordinate goals" when the
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STRATEGY: the plan devised to maintain and build competitive
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STRUCTURE:
model was first developed, these are the core values of the
company that are evidenced in the corporate culture and the
general work ethic
advantage over the competition.
reports to whom
the way the organization is structured and who
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STAFF: the employees and their general capabilities
SYSTEMS: the daily activities and procedures that staff members
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SKILLS:
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STYLE:
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engage in to get the job done
the actual skills and competencies of the employees working
for the company.
the style of leadership adopted.
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Advantages:
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All parts are interrelated, so all portions must be addressed and
focused on (12Manage, 2007)
It is an effective way to diagnose and understand the
organization
It is a guide for organizational change
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Disadvantages:
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When one of the parts is changed, all parts change because they
are all interrelated (12Manage, 2007). The model is complex.
This model ignores differences (Morgan, n.d.). After five years
many of the companies that used this model fell from the top
(Morgan, n.d.).
Companies using this model have been known to have a higher
incidence of failure.
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Unfreeze: Getting ready to change,
understanding that change is necessary &
moving out of the comfort zone
Change (transition): Moving to a new way of
being, people are fearful and unsure, support
is important -> training, coaching, and
expecting mistakes as part of the process
Refreeze: Establishing stability, changes are
accepted and become the new norm, new
relationships and routines are created
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Advantages:
It is a simple and easily understood model for change
this model has fewer steps
The model is done through steps; this is an efficient model
that is used today (Mind Tools, 2007; Syque, 2007).
Disadvantages:
At the refreezing period, many people are worried that
another change is coming, so they are in change shock
(Syque, 2007). This change shock causes employees to not be
as efficient or effective in their jobs (Syque, 2007).
Refreeze phase – change is continuous, change may occur
within weeks, no time to settle down
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Advantages:
This is a step by step model, which is easy to follow.
It does not focus on the change itself, but rather on the
acceptance and preparedness for the change which leads to
an easier transition.
Disadvantages:
It is a top-down model and opportunities can be missed,
because not everyone is involved in co-creation of the vision.
You cannot skip a step because the change process will then
completely fail. As with the other two models, change still
takes a lot of time.
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Planning: Develop and document the objectives that need to be
achieved with the change and the means to achieve it.
Defined Governance: Establish appropriate organisational structures,
roles and responsibilities for the change that engage stakeholders
and support the change effort.
Committed Leadership: Ongoing commitment at the top and across
the organisation to guide organisational behaviour.
Informed Stakeholders: Encourage stakeholder participation and
commitment to the change by employ open and consultative
communication approaches that will create awareness and
understanding of the change throughout the organisation.
Aligned Workforce: Identify the human impacts of the change and
develop plans to align the workforce in order to support the
changing organisation.
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Change management is of strategic importance and companies cannot
exist without it. Their ability to change and adapt quickly brings
enormous market advantages.
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Each change management model has it’s pros and cons, however none
of the models is the "best" in all situations. Most change management
models are made to help the change management be more effective.
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Common factors to successful change management include planning,
committed leadership, aligned workforce, informed stakeholders and
defined governance.
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