organizational change

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FORCES FOR CHANGE

NATURE OF THE WORKFORCE

More cultural diversity

Aging population and many new entrants with limited skills

TECHNOLOGY

Faster, cheaper, more mobile computers

Understanding and manipulating the genetic code

ECONOMIC SHOCKS

Stock market fluctuations

Record low interest rates

COMPETITION

Global competitors

Mergers, consolidations, and growth of e-commerce

SOCIAL TRENDS

Internet chat rooms

Retirement of Baby Boomers and more “Singles”

WORLD POLITICS

War on terrorism

Opening of markets in China

PERFORMANCE GAPS

Disappointing results

Stockholder expectations

WHY CHANGE IS RESISTED

VESTED INTERESTS THREATENED

ECONOMIC LOSS --- LOSS OF WAGES, LAYOFFS

SOCIAL LOSS --- STATUS AND POWER ERODED

INCONVENIENCE --- HABITS MUST CHANGE

INTERPERSONAL DISRUPTIONS --- IT WILL BREAK UP THE GROUP

LACK OF TRUST

WHAT ARE MANAGEMENT’S TRUE INTENTIONS?

PAST INCIDENTS WHERE THE COMPANY TOOK UNFAIR ADVANTAGE

UNCERTAINTY & AMBIGUITY

MISUNDERSTANDING OF THE PURPOSE FOR CHANGE

A FEAR OF THE UNKNOWN

PEOPLE WITH LOW TOLERANCE FOR CHANGE OR RISK

PREVIOUS COMMITMENT TO THE STATUS QUO

INFORMAL AGREEMENTS AMONG WORKERS

CONTRACTS

PROMISES WERE MADE

ORGANIZATIONAL SOURCES OF RESISTANCE

TO CHANGE

GROUP NORMS

UNIONS

POWER STRUCTURE AND DEPARTMENTATION

ORGANIZATIONAL CULTURE

REWARD & EVALUATION SYSTEM

DEALING WITH RESISTANCE TO CHANGE

KOTTER (79)

EDUCATE & COMMUNICATE

DISCUSSION, DEMONSTRATION & PERSUASION

PARTICIPATION & INVOLVEMENT

INPUT & ADVICE FROM AFFECTED PARTIES

NEGOTIATION & AGREEMENT

OFFERING INCENTIVES FOR COOPERATION

FACILITATION & SUPPORT

PROVIDING TRAINING, HELP & ENCOURAGEMENT WHEN NEEDED

MANIPULATION & COOPTATION

COVERT ATTEMPTS TO INFLUENCE (LITTLE LIES & POWER GAMES)

EXPLICIT & IMPLICIT COERCION

USE OF FORCE, THREATS & PUNISHMENT

LEWIN’S CHANGE MODEL

PRESSURE FOR CHANGE

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RESISTANCE TO CHANGE

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NORMALLY THESE FORCES BALANCE EACH OTHER OUT,

MAINTAINING THE STATUS QUO

SUCCESSFUL CHANGE INVOLVES THREE STEPS:

Unfreezing

TENSION IS RAISED, NEED FOR CHANGE IS RECOGNIZED & ACCEPTED

Movement

THE CHANGE IS IMPLEMENTED

Refreezing

INTERNALIZING (LOCKING-IN) THE NEW PATTERNS OF BEHAVIOR

KOTTER’S EIGHT-STEP PLAN FOR

IMPLEMENTING CHANGE

KOTTER (96)

UNFREEZING

Create a sense of urgency – offer a compelling reason why change is needed

Form a coalition with enough power to lead the change

Create a new vision to direct the change, and strategies for its achievement

Communicate the vision throughout the organization

MOVEMENT

Empower others to act by encouraging risk-taking and creative problem-solving

Plan for, create, and reward short-term “wins” that move toward the new vision

Consolidate improvements, reassess changes, and make adjustments

REFREEZING

Reinforce the changes, show relationships between new behaviors and success

A PLANNED ORGANIZATIONAL CHANGE

MODEL

ASSESS CHANGES & SHIFTS

ENVIRONMENT, ORGANIZATION, DEPARTMENT

FIND PERFORMANCE GAPS

SIGNIFICANT? MOTIVATED TO ACT?

DIAGNOSE ORGANIZATIONAL PROBLEMS

WHAT ARE THE PROBLEMS? WHAT ARE THE CAUSES? WHAT MUST BE CHANGED?

IDENTIFY SOURCES OF RESISTANCE

WHO IS LIKELY TO RESIST AND WHY?

SET OBJECTIVES FOR THE CHANGE EFFORT

TARGETS CLARIFIED? WILL THE RESULTS BE ASSESSED?

SEARCH FOR CHANGE APPROACHES THAT “FIT”

BEST METHODS & TECHNIQUES? COMPREHENSIVE & COMPLETE?

IMPLEMENT THE CHANGE

PREPARE THE ORGANIZATION FOR CHANGE

MAKE THE CHANGES

FOLLOW UP --- MEASURE THE RESULTS

TARGETS FOR ORGANIZATIONAL CHANGE

MISSION & OBJECTIVES

– PURPOSE, GOALS

STRATEGIES

– NEW PRODUCTS, NEW MARKETS

– POLICIES, PROCEDURES

TECHNOLOGY

– TOOLS, EQUIPMENT, FACILITIES AND PROCESSES

STRUCTURE

– SYSTEMS OF AUTHORITY, RESPONSIBILITY, AND COMMUNICATION

– REWARD SYSTEMS

TASKS

– JOB DESIGN, GROUP INTERDEPENDENCE

PEOPLE

– ATTITUDES, SKILLS, MOTIVATION, KNOWLEDGE

ORGANIZATIONAL DEVELOPMENT

TECHNIQUES

• SURVEY FEEDBACK

• TEAM BUILDING

• INTERGROUP DEVELOPMENT

• TRANSACTIONAL ANALYSIS

• SENSITIVITY TRAINING

• SYMBOLIC LEADERSHIP

• JOB ENRICHMENT

• MANAGEMENT BY OBJECTIVES

• QUALITY CIRCLES (CONTINUOUS IMPROVEMENT)

• PROCESS CONSULTANTS

• APPRECIATIVE INQUIRY

• PROCESS REENGINEERING

• INNOVATION STIMULATION

• IDEA CHAMPIONING

ASSESSMENT OF CHANGE EFFECTIVENESS

ATTITUDES & OPINIONS

How do those affected “feel” about it?

KNOWLEDGE GAINED

What was really learned? Do we have proof?

BEHAVIORAL CHANGES

Are people behaving and acting differently now?

RESULTS ACHIEVED

Have outcomes improved? Have performance gaps narrowed?

ROLE OF A CHANGE CONSULTANT

ARGYRIS

1.

2.

3.

GENERATE VALID, USEFUL INFORMATION

Investigate…have the clients help with this process

HELP CLIENTS DEVELOP INTERNAL COMMITMENT TO THEIR

CHOICE

Help clients make a free, informed choice…it’s their decision

MAINTAIN SYSTEM AUTONOMY

The clients must assume ownership…they must feel responsible

1.

2.

3.

4.

IMPLICATIONS

CHANGE IS

NOT

THE PRIMARY OBJECTIVE…YOU’RE JUST

THERE TO HELP THEM

FREE CHOICES MUST BE MADE AT

ALL

LEVELS

MUST HAVE A

TRUSTING

ORGANIZATIONAL SYSTEM IF

CHANGE IS TO BE EFFECTIVE

LEAVE CLIENTS WHO CAN MAINTAIN THE SYSTEM WITHOUT

OUTSIDE HELP…

MAKE YOURSELF DISPENSIBLE!

SCHWAB’S 12 SUGGESTIONS FOR DEALING WITH CHANGE

5.

6.

7.

1.

2.

3.

4.

8.

9.

10.

11.

12.

THINK ABOUT WHO MIGHT RESIST AND WHY

PREPARE THOSE AFFECTED BY PROVIDING INFORMATION IN

ADVANCE

(Inform)

ENCOURAGE PARTICIPATION AND INPUT FROM THOSE AFFECTED BY

THE CHANGE

(Involve)

MAKE THE ADVANTAGES OF THE CHANGE CLEAR TO THOSE

AFFECTED

(How will workers be benefited?)

GUARANTEE AGAINST LOSS OF WAGES OR JOB, IF POSSIBLE

MAKE ONLY NECESSARY CHANGES

(If it’s not broken, don’t try to “fix” it)

MAINTAIN USEFUL CUSTOMS & INFORMAL RELATIONSHIPS

(Don’t disrupt productive work groups and cultures)

BE WILLING TO TRY CHANGES ON AN EXPERIMENTAL OR TRIAL

BASIS

(Don’t rush! Consider a “pilot-test”)

PROVIDE EXTRA COACHING, TRAINING & SUPPORT FOR THOSE

AFFECTED

MAKE SURE GRIEVANCES ARE SETTLED QUICKLY AND EQUITABLY

CAREFULLY EVALUATE & MONITOR THE EFFECTS OF YOUR

CHANGES

(Collect assessment measures)

PREPARE CONTINGENCY PLANS IN CASE OF UNFORSEEN PROBLEMS

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