Copy of Managing Change - Change Management

Change Management Why Change? Barriers to Change Implementing Change Sociocultural Technology Economic status and cycles Political and legal Global environment New competitors Substitution Customer demand Labour costs ? Clarity and simplicity of message Readiness to change Engagement Leadership Consistency Recognising local context Effect relationships Why was Obama's Campaign Successful? Kumar & Grimmer-Somers (2009) Boost awareness Return to purpose Change the change Build participation & engagement Complete the past Ford & Ford (2009) Use Resistance as a Resource Forces for Change Step 1 Create a sense of urgency Step 2 Form a powerful coalition Step 3 Create a vision for Change Step 4 Communicate the vision Step 5 Remove Obstacles Step 6 Create short term wins Step 7 Build on the Change Step 8 Anchor the Changes Kotter's 8 Steps to Effective Change Intrapersonal Competencies A strong knowledge of self and values regarding what one stands for An ability to laugh and not take one self too seriously An ability to live with ambiguity and questions An ability to ask for help Buchanan & Boddy (1992) External environment is constantly changing Shift in customer preferences Change in legislation Leadership style Workforce changes Fresh ideas Between 66 and 75% of all change initiatives fail (Kee & Newcomer, 2008) Why? Shortcomings in change leadership lack of a well-crafted and communicated vision no compelling reason to change the right structure, a guiding coalition, and the right culture missing People resist change lack of training and failure to cope with resistance Reasons for Change Hitt et al (2007) Hitt et al (2007) Why Change Fails Interpersonal Competencies An ability to develop rapport and trust An empathy and sensitivity to see the world from the other person’s eyes An ability to give feedback A gutsiness to ‘speak the unspeakable’ and to take the tough stand, but balanced with a sense of timing Buchanan & Boddy (1992) Organisational Related Competencies An understanding of what is happening in the organisations environment and its business needs An ability to see the interconnectedness of all parts of the organisation An ability to help organisations make sense of complexity Flexibility to work with where the organisations is at Political skills to create the acceptance and commitment needed to move change forward. Buchanan & Boddy (1992) Change Agents Message Consistency What do you see as the most effective way to implement change in an organisation Change Mechanics COMMENTS OR QUESTIONS www.dreddiemurphy.ie 0871302899 PLEASE CHANGE WE ARE ALL IN THE BUSINESS OF CHANGE www.dredddiemurphy.ie Dr. Eddie Murphy WHERE IS THE VISION? Leading the Change Process Performance Consultants Make recommend- ations Translate job requirements into competencies Apply Science of Learning & Human Performance Generate solution options and metrics Conduct effectiveness & cost analysis (K, S, A, T) Establishing a Sense of Urgency Examining the market & competitive realities Identifying & discussing crisis, potential crisis, major opportunities Concepts: Create a crisis: highlight major weaknesses, allow errors to compound Eliminate obvious examples of excess (company facilities, services,etc Set goals & targets unrealistically high Distribute company-wide performance data highlighting deficiencies to more employees Force interaction with unsatisfied “customers, suppliers, shareholders.” Use consultants to force more relevant & honest appraisals Bombard people with information on future opportunities, rewards for capitalize on those opportunities, & potential “lost opportunities.” Source: Leading Change, John P. Kotter, 1998 Creating Major Change Empowering Broad-Based Action Getting rid of obstacles Changing systems or structures that undermine the change vision Encouraging risk taking & non-traditional ideas, activities & actions Empowering People to Effect Change Communicate a sensible vision to employees. Make sure structures are compatible with the vision. Provide the training employees need. Align information and personnel systems to the vision. Confront supervisors who undercut needed change. Source: Leading Change, John P. Kotter, 1998 Creating Major Change Consolidating Gains & Producing More Change Using increased credibility to change all systems, structures & policies that don’t fit together and don’t fit the transformation strategy Hiring, promoting, & developing people who can implement the change vision Reinvigorating the process with new projects, themes & change agents More change, not less. The guiding coalition uses the credibility afforded by the short-term wins to tackle additional and bigger change projects More Help. Additional people are brought in, promoted and developed to help with all the changes Leadership from Senior Management. Senior people focus on maintaining clarity of shared purpose, keeping urgency levels up. People management & leadership from below. Lower ranks in the hierarchy provide both leadership & management for specific projects. Reduction of unnecessary interdependencies. To make change easier in both short/long-term, managers identify and eliminate unnecessary organizational interdependencies. Source: Leading Change, John P. Kotter, 1998 Note: Resistance is always waiting to reassert itself! Creating Major Change Anchoring New Approaches in the Culture Creating better performance through customer- & productivity oriented behavior, more and better leadership, & more effective management Articulating the connections between new behavior & organizational success Developing means to ensure leadership development & succession Concepts: Culture changes come last, not first. Most alteration in norms & shared values come at the end of the transformation process Results matter. New approaches usually sink into a culture only after it is very clear that they work and are superior to the old methods. Requires a lot of talk. Without verbal instruction and support, people are reluctant to admit the validity of new practices. May involve turnover. Sometime the only way to change a culture is to change key people. Makes decision on succession crucial. If promotion processes are not changed to be compatible with the new practices, the old culture will reassert itself Source: Leading Change, John P. Kotter, 1998 Creating Major Change 1. Establishing a Sense of Urgency 2. Creating a Guiding Coalition 3. Developing a Vision & Strategy 4. Communicating the Change Vision 5. Empowering Broad-Based Action 6. Generating Short-Term Wins 7. Consolidating Gains & Producing More Change 8. Anchoring New Approaches in the Culture Source: Leading Change, John P. Kotter, 1998 The 8 Stage Process of Creating Major Change Creating Major Change Creating a Guiding Coalition Putting together a group with enough power to lead the change Getting the group to work together like a team 4 Key Characteristics of Guiding Coalition: Positional Power: Are enough key players on board, especially the main line managers, so those left out can not easily block progress? Expertise: Are the various points of view, relevant to the tasks at hand, adequately represented so that informed, intelligent decisions can be made? Credibility: Does the group have enough people, with good reputations, that its pronoucements will be taken serious by the other employees? Leadership: Does the group include enough proven leaders to be able to drive the change process? Source: Leading Change, John P. Kotter, 1998 Creating Major Change Communicating the Change Vision Using every vehicle possible to constantly communicate the new vision & strategies Having the guiding coalition role model the behavior expected of employees Key elements in communicating the vision: Simplicity. All jargon & technobabble must be eliminated. Metaphor, Analogy & Example. A verbal picture is worth a thousand words. Multiple Forums. Big meetings & small, memos, newspapers, formal and informal meetings…. Repetition. Ideas sink in only after they have been heard many times Leadership by Example. Behavior by important people that is inconsistent with the vision overwhelms other forms of communication. Explanation of Seeming Inconsistency. Unaddressed inconsistencies undermine the credibility of all communications. Give & Take. Two way communication is always more powerful and one-way communication. Source: Leading Change, John P. Kotter, 1998 Creating Major Change Generating Short-Term Wins Planning for visible improvements in performance, or “wins” Creating those wins Visibly recognizing & rewarding people who made the win possible Provides evidence that sacrifices are worth it. Reward change agents. Helps fine-tune vision & strategies. Undermine cynics and self-serving registers. Keep bosses on board. Build Momentum. Source: Leading Change, John P. Kotter, 1998 Creating Major Change Developing a Vision & Strategy Creating a vision to help direct the change effort Developing strategies for achieving that vision Characteristics of an Effective Vision Imaginable: Conveys a picture of what the future will look like Desirable: Appeals to the long-term interests of employees, customers, stakeholders. Feasible: Comprises realistic, attainable goals Focused: Is clear enough to provide guidance in decision making Flexible: Is it general enough to allow individual initiative & alternative responses in light of changing condition. Communicable: Is easy to communicate, can be successfully explained within 5 minutes. Source: Leading Change, John P. Kotter, 1998 Creating Major Change  Insecurity  Sense of loss and Confusion  Mistrust and the “ME” focus  Fear of letting-go-off the experience which led to success in the past  People hold onto and value the past  High uncertainty, Low stability, high emotional stress  Perceived high levels of inconsistency  High energy – often undirected  Conflict increases – especially between groups WHY RESISTANCE TO CHANGE Leading Change John P. Kotter “The rate of change is not going to slow Down anytime soon. If anything, competition In most industries will probably speed up Even more in the next few decades.” Concepts: Create a crisis: highlight major weaknesses, allow errors to compound Eliminate obvious examples of excess (company facilities, services,etc Set goals & targets unrealistically high Distribute company-wide performance data highlighting deficiencies to more employees Force interaction with unsatisfied “customers, suppliers, shareholders.” Use consultants to force more relevant & honest appraisals Bombard people with information on future opportunities, rewards for capitalize on those opportunities, & potential “lost opportunities.” Creating a Guiding Coalition Putting together a group with enough power to lead the change Getting the group to work together like a team 4 Key Characteristics of Guiding Coalition: Positional Power: Are enough key players on board, especially the main line managers, so those left out can not easily block progress? Expertise: Are the various points of view, relevant to the tasks at hand, adequately represented so that informed, intelligent decisions can be made? Credibility: Does the group have enough people, with good reputations, that its pronoucements will be taken serious by the other employees? Leadership: Does the group include enough proven leaders to be able to drive the change process? Source: Leading Change, John P. Kotter, 1998 Creating Major Change Developing a Vision & Strategy Creating a vision to help direct the change effort Developing strategies for achieving that vision Characteristics of an Effective Vision Imaginable: Conveys a picture of what the future will look like Desirable: Appeals to the long-term interests of employees, customers, stakeholders. Feasible: Comprises realistic, attainable goals Focused: Is clear enough to provide guidance in decision making Flexible: Is it general enough to allow individual initiative & alternative responses in light of changing condition. Communicable: Is easy to communicate, can be successfully explained within 5 minutes. Source: Leading Change, John P. Kotter, 1998 Creating Major Change Communicating the Change Vision Using every vehicle possible to constantly communicate the new vision & strategies Having the guiding coalition role model the behavior expected of employees Key elements in communicating the vision: Simplicity. All jargon & technobabble must be eliminated. Metaphor, Analogy & Example. A verbal picture is worth a thousand words. Multiple Forums. Big meetings & small, memos, newspapers, formal and informal meetings…. Repetition. Ideas sink in only after they have been heard many times Leadership by Example. Behavior by important people that is inconsistent with the vision overwhelms other forms of communication. Explanation of Seeming Inconsistency. Unaddressed inconsistencies undermine the credibility of all communications. Give & Take. Two way communication is always more powerful and one-way communication. Source: Leading Change, John P. Kotter, 1998 Creating Major Change Empowering Broad-Based Action Getting rid of obstacles Changing systems or structures that undermine the change vision Encouraging risk taking & non-traditional ideas, activities & actions Empowering People to Effect Change Communicate a sensible vision to employees. Make sure structures are compatible with the vision. Provide the training employees need. Align information and personnel systems to the vision. Confront supervisors who undercut needed change. Source: Leading Change, John P. Kotter, 1998 Creating Major Change Generating Short-Term Wins Planning for visible improvements in performance, or “wins” Creating those wins Visibly recognizing & rewarding people who made the win possible Provides evidence that sacrifices are worth it. Reward change agents. Helps fine-tune vision & strategies. Undermine cynics and self-serving registers. Keep bosses on board. Build Momentum. Source: Leading Change, John P. Kotter, 1998 Creating Major Change Generating Short-Term Wins Planning for visible improvements in performance, or “wins” Creating those wins Visibly recognizing & rewarding people who made the win possible Provides evidence that sacrifices are worth it. Reward change agents. Helps fine-tune vision & strategies. Undermine cynics and self-serving registers. Keep bosses on board. Build Momentum. Source: Leading Change, John P. Kotter, 1998 Creating Major Change  Insecurity  Sense of loss and Confusion  Mistrust and the “ME” focus  Fear of letting-go-off the experience which led to success in the past  People hold onto and value the past  High uncertainty, Low stability, high emotional stress  Perceived high levels of inconsistency  High energy – often undirected  Conflict increases – especially between groups WHY RESISTANCE TO CHANGE? Anchoring New Approaches in the Culture Creating better performance through customer- & productivity oriented behavior, more and better leadership, & more effective management Articulating the connections between new behavior & organizational success Developing means to ensure leadership development & succession Concepts: Culture changes come last, not first. Most alteration in norms & shared values come at the end of the transformation process Results matter. New approaches usually sink into a culture only after it is very clear that they work and are superior to the old methods. Requires a lot of talk. Without verbal instruction and support, people are reluctant to admit the validity of new practices. May involve turnover. Sometime the only way to change a culture is to change key people. Makes decision on succession crucial. If promotion processes are not changed to be compatible with the new practices, the old culture will reassert itself Source: Leading Change, John P. Kotter, 1998 Creating Major Change