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Change Management Simulation

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on 16 September 2016

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Transcript of Change Management Simulation

At the annual strategy retreat, the Director of Product Innovation proposed the company implement a sustainability initiative and outlined three ambitious goals:
1. Eliminate 25 percent waste by redesigning the manufacturing process
2. Reduce the current level of greenhouse gas emissions by 15 percent
3. Create a new product line based entirely on environmentally benign materials.

Though not all employees are convinced that the sustainability initiative is desirable and/or feasible, the Director of Product Innovation was appointed to head a task force charged with implementing the initiative. You believe the initiative would offer opportunities for Spectrum to differentiate its product line because the company’s competitors compete exclusively on aesthetic design and price.
To change the organization successfully in 96 weeks (the time allotted in the simulation for the change initiative), you must do three things successfully:
• Diagnose the situation correctly identifying who could be early adopters and who are resisters.
• Use one or more change models to develop a strategy and action plan, which includes selecting the appropriate change levers at the appropriate times.
• Encourage support for the change initiative by building and maintaining credibility among key stakeholders

Recently BigMart, a major customer, announced it is about to launch an in-house “Green Stamp” labeling program for environmental friendliness. Suppliers with this manufacturing certificate will receive special promotions. And a BigMart executive has gone further threatening to cancel the Spectrum contract if the company does not submit a detailed plan demonstrating how it will reduce its dependence on petroleum-based raw materials. BigMart’s demands have significantly increased the urgency of the change initiative.
To be successful, you must move the organization through three organizational-level change phases: mobilization, movement and sustainment. The description of these terms correlate with recognized change theories and models:

The simulation includes 18 change levers or actions you can take to increase individual awareness, interest, trial and adoption of the change initiative. As an increasing number of change targets move through the individual stages to adoption, the organization will progress from mobilization to movement until sustainment is achieved. With each round of play, you will receive feedback about the impact of the lever choices on the organization-level change, individual-level change, and your personal credibility. You may want to assess the change levers to determine purpose and potential impact of each. There are levers for:

• Credibility: actions that increase the change agent’s creditability (or reduce it if used inappropriately)
• Communication: actions that inform others about the change
• Training: actions that prepare individuals for the upcoming change
• Cultural: actions that support the organizational culture needed for the change to succeed
• Political: actions that gain support for the change (or reduce it if used inappropriately)
• Technical: actions that revise organizational structure, programs and policies
Successfully accomplishing the organizational-level change phases of mobilization, movement and sustainment requires you to move eighteen key stakeholders or change targets, who are mostly members of the top management team, through four individual-level changes.
• Awareness: The change target becomes aware of the proposed change as old routine(s) are challenged with new ones
• Interest: The change target becomes curious about the change and more open to new information
• Trial: The change target assesses the costs/benefits of the change, and potential success; and may begin to experiment with the proposed change
• Adoption: The change target becomes an advocate for the change initiative, and replaces old routine(s) with new
OLCU 615 includes a Change Management Simulation developed by Harvard Business Publishing. To access the simulation, you must pay Harvard Business Publishing $15, which will enable you to complete the simulation.

Change Management Simulation
Click the > to view more instructions
In this simulation you will assume the role of the Director of Product Innovation for Spectrum Sunglass Company, a ten-year old privately held enterprise that designs, manufacturers and sells sunglasses. Spectrum Sunglasses, which has 580 employees, has just returned to a normal level of profitability after an economic recession.





Change Path
Kotter's Model


Establish sense of urgency
Create a guiding coalition
Develop a vision and strategy
Communicate vision
Empower others to act
Plan and create short-term wins
Consolidate gains; produce more change
Anchor new approaches
Start by reading and understanding the information provided in the simulation so you can effectively diagnose the situation, and develop a strategy and action plan. And remember one of the learning outcomes of the simulation is to demonstrate that there is no simple, straightforward formula for leading change. Whether you are or aren’t successful in implementing the change initiative in the simulation, what is important is to analyze and reflect on the effectiveness of your diagnosis and plan, what you did well and your missteps, and what insights you gained into leading change.
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