Transcript organizational change

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
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
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MISSION & OBJECTIVES
– PURPOSE, GOALS
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STRATEGIES
– NEW PRODUCTS, NEW MARKETS
– POLICIES, PROCEDURES
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TECHNOLOGY
– TOOLS, EQUIPMENT, FACILITIES AND PROCESSES
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STRUCTURE
– SYSTEMS OF AUTHORITY, RESPONSIBILITY, AND COMMUNICATION
– REWARD SYSTEMS
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TASKS
– JOB DESIGN, GROUP INTERDEPENDENCE
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PEOPLE
– ATTITUDES, SKILLS, MOTIVATION, KNOWLEDGE
ORGANIZATIONAL DEVELOPMENT
TECHNIQUES
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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.
GENERATE VALID, USEFUL INFORMATION
Investigate…have the clients help with this process
2.
HELP CLIENTS DEVELOP INTERNAL COMMITMENT TO THEIR
CHOICE
Help clients make a free, informed choice…it’s their decision
3.
MAINTAIN SYSTEM AUTONOMY
The clients must assume ownership…they must feel responsible
IMPLICATIONS
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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
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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