Managing and Implementing Change and Innovation

Some thoughts..

In a progressive country change is constant; ...change... is inevitable ~ Benjamin Disraeli (1804-1881)

It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.~ Charles Darwin (1809-1882)

Objectives…• Understand the reasons organisations need to change.• Introduction to some theoretical change models. • Understand how to conduct an environmental and

organisational analysis• Ideas about managing the people during change• How to identify an opportunity to change• How to assess the benefits and risks of change• How to create a change implementation plan.

Driving change is often about influencing other stakeholders and others by negotiation…

What is change?Change can be regarded as the process of “analysing the past to elicit the present actions required for the future”.

It involves moving from a present state, through a transition state, to a future desired state.

Rosabeth Moss Kanter

Change Management is ……

‘ the application of a structured process and set of tools for leading the people side of change to achieve a desired outcome ‘

Prosci Change Management Model

Change can be….

• Small or big

• Planned or unplanned

• Fast or slow

• How it is perceived by stakeholders is really important

Managing change involves….

• Changing the business• Changing hearts and minds….• Embedding the change• Moving on to the next ….change ….and the

next one!!

Exercise - Why do organisations need to or choose to change and innovate ?

• Consider the internal environment and the external environment ?

• What sort of change would that involve ? - organisational - people - products - services - stakeholder impact

Why do organisations change and innovate ?

• Crisis: e.g. 9/11 Buncefield• Performance Gaps- goals

and objectives are not being met

• New Technology - more efficient and economical methods to perform work.

• Identification of Opportunities - to increase competitiveness.

• Reaction to Internal & External Pressure: customers, environment, legislation, shareholders, employees, competitors, stakeholders

• Mergers & Acquisitions: Mergers and acquisitions can mean duel functions being redundant

• Change for the sake of change: new CEO to demonstrate effectiveness

• ‘Sounds Good/ Us too’ other organisations are doing the same .

• Planned Abandonment - declining products, markets, or subsidiaries and allocating resources

Why analyse stake holder power and interest … ??• The opinions of the most

powerful can influence what you achieve

• Involvement at all times makes it likely they will support you

• Likely to improve the quality of your work or change.

• Can help you with resources e.g change or projects

• Communicating well and frequently develops relationships

• Helps you prioritise and helps with time management challenges

• Keeps you focussed on what's really important about what you do.

Power v Interest ?

Exercise – review who your stakeholders are….

• Who are affected by your work ?• Who has influence or power over it ?• Who has an interest in its successful or

unsuccessful conclusion.?• … and who are the people in these groups

who are really key contacts and how do you want to communicate with them?

Other considerations…• What financial or emotional

interest do they have in the your work or the change? Positive or negative?

• What motivates them ?• What information do they

want from you?• What is their current

opinion of your work? • How do they want to

receive information from you? What is the best way of communicating your message to them?

• Who influences their opinions generally, and who influences their opinion of you?

• Are these influencers stakeholders too ?

• If you can’t meet their needs or expectations how will you influence or negotiate with them?

• Have you talked to them ??

Communication is crucial

Avoid …. please• Assuming you know what the stakeholders are

thinking• Trading the interests of one group off against

another• Ignoring the concerns of stakeholder groups

that are critical to the organisation e.g customers

• Neglecting the interests of important stakeholders

Why are managers cautious about change ?......

Because we know people can react badly and understand the disruption it can cause

Types of change• Developmental – what already exists is

continually improved but no radical progress is achieved or aimed at

• Transitional - A shift in the way a process is completed, designed to increase efficiency.

• Transformational - A move in an organisation of culture of business in strategy and processes

Change Management Models• Kurt Lewin 3 stage change model

• William Bridges Change vs Transition

• Kubher Ross

• John Kotter 8 Step Change Model

Kurt Lewin change model

Force Field Analysis

Bridges-Transitional model (1991)

• Differentiates between change and transition• Change is situational and happens without

people transitioning • Transition is psychological and is a three phase

process • People gradually accept the details of the new

situation and the changes that come with it.

Bridge’s Transition Model

Benefits1. You can use the model to

understand how people feel as you guide them through change. It clarifies the psychological effect of change.

Limitations1. While the model is useful for

implementing change, it's not a substitute for other change management approaches. It cant be used as an independent change management model.

ENDING NEUTRAL ZONE NEW BEGINNING

More at : http://www.mindtools.com/pages/article/bridges-transition-model.htm

Bridges … Stage One - Endings

• End what ‘used to be’• Identify who is losing what• Openly acknowledge the loss• Mark the endings • Continuously repeat information about what is

changing • …….and why.

Bridges – Stage two- Neutral zone

• Individuals within the organisation feel disoriented

• Falling motivation • Increasing anxiety and anger• Ensure that people recognize the neutral zone• Treat it as part of the organization's change

process.

Bridges- Stage three - New beginnings

• Gain acceptance of the purpose• Communicate a picture of how the new

organisation will look and feel• Communicate and gain a step-by-step

understanding of how the organisation will change

Kotter - 8 Stage Model of Change

1. Sense of urgency SWOT analysis

2. Form a powerful coalition of ‘change agents’ and team build

3. Develop a clear vision that the change agents can describe

4. Communicate the vision – vary methods

5. Empower people to remove obstacles6. Get some short term wins7. Consolidate and build on change e.g. longer term goals8. Anchor the change in the culture

Change Management / analysis Tools

• PESTEL Analysis

• Force field Analysis

• Risk Assessment

• Impact Assessment

Organisational analysis…

Environmental analysis

Group Exercise….. PESTLE?

• Where is the company now • What are the challenges• What are the threats or opportunities• What would be the benefits of change

The transition curve - the emotional response

People have four main areas of need:• They must understand the changes• They must be given the opportunity to

learn new skills• They need to be supported and encouraged

to deal with problems• They need empathy and understanding

The Transition Curve

Four responses to change…..

• Entrenched – “if I sit tight this may never happen”

• Overwhelmed – anxious and feel powerless• Posers – confident but may not be self aware

or able.• Learners – prepared to give it a go, still feel

stretched, resilient

Why people resist change

• Loss of control• Personal uncertainty• Concern about competence• More work / less work• Past resentments• Real threats

Communication – the 4P’s• Purpose - Describe why you are making the change

• Picture - Describe what the future will look like

• Plan - Describe the steps you need to take to get there

• Part -Describe the part you need the specific employee to play; specify your requests and their objectives

Dealing with the resistance to change

• Education and communication• Participation and involvement• Facilitation and support• Negotiation and agreement• Manipulation and co-option • Explicit and implicit coercion

Dealing with the resistance to change

• Education and communication• Participation and involvement• Facilitation and support• Negotiation and agreement• Manipulation and co-operation• Explicit and implicit coercion

Change management plan… what it should cover- remember SMART !

• The concept of change management in the project

• Forecasting and planning changes proposed• Arranging and controlling changes/ variations

in the project as they occur• Analysing and adjusting changes as required• Monitoring & evaluating