Managing Managing Organizational ChangeOrganizational Change

Know the classReview the course outlineA case of organization change

Today’s Agenda

In your opinion, what could we study in a course of change management?

Overview of the syllabusOverview of the syllabus

1. Images of Managing Change2. Why Organizations Change3. What Changes in Organizations4. Diagnosis for Change5. Resistance to Change6. Implementing Change7. Linking Vision and Change8. Strategies and Skills for Communicating

Change9. Sustaining Change

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Week2: Week2: Images of Managing Images of Managing ChangeChange

Each person Operates with an image or mental model of what s/he thinks is achievable.Has a different management style and image.

ImagesIlluminate certain aspects of change.Take us away from paying attention to certain aspects.

We will suggest some images and assess the strengths and weaknesses of different images.

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Week2: Why Organizations Week2: Why Organizations ChangeChange

External forces for changeo e.g. new technologyo e.g. geopolitical environment

Internal Forces for changeo e.g. a new CEOo e.g. growth cycle

Forces for stabilityo Think: Do we really need this change? what

are the likely returns (economic, other) of this change?

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Week3: What Changes in Week3: What Changes in OrganizationsOrganizations

Common types of changes:◦Mergers and acquisitions◦Downsizing◦Technological changes

Proactive Vs. reactive changes

Scale of change◦Incremental◦transformational

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Week3: Diagnosis for ChangeWeek3: Diagnosis for Change

Organization models to assess where changes are needed in an organizationo Strategyo Structureo Operationso Culture o Management behaviours and mindsetso Employee behaviours and mindsets

o Communication o Reward mechanismso Modes of interaction

Component analysis tools to assess the changes needed in each part of the organization◦ E.g. force-field (strategy), PESTEL (environment),

cultural web (culture)

Assessing readiness to change

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Week4: Resistance to ChangeWeek4: Resistance to Change

1. Why do people resist to change◦ Experiences with past change◦ Discomfort with uncertainty◦ Lack of conviction that change is needed◦ Perceived negative effect on interests◦ Lack of clarity as to what is expected◦ Belief that the timing is wrong

2. Managing resistance◦ The resistance cycle◦ The power of resistance

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Week5,6: Implementing ChangeWeek5,6: Implementing Change

Implementation method is important: A good idea for change may be badly managed and fail.

◦ How much do we involve people◦ When things will be done

Two main approaches:Organization development (OD)

Appreciative InquiryChange Management

Contingency approaches

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Week7:Linking Vision and Week7:Linking Vision and ChangeChange

1. Content of meaningful visions2. Process by which visions are

emerged

Three dilemmas:1. Does vision drive change or emerge during

change?2. Visions help or hinder change?3. Vision belongs to organizations or to

leaders?

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Week8: Guest SpeakerWeek8: Guest Speaker

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Week9:Week9: Strategies and Skills Strategies and Skills for Communicating Changefor Communicating Change

1. Strategies for communicating change◦ What, how, and to whom◦ Modelling the communication process◦ How much communication◦ Selling vs. buying in◦ Media

2. Skills for enacting those strategies◦ Upward (common language)◦ Downward (listening skills)◦ with the outside world (corp. reputation)

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Week10: Sustaining Change Week10: Sustaining Change

Actions to sustain change:

•Redesign roles and reward systems•Measure progress•Celebrate•Fine-tune

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Stories of Change

Managing ChangeManaging Change

• Change can be interpreted in different ways

• Using the stories of change we can see how change means different things to different people

• Using the stories of change we can see a wide range of issues that affect why and how change occurs

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KodakKodak

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• How have past downsizing efforts affected how Kodak now approaches downsizing?

• What reactions would employees be likely to have to the continued downsizing?

KodakKodak• Managing reactions to change• Key change issues:

– Both internal and external stakeholders interpret and react to change differently

– Communication strategies need to be directed at both groups of stakeholders

– History of past changes influence the reactions and the way managers deal with change

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IBMIBM

Change can come from above and below

What are the differences between change from below and change from above?

Key change issues:◦The diffusion of change helps

consolidate change across the organization

◦Symbolic images of change can give more importance to change from above for employees

◦Champions of change gain support for change

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Hewlett PackardHewlett Packard

Managing a mergerKey change issues:

◦Organizational politics and lobbying ◦Merging of cultures as a form of

change◦Communicating change to internal

employees and company stakeholders

◦Restructuring the organization as a common type of change

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McDonald’sMcDonald’s

External pressures for changeKey change issues:

◦The external environment can lead to organizational changes

◦Organizations may consider that they have a social responsibility to the external community, and this can lead to pressures for change

◦Not all planned changes come to fruition

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Change at Google – New Leadership

http://au.youtube.com/watch?v=WZ83MffY3lIhttp://au.youtube.com/watch?v=JV2HcNta1gU&feature=related

For the next session, please:

•Make groups •Have a copy of the book•Read Chapter1

A group for the first case of the book: IBMA group for the first case from practice