Change management - introduction
What is change management?
Change management is an aspect of management focusing on ensuring that the firm responds to the
environment in which it operates
Four key features of change management:
Change is the result of dissatisfaction with the present strategies
It is essential to develop a vision for a better alternative
It is necessary to develop strategies to implement change
There will be resistance to the proposals at some stage
Change often arises from:
The development of new products
The entry of new competition
Changes in consumer tastes & preferences
Changes in the cultural, political, economic, legal and social framework
Changes in technology leading to technological obsolescence or new product opportunities
Change affects all aspect of people management. HRM is directly affected be change in:
Organisational structure
Personnel of teams
Process
Location
Work load
Work role
Work practices
Supervision
Work teams
There are many forces for change in business:
Internal forces
Desire to increase profitability
Reorganisation to increase efficiency
Conflict between departments
To change organisational culture
External forces
Customer demand
Competition
Cost of inputs
Legislation
Tax changes
New technology
Political
Ethics
Technological obsolescence
Change management - force field analysis & Lewin's change model
Lewin’s Force Field Analysis
There are forces driving change and forces restraining it
Where there is equilibrium between the two sets of forces there will be no change
In order for change to occur the driving force must exceed the restraining force
The analysis can be used to:
Investigate the balance of power involved in an issue
Identify the key stakeholders on the issue
Identify opponents and allies
Identify how to influence the target groups
Lewin’s change model
This model defines three stages in the process of change:
(1) Unfreezing
(2) Change
(3) Refreezing
It assists organisation change by:
Allowing the process to be understood
Providing milestones for evaluating progress towards the change
Unfreezing
This is the shake up phase perhaps triggered by declining sales or profits. The result is an acceptance
that the existing structures and ways are not working to get people ready for change it is necessary to
develop an awareness of the:
Necessity of change
Nature of change needed
Methods planned to achieve the change
Needs of those affected
Ways that progress will be planned and monitored
Changing
This is the process of devising and implementing the change:
Define the problem
Identify solutions
Devise appropriate strategy to implement change
Implement solutions
Refreezing
This is the process of maintaining the momentum of change:
Locking in the changes
Stabilising the situation
Building relationships
Consolidating the system
Evaluation and support
Preventing any going back to the old ways
Refreezing is complete when the new patterns are accepted and followed willingly
Change management - resistance and barriers to change
Resistance to change
A degree of resistance is normal since change is:
Disruptive
Stressful
Moreover a degree of scepticism can be healthy especially where there are weaknesses in the proposed
changes.
However resistance will also impede the achievement of organizational objectives
Four basic reasons why change is resisted
Kotler and Schlesinger identified basic causes of resistance to change:
(1)Parochial self interest
Individuals are more concerned with the implications for themselves
(2)Misunderstanding
Communications problems
Inadequate information
(3)Low tolerance of change
Sense of insecurity
Different assessment of the situation
(4) Disagreement over the need for change
Disagreement over the advantages and disadvantages
Some negative comments often received on proposed changes:
"My needs are already being met"
"There is no justification for change"
"I don’t like the way they propose to do it"
"The risks outweigh the benefits"
"It will now be harder for me to meet my own needs"
Organisational barriers to change
Structural inertia
Existing power structures
Resistance from work groups
Failure of previous change initiatives
Individual barriers to change
Tradition and set ways:
Loyalty to existing relationships
Failure to accept the need for change
Insecurity
Preference for the existing arrangements
Break up of work groups
Different person ambitions
Fear of:
Loss of power
Loss of skills
Loss of income
The unknown
Redundancy
Inability to perform as well in the new situation
Inappropriate change management
Change is often resisted because of failures in the way it is introduced
Failure to explain the need for change
Failure to provide information
Failure to consult, negotiate and offer support and training
Lack of involvement in the process
Failure to build trust and sense of security
Poor employee relations
Why change should be welcomed
Change can produce positive benefits for the individual:
Opportunities for personal change and development
Provides a new challenge
Reduces the boredom of work
Opportunity to participate and shape the outcome
Change management - implementation
Managing the change
Preparation for change
Environmental analysis.
Set out the strengths and weaknesses of the organisation
- Current provisions
- Resources
- Roles and responsibilities
Identify the change required
Determine the major issues
Identify and assess the key stakeholders
Win the support of key individuals
Identify the obstacles
Determine the degree of risk and the cost of change
Understand why change is resisted
Recognize the need for change, identify current position, devise a suitable method
Building the vision
Develop a clear vision
Make it people clear about what a change involves and how they are involved in it
What is involved
What is the proposed change
Why should we do it
What the major effects will be
How we can manage the change
Plan the change
• Devise appropriate strategies to introduce change
• Design the change
• Identify the significant steps in the change process
• Discuss the need for change and the full details of what is involved
• Allow people to participate in planning change
• Communicate the plan to all concerned
• Produce a policy statement
• Devise a sensible time scale
• Produce action plans for monitoring the change
• Allow people to participate in planning change
• Get all parties involved in and committed to the change
• Inspire confidence by forestalling problems and communicating regularly
• Devise a sensible time scale for implementation of change
• Anticipate the problems of implementation
• Understand why change is resisted
Implementing the change
• Check on and record progress
• Make sure that change is permanent
• Evaluate the change
• Improve on any weak areas
• Overcome resistance
• Involve all personnel affected
• Keep everyone informed
• Devise an appropriate reward system
• Be willing to compromise on detail
• Ensure that strategies are adaptable
• Select people to champion change
• Provide support and training
• Monitor and review
Two types of change
(1) Step change
Dramatic or radical change in one fell swoop
Radical alternation in the organisation
Gets it over with quickly
May require some coercion
(2) Incremental change
Ongoing piecemeal change which takes place as part of an organisation’s evolution and
development
Tends to more inclusive
Step v incremental change
Techniques to help implement change
Teams building across units
Internal communication
Negotiation
Action planning
Change agents or champions of change
And a certain amount of compulsion manipulation and coercion
Change agents
Managers should be able to act as change agents:
To identify need for change
Be open to goods ideas for change
To able to successfully implement change
Advantages of using a change agent:
Forces trough change
Becomes the personification of the process
Responsibility for change is delegated thus freeing up senior managers to focus on future
strategy
Helping people to accept change
Consider how they will be affected
Involve them in the change
Consult and inform frequently
Be firm but flexible
Make controversial change as gradually as possible
Monitor the change
Develop a change philosophy
Six ways of overcoming resistance to change
(1) Education and communication - if people understand the needs for change and what is
involved they are more likely to co-operate.
(2) Participation and involvement - to encourage people to feel ownership of the change.
(3) Facilitation and support - listening to the real concerns of people affected.
(4) Negotiation and agreement - agreement and compromise if necessary.
(5) Manipulation - e.g. “buying off” leaders of resistance.
(6) Explicit and implicit coercion - threats where necessary but this is a high risk strategy.
(source: Kotter and Schlesinger In HBR 1979)
Monitor and review
Adapt as necessary
Recording and monitor the changes
Measure progress against targets
Have the desired results been achieved?
Has the process been successful?
How do those affected feel about the new situation?
What might have been done differently?
How can those not responding well to the change be helped?
Sustain the change.- prevent any back sliding
Kotter’s change phases model
Establish a sense of urgency
Create a coalition
Develop a clear vision
Share the vision
Empower people to clear obstacles
Secure short term wins
Consolidate and keep moving
Anchor the change
Change management failures
What to do
Ways to increase resistance to change:
Managers can increase resistance by:
Failing to specific about a change
Failing to explain why change is needed
Not consulting
Keeping people in the dark
Creating excess work pressure
Expecting immediate results
Not dealing with fears and anxieties
Ignoring resistance
Reasons why change can fail
Employees do not understand the purpose or even the need for change
Lack of planning and preparation
Poor communication
Employees lack the necessary skills and/ or there is insufficient training and development
offered
Lack of necessary resources
Inadequate/inappropriate rewards
Eight common reasons for failure of change management:
Allowing too much complexity
Failing to build a substantial coalition
Failing to understand the need for a clear vision
Failure to clearly communicate that vision
Permitting roadblocks against that vision
Not planning for short term results and not realising them
Declaring victory too soon
Failure to anchor changes in corporate culture
(John Kotter)
