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Changes Management 2024 Lecture Notes Student Version

The document outlines a course on Change Management at NEU Business School, detailing the curriculum, learning objectives, assessment methods, and key theories and models related to change management. The course aims to equip students with knowledge and skills to analyze, diagnose, and implement change processes in organizations. It includes various teaching methods such as lectures, discussions, and case studies, and emphasizes the importance of managing change for organizational success.

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Chi Nguyen
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© © All Rights Reserved
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0% found this document useful (0 votes)
122 views123 pages

Changes Management 2024 Lecture Notes Student Version

The document outlines a course on Change Management at NEU Business School, detailing the curriculum, learning objectives, assessment methods, and key theories and models related to change management. The course aims to equip students with knowledge and skills to analyze, diagnose, and implement change processes in organizations. It includes various teaching methods such as lectures, discussions, and case studies, and emphasizes the importance of managing change for organizational success.

Uploaded by

Chi Nguyen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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E-BBA, EBDB PROGRAMS

CHANGE MANAGEMENT
Code: EBCM1139
No of credit: 03
Dept.: General Management
NEU Business School 2024

1
Instructor(s)

vName: Bùi Đức Tuân

vGrade: Assoc. Prof., PhD.

vPhone: 0933023323

vEmail: bdtuan@bsneu.edu.vn;

vOffice: R.103, Building12, NEU Business School

2
Lessons plan

Of wich
Total no of
No Content teaching Discussion,
hours Lecture exercise, group
works, etc

1 Introduction to Change Management 3 3 0

Recognizing the need for change and starting


2 9 6 3
the change process

3 Diagnosing what needs to be changed 9 6 3

4 Planning and preparing for change 12 6 6

5 Leading and managing the people issues 6 3 3

6 Implementing change and reviewing progress 6 3 3

Total 45 27 18

3
Course will help students to:

v Acquire updated knowledge about the concepts, nature


and roles of change management in organization, the
basic theoretical schools in the field of change
management in the world.
v Be able to apply methods and skills for analyzing,
diagnosing and planning the change process of an
organization in accordance with the context of business
environment and organization’s strategic directions.
v Learn about change management practices of domestic
and foreign organizations through case studies.

4
Main contents

1. Introduction to Change Management in


Organization
2. Recognizing and Starting change
3. Diagnosing what need to be changed
4. Planning and Implementing the changes
5. Leading change and managing people issues
6. Reviewing and Sustaining the changes

5
Learning methods

§ Lectures

§ Discussions

§ Group works

§ Case study

6
Course Assessment

§ Participation: 10%

§ Group work: 30%


§ Case studies

§ Examinations: 60%
• Midterm: 10%
• Final: 50%

7
Group assignment

vGroup formation

vLearning by case
§ Choose a real case
§ Step by step studying
§ Discussion
§ Report & Presentation

8
References

§ John Hayes (2018); The Theory and


Practice of Change Management; Fifth
Edition; MacMillan International.

§ Other material.

9
Quotes

The only constant


in life is change

Heraclitus
Greek philosopher

10
“Quotes”

11
INTRODUCTION TO CHANGE MANAGEMENT

v The context
• Why to change
• The causes

vThe importance of management of changes

vBasic theories and models

12
About organization

vOrganized activity
§ 2 or more people
§ Common goals/objectives
§ Responsibility and Coordination
vCharacteristics
§ Division of work;
§ Leading and coordinating
§ Formal structure
vEnvironment of organization
§ External
§ Internal

13
Why doing change?

§ Real figures
§ 80% enterprise “died” after 10 years

§ 40% strong financial businesses


“disappeared” after 10 years

§ 30% top 500 compagnies broken or


disappeared within first 7 years

14
The ones that failed to understand

15
The ones that went for it

16
Why changes?

Internal and External Organization and


environment: Strategy:
constantly changing stays the same

§ Adapt to:
üSurvive
üThrive from opportunity
17
Sources of change…PEST factors
v Political factors: include
§ new legislation in areas such as environmental management,
consumer protection and employment;
§ regulation of markets in areas such as banking,
telecommunications and broadcasting;
§ fiscal policies and so on.

v Economic factors: include issues such as


§ the ongoing impact of the credit crunch, exchange rates,
cost of borrowing,
§ change in levels of disposable income, cost of raw
materials, security of supplies,
§ new competitors and the trade cycle.
18
External sources of change…PEST
v Sociocultural factors: include
§ demographic trends such as a fall in the birth rate or an ageing
population.
§ shifting attitudes towards education, training, work and leisure, which can
have knock-on effects on the availability of trained labour, consumption
patterns and so on.
§ Cultural factors can also affect business ethics and the way business is
done in different parts of the world.

v Technological factors: include issues such as


§ the levels of investment that competitors are making in research and
development and the outcome of this investment;
§ the availability of new materials, products, production processes, means
of distribution and so on;
§ the rate of obsolescence and the need to reinvest in plant and people

19
Internal sources of change
v Strategy:
§ Changes in strategic directions…lead to changes in
functional areas;
v People:
§ People changes, mostly at top management…lead to
changes in organizational arrangements;
v Business:
§ Changes in businesses…lead to changes in structure,
technology, etc;
v Organizational Culture:
§ Changes in business culture…lead to changes in code
of conduct…

20
Change Management: definition

–The discipline that guides how we:

• Prepare, equip, support individuals to

§ Successfully adopt change in order to

vDrive organizational success and


outcomes
21
Change Management: importance

Global competition § Structure


Environment
§ Procedure
Technology Strategy &
High demand Changes § Culture
Plans
Suppliers § ….

Managing
transition &
changes

22
Implementing Change is difficult…

§ 30% Transformation programs


succeed [John Kotter, 1996]

§ Only one transformation in


three succeed [McKinsey,
2008]

§ Only 12% companies remained


in Fortune 500 firms 1955 vs
2016:
Failure rate • 1955-1994: 30,6% surviving firms;
• 1995-2016: 37,6% surviving firms.

23
Types of change
v Happened Change
§ This kind of change is unpredictable in nature and is usually
takes place due to the impact of the external factors.
v Reactive Change
§ Changes which take place in response to an event or a chain of
various events
v Anticipatory Change
§ If a change is implemented with prior anticipation of the
happening of an event or a chain of events,
v Planned Change
§ Planned change is also regarded as the developmental change
which is implemented with the objective of improving the present
ways of operation and to achieve the pre-defined goals.

24
Types of change (cont’)
v Incremental Change
§ Change which is implemented at the micro level, units or subunits
can be regarded as incremental change.
v Operational Change
§ This kind of change becomes a requirement or the need when an
organization is faced with competitive pressures as a result of
which the focus is laid more on quality improvement or
improvement in the delivery of services for an edge over the
competitors.
v Strategic Change
§ usually implemented at the organizational level, which may affect
the various components of an organization and also the
organizational strategy.

25
Types of change (cont’)

v Directional Change
§ may become a necessity due to the increasing competitive
pressures or due to rapid changes in the governmental control or
policies, etc.
§ become imperative when an organization lacks the capability of
implementing/executing the current strategy effectively or during
the circumstances when a strategic change is required.
v Fundamental Change
§ essentially involves the redefinition of organizational vision/mission.
v Total Change
§ involves change in the organizational vision and striking a
harmonious alignment with the organizational strategy, employee
morale and commitment as well as with the business performance.

26
Change Management: theories
v Teleological theories:
§ assume that organizations are purposeful and adaptive, and present
change as an unfolding cycle of goal formulation, implementation,
evaluation and learning.
v Dialectical theories:
§ focus on conflicting goals between different interest groups and explain
stability and change in terms of confrontation and the balance of power
between the opposing entities.
v Life cycle theories:
§ assume that change is a process that progresses through a necessary
sequence of stages that are cumulative, in the sense that each stage
contributes a piece to the final outcome, and related – each stage is a
necessary precursor for the next.
v Evolutionary theories:
§ posit that change proceeds through a continuous cycle of variation,
selection and retention.

27
Change Management: models

vKotter model

vLewin’s model

vMcKinsey 7s model

vADKAR model

vBurke-Litwin model

28
Change Management: perspectives

People focus Process focus

VS

LEADING MANAGING

29
Management and leadership

30
MANAGING CHANGE: process perspective

1. Recognizing the need for change and starting the


change process
2. Diagnosing what needs to be changed and formulating a
vision of a preferred future state
3. Planning how to intervene in order to achieve the
desired change
4. Implementing plans and reviewing progress
5. Sustaining the change

31
Managing change: key steps

Leading and managing the people issues

Recognizing Diagosing Planning Implementing Sustaining

Learning

32
RECOGNIZING THE NEED FOR CHANGE & STARTING THE CHANGE

Conceptual framework

v Patterns of change
§ incremental vs transformational

v Recognizing a need or opportunity for change


§ external and internal sources of change
§ the issues that affect an organization’s ability to recognize the opportunity or
need for change
v Starting the change
§ the issues associated with starting the change process

v Building change relationships


§ examines the importance of building effective relationships between those
leading and those involved in the change

33
Organization and its environment

34
Patterns of change

vIncremental change:
§ occurs during the relatively long periods of equilibrium
and is associated with the extrapolation of past trends,
doing things better, and securing efficiencies.
vTransformational change:
§ occurs during periods of disequilibrium when the
organization, because of the effect of inertia and a
failure to recognize the need for change, becomes so
misaligned with its external environment that it cannot
continue as before.

35
Typology of change

36
Typology of change

v Tuning:
§ change that occurs when there is no immediate
requirement to change.
v Adaptation:
§ an incremental and adaptive response to a pressing
external demand for change
v Reorientation:
§ involves a redefinition of the enterprise. It is initiated in
anticipation of future opportunities or problems.
v Re-creation:
§ involves transforming the organization through the fast
and simultaneous change of all its basic elements

37
Incremental change for internal alignment

to improve the internal alignment between existing organizational components


in order to do things better and improve the efficiency of the organization

38
Transformational change for external alignment

to seek a new configuration of organizational components


in order to realign the organization with its changing environment.

39
Recognizing a need or opportunity for
change
v External sources of change
§ Political factors
§ Economic factors
§ Sociocultural factors
§ Technological factors
v Internal sources of change
§ Growth through creativity leading to a crisis of leadership
§ Growth through direction leading to a crisis of autonomy
§ Growth through delegation leading to a crisis of control:
§ Growth through coordination leading to a crisis of ‘red tape’:
§ Growth through collaboration

40
Cycle of competitive behaviour

41
Internal factors that can trigger
discontinuous change

42
The trap of success

43
Starting the change

vEstablishing a change relationship


§ Change agent vs target members

vIssues that can affect the quality of the


relationship
§ Trust & confidence

vIdentifying the client


§ Persons who ‘own’ the problem and are responsible for doing
something about it

vClarifying the issue


§ Symptoms or problem

44
Establishing a change relationship

vThe goal of intervening:


§ facilitate change
vPrescriptive mode of intervening:
§ advising (not giving advice)
vCollaborative modes of intervening:
§ help client develop opportunities or manage
their own problems rather than intervene by
telling them what they should do

45
Establishing a change relationship

vDeveloping collaborative relationships


§ Signal that the other’s viewpoint is worth listening to: willingness to commit to
working with others; openness to their point of view.
§ Suspend critical judgement: keep an open mind and avoid reaching
premature conclusions

vMode of intervening and the stage of the


helping relationship
vHelping skills
§ # self-awareness; # establishing rapport and building relationships;
§ # empathy; # listening to facts and feelings; # probing for information;
§ # identifying themes and seeing the bigger picture
§ # giving feedback; # challenging assumptions

46
DIAGNOSING WHAT NEEDS TO BE CHANGED

Methods, Techniques and Tools


vDiagnosis
§ a process of research into the functioning of an
organization that leads to recommendation for
improvement

vGathering and interpreting information


§ the process of collecting and interpreting
information for the purpose of diagnosis.

47
Diagnosis: 4 steps

vStep 1:
• Assess the current state of your organization
vStep 2:
• Identify the information you used to make this
assessment
vStep 3:
• Developing categories for organizing your diagnostic
information
vStep 4:
• Specifying relationships between categories/elements
(causal map)

48
A causal map of a diagnostic model

49
Models to aid diagnosis

vCEO’s model of causal relationships affecting the


performance
vKotter’s integrative model of organizational
dynamics
vMcKinsey 7S model
vBurke-Litwin causal model of organizational
performance and change
Revising your personal model
of organizational functioning

50
CEO’s model of causal relationships

51
Kotter’s integrative model

Employees and
other tangible assets
People, plant, money
Formal
Social system organizational
Culture and social arrangements
structure Structure and
operating systems

Key organizational
processes:
• Transportation/conversion of
energy/matter
• Information gathering,
communication, decision making

Dominant
Technology coalition
Personal
Methods and
External characteristics,
techniques environment goals, strategies
Task environment,
wider environment

Impact on Source of potential behavior and constraint


52
McKinsey 7S model

53
Burke-Litwin causal model

54
The transformational factors

55
Revising your personal model
of organizational functioning

v Characteristics of a good model:


§ are relevant to the particular issues under
consideration

§ help change agents to recognize cause-and-effect


relationships

§ focus on elements they can influence.

56
Gathering and interpreting information

1. Selecting a conceptual model for diagnosis

2. Clarifying information requirements

3. Information gathering

4. Analysis

5. Interpretation.

57
Information gathering

vInterviews

vQuestionnaires

vProjective methods

vObservations

vUnobtrusive measures (records)

58
Analysis

vQualitative
techniques
§ Content analysis
§ Force-field analysis

vQuantitative
techniques

59
Interpretation
can be used to point to those areas where internal misalignment may be a problem

60
Using diagnostic information
SWOT analysis provide useful frameworks for using diagnostic information to identify
what needs to be changed

61
Using SWOT to develop action plans

62
PLANNING AND PREPARING FOR CHANGE

Process, Methods and Tools


v Shaping implementation strategies
v Developing a change plan
v Types of intervention
v Action research
v Appreciative inquiry
v Training and development
v High performance management
v Business process re-engineering
v Culture profiling
v Selecting interventions

63
Shaping implementation strategies (1)

vThree approaches to managing change


§ Economic strategies:
• focus on the drive for economic value through tough, top-
down, results-driven action
§ Organization development strategies:
• focus on creating the capabilities required to sustain
competitive advantage and high performance
§ Combined economic/OD strategy
• The development of a compelling and balanced business and
organization development direction;
• The management of key stakeholders in order to buy time to
develop organization capability;
• The adoption of a sociotechnical approach that involves the
development of down the line managers.
64
Shaping implementation strategies (2)

vSituational variables that can shape an


implementation strategy
§ Stability of the external environment;
§ Urgency and stakes involved;
§ Level of support;
§ Degree to which other stakeholders trust those leading the change;
§ Clarity of desired future state;
§ The extent to which change managers have the required data for
designing and implementing the change;
§ Degree to which change managers have to rely on the commitment and
energy of others to implement the plan;
§ Alignment of values;
§ Variations over time;
§ Divisibility;
§ Need for coordination

65
A three-dimensional model to aid choice
of change strategy

66
Incremental change strategies

67
Transformational change strategies

68
Developing a change plan

v Developing a high-level plan for change


v Translating high level intentions into detailed plans
v Appoint a transition manager
v Identify what needs to be done
v Develop an implementation plan
v Use multiple and consistent leverage points for
change
v Schedule activities
v Provide resources for the transition
v Reward transition behaviours
v Develop feedback mechanisms

69
Identify what needs to be done

Using the Ishikawa diagram as a change tool: problem tree

70
Identify what needs to be done

Using the Awakishi diagram as a change tool: plant closure

71
Schedule activities

Critical path analysis

72
Types of intervention

Focusing on: Involves:


1 human process issues - experts applying scientific principles to solve
2 technology/structural issues specific problems
3 human resource issues - groups working collaboratively to solve their own
4 strategic issues. problems
- experts working to solve system-wide problems
- everybody working to improve the capability of
the whole system for future performance.

73
Action research

1. Data gathering for


diagnosis
2. Data feedback to client
group
3. Discussion of the data and
diagnosis of the problem
4. Action planning
5. Implementation of action
plan

74
Appreciative inquiry

The process:
1. Defining the focus of the inquiry
2. Discovering examples of excellence and achievement
3. Dreaming about what might be
4. Designing: co-constructing the future to deliver the dream
5. Delivering the dream

Example: NEU’s restructuring project

75
Training and development

vTraining needs analysis


• Systems-level review
• Task analysis
• Person analysis
vThe design and delivery of training
• Compatibility with training objectives
• Estimated likelihood of transfer of learning to the
work situation
• Availability of resources, such as time, money and
skilled staff
• Trainee-related factors.
vThe evaluation of training effectiveness
76
High performance management

1. Commitment strategies

2. Diagnosing the alignment of people


management.

3. Alignment of people management


practices

77
Commitment strategies

vImproving employees’ knowledge and skills

vMotivating them to engage in discretionary


behaviors that draw on their knowledge and skill

vModifying organizational structures in ways that


enable employees to improve the way they
perform their jobs.

78
Diagnosing the alignment of
people management
v Reviewing the organization’s strategy

v Identifying the critical behaviors and related competences


required to achieve the strategy

v Identifying practices the organization uses to manage


people

v Assessing the alignment of each people management/


HR practice with the competences and behaviors
required to achieve the organization’s strategy

79
Assessing the alignment of each people

80
Business process re-engineering

1. Process mapping
2. Identifying processes for re-engineering
3. Understanding the selected process
4. Defining key performance objectives
5. Designing new processes
6. Testing
7. Implementation

81
Culture profiling
vOrganizational identity and negative effects

vAcculturation

vManaging the implementation process

vCulture profiling and the management of


cultural differences

82
Acculturation
v Integration:
§ involves some degree of change for both units but allows both to maintain many
of the basic assumptions, beliefs, work practices and systems that are important
to them and make them feel distinctive.
v Assimilation:
§ a unilateral process in which one group willingly adopts the identity and culture
of the other.
v Separation:
§ involves members of the acquired unit seeking to preserve their own culture and
practices by remaining separate and independent of the dominant unit
(department or organization).
v Deculturation:
§ involves unit members rejecting cultural contact with both their and the other
unit. It occurs when members of an acquired unit do not value their own culture
(maybe because they feel that their work group, department or organization has
failed) and do not want to be assimilated into the acquiring unit.

83
Acculturation: for the acquired unit

# Integration will be its preferred mode of


acculturation when its members value their
own culture and many of their existing
practices and want to preserve them, but also
perceive some attractive aspects of the
acquiring unit’s culture and practices they
would like to adopt.

# Assimilation will be its preferred mode


when members do not value their own culture
and practices and do not want to preserve
them, and are attracted to the acquiring unit’s
culture and practices.

# Separation will be its preferred mode of


acculturation when members value their own
culture and existing practices and want to
preserve them, and are not attracted to the
acquiring unit’s culture and practices.

# Deculturation will be its preferred mode


when members feel alienated because they
do not value the culture and practices of
either their own or the acquiring unit.

84
Acculturation: for the acquiring unit

# Integration will be its preferred mode


of acculturation when it is a multicultural
unit and the merger is with a related
unit.

# Assimilation will be its preferred mode


when the unit is unicultural and the
merger is with a related unit.

# Separation will be the preferred mode


when the acquirer is multi-cultural and
the merger is with an unrelated unit.

# Deculturation is unlikely to be a mode


of acculturation that will be preferred,
unless it is committed to developing a
completely new culture for the new unit.

85
Culture profiling and the management of
cultural differences
vPower cultures

vRole cultures

vTask/achievement cultures

vPerson/support cultures

86
Culture profiling and the management of
cultural differences
vPower cultures
§ centralized power
§ unequal access to resources and a strong leader who can satisfy or frustrate
others by giving or withholding rewards and sanctions
§ behavior influenced by precedent and the anticipation of the wishes of the
central power source
§ few rules, little bureaucracy, decisions made by individuals not committees

vRole culture
§ limited communication between employees working in different functional
silos, coordination concentrated at the top
§ Hierarchical
§ roles/job descriptions are more important that the individuals who fill them
§ methods rather than results predominate.

87
Culture profiling and the management of
cultural differences
vTask/achievement cultures
§ job or project orientation
§ resources and people are brought together as required to get the job done
§ influence based more on expert power than on position or personal power
§ unity of effort towards mutually valued goals
§ adaptable – groups and project teams are formed and disbanded as required
§ individuals and groups have a high degree of control over their work
§ top management retains control via allocation of projects, people and resources,
§ but finds it difficult to exercise day-to-day control over methods of working

vPerson/support cultures
§ mutual trust between individuals and the organization
§ members believe they are valued as human beings, not just cogs in a machine
§ members help each other beyond the formal demands of the job
§ members know the organization will go beyond the requirements of the employment
contract to look after them if they need support
§ structure is the minimum required to help individuals do their job

88
The degree of constraint different
culture types place on individuals

89
Selecting interventions

vFactors indicating which interventions to use

Diagnosed issue Level of change target

ü Individual level
§ Human process issues ü Intragroup level
§ Technostructural issues ü Intergroup level
§ Human resource issues ü Organizational level
§ Strategic issues ü Transorganizational level

90
Diagnosed issue

91
Selecting interventions

A three-dimensional model to aid choice

92
Selecting interventions

Example of human process interventions

93
Selecting interventions

Example of of technostructural interventions

94
Selecting interventions

Example of human resources interventions

95
Selecting interventions

Example of strategic interventions

96
IMPLEMENTING CHANGE AND REVIEWING PROGRESS
Implementation

vImplementing change

vReviewing and
keeping the change
on track

97
LEADING CHANGE: people perspective
Lead the whole process

v The role of leadership in change management

v Power, politics and stakeholder management

v Communicating change

v Motivating others to change

v Supporting others through change

98
People perspective

In the change process,


you have to win the
hearts and the minds
of the people!
[John Kotter]

99
Change is about people: 6 needs

vNeed of the personality:


§ Certainty (security)
§ Uncertainty (diversity, challenge)
§ Significance (importance)
§ Connection and love

vNeed of the spirit:


§ Growth
§ Contribution

100
Change is about people: Leading the change

Understand and Appreciate


their world
Create leverage and offer
empowering alternatives

Communicate often and be


transparent
Create a Supportive
Environment

101
The role of leadership in change management

vThe role of leadership

vKey leadership tasks

vLeadership styles

102
The role of leadership

ü Creating the case for change


ü Ensuring that change is based on an in-depth
understanding of the issues
ü Engaging others and building commitment
ü Developing effective plans and good monitoring
practices
ü Facilitating and developing the capability of those
involved.

103
Key leadership tasks

104
Power, politics and stakeholder management

ü Organizations as political arenas

ü Power and influence

ü Acquiring and exercising power and influence

ü Improving your ability to influence others

ü Managing stakeholders

105
Communicating change

vThe need for a communication strategy

vDirectionality

vRole, Content, Channel

vCommunication strategies

106
Motivating others to change

§ Organizational commitment and support for


change
§ Factors that can undermine support for
change
§ Resistance and the need to motivate people to
change
§ Expectancy theory and the motivation to
support or resist change

107
Supporting others through change

§ The nature of personal transitions

§ The personal cost of coping with transitions

§ Adjusting to organizational change

§ The process of personal transition

§ Facilitating progress through a transition

108
Kotter’s 8-step model

Effective Leaders
help Others to
understand the
necessity of change
and to accept
common vision of the
desired outcomes

109
Kotter’s 8-step model

Ø 70% of all major change efforts in organization fail


Ø 10 contributing factors to failure of CM:
1. An utter lack of a PLAN to guide the change;
2. Failure to define a clear rationale for the change;
3. Ignoring culture;
4. Weak follow-through by sponsors;
5. Not investing resources in the change efforts;
6. Gaps in change agent skills;
7. Haphazard communications;
8. Fear of feedbacks;
9. Declaring success too early;
10. Neglecting to reinforce the change.

110
Kotter’s 8-step model

111
Kotter’s 8-step model: step 1

ü Establising a sense of Urgency:


§ Express the need for change
§ Show the risks if change does not happen
§ Get a good discussion going on about how to make
change and what needs to be changed to get
people talking and thinking;
§ Get outside perspective to add merit to the need for
change

112
Kotter’s 8-step model: step 2

ü Creating the Guiding coalition:


§ Put together a group of 3-5 people to be the leader
of the coalition;
§ The group must trust each other and be moving in
the same direction;
§ Select intelligent leaders and respected people in
the organization;
§ Make sure there us a good mix of members from
different departments

113
Kotter’s 8-step model: step 3

ü Developing a Vision & Strategy:


§ Determine the key reasons for change;
§ Develop a 2-3 sentence vision statement that
explains how you see the future of the organization;
§ Know how this vision can be executed;
§ Be able to explain the vision easily

114
Kotter’s 8-step model: step 4

ü Communicating the Change vision:


§ Talk often about the vision of change;
§ Openly and honestly address people about their
concerns and anxieties;
§ Apply your vision to all aspects to operations;
§ Lead by example.

115
Kotter’s 8-step model: step 5

ü Empowering employee for broad-based action:


§ Identify change leaders whose main roles is to
display change;
§ Look at your organizational structure, job
description, performance and compensation
systems to ensure they are in line with your vision;
§ Recognize and reward people for making the
change happen;
§ Identify people who are resisting change, and help
them see what needed;
§ Take action to quickly remove barriers.

116
Kotter’s 8-step model: step 6

ü Generating short-term Wins:


§ Look for sure-fire projects that you can implement
without help from any strong critics of the change;
§ Don’t choose early targets that are expensive;
§ Thoroughly analyze the potential pros and con of
your targets;
§ Reward people who help you to meet the targets.

117
Kotter’s 8-step model: step 7

ü Consolidating Gains & Producing more Changes:


§ After every win, analyze what went right and what
needs improving;
§ Set goals to continue building on the momentum
you’ve achieved;
§ Talk about Kaizen, the idea of continuous
improvement and its application;
§ Keep ideas fresh by bringing in new change agents
and leaders for your change coalition.

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Kotter’s 8-step model: step 8

ü Anchoring new approaches in the Culture:


§ Talking about progress every change you get. Tell
success stories about the change process, and repeat
other stories that you hear;
§ Include the change ideals and values when hiring and
training new staff;
§ Publicly recognize key member of your original change
coalition, and make sure the rest of your staff – new and
old – remembers their contributions;
§ Create plans to replace key leaders of change as they
move on. This will help ensure that their legacy is not
lost or forgotten.

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Implementing change

vImplementing the plans

§ Managing the people issues


- Managing communications to minimize ambiguity
- Managing stakeholders
- Aligning and coordinating
- Promoting trust and procedural justice
- Responding to pressure to deliver quick wins
- Providing socioemotional support
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Reviewing and keeping the change on track

v Managing the implementation stage of the change process

v Monitoring the implementation of the change plan

v The role of performance measures in the management of


change (BSC)

v Developing tools to help monitor implementation

v Building review into the process of managing change

v Reviewing how people are responding to the change

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SUSTAINING CHANGE

Making change results sustainable


v Making change stick
§ Sustainability
§ Stickability: holding on to gains
§ Acting early to promote sustainability
§ Promoting sustainability later in the change
process

v Spreading change
§ Attributes of the innovation
§ Attributes of the organization
§ The values of potential users

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Q&A

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