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LEADING CHANGE
What is Change?
Change is the process of moving from one state (current state) to another
(future state). It refers to
actions taken by organizational leaders to achieve and maintain outstanding
performance in a dynamic
environment.
Facts about Change:
o Change is inevitable
o Change is uncomfortable
o Change is disruptive
o The complexity of change has
increased
Dynamics of Change:
People .......
o feel awkward, self-conscious
o think first about what they have to
give up
o feel alone
o can only handle so much
o are at different levels of readiness
o revert to the old as soon as the
pressure is off
Organizations must learn faster & adapt to the rapid changes in the
environment….
o “Change takes place, no matter what
deters it”. (Plato, 428-347BC)
o Organization’s long-term success:
ability to manage change
Types of Organizational Change
Strategy
Corporate Level
Growth, stability, turnaround,
Business Level
Prospecting, defending, and
analyzing
Functional Level
Marketing, operation, finance
Structure
Principles
Chain of command, unity of
command, division of labor
Authority
Formal and informal, line and
staff, centralize and
decentralize
Organization design
Departmentalization
Job design
Job rotation, job
simplification, work teams
Technology
Machines
System process
Automation
People
Skills
Performance
Attitude
Behavior
Culture
Forces for change
o External: change in the
external (Macro environment) i.e. new technologies, political, economic,
financial conditions, world market, customer demands, changes in competition.
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o Internal: change in internal
environment of the organization (micro environment) i.e. reengineering,
costs- revision of plan/objectives, communications, employee turnover, changes
in
work practices.
Change Requires Leaders Who Can….
o Create a realistic sense of
urgency for change
o Create a clear vision of the future
o Remove obstacles to change
o Anchor changes in the organization’s
culture
o Follow through with plans
Change Models
Lewin’s Model
o Step-1 Unfreezing
o Step-2 Moving (Making Adjustment)
o Step-3 Refreezing
A Comprehensive Change Model
o Step-1 Recognize the need
for Change
o Step-2 Identify possible
resistance to the change and plan to
overcome it
o Step-3 Plan the Change
interventions
o Step-4 Implement the Change
interventions
o Step-5 Control the Change
Lewin’s Change Management Model: Understanding the Three Stages of Change
Change is a common thread that runs through all businesses regardless of
size, industry and age. Our
world is changing fast and, as such, organizations must change quickly too.
Organizations that handle
change well thrive, whilst those that do not may struggle to survive.
The concept of “change management” is a familiar one in most businesses today.
But, how businesses
manage change (and how successful they are at it) varies enormously depending on
the nature of the
business, the change and the people involved. And a key part of this depends on
how far people within
it understand the change process.
One of the cornerstone models for understanding organizational change was
developed by Kurt Lewin
back in the 1950s, and still holds true today. His model is known as Unfreeze –
Change – Refreeze,
refers to the three-stage process of change he describes. Lewin, a physicist as
well as social scientist,
explained organizational change using the analogy of changing the shape of a
block of ice.
Understanding Lewin’s Model If you have a large cube of ice, but realize
that what you want is a
cone of ice, what do you do? First you must melt the ice to make it amenable to
change (unfreeze).
Then you must mold the iced water into the shape you want (change). Finally, you
must solidify the
new shape (refreeze).
By looking at change as process with distinct stages, you can prepare yourself
for what is coming and
make a plan to manage the transition – looking before you leap, so to speak. All
too often, people go
into change blindly, causing much unnecessary turmoil and chaos.
To begin any successful change process, you must first start by understanding
why the change must
take place. As Lewin put it, “Motivation for change must be generated before
change can occur. One
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must be helped to re-examine many cherished assumptions about oneself and one’s
relations to others.”
This is the unfreezing stage from which change begins.
Unfreeze
This first stage of change involves preparing the organization to accept
that change is necessary, which
involves break down the existing status quo before you can build up a new way of
operating.
Key to this is developing a compelling message showing why the existing way of
doing things cannot
continue. This is easiest to frame when you can point to declining sales
figures, poor financial results,
worrying customer satisfaction surveys, or suchlike: These show that things have
to change in a way
that everyone can understand.
To prepare the organization successfully, you need to start at its core – you
need to challenge the
beliefs, values, attitudes, and behaviors that currently define it. Using the
analogy of a building, you
must examine and be prepared to change the existing foundations as they might
not support add-on
storeys; unless this is done, the whole building may risk collapse.
This first part of the change process is usually the most difficult and
stressful. When you start cutting
down the “way things are done”, you put everyone and everything off balance. You
may evoke strong
reactions in people, and that’s exactly what needs to done.
By forcing the organization to re-examine its core, you effectively create a
(controlled) crisis, which in
turn can build a strong motivation to seek out a new equilibrium. Without this
motivation, you won’t
get the buy-in and participation necessary to effect any meaningful change.
Change
After the uncertainty created in the unfreeze stage; the change stage is
where people begin to resolve
their uncertainty and look for new ways to do things. People start to believe
and act in ways that
support the new direction.
The transition from unfreeze to change does not happen overnight: People take
time to embrace the new
direction and participate proactively in the change. A related change model, the
Change Curve, focuses
on the specific issue of personal transitions in a changing environment and is
useful for understanding
this specific aspect in more detail.
In order to accept the change and contribute to making the change successful,
people need to
understand how the changes will benefit them. Not everyone will fall in line
just because the change is
necessary and will benefit the company. This is a common assumption and pitfall
that should be
avoided. Time and communication are the two keys to success for the changes to
occur. People need
time to understand the changes and they also need to feel highly connected to
the organization
throughout the transition period. When you are managing change, this can require
a great deal of time
and effort and hands-on management is usually the best approach.
Refreeze
When the changes are taking shape and people have embraced the new ways of
working, the
organization is ready to refreeze. The outward signs of the refreeze are a
stable organization chart,
consistent job descriptions, and so on. The refreeze stage also needs to help
people and the organization
internalize or institutionalize the changes. This means making sure that the
changes are used all the
time; and that they are incorporated into everyday business. With a new sense of
stability, employees
feel confident and comfortable with the new ways of working.
The rationale for creating a new sense of stability in our every changing world
is often questioned.
Even though change is a constant in many organizations, this refreezing stage is
still important. Without
it, employees get caught in a transition trap where they aren’t sure how things
should be done, so
nothing ever gets done to full capacity. In the absence of a new frozen state,
it is very difficult to tackle
the next change initiative effectively. How do you go about convincing people
that something needs
changing if you haven’t allowed the most recent changes to sink in? Change will
be perceived as
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change for change’s sake, and the motivation required to implement new changes
simply won’t be
there.
As part of the Refreezing process, make sure that you celebrate the success of
the change. This helps
people to find closure, thanks them for enduring a painful time, and helps them
believe that future
change will be successful.
Practical Steps for Using the Framework:
Unfreeze
Determine what needs to change
o Survey the organization to understand
the current state
o Understand why change has to take
place.
Ensure there is strong support from upper management
o Use Stakeholder Analysis and
Stakeholder Management to identify and win the support of
key people within the organization.
o Frame the issue as one of
organization-wide importance.
Create the need for change
o Create a compelling message as to why
change has to occur
o Use your vision and strategy as
supporting evidence
o Communicate the vision in terms of
the change required
o Emphasize the “why”.
Manage and understand the doubts and concerns
o Remain open to employee concerns and
address in terms of the need to change.
Change:
Communicate often
o Do so throughout the planning and
implementation of the changes
o Describe the benefits
o Explain exactly the how the changes
will effect everyone
o Prepare everyone for what is coming.
Dispel rumors
o Answer questions openly and honestly
o Deal with problems immediately
o Relate the need for change back to
operational necessities.
Empower action
o Provide plenty of options for
employee involvement
o Have line managers provide day–to–day
direction.
Involve people in the process
o Generate short-term successes to
reinforce the change
o Negotiate with external stakeholders
as necessary (such as employee organizations).
Refreeze
Anchor the changes into the culture
o Identity what supports the change
o Identify barriers to sustaining
change.
Develop ways to sustain the change
o Ensure leadership support
o Create a reward system
o Establish feedback systems
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o Adapt the organizational structure as
necessary.
Provide support and training
o Keep everyone informed and supported.
Celebrate success!
Resistance to Change:
Sources of Resistance to Change
o Facts: Provable statements
that identify reality.
o Beliefs: Subjective opinions
that cannot be proven.
o Values: What people believe
are important and worth pursuing or doing.
Focuses of Resistance to Change
o Self: The reaction of
individuals who feel their self-interests are threatened by change.
o Others: The consideration
given to how others will be affected by change.
o Work environment: Change in
the working environment threatens individuals control of
the environment
Managerial Perspective:
Critical factors in managing complex change:
o Trust
o Vision
o Skills
o Resources
o Incentives
o Action plan
o Accountability
Example Change Initiatives
o New e-mail system
o New ERP system
o Introducing a new senior manager
o Total Quality Management/Six Sigma
o Postage coming from a printer—not
using stamps
o Change in work hours
Starting Out...3 Key Questions
o Where are you; what is the
current state? Why change?
o Where do you want be?
o How are you planning to get there?
Answering these questions will provide the basic scope – a short document that
lays out the case for
change, the benefits to be gained and a basic risk assessment that addresses the
major unknowns.
The Eight-Stage Model of Planned Organizational Change
o Establish a sense of urgency.
o Form a powerful guiding coalition.
o Develop a compelling vision and
strategy.
o Communicate the vision widely.
o Empower employees to act on the
vision.
o Generate short-term wins.
o Consolidate gains, create greater
change.
o Institutionalize changes in the
organization culture.
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Some Barriers to Effective Change
o The compelling case for change
o Failing to “paint the right
picture” of the future state
o Poor employee involvement and
discussion
o Failing to build up the case for
change over time – too rushed
o Failing to share key data with
employees – lack of transparency
o Not understanding what change is
o Failing to see change as a
journey, not a single event
o Over-simplified view of “getting the
change out the way”
o Employee involvement
o Failing to involve employees in
feedback sessions
o Failing to involve employee teams in
optimising solutions and developing implementation
plans that will work!
o Ownership confusion
o Failing to establish clearly
who is responsible for what, and who is making the decisions
o Ineffective implementation
o Viewing implementation as the
“easy part”!
o Failing to clarify who is
coordinating implementation
o An unclear transition plan of roles
and responsibilities
o Poor alignment of senior team around
leadership behaviours
o Poor communication – confusion about
what is happening, and when
o Perpetuating “the way we do things
here” too long
o Failing to see the impact of the
wider sector or economic environment
o “Good times” may have masked some
less than effective management practice!
Leadership during Change: Change will simply not happen without effective
leadership in the
organization. To a large degree change is really about;
o Good communication
o Personal desires
o Alternative culture and culture
change
o Anxiety and loss of control
o Hidden agendas
These are all leadership issues
What are the leadership behaviours most relevant to change situations?
o Communicates a clear and
consistent vision (or plan) with commitment
o Champions change – able to engage
others and get them ready (convince)
o Treats people with respect
o Demonstrates integrity and high
ethical standards
o Sets and sustains high personal
standards of delivery
o Is decisive, particularly when
confronted with challenging issues
o Able to adapt and capitalise on new
opportunities
o Builds effective relationships
o Builds effective team performance
o Openly encourages and recognises the
contribution of others
o Gives constructive feedback on a
regular basis
o Encourages personal development and
provides appropriate opportunities
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8 Steps to Effective Change Leadership
So what should leaders do to help make change more effective?
1) Recognise that you are a role model
2) Be visible, and listen to concerns - encourage constructive debate and
feedback
3) Even if you don’t “buy-in” fully to what is happening, you still have a
responsibility to help
employees through the process in a supportive, positive and constructive way
4) Be consistent in what you say, and never speculate – if you don’t know or
can’t say, then
say so
5) Be empathetic to concerns, and help people understand what is actually
happening, not
what they think is happening
6) Ensure that business keeps running smoothly during the change process
7) Go out of your way to involve people and explain what is happening
8) Focus on team working and team development needs
Key Messages
o Leader Qualities of Holistic
Thinking and Holistic Action
o Beware of Attempts to Improve
Performance through Singular Changes
o Building the Complementary Changes
the Integrated Systems of Mutually Reinforcing
Elements
o Be Prepared for the Dangers of
Transitions and the Perils of the 'J' Curve
Things May Get Worse Before They Get Better. Need For Strong Leaders To Survive
Transition
Processes
o Partial Changes may be Politically
and Emotionally Easier to Contemplate, but Encourage
Long Term Declines
o Beware of Complementary Traps:
Sticking With the Old System that Works
o Learning is Crucial, But it is Also a
Challenge Complements May Be:
Hard to Understand
Hard to Implement
Hard to Imitate
o Building the Complements and the
Capabilities that Underpin them Takes Time and Courage
o Building Complements Requires
Customization
o The Virtual Cycle of Complementary
Change Needs to Stay In Motion
Leading Change is a Continuous Process
o The Crucial Importance of:
Duration of Leader in Post
Careful Management of Leader Succession
Leading Continuity and Change
The Importance of Inter-Generational Leader Effects
Imposing the change: some issues to consider
o Compliance versus Commitment
o Short term “speed” versus long term
satisfaction with the change
o “Powerless leader”
The goal of Fearless Change: People become so involved and interested in
the change process that they
want to change.
Remember!
Change is not an event. It is a process.
Note
Material presented during this course is taken from different books,
presentations and work done by
great peoples in this field to make the material understandable for a common
person and purely for
learning purpose. Material/work used from different sources is highly
acknowledged. |
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