CAUSAL MODEL IN OD CHANGE

1. CAUSAL MODEL IN OD CHANGE Organizational Improvement Capabilities Enhancement Planned effort Needs clear articulation of desired future state. Effort-effect relationship Direct of planning input

2. TRIGGERS OF CHANGE • Performance deterioration • Performance stagnation • Anticipation of discontinuity • Perception of threat • Perception of opportunity • New management mandate

3. BASICS OF ORGANIZATIONAL CHANGE • Change management begin with an understanding of the What and Why of the change process • Implementing change is focused on the How issue • Planning the change requires a clear definition of the end point of the change process • Is based on understanding of gap change is supposed to close • Change happens all the time but major transformation has to be a transition • Managing change also involves understanding what need not be changed • Change should be selective

4. Lewin’s Change Model Unfreezing Reduce forces maintaining status quo. Identify and highlight gap. Create “burning platform”. Intervention to develop new attitudes, values and behaviour. Movement Refreezing Create new equilibrium.

5. DIAGNOSING ORGANIZATIONAL SYSTEMS • The key to effective diagnosis is… • Know what to look for at each organizational level • Develop hypotheses of the problem • Recognize how the levels affect eachother

6. DIMENSIONS OF DIAGNOSIS: MODELING THE PROBLEM • Starts with understanding of Terms of Reference • Spells out what questions must be answered • Essence of diagnosis is to understand causal model of problem • This involves developing a model of the problem investigated • Data collection should be focused on understanding the important variables in the model

7. DIMENSIONS OF DIAGNOSIS: CHANGE READINESS ASSESSMENT • Change Readiness Assessment (CRA) is an assessment of the willingness of members of organization to undergo change • Causes of low readiness: • Lack of understanding • Lack of conviction • Wrong understanding • Insecurity • Old habits • Apathy

8. PSYCHOLOGY OF CHANGE Performance Valley of despair Time

9. ADVERSE PSYCHOLOGICAL REACTIONS • Frustration • Anxiety • Rejection of environment • Demotivation • Withdrawal • Refusal to participate Adverse psychological reaction Loss of stability Loss of effectiveness Change (Grady, Gleckel and Grody, 2009)

10. BUILDING BLOCKS OF CHANGE MANAGEMENT • Change agent • Managing resistance • Change leadership • Establish urgency • Create guiding coalition • Develop vision and strategy • Communication • Empower broad based action • Generating quick wins • Consolidating gains and more change • Anchoring new approaches in culture

11. Project Implementation Schedule Project Management Confirm Scope of Work Submit Deliverables We are here Planning Workshop Assessment Develop Hypothesis • Submit Deliverables • Initial Assessment Report Assessment & Findings Report Findings Benchmarking Studies • Submit Deliverables • Assessment Report Benchmark & Comparison Benchmark / Comparative Analysis Output Strategize Moving Forward Approach Develop & Confirm Implementation Plan Recommendation Propose Recommendations Finalize Recommendations Training • Workshop • Train the Trainer • Workshop • Ambassador • Workshop • Leadership 13 1 2 3 4 5 6 7 8 9 10 11 12 weeks 3rd Deliverable STRATEGIC CHANGE MANAGEMENT PLAN 2ND Deliverable ASSESSMENT REPORT 1st Deliverable INITIAL FINDINGS & ASESSMENT REPORT

12. Provide assurance • Continue to address concerns/ hesitation/ skepticisms • Continue to facilitate correct understanding • Provide timely updates and information COMMUNICATION AND COMMITMENT TO CHANGE • Enhance clarity of future direction. The rationale and benefits • Address the implications and benefits at the respective workforce levels and segments We want to be Here Commitment • Address concerns/ hesitation/ skepticisms • Facilitate correct understanding • Inform everyone of the transformation • Build initial enthusiasm Acceptance Willing / Able to change Support for Change Understanding Awareness Decision not to Attempt/ Support Implementation Change Aborted after Implementation Negative Perception Confusion Unwilling/ Unable to change Individuals ”dropping” from the change curve Time

13. Prioritisation criteria High Quick Wins High Priority Focus of immediate implementation Business Impact; on financials, customer, internal processes and internal learning Low Priority Medium Priority Low High Ease of implementation; dependant on resource availability, time, and enabling technology availability

14. CHANGE PROJECT IMPLEMENTATION SHEET

15. CHANGE PROJECT IMPLEMENTATION SHEET

16. CHANGE PROJECT IMPLEMENTATION SHEET

17. 1. MANAGING DIRECTOR’S OPEN OFFICE • To be held once a month • Anyone can walk in to discuss problem with md • Ground rules: • Assurance of confidentiality • Issues raised must be fact based • Employee can forward complains, suggestions, seek clarifications or just communicate concerns • MD will listen and seek clarifications • MD to give feedback within 2 weeks

18. COMMUNICATION ACTIVITY DESCRIPTION: MD’S OPEN DOOR DAY

19. 2. Head of Business Unit’s Small Group Lunch • To be held as part of change kick off • Involves HBUs with 10 employees at a time • HBUs to brief on Change Program and how it will affect employees • HBUs to touch base with informal leaders to understand concerns and response • Ground rules: • No threat of reprisal • Employee can forward complains, suggestions, seek clarifications or just communicate concerns • HBU will listen and seek clarifications • HBU to give feedback within 2 weeks • Free to have follow up discussion • Don’t do it in canteen

20. COMMUNICATION ACTIVITY DESCRIPTION: HBU SMALL GROUP LUNCH

21. WHY CHANGE DOESN’T HAPPEN • Organizational members insulated from external indicators of performance • Culture of complacency and contentment • Bureaucratic rigidity • Sense of denial • Absence of learning and improvement orientation • Absence of customer focus • Absence of sense of accountability • Unimaginative leadership