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CHANGE MANAGEMENT

CHANGE MANAGEMENT. Terry Rodriguez Portland G eneral Electric December 8, 2011. The Nature of the Vision Ambitious p icture of desirable f uture for the organization. Vision. Moving toward a desired future. Staying the course. Current reality. Change Management Project Phases.

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CHANGE MANAGEMENT

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  1. CHANGE MANAGEMENT Terry Rodriguez Portland General Electric December 8, 2011

  2. The Nature of the VisionAmbitious picture of desirable future for the organization Vision Moving toward a desired future Staying the course Current reality

  3. Change Management Project Phases Project Management Phase 3 Implementation of Change Management Plans Phase 1 Situational Diagnostic Assessment Phase 2 Development of Change Management Plans Communication

  4. Change managers need to resolve negative reactions Anger Bargaining Denial Emotional Intensity Acceptance Depression

  5. Resistance is your friend – shows that people get it is about them changing Loss of Control Productivity END TRANSITION BEGIN TIME

  6. Commitment is the result of a process that needs to be managed Commit Attentiveness Undertake Comprehension END TRANSITION BEGIN Productivity TIME

  7. VP VP Dir Dir Dir Dir Mgr Tom Mgr Mgr Mgr Mgr Mgr Mgr Mgr Mgr Engaging informal leaders accelerates the rate of change Informal Organization Formal Organization Jerry June Jerry June Helen Jim Helen Jim Fred Harry Fred Harry

  8. Closing Initiating Planning Executing & Control Level of Effort Mapping the main Project Processes to the Lifecycle PROCESSES : The Project Lifecycle

  9. Risk Matrix Evaluation

  10. Restraining Forces Restraining Forces Driving Forces Driving Forces Restraining Forces Driving Forces Force Field Analysis Model Desired Conditions Current Conditions BeforeChange AfterChange DuringChange

  11. Sources of Resistance to Change • Direct costs • Losing something of value due to change • Saving face • Accepting change acknowledges own imperfection, past wrongdoing • Fear of the unknown • Risk of personal loss • Concern about being unable to adjust

  12. Sources of Resistance to Change (con’t) • Breaking routines • Organizational unlearning is part of change process • But past practices/habits are valued by employees due to comfort, low cognitive effort • Incongruent organizational systems • Systems/structures reinforce status quo • Incongruent team dynamics • Norms contrary to desired change

  13. Creating an Urgency for Change • Inform employees about driving forces • Most difficult when organization is doing well • Must be real, not contrived • Customer-driven change • Adverse consequences for firm • Human element energizes employees

  14. Communication Minimizing Resistance to Change • Highest priority and first strategy for change • Improves urgency to change • Reduces uncertainty (fear of unknown) • Problems -- time consuming and costly

  15. Learning Minimizing Resistance to Change Communication • Provides new knowledge and skills • Includes coaching and action learning • Helps break old routines and adopt new roles • Problems -- potentially time consuming and costly

  16. Employee Involvement Minimizing Resistance to Change Communication • Increases ownership of change • Helps saving face and reducing fear of unknown • Includes task forces, future search events • Problems -- time-consuming, potential conflict Learning

  17. Stress Management Minimizing Resistance to Change Communication • When communication, training, and involvement do not resolve stress • Potential benefits • More motivation to change • Less fear of unknown • Fewer direct costs • Problems -- time-consuming, expensive, doesn’t help everyone Learning Employee Involvement

  18. Negotiation Minimizing Resistance to Change Communication • When people clearly lose something and won’t otherwise support change • Influence by exchange-- reduces direct costs • Problems • Expensive • Gains compliance, not commitment Learning Employee Involvement Stress Management

  19. Coercion Minimizing Resistance to Change Communication • When all else fails • Assertive influence • Firing people -- radical form of “unlearning” • Problems • Reduces trust • May create more subtle resistance Learning Employee Involvement Stress Management Negotiation

  20. Refreezing the Desired Conditions • Realigning organizational systems and team dynamics with the desired changes • Alter rewards to reinforce new behaviors • Feedback systems • Help employees learn how they are doing • Provide support for the new behavior patterns

  21. Conflict Perceptions Manifest Conflict Conflict Outcomes Conflict Emotions The Conflict Process Sources of Conflict Conflict Escalation Cycle

  22. ADKAR Model • ADKAR consists of five phases that occur when change impacts us: • Awareness of the need for change (why). Does the employee fully understand the business, customer or competitor issues that have created a need to change? • Desire to support and participate in the change (our choice). Does the employee have the motivation to change? • Knowledge about how to change (the learning process). Does the employee have a clear understanding of the change and the skills and behaviors required in the new environment? • Ability to implement the change (turning knowledge into action). How proficient is the employee in the skills and behaviors identified in the knowledge step? • Reinforcement to sustain the change (celebrating success). Are there adequate mechanisms to sustain the change to make it stick?

  23. Which is Your Conflict Handling Style?

  24. Interpersonal Conflict Handling Styles High Forcing Problem-solving Assertiveness Compromising Avoiding Yielding High Low Cooperativeness

  25. Problem Solving Conflict Handling Contingencies • Problem solving conflict handling is best when… • Interests are not perfectly opposing • Parties have trust/openness • Issues are complex

  26. Other Conflict Handling Style Contingencies • Avoiding is best when… • relationship conflict is high • Conflict resolution cost is higher than its benefits • Forcing is best when… • You have a deep conviction about your position • Quick resolution required • Other party would take advantage of cooperation

  27. The Eight-Stage Model of Planned Organizational Change 8. Make the change stick 1. Establish a sense of urgency 7. Keep up urgency to tackle bigger problems 2. Form a powerful guiding coalition 3. Develop a compelling vision and strategy 6. Generate short-term wins 5. Empower employees to act on the vision 4. Communicate the vision widely

  28. Change Management Plans

  29. Case • The Sr. VP of HR has assigned a project to “raise the bar” and convert the existing HR processes, and HR roles at KPC to that of HR Business Partners. • In your group: • Decide on your role on project team • Use project tools to create a business case for change • Refer to 8 stage Model for Organizational Change • Use Lewin’s Force Field analysis to describe resistance and methods you will utilize to overcome change. • Describe which Conflict handling style will be the one you use and why • Select a spokesperson for a 10 minute presentation

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