ORGANIZATIONAL CHANGE: STRATEGIES AND METHODS Craig W. Fontaine, Ph.D.

1. ORGANIZATIONAL CHANGE: STRATEGIES AND METHODS Craig W. Fontaine, Ph.D. Overview of Organizational Change

2. The Nature of Change Change in business is not new — it’s just accelerating due to… • New technology. • Global competition. • Growth & increased complexity. • The result: Change or die

3. What to expect from change • Sense of loss, confusion. • Mistrust and a “me” focus. • Fear of letting of what led to success in the past. • People hold onto & value the past. • High uncertainty, low stability, high emotional stress • Perceived high levels of inconsistency. • High energy - often undirected. • Control becomes a major issue. • Conflict increases - especially between groups.

4. Individual prerequisites for change to occur Why should I change? What’s in it for me? Thinking & understanding Emotional/ Motivational Heart Head Behavioral Hands What do I do differently?

5. Effective Change Equals Harnessing Motivation Shaping Behavior Altering Mind-set The Effective Management of Change Involves AnIntegrated Approach In Each Of These Three Arenas

6. “Working through the Change” “Attaining and Sustaining Improvement” Stages of change management “Coming to Grips with the Problem”

7. Mind-set (Thinking/ Understanding) Motivation (Emotional/Intuitive Dynamics) Behavior (Capability) Breaking the Conventional Mind-set and Generating a Picture of the Future Dealing with Reactions to Loss and Creating the Will to Succeed Changing Behavior and Developing Competency and Capability Strategy/change implementation Arenas of Change Stages of Change Management 1. “Coming to Grips with the Problem” 2. “Working through the Change” “Attaining and Sustaining Improvement” 3.

8. Leading Others Through Change 1. Identify (roughly) the stage person/group is in. 2. Determine obstacles/arenas: a. Head b. Heart c. Hands d. All of the above 3. Use tools to move through obstacles. • May need several simultaneously. 4. Recognize and acknowledge steps forward. 5. Cycle back to Step 1.

9. The technology of leading sustainable change Arenas of Change Mind-set (Thinking/ Understanding) Behavior (Capability) Motivation (Emotional/Intuitive Dynamics) Stages of Change Management • Gather data to convince you/others that old way no longer works. • Confront myths, assumptions, & beliefs that prevent seeing problem & changing. • Increase dissatisfaction with old ways. • Increase confidence that change is achievable. • Outline costs of old way & benefits of new way. • Form team to gather data. • Have management talk about data & need for change. • Assess individual readiness to change. • Identify specific behaviors to change. Stage One: “Coming to Grips with the Problem”

10. The technology of leading sustainable change Arenas of Change Mind-set (Thinking/ Understanding) Motivation (Emotional/Intuitive Dynamics) Behavior (Capability) Stages of Change Management • Hold “reality check” meetings to work through the threats, losses, and resistance. • Work through the leaders’ emotion/resistance first. • Use individual gain/loss analysis as as tool. • Discuss how to manage stress. Be supportive of one another. • Develop a new profile of leadership success. • Evaluate the top levels of management in stores. • Involve employees in building change plans. • Reward successes; expect & learn from mistakes. • Drive individual behavior change. • Create a vision of the future & articulate the new mind-set. • Help people understand both the big picture & the details. • Communicate the purpose & benefits broadly. • Help people make the link between solving today’s issues & the new plan. Stage Two: “Workingthrough theChange”

11. The technology of leading sustainable change Arenas of Change Mind-set (Thinking/ Understanding) Motivation (Emotional/Intuitive Dynamics) Behavior (Capability) Stages of Change Management • Celebrate & reward successes. • Deal with people who will not change. • Establish two-way communication. • Involve people for buy-in. • Continue to support each other in managing stress & change. • Make sure systems & rewards reinforce desired behaviors. • Train incoming people in the new behaviors. • Coach, give feedback, & reinforce new behavior. • Deal with people who cannot change. • Continually update vision of desired future & teamwork. • Create forum for feedback & continuous learning. • Continue to articulate why’s & benefits. Stage Three: “Attaining & Sustaining Improvement

12. Addressing mind-set • Build relationships. • Explain the purpose of change. Help them understand & teach concept. • Articulate the benefits. • Link daily activities to their higher purpose & benefits. • Repetition: Provide frequent & consistent communication about change & what’s needed. • Paint a picture of the successful future using best practices.

13. Addressing behaviors • Model desired behaviors & attitudes. • Clearly define desired behaviors & behaviors that need to change. • Give feedback frequently to reinforce changed behavior & correct wrong behavior. • Coach & teach desired behavior.

14. Addressing behaviors • Identify training needs & communicate upwards. • Create goals to work toward: a vision of success. • Help people create specific, concrete behavior-change plans as needed. • Communicate in multiple forms.

15. Summary • You have to be comfortable with the change before you can get others to change. • People can’t (or don’t want to) change when they don’t understand. • What, why, how, WIIFM. • You can’t intervene until you understand the situation. • Resistance is part of the change process. • Work with it. • Address change at all levels to be successful. • Sustainable change occurs in steps. • Define your priorities. Don’t take on too much at once.

16. Models of Change Management

17. The Big 3 Models • Lewin’s Change Management Model • McKinsey 7-S Model • 3. Kotter’s 8 Step Change

18. There are Other Models • Ten commandements (Kanter, Stein and Jick 1992) • Ten Keys (Pendlebury, Grouard, and Meston 1998) • 12 Action Steps (Nadler 1998) • Transformation Trajectory (Taffinfer 1998) • Nine-Phase Change Process Model (Anderson & Anderson 2001) • Step-by-Step Change Model (Kirkpatrick 2001) • 12 Step Framework (Mento, Jones and Dirndorfer 2002) • RAND’s Six Steps (Light 2005) • Integrated Model (Leppitt 2006)

19. Kurt Lewin’s Model • 1. Unfreeze – Most people make an active effort to resist change.In order to overcome this tendency, a period of thawing or unfreezing must be initiated through motivation. • 2. Transition – Once change is initiated, the company moves into a transition period, which may last for some time. Adequate leadership and reassurance is necessary for the process to be successful. • 3. Refreeze – After change has been accepted and successfully implemented, the company becomes stable again, and staff refreezes as they operate under the new guidelines.

20. McKinsey 7-S Model 1. Shared Values 2. Strategy 3. Structure 4. Systems 5. Style 6. Staff 7. Skills

21. Kotter’s 8 Step Change Model • Establish the need for urgency • Ensure there is a powerful change group to guide the change • Develop a vision • Communicate the vision • Empower the staff • Ensure there are short-term wins • Consolidate gains • Embed the change in the culture

22. Your Textbook embraces some of all Three Models……