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“Change Management” A Workshop for SDFs. Facilitated by Theresa Oakley-Smith. “ T hings D o N ot C hange W e D o!”. T horeau .
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“Change Management”A Workshop for SDFs Facilitated by Theresa Oakley-Smith
“Things Do Not Change We Do!”. Thoreau
“The rate of change is not going to slow down anytime soon. If anything, competition in most industries will probably speed up even more in the next few decades”. John Kotter “Leading Change”
Drivers for change in South Africa • Global Economy • BEE • Employment Equity • Skills Development • Increased competition
“Most Change initiatives fail. Two independent studies carried out in the 1990s, one published by Arthur D Little, and one by McKinsey and co found that out of the hundreds of corporate Total Quality Management (TQM) programmes studied, about two thirds grind to a halt because of their failure to produce the hoped for results. Reengineering has fared no better… and even without knowing the statistics most of us know firsthand that change programmes fail… This failure to sustain significant change recurs again and again despite substantial resources committed to the change effort”. Peter Senge “The Dance of Change”
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 Denial Anger Bargaining Depression Acceptance STAGES OF COPING WITH CHANGE (source: Elizabeth Kubler Ross)
Common Mistakes in Change Management • Allowing too much complacency. • Failing to establish a guiding coalition • Underestimating the power of vision • Poor communication of the change process • Allowing obstacles to block the new vision • Failing to create short term wins • Declaring victory too soon • Neglecting to anchor change firmly in the organisational culture.
Consequences of Mistakes in Process • New strategies are not implemented well. • Acquisitions don’t achieve expected synergies. • Reengineering takes too long and costs too much. • Downsizing doesn’t control costs. • Quality programmes don’t deliver the hoped for results.
Role of the SDF in managing change • Commitment • Education • Monitoring • Assessment • Integration
SELF-ESTEEM CHANGES DURING TRANSITIONS 7. Internalization 2. Disbelief 6. Search for meaning (rational) • Immobilization • (shock/frozen) SELF-ESTEEM LEVELS 5. Testing (new behaviours, new lifestyle) 3. Depression 4. Acceptance of reality ( letting go) Beginning of change transition TIME (source: Liz Clarke “The Essence of Change”)
THEPRODUCTIVITY CURVE Productivity Increases Previous Situation Productivity returns to previous levels PRODUCTIVITY Change TIME (source: Liz Clarke “The Essence of Change”)
Dealing with Resistance to Change • Communicate • Something to lose • Incentivise • All play a part
Anchoring Change in our Organisations Culture • Change in culture comes last not first • It depends on results • It requires a lot of explanation • It may involve turnover of staff • It makes decisions on succession crucial
THE LONG DARK NIGHT OF THE INNOVATOR Massed Bands& Fireworks Optimism It Works! This is Taking Time Maybe Not A Bad Idea Results Aren’t Visible Attitude to the development activity Enthusiasm Start To See Pay-Offs Is It Worth It? Sceptical The long dark night of the innovator Existing Business is Suffering Pessimism Weeks or Months Time Up to 2 years (source: Liz Clarke “The Essence of Change”)