Strategic Change

1. Strategic Change Drs. Suhartono MBA., MA . PhD (cand) Source: Shein (2011)

2. Process Models of Organization Change

5. Strategic Change:The Paradox of Revolution and Evolution DISCONTINUOUS CHANGE CONTINUOUS CHANGE Emphasis on Revolution over evolution Evolution over revolution Strategic change as Disruptive innovation/turnaround Uninterrupted improvement Change process Creative destruction Organic adaptation Change magnitude Radical, comprehensive, dramatic Moderate, piecemeal, undramatic Pace of change Abrupt, unsteady, intermittent Gradual, steady, constant Change requires Sudden break with status quo Permanent learning and flexibility Environmental jolts Trigger shock therapy Require continuous adjustment Change pattern Punctuated equilibrium (Equilib Gradual development is not the ends)

6. Successful Change Change Management Effectiveness Post Implementation InkorporasiRefreezing Implementation Implementasi Moving Concept & Design Inisiasi Unfreezing Bus Need Awareness Desire Knowledge Ability Reinforcement

7. Resistance to Change (Connor, 1995) • Lack of Trust: distrust of the people who propose it. • Belief that change is unnecessary: if the current way of doing things has been successful in the past and there is no clear evidence of serious problems that require major change. • Belief that the change is not feasible: It seems unlikely to succeed. • Economic threats; personal loss of income, benefit, or job security. • Relative high cost: cost higher than benefit. • Fear of personal failure: some expertise obsolete and new ones that may prove too difficult to master. • Loss of status and power: shift in relative power and status of individual and subunits. • Threat to values and ideals: inconsistent with strong values and ideals. • Resentment of interference: do not want to be controlled by others.

8. Reactions To Change • Denial • Confusion • Loss • Anger “People fear the uncertainties of change. The slightest suggestion that things won’t stay the same can cause panic…but the real problem isn’t the change…it’s people’s reaction to that change.” -Dr. Alan Zimmerman

9. Individual Perception and Changes (Satier Model) Integration DENIAL COMMITMENT Pemungkiran Understanding KINERJA Shock Experimentation Frustasi Acceptance RESISTANCE EXPLORATION WAKTU

10. Mengenali Fase Perubahan Persepsi • Denial • Tidak percaya • Apatis • Tidak peka • Ada aktivitas tapi tidak ada kelanjutan • Resistance • Kemarahan • Depresi • Pembangkangan • Menyalahkan • Absen • Exploration • Berambisi • Over preparation (banyak rencana) • Kebingungan mengenai prioritas • Tidak terkoordinasi, bekerja sendiri-sendiri. • Commitment • Fokus pada hasil • Paham benar mengenai langkah apa selanjutnya • Ada kepuasan kerja • Bersiap dengan perubahan lebih lanjut • Percaya-diri ata kemampuan beradaptasi atas perubahan.

11. Prinsip • Acting better than planning (tindak lanjut lebih membuktikan dari pada rencana). Perbaiki Kesiapan Berubah dan Pakailah cara Komunikasi sesuai perkembangan Persepsi Karyawan dalam setiap tahapan berubah. • Think Big, Start Small, Act Now (Bergagasan besar, dan segera mulai dari yang bisa dikerjakan walaupun kecil). • Mulai dengan antusias sejak awal. Ajak staff yang antusias di awal implementasi. • Jangan mengharap semua langsung berubah pada saat inisiasi. • Berikan bantuan dan dukungan setelah inisiasi. • Berikan penghargaan / pujian untuk setiap langkah keberhasilan walau itu langkah yang (masih) kecil.

12. DENIAL COMMITMENT Tell Ask Ask Tell RESISTANCE EXPLORATION Komunikasi dan Perubahan

13. Denial - Tell • Confront: Hadapkan pada kenyataan mengenai adanya tuntutan perubahan. • Explain: Jelaskan alasan keharusan berubah. • Explore: Gali perubahan sikap dan perilaku apa yang diperlukan. • Show: tunjukan sikap dan perilaku apa yang harus lakukan. • Allow: berikan waktu untuk mencerna dan merasakan perubahan yang dibutuhkan.

14. Resistance - Ask • Listen: dengarkan apa yang menjadi keprihatinan dan kekawatiran staff dan tawarkan support. • Acknowledge: Maklumi perasaan dan kegundahan. • Allow: dengarkan dan lapangkan dada untuk menerima komplain. • Support: ikutlah berempati atas suatu kerugian atas perubahan yang terjadi. • Bersegera: menanggapi sesuatu hasil dari usaha berubah, walau sekecil apa pun.

15. Exploration - Tell • Konsentrasi pada prioritas perubahan. • Fokuskan pada setiap tahap prioritas. • Tentukan ukuran keberhasilan untuk setiap prioritas. • Pandu, latih, dan dampingi langkah-langkah berubah. • Mulai mengaktifkan pembentukan tim kerjasama.

16. Commitment - Ask • Akui dan rayakan sukses yang dicapai oleh seseorang atau tim, berikan penghargaan (tidak harus materi) untuk setiap kemajuan dan keberhasilah. • Umpan Balik: diberikan sepanjang perubahan sedang berjalan. • Rencana ke depan berbagai kemungkinan perubahan berikutnya. • Membangun kerjasama tim yang telah ada agar lebih solid dan lebih kuat lagi.

17. DENIAL COMMITMENT Tell Ask Ask Tell RESISTANCE EXPLORATION Komunikasi dalam Perubahan Berurut, Jangan Meloncat

18. BerapabanyakdariAndadisinisebetulnya yang TAKUT dengan PERUBAHAN? Kalauadamerasa takutdenganperubahan TOLONG ACUNGKAN TANGAN

19. Berapabanyakmenurutanda ORANG-ORANG diluarsana yang takutdenganperubahan? Kalauandapikirbanyakorang lain takut (denganperubahan), TOLONG ACUNGKAN TANGAN

20. Faktaapakah yang berbicaramengenai ‘pengakuan’ tadi? Kebanyakan dari kita takut pada perubahan. Bahkan ketakutan itu lebih besar dari pada apa yang kita ingin akui terhadap diri sendiri.

21. Kita sering lupa melihat diri sendiri pada saat melihat ‘banyak orang’ Apa yang kita persepsikan mengenai kebanyakan orang, sebenarnya merupakan reflek-pikir (mirroring) bahwa kita sendiri seperti yang kita pikirkan mengenai orang-orang lain tersebut.

22. “Perhaps the only person who likes change is a wet baby.” Anonymous

23. Based on the #1 Bestselling Business Book

24. Understanding Through Animation Who Moved My Cheese? The Movie

25. SNIFF? Who can smell change in the air.

26. SCURRY? Who goes into action immediately.

27. HEM? Who does not want to change. “It’s Not Fair!”

28. HAW? Who is startled by change, but then laughs at himself, changes and moves on to enjoy New Cheese.

29. The Sniff, Scurry, Hem & Haw Parts of Ourselves We may have a little bit of each of these characters in us—which we can use to help us deal with change.

30. Social Change Diffusion of Innovations Source: Rogers, Everett M. Diffusion of Innovations, Fifth Edition. NY: Free Press.

31. Social Change • Adopter Categories • People and organizations typically can be classified according to the timing of their adoption of new innovations. • Innovators: Adventuresome, high risk. • Early adopters: Thoughtful, early adoption. • Early majority: The first to follow the lead of opinion leaders. • Late majority: Responding to pressure to adopt. • Laggards: Do not adopt for a variety of reasons.

32. Social Change

34. Social Change Definitions An innovation is an idea, practice, or object that is perceived as new. What might seem familiar to some is new to others. Innovations can be material or nonmaterial. Diffusion is a process whereby an: (1) innovation is (2) communicated through certain channels (3) over time (4) within social systems. Creating social change requires: (1) a flexible political system (democracy), (2) a willingness to change by people, and (3) a process of mobilizing resources for change.

35. Social Change • The Innovation-Decision Process • People and organizations typically follow a predictable process of steps in adopting innovations. • Knowledge: Information acquisition. • Persuasion: Evaluation of information based upon the opinions of others. • Decision: The acceptance of the innovation as a good idea. • Implementation: Trying out the innovation. • Confirmation: Deciding to permanently adopt the innovation.

36. Two-Step Flow of Communication and Adopter Categories Early Adopters Scurry Early Majority Haw Innovators Sniffy Potential target audiences Opinion leader(s) Opinion recipient 1 Opinion recipient 2 Opinion recipient 3 Company Message

37. Characteristics of Opinion Leadersin contrast with their followers • More like, than unlike, their followers • More technically competent • More socially accessible • More cosmopolitan • More innovative (receptive to change) • Higher media exposure (more informed) • Higher social status • More conformist with social norms and values

38. Social Change • The Keys to Gaining Adoption of Innovations. • Education (information dissemination) is a necessary, but not sufficient factor of adoption. • People are understandably skeptical at first. • Opponents will disseminate negative information. • Negative information carries disproportionate weight in the short run. • Persuasion by opinion leaders can overcome skepticism and the negative inputs of opponents. • Opinion leaders are respected, outside agencies with no perceived vested interest in the innovation.

39. Social Change • The Diffusion Effect. • Persuasion by Opinion Leaders. • Opinion leader adoption deems the innovation as “ok.” • The new idea/practice becomes socially acceptable. • Persuasion by Group Influence. • As more and more persons adopt, social pressure builds for others to adopt. • What once was “deviant” becomes “expected.”

40. Model of Transformational LeadershipBass (1985) TL motivates followers beyond the expected by: • raising consciousness about the value and importance of specific and idealized goals • transcending self-interest for the good of the team or organization • addressing higher-level needs

41. Transformational Leadership Factors • Leaders who exhibit TL: • have a strong set of internal values & ideals • are effective in motivating followers to support greater good over self-interest

42. Full Range of Leadership Model

43. Additive Effect of Transformational Leadership

44. Guidelines for Transformational Leadership (Yukl) • Articulate a clear and appealing vision. • Explain how the vision can be attained. • Act confident and optimistic. • Express confidence in followers. • Use dramatic, symbolic actions to emphasize key values. • Lead by example. • Empower people to achieve the vision.

45. Early Warning System

46. The dynamics of change‘paradigm’ Development of strategy Corporate performance Implementation The paradigm if unsatisfactory Step 1 Tighter control Step 2 Reconstruct or develop new strategy Step 3 Abandon paradigm and adopt a new one

47. Early Warning Signs • Early Warning Signs • In order to prevent these internal and external causes of distressfrom festering until it is too late, effective management teamsmust proactively look for potential challenges, because the soonerthey are identified, the greater the likelihood that managementcan address them successfully. • Companies should remain vigilantby using four major analyses: • management analysis, • trend analysis, • industry analysis, and • diagnostic and prediction models.

48. Management Analysis • Management Analysis • As the most common cause of internal distress, it should come asno surprise that management of a struggling company should besubject to a rigorous analysis to determine whether it has thepersonnel and skills in place to handle challenges.

49. Trend Analysis • One of the best ways to determine whether a company is headingfor trouble is to analyze the trends in its operating and financialperformance. • In postwar Japan, Dr. W. Edwards Deming usedtrend analysis as a way to help then - struggling Japanese car manufacturersproduce high - qualityproducts, with the key observationthat a trend is often more important than the actual numbers.

50. Sara Lee