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Cost Effective Change Management

Cost Effective Change Management. Thursday, June 16, 2011 Mr. Shahnawaz khan Trainer SEEKERS INTERNATIONAL WWW.seekersintl.com. What was advertised.

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Cost Effective Change Management

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  1. Cost Effective Change Management Thursday, June 16, 2011 Mr. Shahnawaz khan Trainer SEEKERS INTERNATIONAL WWW.seekersintl.com

  2. What was advertised • This session will discuss why change management needs to be a key competency for people and organization, and will share some tips regarding how to improve the practice of change management in your work. • All of us desire to see improvement in our lives and in our society. In our workplaces, the pace of change is accelerating.  This can often bring about major enhancements to our lives. Many changes, from email to cell phones, from employee empowerment to Lean Six Sigma, have altered our workplaces dramatically, and forever. Managing change, and managing it well, is becoming one of the most critical competencies for any organization. • This session has 2 dimensions • 1. organizations wants to bring change to be more competitive and effective • 2. The organization is SME and their sole purpose of bringing change is safeguard expenses

  3. Today’s Discussion • Let’s diagnose this Situation • Do some introspection • Discuss • Some ideas – won’t necessarily have all of the right answers • And, develop action plans for ourselves to move from thought to results

  4. Takeaways • Key points you agree with • Key points you don’t • What are YOU going to do

  5. Let’s start!

  6. Food for Thought • Imagination is better then knowledge

  7. “Everyone thinks of changing the world, but no one thinks of changing himself.” - Leo Tolstoy

  8. A question for you:What is Change management?

  9. Change is the only constant thing • Organizational change is the movement of an organization from the existing plateau toward a desired future state in order to increase organizational efficiency and effectiveness (Cummings and Worley, 2005; George and Jones, 2002). The process, tools and techniques manage the people-side of change to achieve the required business outcome

  10. Cost and Cost Effectiveness • Cost is expense consumed to produce RESULT All costs are the result of some decision or activity Cost is a function of the amount of resource consumed and the price per unit of the resource

  11. Change Revolves around 3 areas 1.Change PEOPLE • Mentality • Attitude / Behavior • Expectation • Perception • Resistance

  12. Managing change: people My organization is good at managing the “people” side of change initiatives.” Almost 1/2 disagreed

  13. Causes of resistance • Employees: • Not aware of the business need for change • Lay-offs were announced or feared • Unsure if they had the skills needed for success in the future state • Comfort with the current state • Believed they were being asked to do more with less, or do more for the same pay • Managers: • Loss of power and control • Overloaded with current responsibilities • Lacked awareness of the need for change • Lacked the required skills • Fear, uncertainty and doubt

  14. Techniques to reduce resistance • 1. Communicate and educate your employees the logic of change • 2. Participation • 3. Facilitation and support • 4. Negotiation • 5 Manipulation and Cooptation “using a threat with no intentions just to get an advantage Buy off the leaders of resistance group by giving them a key role in change decision

  15. 2.Change Structure • Complexity • Centralization • Redesign • How authority and responsibility is distributed across the organization. Authority pattern in organization shows who reports whom and who is answerable and accountable to whom. Departmentation or task grouping, hierarchy layers, span of control and the extent of formalization (bureaucratic or participative one).

  16. 3.Induction of Technology • Work process • Methods • Equipments Technology is considered the engine of growth in today’s world. Perhaps the greatest challenge for contemporary organizations is the acquisition and integration of technology in its strategy, structure and process.

  17. WHY CHANGE • Economic conditions change as they are impacted by organizational failures, terrorist attacks, natural disasters, etc. • Consumer behavior changes, e.g., children use computers at a very early age • Suppliers fail as big customers force them to lower prices or as other changes impact them e.g., Mattel toys manufactured in China containing lead

  18. Employee unions strike as organizational leaders give themselves bigger bonuses salaries and ask for concessions from unions • Violence spills over from society to the work place and schools. Children and adults are injured and/or • Natural disasters occur throughout the world and individuals, organizations and nations try to respond to the impact of hurricanes, earthquakes, tornadoes, tsunamis, fires and floods

  19. Revised Objective/s • Once objective revised the whole Scenario changed

  20. Process Transformation input to out put. For e.g. production process means conversion of raw material to finished goods. Total Quality Management (TQM) working with in the system Business Process Restructuring (BPR) working on the system’. Similarly in context of organization there are other processes such as decision making, objective setting, communicating, controlling & coordinating

  21. Culture • Values, beliefs and mind-set of a manager at work “Corporate Culture” • Cognitive style (thought process), Personality, Behavior • Individualism - Collectivism • Masculinity - Feminism • Power Distance - Low or High • Uncertainty Avoidance - Low or High • Time orientation - Low or High • Organization Politics • Changes have political consequences • Change disturbs power-distribution in organization • Managers have interests & groupings • Therefore power may enable or resist change.

  22. External Environment • Social and cultural Issues

  23. Political Issues • Political Impacts

  24. Government policies • Monitory & Fiscal Policies

  25. Legal System • Impacts

  26. Economical Condition • Impact of Economy

  27. Consumer Behavior • Impacts

  28. Globalization • Impacts

  29. Types of Change • Natural Evolutionary Change • Planned & Managed Change • Unplanned Revolutionary Change

  30. Food for Thought The “changers” or the change agents may be “living” in the future state, while everyone else “the changees” are living in the present state

  31. Three Phases of Change: How people experience change Current State Transition State Future State

  32. Current State • Employees (including management and executives!) generally prefer the current state, because that is where they live Current State Transition State Future State “better the devil you know is better than the devil you don’t”

  33. Future State • The future state is unknown to the employee; will it be better, or worse? • This is where Project teams “live” Current State Transition State Future State

  34. Transition State • The transition state creates stress and anxiety Current State Transition State Future State

  35. LOUD THINKINGEffective change management MUST be focused on helping individuals change

  36. Successful change addresses both the technical and the people side Solution is designed, developed and delivered effectively(Technical side) + Solution is embraced, adopted and utilized effectively(People side) = CHANGE SUCCESS Individual PEOPLE change, NOT organizations

  37. Individual change management it theCenterpiece of success The secret to successful change lies beyond the visible and busy activities that surround change. Successful change, at its core, is rooted in something much simpler: How to facilitate change with one person. From ADKAR: a model for change by Jeff Hiatt

  38. Effective change management requires two perspectives Individual perspective • How does one person makes a change successfully? Organizational perspective • What tools we** have to help individuals make changes successfully? ** “we” means project leaders and team members, HR, OD, training, communications, managers, supervisors

  39. The focus of Change management is on helping individualsmake their own personal transition Organizational “The change” to how we do business Individual How I do my job today From: How I will do my job after the change is implemented To: 39

  40. Individual change is a process

  41. The five building blocks of successful individual change

  42. ADKAR • Awareness of the need for change (why). • Desire to support and participate in the change (our choice). • Knowledge about how to change (the learning process). • Ability to implement the change (turning knowledge into action). • Reinforcement to sustain the change (celebrating success).

  43. Employees have preferred sendersof change messages Top-level executives and senior leaderswhen the message pertains to the business need for change and alignment of the change with the organization's overall direction. Employees’ immediate supervisors for messages that pertain to the individual impact resulting from the change (discussing 'what's in it for me' with each employee). 44

  44. Communication checklist

  45. Not Everyone Changes at the Same Pace Awareness Desire Knowledge Ability Reinforcement Person A Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person B Person B Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person C Person C Person D Person D Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person E Person E Awareness Awareness Awareness Awareness Desire Desire Desire Desire Knowledge Knowledge Knowledge Knowledge Ability Ability Ability Ability Reinforcement Reinforcement Reinforcement Reinforcement Person F Person F Person F Person F Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person G Person G Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person H Person H Awareness Awareness Desire Desire Knowledge Knowledge Ability Ability Reinforcement Reinforcement Person I Person I Address the needs of each INDIVIDUAL

  46. Employee Employee A A D D K K A A R R Notes/actions Notes/actions A A 4 4 5 5 2 2 2 2 4 4 B B 4 4 1 1 4 4 3 3 4 4 C 2 2 2 2 3 3 3 3 4 4 D 5 5 1 1 4 4 2 2 3 3 Recommendation: Create a Change Management Profile for Each Employee Needs knowledge Low desire Questionable desire

  47. These channels enable Effective change management Some Key Change Management Tools Communications Sponsor Roadmap Training Readiness / Resistance Mgt. Coaching

  48. Mapping the tools to the personal change elements (ADKAR) Communications Awareness Awareness These channels enable project team to facilitate organization through phases of ADKAR. Sponsor Roadmap Desire Desire Training Knowledge Knowledge Ability Ability Readiness / Resistance Mgt. Reinforcement Reinforcement Coaching

  49. Use the right tools, in right place Communications Sponsor Roadmap Training Readiness / Resistance Mgt. Coaching

  50. we need the right people involved and engaged in the right ways

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