Change Management

1. Change Management Managerial Policy

2. Sir Sulaman Hafiz Saddiqi Presented To

3. Presented By • Shahraiz A Abbasi 227 • Saad Saleem 236 • Wajeha Khalil 247 • Zartasha Batool 249

4. Presentation Outline • What is Change & Organizational Change? • Change Management • Principles of Change Management • Why Do Employees Resist Change? • Cultural Aspects of Systematic Change Management

5. Change Webster's Ninth New Collegiate Dictionary: "Change" : • to make different in some particular • to make radically different • to give a different position, course, or direction to • to replace with another • to make a shift from one to another • to exchange for an equivalent sum or comparable item • to undergo a modification of • to undergo transformation, transition or substitution

6. DEFINITION A move from one state to another, which is visible on the outside and of a relatively lasting nature Any relatively lasting modification within a sub-system of an organization, provided that the modification is visible to its members or the people involved with the system PROCESS Unfreezing Changing Refreezing Organizational Change

7. Phases of Change • Phase 1: Unfreezing Make the organization and people ready for the change • Phase 2: Movement/Changing Realize the change • Phase 3: Refreezing Make sure the change will become ‘business as usual’

8. WHY CHANGE? • Fact of life • Environmental factors – • Government, university, social • The Boss wants it • Things could be better

9. CHANGE MANAGEMENT Webster's Ninth New Collegiate Dictionary: "Manage“ • to handle or direct with a degree of skill or address • to treat with care • to exercise executive, administrative and supervisory direction of

10. CHANGE MANAGEMENT • Change management is not a stand-alone process for designing a business solution. • Change management is the processes, tools and techniques for managing the people-side of change. • Change management is not a process improvement method. • Change management is a method for reducing and managing resistance to change when implementing process, technology or organizational change.

11. CHANGE MANAGEMENT • Change management is not a stand-alone technique for improving organizational performance. • Change management is a necessary component for any organizational performance improvement process to succeed, including programs like: Six Sigma, Business Process Reengineering, Total Quality Management, Organizational Development, Restructuring and continuous process improvement. • Change management is about managing change to realize business results.

12. CHANGE MANAGEMENT Change Management is the process of developing a planned approach to change in an organization. The objective is to maximize the collective benefits for all people involved in the change and minimize the risk of failure of implementing the change. It is a procedure to ensure that proposed changes are merited and will not adversely affect other elements of the plan or interdependent plans. Change must be realistic, achievable and measurable.

13. Importance of Change Management Change management plays an important role in any organization since the task of managing change is not an easy one. When we say managing change we mean to say that making changes in a planned and systemic fashion. With reference to the IT projects we can say the change in the versions of a project and managing these versions properly. Changes in the organization or a project can be initiated from within the organization or externally. For example a product that is popular among the customers may undergo a change in design based on the triggering factor like a competitive product from some other manufacturer. This is an example of external factor that triggers a change within the organization.

14. A CHANGE MANAGEMENT SYSTEM • Is a structured process that will cause proposed changes to be reviewed for technical and business readiness in a consistent manner that can be relaxed or tightened to adjust to business needs and experiences. • Could involve a database to help staff make better decisions about future changes based on historical data such as success or failure of similar changes. • Is a structured process that will communicate the status and existence of changes to all affected parties. • Could yield an inventory system that indicates what and when actions were taken that affected status of key resources, as an aid in problem determination or resource management.

15. 4 WAYS OF CHANGING RESTRUCTURING RESOURCING Make it different benchmarking continuous improvement TYPES OF CHANGE REALIZING REDEPLOYING Control/accountability new client offer

16. What is the organizational culture The culture of a group is a pattern of shared basic assumptions that the group learned as it solved problems … that has worked well enough to be considered valid, and therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.

17. Changing Culture You cannot create a new culture. You can immerse yourself in studying a culture ... Until you understand it. Then you can propose new values, introduce new ways of doing things, and articulate new governing ideas. Over time, these actions will set the stage for new behavior. If people who adopt the new behavior feel that it helps them ... The organizational culture may embody a different set of assumptions, and a different way of looking at things ...” Edgar Schein, in Senge, Peter, The Dance of Change

18. When your organization is changing? Nature of the Change Resistance to Change Organization’s Culture Leadership for Change Change Dynamics Keep these factors in perspective

19. Understand the Nature of Change Organization Culture Basic underlying assumptions Espoused values, interests, or goals Structure or composition of the organization Rules or procedures for the organization Individuals The Employees’ Values or Interests Adjusted The Employees’ Skills for future have been strengthened The Employees’ Relationship is Mended or Strengthened This Specific Change Has Achieved Acceptable Resolution

20. DEFINITION Implicit or explicit expression of defensive reactions to the change SIGNIFICANCE Resistance contains information which needs to be deciphered; The intensity of the resistance reveals: The degree of openness to change Where the person is sensitive Systemic factors or neglected impacts RESISTANCE

21. -Planning the change project -Sharing the vision and purpose of the project -Communicating urgency -Highlighting the benefits for those concerned 1 -Listening to resistance -Understanding resistance -Fine-tuning, aligning and adjusting where necessary -Acting promptly -Giving people responsibility -Involving people as quickly as possible 2 -Acknowledging and celebrating success -Consolidating gains -Keeping the end result in sight -Balance between demands and support 4 -Being a reference point -Training, assisting, providing support -Allowing people to make mistakes -Planning quick victories 3 ROLE OF MANAGEMENT

22. THE DYNAMICS OF CHANGE Pressures Involvement Calling into question Integration InformingRecognizing 12 The unknown Experimentation Insecurity Supporting ListeningGiving feedback 3 4 (point of inflexion)

23. Leadership • Leadership!!!! • Leadership takes place every day. It cannot be the responsibility of the few, a rare event, or a once-in-a-lifetime opportunity.” Heifetz, Ronald and Donald Laurie, “The Work of Leadership,” • Leadership is too important to be left in the hands of the few people near the top of the organizational hierarchy.

24. Attributes of Effective Leaders • Inner drive/energy: necessary to initiate and sustain leadership of change over extended periods of time. • Intellectual capacity: necessary to listen to input from diverse sources and synthesize vision and strategy • Integrity: necessary to synthesize vision and strategy that benefits the organization first and the individual second • Mental/emotion health: necessary for self-confidence and interpersonal skills Kotter, John P., A Force for Change: How Leadership Differs From Management

25. Change is hard work. Leadership begins with values Intellectual leads physical Real changes takes real change Leadership is a team sport Expect to be surprised Today competes with tomorrow Better is better Focus on the future Learning from doing Grow people Reflect Leadership for Change Sullivan and Harper, Hope is not a Method

26. MANAGING CHANGE Successful change Post implementation Implementation Concepts & Design Business needs For organization Awareness Desire Knowledge Ability Reinforcement Phases of change For employees

28. “It’s raining outside”

29. Change Integration Model (Personal Cycle)

30. Change Integration Model (Personal Cycle)

31. 8-phase model for changes- Kotter 1. Create sense of urgency 2. Form leading coalition 3. Develop a vision and strategy 4. Communicate the change vision 5. Create commitment for action by ‘empowering’ employees 6. Generate short term results 7. Consolidate improvements and implement more changes 8. Anchor new way of working in the culture of the organization Make sure you pay attention to each phase!

32. Changing in 5 colors – de Caluwé

33. People/Things will change , if you…

34. 10 Principals of Change Management • Address the “human side” systematically • Start at the top • Involve every layer • Make the formal case • Create ownership • Communicate the massage • Access the cultural landscape • Address cultural explicitly • Prepare for the unexpected • Speak to the individual

35. Why Do Employees Resist Change? PAUL STREBEL

36. Introduction • Organization have personal compacts with their employees. • Change efforts will fail unless those compacts are revised.

37. Change management isn't working as it should. • Company leaders talk about total quality management downsizing, or customer value. Determined managers follow up with plans for process improvements in cus­tomer service, manufacturing, and supply chain man­agement» and for new organizations to fit the new pro­cesses. From subordinates, management looks for enthusiasm, acceptance, and commitment. Bui it gets something less.

38. Top-level managers see change as an opportunity to strengthen the business by aligning operations with strategy, to take on new pro­fessional challenges and risks, and to advance their careers. • Senior managers consistently misjudge the effect of this gap on their relationships with subordinates and on the effort required to win acceptance of change.

39. What Is a Personal Compact? • Employees and organizations have reciprocal obliga­tions and mutual commitments, both stated and implied, that define their relationship. • Unless managers define new terms and persuade employees to accept them, it: is unrealistic for managers to expect employees fully to buy into changes that alter the status quo.

40. Moreover, I have identified three major dimensions shared by compacts in all companies. These common dimensions are formal psy­chological, and social. • Formal: • From an employee's point of view, per­sonal commitment to the organization comes from understanding the answers to the following series of questions:

41. What am I supposed to do for the organization? • What help will I get to do the job? • How and when will my performance be evaluated, and what form will the feedback take? • What will I be paid, and how will pay relate to myperformance evaluation?

42. Psychological: • Employees determine their commitment to the organization along the psychological dimension of their per­sonal compact by asking. • How hard will I really have to work? • What recognition, financial reward, or other personal satisfaction will I get for my efforts? • Are the rewards worth it?

43. Social: • Along the social dimension, an employee tries to answer these specific questions. • Are my values similar to those of others in the organi­zation? • What are the real rules that determine who gets whatin this company?

44. Unrevised Personal Compacts Block Change • At Philips Electronics, based in the Netherlands, employees failure to understand changing circumstances drove the organization to the brink of bankruptcy. • In the early 1980s, Philips's reputation for engi­neering excellence and financial strength was unpar­alleled, and it was a prestigious company to work for.

45. Orchestrating the Revision of Compacts • The revision of personal compacts occurs in three phases. • First, leaders draw attention to the need to change and establish the context for revising compacts. • Second, they initiate a process in which employees are able to revise and buy into new compact terms. • Finally, they lock in commitments with new formal and informal rules.

46. Culture and Personal Compacts • The extent to which personal compacts are written or oral varies with the organization's culture and, in many-cases, the company's home country. In general» the more homogeneous the culture, the more implicit the formal dimension of personal compacts is likely to be • Thesame is true along psychological and social dimensions in homogeneous environments, because employers and employees share similar perspec­tives and expectations.

47. Artical’s Summary • Through the study of this article we learned the following: • Employees often misunderstand or worse ignore the implications of change for their individual commitments to the company. • Personal commitments, binding agreements, and performance standards formed the basis for new compacts.

48. To accomplish strategic transformation, CEOs have to create a context for change. • The employees themselves would have to take the lead in designing the formal terms of their personal compacts. • Personal compacts will need to be more explicit as companies become truly multinational.

49. CULTURAL ASPECTS OF SYSTEMIC CHANGE MANAGEMENT Jeff Dooley

50. Introduction • A roadblock to successful implementation of structural change programs, such as TQM or re-engineering, is the vulnerability of such initiatives to powerful, yet poorly understood, cultural influences (Heilpern and Nadler, 1992). • Some change programs–especially TQM– go beyond building new work habits, roles, and responsibilities; they amount to a values-based organizational paradigm change (Shiba, Graham, Walden, 1993).