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Organizational Change Part I. Learning goals. Why is change so difficult? What are some keys to organizational change? What is the role of management in organizational change? Developing strategies for change We will be revisiting the readings. Its all related. Difficulty of Change.
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Learning goals Why is change so difficult? What are some keys to organizational change? What is the role of management in organizational change? Developing strategies for change We will be revisiting the readings. Its all related.
Difficulty of Change • Soft facts • Guesstimates of success. 2/3 fail. • 50% fail and another 30% partially fail. • These are significant changes. Changes that often require a restructuring of the work flow or work procedures. • Examples of change from the class of those who worked.
The larger the change and the more people it affects, the more difficult the change (hard side of change management). • So as you move up the organizations and become more successful change efforts become more difficult. Take longer and more people.
Why important • Leadership vs administration. • Leadership Captain of the ship. Chart directions and be certain you get the directions even if winds blow you off course. • Administration. Tell me what to do and I will be certain my people do what is expected.
Which is more related to change? • You will do both. But which is more important. Which determines who gets ahead and succeeds? • Why?
Nothing More difficult than Organizational Change Management • Dean’s Advisory Council. What do they wish they had more about?
Focus of this part of Course • The Art of Change Management • Its not a science. DICE gives insight. But what does it all mean in terms of practice? • Even the DICE article talks about using the system to deal with differences in DICE numbers. Its all perceptual.
What can I do? • Get you to start think along these ideas. • Cases • Discussion • Ideas.
Up to you to start applying these ideas with other cases in other courses. • Practice. • Change management is so different than cases though. Dealing with real people.
After reading the articles • What makes organizational change so difficult? • Never directly addressed (list of problems) • Lots of issues.
A general Framework • Three steps. • Unfreezing—motivating people to accept the change. • Changing—putting the change into place with minimal difficulties to all parties. • Refreezing—getting people to follow new behaviors, norms, and procedures that support that change.
Examples of Each from the readings. Lets add Jack Welch
What are the common elements of these readings? • How do they differ in terms of the general model?
Siemans • To what extent did Pierer follow the model in transforming Siemans. • What has happened to the company recently? • What does this mean in terms of all these efforts?
Difference between top down and bottom up change. • Top down is strategic driven. Efforts need to be made to get support of those below you and affected by the change. (DICE) • Entails communication and huge need for unfreezing (unless system is broken).
Bottom up • Problem driven change. Employees feel the need to change. Usually smaller in scope. Need to get top management support. Relatively slow moving. • How does it happen. Usually in Committees. • Are people empowered to give bottom up change.
At GE • Is Bottom up or top down change more common. • How does GE do both. • Siemans?????
Critique • Of Jack’s approach to change? • DICE model • Campaigning for change. • Summarize them.
Summary and my opinions • Organizational Change: Two elements. • One is logistics. Relatively easy but sometimes forgotten side. • The other is people. People and resistance to change pose the greatest challenges.
Tendency to believe that, I am the boss and people do as expected Or Assume that everyone is on board (because no one ever tells the upper manager to get lost). Leads to passive or passive aggressive resistance to change.
What not to do. • Harder to tell what to do. DICE is a step in that direction. • I believe unfreezing is critical and refreezing is critical. All too often refreezing is ignored. Its tough. • How does Texaco go from a class action discrimination law suit to best diversity employer in 5 years? Largely through refreezing.