Change Management 1

Organisational change is not:
1) about personal change (leadership, psychology)

2) creating new organizations (entrepreneurship, innovation, enterprises)

Change management is on what is happening inside existing organizations and in their environment.

Is has something to do with organization.

Organisations are social entities formed to achieve collective goals.

Organisations perform tasks through routine processes thriving for efficiency.

Organizational change means permanently altering patterns of organizational behavior.

Change means permanently altering patterns

In companies are there ongoing organizational changes. (e.g. new managers, products, takeover, reductions, layoffs, loses)

1. Strategic drift – the internal and external environment of organizations changes constantly

2. Need to adapt – this poses threats to survival and opportunities to thrive, otherwise there survival is at stake.

Survival is the main point to creates change!

Organizational change is ubiquitous!

1. Shifting environment

2. Strategic renewal

3. Organizational change

JOHN KOTTER (1996) – “Leading Change” – only 30 % of transformation programs succeed.

According to McKinsey (2008) – Only one transformation in three succeeds.

Average Life expectancy for a company is 13 years (E. de Rooij)

To sum up 70 % of all organizational change projects fail

Even the largest and most successful companies only survive for about 40 years on the Fortune 500

Change means nothing more than the fact that something is to be done differently from the way it has been done until now.

The idea that change also produces resistance is actually quite trivial.

People are accustomed to situations and they “prefer security to the unsure, the rule to the exception, stability to instability and a situation which is structured to one which is unstructured.

Studies show that there are psychological mechanisms which are responsible for people holding on to routines and well-know methods and showing resistance to change.

Managers should be aware of this too, but they still forget that, when processes of change are to implemented, changes result in something new and unusual and often trigger fear.

Nevertheless, we still pretend that we can implement a new managerial concept, whatever it may be, with no problems at all, as long as we structure its content intelligently. And in the end we are absolutely amazed when nothing, or at best, very little, happens.