Change Management

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(Causing) Customers
• Demand for new products and services
• Changing trends
• Society expectations based old normality’s
(Causing) Competitors
• Changing strategy
• Competitive advantage
• Growth of rival firms present threats
(Causing) Technological Progressions
• Ecommerce and internet
o Changing the way business operate sell and market their products
• EBay and amazon
(Causing) Government
Legislation changes
(Causing) External Factors
• Fashion
• State of the economy
• Globalization
(Resisting) Self Interest
• Takes priority
(Resisting) Misunderstanding
Miscommunication
(Resisting) Different Assessment
• Managers disagree with workforce
(Resisting) Low Tolerance to Change
•Prefer familiarity
o Rather than disruptions
How to Plan organisational Change
– Change should not be pursued unless there is a clear set of goals
o Framework for planning change
• Why is it needed
• What are we hoping to achieve
• Who is affected
• How will we know the change is successful
Change Management and Business Strategy
– Effective change management → organizations future success
– Constantly must be changing and adapting to be competitive
CM Definitions
– Change management
“Management process of planning, forecasting, controlling and steering change within an organisation”
– Change Masters
o Skilled managers in the art of change management.
o Deal with change by adapting and reacting quickly to scenarios
– Force Field analysis
o Kurt Lewin
o Model of change management that deals with the forces for and against change
Organisational Change
Reactive Change:
– Action in response to a problem threat or opportunity

Planned Change:
– Action based on crafted process that anticipates possible difficulties threats and opportunities.

Lewins Forcefield Model
o Driving Forces
o Restraining Forces
• Best focus on these
….
– Successful businesses constantly adapting and changing
– Several Strategies
o List driving forces for change
o Restraining forces for change
o Allocate weight to forces
• 1-5
o Total scores
– Weakness of the model
o Weightings attached to the forces may be subjective
o Not all relevant
– Useful decision making technique for looking at the forces acting for and against change

– If change is desired managers can analyse and influence the forces to make such change happen

– Specialised technique of weighing advantages and disadvantages to help decide whether a proposed change is worth implementing

Steps in Managing Change
– 8 Step change model
– Identify need for change
– Set achievable goals
– Create culture of change
– Use a Change model
Identifying Needs
– Awareness is key
– Ensure business has policies and structures to alert management to changes in business environment
– Market research
– Data gathering
– Strategic industry analysis
o Porters
Setting Goals (SMART)
– Trends identified and analysed → Forecast → implement change process
– Define goals and objectives
– KPI’s and benchmarks
– Importance of communicating change within organisation and external stakeholder
Culture
– Set of beliefs and attitudes and views in a organization
– Positive culture key to success in driving change
– May be fostered by
o Change in management style change in organizational structure
o Training and development
o Open transparent communication
Potential Resistance
– Communicate reasons/need for change
– Train and invest in PD
– Seek worker feedback in genuine way
– Set targets / KPI
– Incentivize
– Seek flexible solutions
– Focus on solutions not blame
*Change v Innovation*
Change:
• Altering status quo
• Can change without innovation.

Innovation:
• Innovation requires change
• Increase complexity
• Breakthroughs and small improvements

*8 STEP CHANGE MODEL
1. Gain recognition of an opportunity or problem
a. Eg. Air Asia saw opportunity to mimic Europe’s low cost airlines
2. Line up powerful sponsors
a. Need powerful individuals to get the resources needed and influence others for support
3. Develop and communicate a vision
a. Easy-to-communicate picture to put to stakeholders
4. Empower others to action out of vision
a. Work beyond vision statement
5. Prepare to overcome resistance
a. Some people wont be ready for change
6. Plan for and reward visible progress
a. Set interim time goals
7. Consolidate improvements and facilitate further change
a. Remain open to change (allow further change)
8. Monitor and institutionalise changes
a. Renewal and innovation can quickly revert unless they are integrated into corporate culture.
Categories: Change Management