Change Management 3

Change Management Strategies
The Nature of Planned change

Syllabus
Module 1: Introduction to Organizational Change:
Module 2: The Nature of Planned Change
Module 3: The Process of Organizational Development: Diagnosing
organizations
Module 4: Designing Interventions
Module 5: Leading and Managing change
Module 6: Strategic Change Interventions
Module 7: Transformational change
Module 8: Continuous change
Module 9: Trans organizational Change

Why is Executing Change so Challenging?
• People will resist change. Why? “Uninformed Optimism is always followed by
“Informed Pessimism” and humans will choose the comfort of familiarity over the
anxiety that comes with the unknown.
• We live in an era of perpetual change/unrest. We have only just crossed the
threshold of perpetual unrest. We need to expect more change.
• We’ve run out of the resources required to deal with change. Absorbing change
requires physical, emotional, and intellectual energy.
• We incorrectly focus an inordinate amount of energy into trying to make people
feel comfortable during a major change. Reality is they won’t – it is necessary
that they make adjustments that will help them succeed in the new environment.
• We focus on getting the change “installed” (e.g. # people trained, spent,
computers on desks) and miss “realizing” the return on investment expected
from the change (i.e. the fundamental purpose for the change, the outcomes
that were promised). People need to be readied to absorb the disruption and
adapt to the change.
• Source: Adapted from a presentation by Daryl Conner – Organizational Change: Installation vs.
Realization)

Organization Strategies for Successfully Realizing the Results in Change:
• Look for ways to decrease unnecessary demands on existing resources.
• To consider the aggregate effect of incremental changes.
• Change projects need to be driven by whether or not they are an organizational
imperative.
• Change projects should generate “such value that the cost for failing to implement
them would be prohibitively high”.
• Increase the organization’s capacity and resilience for dealing with the
disruption of change.
• People need to be able to absorb change if organizations are going to be effective.
• We can increase capacity by carefully and diligently managing the human side of
change (i.e. the transition).
• We can increase resilience by seeking out and enhancing personal resilience.
• Follow a process for managing change and transition.
• What is changing and the impact of that change on the people.

Managing Change vs. Managing Transition
• Change is the shift in the external situation; the thing that has changed. It
can happen fast.
• Transition is the reorientation people need to make in response to the
change. This can take time.
• To be successful in both the implementation and in helping people we need
to manage both the change and the transition.
• A transition management plan is a necessary component of a change
management plan and presumes that the underlying change is being well
managed.
• Source: Bridges, William. (1991). Managing Transition: Making the Most of Change.

A well-managed change ensures that:
• There is an identified Executive Sponsor for the change
• Leaders understand the shifting roles of Sponsors, Implementers Agents and Advocates during change
• Change teams are set up as needed (e.g. implementation, transition, communication, etc.)
• The need for the change has been effectively established and communicated to everyone – more than once
using a variety of medium.
• The impacts of the planned change - indirect, as well as direct - have been identified and communicated.
• Those who will be impacted by the change have been involved in the planning, or at the very least, will be
involved in its implementation.
• The details of the implementation are generally understood as they emerge and are modified to fit changing
circumstances

Detail of Steps for Managing Change:
1. Identify/Accept the Need for Change:
List the issues, indicators or symptoms
Ask stakeholders to confirm the issues, indicators or symptoms
Decide whether change is necessary
Set up change team(s)/support mechanisms (implementation,
transition, communication etc.)
Clarify Roles (Sponsor, Implementer, Agent, Advocate)

Detail of Steps for Managing Change
2. Assess and Define the Change Required:
Identify the preferred future state
Assess the current state
Identify the gap or difference
Clearly define what must be changed
Establish measures of success

3. Analyze the Impact of Alternatives and Select the Best:
List reasonable alternatives (including making no change)
Assess the cost/benefits, pros/cons, outcomes/risks and potential side effects
Choose the best alternative
Identify restraining and supporting forces (i.e. people, events, rules and policies)

Detail of Steps for Managing Change:
4. Develop the Plan and Strategies:
Explain the change and rationale
Describe the current situation vs. the desired future
Explain the options considered and decision
Describe objectives, action plans, and measures of success
Develop strategies:
 Operational (Physical/Plant Legal, Financial, and Service Issues)
 Training and Learning
 Human Resource (HR/LR, Staff Transfer, Selection)
 Communication
 Transition
 Team Development
 Budget Implications

5. Implement the Plan and Strategies:
Enlist others
Determine readiness for change
Prepare and educate those implementing the change
Follow the timetable and sequence of events for
communication, training, team development etc.)

6. Manage the Transition:
Monitor transition issues and people’s response to the change
Implement strategies to help people with the transition
Recognize results
7. Evaluate the Change:
Monitor progress and debrief
Design and conduct evaluation based on the measure of success
Document and report on the outcome
Adjust or alter based on evaluation

Model for Managing Transition
This model for Managing Transition is influenced by the separate work of Elisabeth Kubler-Ross, Cynthia Scott and William Bridges

Key factors in achieving change
Key factors in achieving change

Scale of change
• Hammer and Champy (1993) defined BPR as
the fundamental rethinking and radical redesign of business processes to achieve dramatic
improvements in critical, contemporary measures of performance, such as cost, quality, service, and
speed.
• Fundamental rethinking – re-engineering usually refers to changing of significant business processes
such as customer service, sales order processing or manufacturing.
• Radical redesign – re-engineering is not involved with minor, incremental change or automation of
existing ways of working. It involves a complete rethinking about the way business processes operate.
• Dramatic improvements – the aim of BPR is to achieve improvements measured in tens or hundreds of
percent. With automation of existing processes only single figure improvements may be possible.
• Critical contemporary measures of performance – this point refers to the importance of measuring how
well the processes operate in terms of the four important measures of cost, quality, service and speed.

Different scales of change
Term Involves Intention Risk of failure
Business
process re-
engineering
Fundamental redesign
of all main company
processes
Large gains in
performance
(>100%?)
Highest
Business
process
improvement
Targets key processes
in sequence for
redesign
(<50%) Medium
Business
process
automation
Automating existing
process
(<20%) Lowest

Project management activities
• Estimation – identifying the activities involved in the
project, sometimes referred to as a work breakdown
structure (WBS).
• Resource allocation – after the initial WBS, appropriate
resources can be allocated to the tasks.
• Schedule/plan – after resource allocation, the amount of
time for each task can be determined according to the
availability and skills of the people assigned to the tasks.
• Monitoring and control – monitoring involves ensuring the
project is working to plan once it has started. Control is
taking corrective action if the project deviates from the
plan. In particular the project manager will want to hit
milestones

Stages in developing an e-business solution
Stages in developing an e-business solution

An example web site development
schedule for the B2C Company
Figure 10.3 An example web site development schedule for The B2C Company

Organisational structures for
e-business and e-commerce
Organizational structure Circumstances Advantages Disadvantages
(a) No formal structure
for e-commerce
Initial response to e-commerce
or poor leadership with no
identification of need for
change.
Can achieve rapid response to
e-commerce service
responses (e-mail, phone).
Priorities not decided logically.
Insufficient resources
Poor quality site in terms of
content quality and
customer
(b) A separate
committee or
department manages
and coordinates e-
commerce
Identification of problem and
response in (a)
Coordination and budgeting
and resource allocation
possible.
May be difficult to get
different departments to
deliver their input due to
other commitments
(c) A separate business
unit with independent
budgets
Internet contribution (Chapter
6) is sizeable (>20%)
As for (b), but can set own
targets and not be constrained
by resources. Lower risk
option than (d)
Has to respond to
corporate strategy. Conflict
of interests between
department and traditional
business
(d) A separate operating
company
Major revenue potential or
flotation. Need to differentiate
from parent
As for (c), but can set strategy
independently. Can maximize
market potential
High risk if market potential
is overestimated due to
start-up costs

Summary of alternative organizational structures for e-commerce suggested
in Parsons et al.
Figure 10.5 Summary of alternative organizational structures for e-commerce
suggested in Parsons et al. (1996)

Transition curve indicating the reaction of staff through time from when change
is first suggested
Transition curve indicating the reaction of staff through time from when change is first suggested
Source: Bocij et al. (2003)

Key staff in systems acceptance
• System sponsors
•
• System owners
•
• System users
•
• Stakeholders
•
• Legitimizer
•
• Opinion leaders
•

The role of organisational culture
• Survival (outward-looking, flexible) – the external environment plays a
significant role (an open system) in governing company strategy. The
company will likely be driven by customer demands and will be an
innovator. It may have a relatively flat structure.
• Productivity (outward-looking, ordered) – interfaces with the external
environment are well structured and the company is typically sales-
driven and is likely to have a hierarchical structure.
• Human relations (inward-looking, flexible) – this is the organization as
family, with interpersonal relations more important than reporting
channels, a flatter structure and staff development and empowerment
is thought of as important by managers.
• Stability (inward-looking, ordered) – the environment is essentially
ignored with managers concentrating on internal efficiency and again
managed through a hierarchical structure.

Change Management 3

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Change Management 3