Colman mockler forbes magazine cover

Case Study

Objectives

By the end of this lesson you will be able to;

Explain the concepts of change and transitions

Understand how individual perceptions inform change processes

Explain the various models and approaches to managing individuals through organisational change

Identify strategies for leading people through change

There are many models of change - see Making Sense of Change Management (2004) for a useful summary of the key ones – but an effective overarching model is the Change Equation developed by Beckhard and Harris (1987). It is a simple but effective way of capturing the process of change, and identifying the critical factors that need to be in place for change to happen.

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Exercise

Describe a Change project/process that you’ve been involved with:-

How was it introduced to you?

What happened?

Did the change work?

What would you do differently to lead change for yourself and others?

What type of leadership was at the helm ?

7/17/2014

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It’s been difficult for 500 years!

‘It should be borne in mind that there is nothing more difficult to handle, more doubtful of success, and more dangerous to carry through than initiating changes in a state’s constitution. The innovator makes enemies of all those who prospered under the old order, and only lukewarm support is forthcoming from those who would prosper under the new. Their support is lukewarm partly from fear of their adversaries, who have the existing laws on their side, and partly because men are generally incredulous, never really trusting new things unless they have tested them by experience.’

Niccolo Machiavelli 1513 – The Prince

(Translation: George Bull, Penguin, 1961)

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The Pyramid of Resistance

Cultural Alignment

Performance Management Alignment

Shared vision and business case for change

Skill Development Programme

Role Models

Effective communication

Involvement / Engagement

Leadership activity & visibility

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The keys to Successful Change

Leadership 92%
Corporate Values 84%
Communication 75%
Teambuilding 69%
Education and Training 64%
% of senior executives mentioning these as important in an American Association

Survey of Fortune 500 companies in the USA (1995)

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% of Firms

Top 10 Barriers to Success

36%

41%

43%

44%

44%

46%

54%

65%

72%

82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

IT Perspective not Integrated

Not Horizontal Process View

No Change Management Program

Scope Expansion / Uncertainty

Project Team Lacked Skills

Case for Change not Compelling

Poor Project Management

Unrealistic Expectations

Inadequate Sponsorship

Resistance to Change

Source: D&T 1995 CIO Survey

Effective Change Management is a critical success factor

.

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Key presentation points:

Deloitte conducted a survey of CEO’s and CIO’s who were either in the process of or recently completing a business transformation. Here are the results of that survey. Of the top five reasons for failure, three are Change Management related, and two are Project Management Related (Unrealistic Expectations & Poor Project Management)

EXPLAINING PROCESSES OF INDIVIDUAL CHANGE

Elrod and Tippett (2002)

Lewin’s (1947) Three-Step model

Kubler-Ross (1969) On Death and Dying

Marris (1974) Loss and Change

Rashford & Coghlan (1989) Denying, dodging, doing and sustaining

Kubler-Ross

Presenter / Location / Date

Kubler-Ross’s initial research (1969) into the psychological process of those facing traumatic change together with those management researchers who have extended her model to organisational change situations (for example, Adams, Hayes and Hopson 1976) indicates that individuals go through a number of stages when dealing with change.

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Future state

Current state

External threat

P

How do we understand

what this is?

Organisational

analysis

P

The case for change

P

P

Vision

what will it be like

how will we be

what shape

what will it feel like

Change Team

BECKHARD MODEL

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Transitional Bridge

Richard Beckhard

A+B+C+D>X

A= shared Vision

B=Dissatisfaction with the status quo

C= First practical steps

D= Competency

X= Fear ( cost of change)

Presenter / Location / Date

MANAGING INDIVIDUALS THROUGH ORGANISATIONAL CHANGE

Bridges (1986) transition management

Conner (1998) a perpetual student of human transitions

Balogun and Hope Hailey (2008)  some change processes concentrate on attempting to change the values of employees, others emphasise behavioural change, while others seek to change the performance objectives or outputs of employees.

THE CHANGE EQUATION(1)

Developed by David Gleicher

A = the individual's level of dissatisfaction with things the way they are now

B = the individual's vision of a better future

C = an acceptable first step

D = the cost to the individual of making the change

Individuals will resist change unless: A + B + OD

THE CHANGE EQUATION (2)

Individuals will resist change unless: A + B + OD

Some people sharpen the tool by stating a corollary thus: AxBxCX)

The basis of the pseudo-mathematics is that making a change always costs an individual something, represented by "D". It may be money, resources, it often is time and can be psychological trivia or trauma.

THE CHANGE EQUATION (2)

Individuals will resist change unless: A + B + OD

Some people sharpen the tool by stating a corollary thus: AxBxCX)

The basis of the pseudo-mathematics is that making a change always costs an individual something, represented by "D". It may be money, resources, it often is time and can be psychological trivia or trauma.

“Eight Steps of Change”

Increase Urgency

Build the Guiding Team

Get the Right Vision

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3

1

Creating a climate for change

Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press. 2002.

Communicate for Buy-in

Empower Action

Create Short-term Wins

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4

5

Engaging and enabling the whole organization

Don’t Let

Up

Make it Stick

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8

Implementing and sustaining change

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LEADING CHANGE

Kotter (1996, p26), a great advocate of leadership, asserted that ‘successful transformation is 70 to 90 per cent leadership and only 10 to 30 per cent management.’

In 1995, ‘Leading change: Why transformation efforts fail’ appeared in Harvard Business Review.

1. Establishing a sense of urgency

2. Creating the guiding coalition

3. Developing a vision and strategy

4. Communicating the change vision

LEADING CHANGE

5. Empowering broad-based action

6. Generating short-term wins

7. Consolidating gains and producing more change

8. Anchoring new approaches in the culture

Caldwell (2003) undertook original research in order to establish whether change leaders and change managers’ roles were different.

Caldwell suggests that we need both change leadership and change management in order to effectively deliver change.

Kotter’s Eight- Stage Process

Establishing a Sense of Urgency

Creating the guiding coalition

Developing a Vision and Strategy

Communicating the Vision

Empowering Employees for Broad Based Action

Gathering Short Term Wins

Consolidating Gains and Producing More Change

Presenter / Location / Date

Transition Management- William Bridges

Change vs Transition

Change – is a shift in the external situation/ environment

Transition- is the psychological reorientation in response to change

Change and Transition are not the same

Presenter / Location / Date

Fundamental difference between Change and Transition

Change

External

Situational

Event based

Defined by outcomes

Can occur quickly

Transition

Internal

Psychological

Experienced based

Defined by process

Always takes time

Presenter / Location / Date

Resistance

It is the transition not change that people fight against

Loss of their identity and world

Disorientation of the neural zone

Risk of failing in a new beginning

Presenter / Location / Date

PHASES OF TRANSITION MANAGEMENT

ENDINGS

NEUTRAL ZONE

NEW BEGINNING

Early adopters Positive Followers resistors

Negative resistors

Champions Deadbeats

How can you apply this (from marketing) to your organisational change?

People change only when they want to; - develop a personal need for change

People commit themselves to a course of action only when they have understood it and had the opportunity to influence it;- a commitment to the course of action

Changes remain only if those who change learn how they have changed and what it takes to maintain change;- the required skills to maintain that course once implemented

KEY CONCEPTS IN THE PROCESS OF CHANGE

Who are the key groups?

What is their attitude towards change?

What will be the type of transition these people/groups go through?

What type of transition/ownership management should we put in place?

What capacity building programme might we need?

How to keep the psychological contract with those who leave/those who survive?

Who are the key groups?

What is their attitude towards change?

What will be the type of transition these people/ groups go through?

What type of transition/ownership management should we put in place?

What capacity building programme might we need?

How to keep the psychological contract with those who leave/those who survive?

MICRO LEVEL

Work out the business case (logic of change)

What is the vision of change?

How far between where we are & where we want to be?

Is it transactional or transformational change? Implications?

State of readiness/capacity of the organisation - freezing, movement, re-freezing (Kurt Lewin)…or just slush?

Primary focus of intervention - Technical, political, cultural?

Implication of change area for rest of organisation

Systemic alignment - lack explains 90% of change failure

CHANGE AT MACRO LEVEL

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2

List/mindmap all the reasons for the change

Draw/envisage - if the change project is successful, what will it look like in a few years’ time

Describe what is A (now) & what is B - change is about getting from A to B

METHODS TO TALK ABOUT THE CHANGE(S)

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2

Logic is internal climate affects individual & organisational performance

Requires a shift in behaviour

Focus on structure, systems, management practices, motivation, task requirements, individual needs & welfare

TRANSACTIONAL (CLIMATE) CHANGE

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2

Capability of changing

Accessibility of the obstacle

Readiness for change

Leverage

Technical

Political

Cultural

FOCUS OF INTERVENTION

The 2 C’s

Connection

Concern

Communicate the 4 P’s

Purpose

Plan

Show the Picture

Allocate the Part

SIGNS OF WELL MANAGED NEUTRAL ZONES

People understand what is over and what isn’t

Symbolic boundary actions have been used

Constant communication of information

Losses have been acknowledged

Grieving has been permitted and facilitated

SIGNS OF WELL MANAGED ENDINGS

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CRITICAL PERSPECTIVE

The major academic challenge to Kotter’s vision of leading change is: where is the evidence?

Does not contain a list of supporting references at the end of the book and in the body of the book there are only cursory references to Kotter’s earlier publications.

There is no explicit evidence of successful organisational change arising out of following the eight steps.

The book does not acknowledge the importance of context in processes of organisational change.

Culture, power, communications and employee relations are dealt with in a very simplistic manner in the book.

LEADERSHIP AND CHANGE

Does Leadership make a difference?

Presenter / Location / Date

EVALUATING THE OUTCOMES OF MANAGING CHANGE

‘The brutal fact is that about 70 per cent of all change initiatives fail.’ (Beer and Nohria, 2000a, p133)

EVALUATING THE OUTCOMES OF MANAGING CHANGE

Explaining why organisational change fails:

Frequency

Implementation

Top Down/Bottom Up

Cultural challenges

People problems

Power and politics

EVALUATING THE OUTCOMES OF MANAGING CHANGE

Potential pitfalls of evaluating organisational

change outcomes

The context specific nature of managing change

The latent and espoused rationales of a change initiative

The unintended consequences of a change initiative

The multidimensional/interdependent nature of a change initiative.

What is Change Leadership?

Successful Change Leadership is about getting individuals and groups to do things differently, to change the way they behave and to implement the changes associated with new systems and processes.

Any transformation programme will create significant organisational and individual change challenges. Staff will quickly realize that their roles and responsibilities are going to change significantly, and that job shifts may result.

It is vital for the leadership to understand the human dynamics of change and to act upon it. This task is particularly challenging as people respond both on a rational and emotional basis.

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Key attributes of an effective change leader (1)

Tenacity

Ability to inspire through role modelling and influencing

Authenticity, credibility & trustworthiness

Ability to see the big picture - strategic

Outcome focus

Organised / project management skills

Stakeholder management ability

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Key attributes of an effective change leader (2)

Research / evidence based practice focus

Measurement focus – quantitative & qualitative

Understanding of cultures and how to redesign them

Understanding of structures and how to redesign them

Understanding of procedures and how to redesign them

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Key attributes of an effective change leader (3)

Ability to balance ‘hurry up and get results’ with ‘slow down and check what we are doing’

Creativity and innovation

Ability to build and support team development

Ability to enable people development

Comfort with ‘soft systems’ (a set of component plans, structures & practices that are often messy and random because people are involved!)

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Setting the scene

I know something is changing

I know what it is

I know the implications for me

I’ll look at doing it the new way

I’ll do it the new way

This is the way we do things

This is the way I do things

Achieving acceptance

Achieving commitment

An important thing to remember is that not everyone needs to get to the top level of commitment immediately!

The Commitment Curve illustrates the different stages of change that people go through for sustainable transformation

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LASTING

CHANGE

SUSTAINABLE

CHANGE

No

Ownership

No Role

Models

No

Knowledge

No

Willingness

Not

Lasting

No

Results

No

Direction

Leader &

Stakeholder

Commitment

Cultural

Fit

No

Action

Change Management Process

Effective

Communication

Clear

Shared

Vision

Individual & Team Capability

Case for

Change

Performance

Measures

+

+

+

+

+

=

+

+

=

=

=

=

=

=

=

=

=

Critical Success Factors for Sustainable Change

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The formula for successful change requires:

-establishing the need for change

-creating and communicating a clear vision of the future

-leading the change process with strong management commitment and behavior

-involving people throughout the process

-establishing supporting structures and processes to facilitate the change process

-establishing performance measures

In the next section, we will introduce the Business Consulting

Change Enablement Framework and how our approach addresses

each of these success criteria.

Traditional approach

Analysis-Think-Change

A “people-driven” approach to problem solving is required for truly successful change results

Focus: Give People Analysis

Information is gathered and analysed, reports are written, and presentations are made

As a result:

The information and analysis change people’s thinking

New thoughts change behaviour or reinforce changed behaviour

Focus: Help People See

Compelling, eye-catching, dramatic situations are created to help others visualise problems, or solutions

As a result:

Seeing something new hits people on a deeper, emotional level. This helps reduce emotions that block change and enhance those that support it

Emotionally charged ideas change behaviour or reinforce changed behaviour

In the most successful change cases, individuals had a sense of passion. On the other hand, where change was less successful, individuals tended to intellectualise the change.

Recommended approach

See-Feel-Change

Kotter, John P. and Cohen, Dan S. The Heart of Change. Boston: Harvard Business School Press. 2002

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Reference

Adams, Hayes and Hopson (1976) Transitions: Understanding and Managing Personal Change, Martin Robertson, London

Beckhard,R , Harris R.T(1987) Organisational Transitions : Understanding complex change. Addison-Wesley; 2 edition.

Cameron, E & Green, M (2004) Making Sense of Change Management, Kogan Page, London

Jarrett M, (2009) Changeability: why some companies are ready for change and others aren’t, FT Prentice Hall, Harlow Great Britain

Green, M (2007) Change Management Masterclass, Kogan Page, London

Kotter, J (2012) Leading Change, Harvard Review Press

Kubler Ross, E (1969) On Death and Dying, Macmillan, New York

Next session

Power, Politics & Organisational Change

Question:

How Powerful are you?

Reading:

French, J.R.P., Jr., & Raven, B. (1959). The bases of social power. In D. Cartwright (Ed.), Studies in social power. Ann Arbor, MI: Institute for Social Research, The University of Michigan.