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STRATEGIC CHANGE MANAGEMENT – PROCESSES,
METHODS AND PRINCIPLES
CHARLES COTTER
2-4 MARCH 2015
Introduction to change management principles and practice
Describing the types of change
Diagnosis: Identifying and applying the characteristics of changecapable organizations
Explaining change theories and the change transition cycle
Explaining the leadership role and contribution during change
Differentiating between Type O and Type D oriented people and theeffective management thereof
TRAINING PROGRAMME OVERVIEW
Identifying the reasons for resistance to change
Describing the managerial techniques to reduce resistance tochange
Describing Lewin’s 3-phase Planned approach to change
Describing and applying the 7-step organizational changemanagement process
Managing contemporary change management issues
TRAINING PROGRAMME OVERVIEW
Change
Change Management
Strategic Change Management
The need for strategic change management?
The forces of change
The metaphoric views of change
The areas/types of change
DEFINING THE FUNDAMENTALS OF CHANGE
Strategic change management is the process of managingchange in a structured and thoughtful way in order to meetorganizational goals, objectives and missions.
Therefore, change management and related processes presentmany managerial challenges and, consequently, requires asystematic, structured, purposeful and integrated approach.
STRATEGIC CHANGE MANAGEMENT
INTEGRATED MANAGEMENT APPROACH
4-STEP STRATEGIC MANAGEMENT PROCESS
THE NEED FOR CHANGE
THE NATURE OF THE BUSINESS ENVIRONMENT – V-U-C-A
FORCES OF CHANGE
METAPHORIC VIEWS OF CHANGE
CALM WATERS WHITE-WATER RAPIDS
Strategy
People
Organizational culture
Technology
Structure
AREAS/TYPES OF CHANGE: S-P-O-T-S
Refer to pages 15-16 in the Learner Guide
Apply the fundamentals of change to your organization.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 1
#1: Linking the present and the future
#2: Make learning a way of life
#3: Actively supporting and encouraging day-to-dayimprovements and changes
#4: Ensuring diverse teams
#5: Encourage out-of-the-box thinking
CHARACTERISTICS OF CHANGE-CAPABLE/FRIENDLY ORGANIZATIONS
#6: Protect and shelter breakthrough ideas
#7: Integrate technology to implement changes
#8: Build and deepen trust (creating an organizational culture of management credibility and integrity)
#9: Streamline and align processes, systems and structures
#10: Leadership have the will and conviction to change
CHARACTERISTICS OF CHANGE-CAPABLE/FRIENDLY ORGANIZATIONS
Refer to pages 41-42 in the Learner Guide
Diagnosis: By referring to each of the characteristics of changecapable/friendly organizations, measure the degree of yourorganization’s readiness to change.
Analysis: Identify those areas which need to be improved andrecommend strategies to close these gaps.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 7
The literature on “change management” is clear: over 70% ofchange initiatives fail.
CHANGE MANAGEMENT SUCCESS TRACK RECORD
CHANGE TRANSITION CURVE
CHANGE TRANSITION CURVE AND APPROPRIATE MANAGERIAL ACTIONS
Refer to page 19 in the Learner Guide
As a manager, describe how you can accelerate and guideemployees through the change transition cycle for the mostsophisticated/mature stage, commitment.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 2
“Leaders should not only administer and managing change, butpioneer, pilot and drive change towards barrier-busting heightsof performance improvement.” (Cotter: 2005)
Managerial Roles (refer to page 20 in the Learner Guide)
Change Agents (internal and external)
Building resilience and change-hardiness
Transformational Leadership
THE ROLE OF LEADERSHIP IN CHANGE MANAGEMENT
CHARACTERISTICS OF TRANSFORMATIONAL LEADERSHIP
Refer to pages 23-24 in the Learner Guide
Apply the leadership roles in effectively managing change.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 3
Refer to pages 26-29 in the Learner Guide
Individually: Complete the Type O vs. D-orientedquestionnaire.
Group: As a manager, describe how you will manage your staff with both a Type O and Type D orientation towards change.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 4
Why people resist change?
Why it is so challenging to reduce resistance to change?
Managerial techniques to reduce resistance to change
MANAGING RESISTANCE TO CHANGE
Uncertainty (i.e. fear of the unknown)
People’s self-interest is threatened
A lack of trust and misunderstanding
Belief that change is incompatible with the goals and the interest of theorganization
A low tolerance for change is also a barrier to organizational change
Other general reasons (e.g. include inertia where people do not want to changethe status quo, poor timing, and unexpected, extreme or sudden change andpeer pressure)
WHY PEOPLE RESIST CHANGE?
People and their behaviour is the most difficult to change becauseunlike structure and technology, in which managers have absolutecontrol, managers do not have absolute control over peoples’thinking, attitudes and perceptions.
“Unlike technology, structure, processes and strategy, people talkback when confronted by uncomfortable levels of change.” (Cotter:2014)
People are the greatest source of resistance to change becausepeople have minds of their own i.e. they have personalized andsubjective views regarding change.
Change must involve the people - change must not be imposed uponthe people
WHY IT IS SO CHALLENGING TO REDUCE RESISTANCE TO CHANGE?
Refer to page 32 in the Learner Guide
In your work environment, identify the five (5) foremostreasons why employees resist change. For each of these 5reasons, describe the ways and means that you as a managercan use to break down these “walls of resistance”. Providepractical examples.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 5
MANAGERIAL TECHNIQUES TO REDUCE RESISTANCE TO CHANGE
Refer to pages 36-37 in the Learner Guide
By referring to each of the 6 techniques to manage employeeresistance to change, describe how you as a manager can applythese techniques in your working environment. Providepractical examples. Also indicate at which stage of the changeprocess, each of these techniques is most appropriate.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 6
At all times involve and agree support from people within system(e.g. the environment, processes, culture, relationships, behaviours -whether personal or organizational)
Understand where you/the organization is at the moment (statusquo)
Understand where you want to be, when, why, and what themeasures will be for having got there
Plan development towards above in appropriate achievablemeasurable stages
Communicate, involve, enable and facilitate involvement frompeople, as early and openly and as fully as is possible.
BEST PRACTICE CHANGE MANAGEMENT PRINCIPLES
LEWIN’S 3-PHASE MODEL OF CHANGE
KOTTER’S CHANGE MANAGEMENT PROCESS
STEP 1: Forces for change (internal and environmental forces) which affect:
STEP 2: Performance outcomes (individual, group and organizational) which encourages
STEP 3: Diagnosis of the problem (information, participation and change agent) whichleads to
STEP 4: Selection of appropriate intervention (structural, behavioural and technological)as constrained by S-P-O-T-S
STEP 5: Limiting conditions (leadership climate, formal organization structure andorganization culture)
STEP 6: Selection and Implementation of the method (timing, scope andexperimentation) provision for
STEP 7: Evaluation of the method (feedback, adjustment, revision, reinforcement)
APPLYING THE 7-STEP, ORGANIZATIONAL STRATEGIC CHANGE MANAGEMENT PROCESS
Step one of the strategic change management process starts with anassessment of the organization’s Mission and Vision, challenges (pains),enablers and values.
The following strategically-relevant items form the scope to be scrutinized bybusiness managers:
The company's mission statement The company's strategic plan/vision The financial status of the organization How the organization is currently structured and operating The level of expertise of their employees Customer satisfaction level
Tools:
SWOT Analysis PESTEL Analysis
STEP 1: FORCES FOR CHANGE - INTERNAL AND EXTERNAL STRATEGIC ASSESSMENT
STEP 5: LIMITING CONDITIONS -FORCE FIELD ANALYSIS
Refer to pages 45-47 in the Learner Guide
By referring to the 7-step organizational change managementprocess, apply each of the steps in your working environment.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 8
Innovation and Creativity
Knowledge Management and Learning Organization
Organizational Development (OD)
CONTEMPORARY CHANGE MANAGEMENT ISSUES
Defining innovation
The characteristics of an innovative working environment
Processes, actions and approaches to create innovation
Creativity/innovative techniques
STIMULATING INNOVATION AND CREATIVITY
COMPONENTS OF LEARNING, INNOVATION AND GROWTH
Refer to page 51 in Learner Guide
By referring to the characteristics of an innovative workingenvironment, evaluate the degree to which your organizationis an innovative organization. Identify areas of improvementand recommend change strategies.
Also indicate which creativity/innovation techniques are mostappropriate in your working environment.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 9
Forging linkages between its structured and unstructured information in a way to use it for a specificproblem situation
Organizations need to understand who has knowledge and develop support systems for its creationand application.
Organizations need to create knowledge maps
Reflect on existing knowledge
This also makes it possible to identify the gaps in the existing knowledge, and to focus futureknowledge-gathering efforts.
Build rewards for knowledge creators and brokers
Organizations need to harness knowledge to become innovative
Redistribute and share the knowledge
Apply the knowledge
THE FEATURES AND CHARACTERISTICS OF KM
Creating a conducive working environment for knowledge management
Act as a role model and leading by example
Developing, implementing, communicating and revising plans for KMsystems
Creating processes and structures for KM systems
Stimulating knowledge creation and transfer of learning
Rewarding and recognizing knowledge creation
Liaising with other important role players and stakeholders
Building a culture of learning and a learning organization
THE ROLE OF THE MANAGER IN IMPLEMENTING KNOWLEDGE MANAGEMENT AND LEARNING
Refer to page 55 in Learner Guide
By referring to the features and characteristics of a KnowledgeManagement working environment, evaluate the degree to whichyour organization is promoting KM and a learning organization.Identify areas of improvement and recommend change strategies.
Also indicate the role of the manager in stimulating and creatingknowledge and learning in your working environment.
Present a summary of group discussion
SYNDICATE GROUP LEARNING ACTIVITY 10
Summary of the key learning points
Questions
Conclusion
Good luck with the implementation of change managementprocesses, systems and methods
CONCLUSION
CHARLES COTTER
084 562 9446
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TWITTER: Charles_Cotter
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