Change Management - A People’s perspective

AKWL Panel discussionApril 18th, 2009

Himanshu kumar

Some thoughts on Change

“We must be the change we wish to see in the world.” - Mahatma Gandhi

“Change is the law of life. Those who look only to the pastor present are certain to miss the future.” – John F. Kennedy

“There is nothing more difficult to carry out nor more doubtful of success nor more dangerous to handle than to initiate a new order of things.” – Niccolo Machiavelli

“It is not the strongest of the species that survives, northe most intelligent, but the one most responsive tochange.” - Charles Darwin

Source: PWC Study

How critical is Change to an Enterprise

Challenge All Africa Asia EuropeNorth

AmericaSouth

America

Benefits costs: Health & welfare 13% 13% 4% 13% 26% 9%

Benefits costs: Retirement 5% 0% 4% 4% 11% 5%

Change Management 28% 31% 36% 29% 21% 28%

Compensation 15% 6% 8% 14% 11% 26%

Employee rewards 12% 13% 12% 14% 15% 9%

HR effectiveness measurement 17% 31% 16% 16% 13% 17%

HR technology selection & implementation 5% 0% 0% 7% 9% 5%

Industrial Relations 8% 6% 12% 13% 0% 9%

Leadership development 33% 38% 24% 25% 43% 36%

Learning and development 19% 25% 12% 21% 21% 17%

Legal/Regulatory compliance 5% 6% 4% 5% 4% 7%

M&A integration/restructuring 6% 0% 12% 9% 4% 3%

Organizational effectiveness 39% 44% 40% 39% 32% 41%

Other: 4% 0% 8% 5% 6% 2%

Outsourcing 8% 25% 12% 7% 9% 3%

Staffing: International mobility of employees 13% 13% 20% 27% 4% 5%

Staffing: Recruitment & availability of skilled local labour 24% 13% 20% 25% 36% 19%

Staffing: Retention 23% 6% 20% 21% 19% 33%

Succession planning 21% 31% 36% 11% 23% 21%

Let us deliberate on

• What is Change• Some Background on Change• The Human Process of Change• Start with the people• What is Change Management• The Importance of Change Management• Ingredients for Successful Change

What is Change

• the process of becoming different

• social change – any event or action that affects a group of individuals that have shared values or characteristics

• can encompass concepts as broad as revolution and paradigm shift to as narrow as a particular cause within small town government

• Or even a state of confusion

Background of Change

Every organization is continually experiencing multiple types of changes:

• leadership changes• organizational restructuring• mergers / acquisitions /divestitures• outsourcing and off-shoring• new technologies and tools• new competitors and markets

Failure to effectively plan, communicate, train and implement change strategies can squander the benefits of change and adversely effect employee morale, engagement, and retention.

Human process of change

POSITIVE ATTITUDES:

Complacency

Confidence Questioning Momentum Optimism Integration

INITIATION TRANSITION MATURATION

CHANGEPUBLICITYANNOUNCED

CHANGE FULLYIMPEMENTED

IMPROVED STATE

PRODUCTIVITY CHANGE WITH MANAGEMENT METHODOLOGY

TURMOIL

PRODUCTIVITY:

CURRENT STATE

TIMENEGATIVE ATTITUDES:

Denial Pessimism Anger Depression Resignation Compliance

Traditional Change Process Source

Change in Formal Structure and Responsibilities (Anatomy)

Change in Interpersonal Relationships & Processes (Physiology)

Change in Individual Attitudes and Mentalities (Psychology)

Successful Change Process

Change in Individual Attitudes and Mentalities (Psychology)

Change in Interpersonal Relationships & Processes (Physiology)

Change in Formal Structure and Responsibilities (Anatomy)

Change should always start with the people

Behavior– Change of conduct, reaction to surroundings.

Competencies – Can be changed by enlightening towards it. Not by coercion.

Beliefs – Can only be changed when people are made conscious of them and are convinced by themselves to adapt them

Personality – Personal traits can be worked upon.

Self – The essence of being. Realization of self worth and self actualization

What can be changed

A structured approach / model / plan / methodology to managing the process of change in individuals, teams, organizations, and societies

Two broad types of Change Management:

• Anticipative / Proactive – the management of change in a planned and systematic fashion with the goal to more effectively implement new processes or systems in an organization (e.g., restructuring, outsourcing, new systems)

• Reactive / Knee-jerk – the response to change over which theorganization has little or no control (e.g., environmental changes, legislative changes, social/political upheaval, competitive actions, market/economic trends)

What is change management ?

A recent Conference Board study of 540 CEO’s showed:

• 82% identified Change Management as a priority• 99% expect an increased need for Change Management

A 2007 SHRM Survey of 305 organizations showed:

• Overall, organizations experience 2.1 major changes per year

• 77% of HR departments do not have full-time staff to devote to change mgt.• Only 35% of organizations have a Change management model• 72% reported communication breakdowns in their organizations

Importance of managing change

Importance of Managing Change

Why do change management techniques

do not hit the target often?

• Over 80% of all projects fail when change / transition issues are not addressed

• Change takes longer and needs more resources 100% of the time

• 70% of the time, organizations do not have the internal skills to deploy a comprehensive change program

• Less than 20% of all acquisitions produce the desired benefits, largely due to lack of Change Management and cultural integration plans

Some More Thoughts on Change

“Everyone thinks of changing the world, but no one thinks of changing himself.”

- Leo Tolstoy

“If you don't like something, change it; if you can't change it, change the way you think about it.”

- Mary Engelbreit

“Tell me and I’ll forget, show me and I may remember, involve me and I’ll understand.”

- Chinese Proverb

Change Management:Ingredients for Successful Change

• Implement a comprehensive and coordinated change management program: DISCOVER, DEVELOP, DETECT.

• Identify “change agents” and engage people at all levels in the organization.

• Ensure the message comes from the top, and executives and line managers are “walking the talk.”

• Make change visible with new tools and/or environment.• Ensure clear, concise, and compelling communication.• Integrate change goals with day-to-day activities, e.g. recruiting,

performance management, and budgeting.• Address short-term performance while setting high expectations

about long-term performance.

Change Management:Ingredients for Successful Change

• Help management avoid attempts to short circuit the change management process.

• Foster change in people’s attitudes first, then focus on change in processes, then change in the formal structure.

• Manage both supporters and champions, as well opponents and possible detractors.

• Accept that all people go through the same steps – some faster, some slower – and it is not possible to skip steps.

• Build a safe environment that enables people to express feelings, acknowledge fears, and use support systems.

• Acknowledge and celebrate successes regularly and publicly!

Failed Change attempt

Need for something different

Leads to Interpersonal Conflict

Unhappiness for what is…

Feeling of being ‘Square pegs in round holes’

End up doing something which is not our preference in life!

Fear of unknown

leading to a high dissatisfaction syndrome, which is neither good for individual, nor the organization.

Chaos to Ultimately

leading

Tack

Danke schönKiitos

Grazie

Gracias

Dank u Takk

Shukriya Tesekkür ederim

Krop Kuhn Kah

Terimah Kasih

Asante Sana

Dziêkujê

Go Raibh Maith Agat

谢

Thank You