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Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

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Page 5: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Department/ OrganisationDepartment/ Organisation

W (7S)

W (7S)

S (7S)

S (7S)

T (PESTEL

I)

T (PESTEL

I)

O (PESTEL

I)

O (PESTEL

I)

Page 6: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

The McKinsey 7-S FrameworkThe McKinsey 7-S Framework

Structure

Strategy Systems

Shared Value

Skill

Staffs

Style

Robert Waterman, Tom Peters and Julien Philips 

Waterman Jr., Robert H., Peters, Thomas J., and Julien R. Phillips. 1980. "STRUCTURE IS NOT ORGANIZATION." Business Horizons 23, no. 3: 14

Page 7: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

What happened?

“This is a waste of time.”

“Why change if it was working just fine before?”

“If it ain't broke, don't fix it.”

“They never tell us what’s going on!”

Page 10: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Change Management

• The definition of Change Management includes both organizational change management processes and individual change management models, which together are used to manage the people side of change.

Page 11: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Resistant to Change

People resist change in the workplace in many ways, but among the more common examples are to:

• Ignore the new process • Fail to completely or accurately comprehend • Disagree with the validity of benefits • Criticize tools or software applications • Grant exceptions • Delay the implementation

Page 14: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Resistance to change : symptoms

3. A change in job responsibilities takes place for an employee. The employee consents to the change by saying:

"You're the boss, and if that's what you want..." Later the employee only changes what he is doing enough to appear cooperative, but is in fact doing most things the way he was before the change.

Page 15: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Resistance to change : symptoms

4.It is very important that the change manager anticipate, and plan strategies for dealing with resistance.

5.This applies not only at the introduction of the change, but there must be follow-through, so that the change manager monitors the change over the long-term, being alert for difficulties as the appear.

Page 16: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Resistance to change : symptoms

• It is helpful to have an understanding of why people resist change, because understanding this allows us to plan strategies to reduce resistance from the beginning.

• Also, some of the reasons that people resist change do not seem to make sense to the casual observer. At times they can seem nonsensical and illogical. They are, nonetheless, important

Page 18: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

The Top 10 Reasons Employees Resist Change

1. The individual's personal predisposition to change. 2. Surprise and fear of the unknown. 3. Climate of mistrust. 4. Fear of failure. 5. Loss of status and/or job security. 6. Peer pressure. 7. Disruption of cultural traditions and/or group relation

ships. 8. Personality conflicts. 9. Lack of tact and/or poor timing. 10.Not seeing the benefits.

Page 19: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Employee resistance

Lack of understanding around the vision and need for change.

The primary reason for employee resistance was that employees did not understand the vision of this particular change project..

Employees did not clearly understand why the change was happening, nor did they have adequate knowledge regarding the change itself.

Employees did not have the answer to the question, “what’s in it for me?”. This could include, "Will I have a job?," "How will it impact my daily work?," "How will I benefit from the change?".

Page 20: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Employee resistanceComfort with the status quo and fear of

the unknown.• Employees tended to be complacent, or

that the current way of doing business had been in place for a long time.

• The current processes and systems seemed fine to the employees, and they were opposed to the change since it forced them out of their comfort zone.

• Uncertainty and fear of the new system compounded the desire of employees to continue with the “old way” to which they had grown accustom.

Page 21: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Employee resistance

Corporate history and culture• The organization’s past performance with chang

e projects impacted the employees’ support of the current change project.

• Employees were desensitized to change initiatives, as many had been introduced and failed.

• The project was seen merely as the “flavor of the month,” and employees expected it go away like those in the past.

Page 22: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Employee resistance• Opposition to the new technologies, requiremen

ts and processes introduced by the change.• Many participants felt that some employees

resisted the change because of opposition to the actual change itself.

• Employees were opposed to changes that increased the performance and process measurement of their work.

• The change was seen as adding unwanted work, responsibility and accountability.

• Lastly, some employees opposed the new processes, systems or technologies because they felt the change would not solve the problems.

Page 24: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Manager resistance

The top-six reasons for manager resistance to change were: 1. Loss of power and control.

The leading reason for manager resistance to change was a fear of losing power. Changes often eliminated something the manager had control of or introduced something that the manager would not have control over.

Managers perceived the changes as infringements on their autonomy, and some participants indicated that the change was even perceived as a personal attack on the managers. Managers reacted to the change initiative as a "battle for turf."

Page 25: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Manager resistance

2.Overload of current tasks, pressures of daily activities and limited resources.Managers felt that the change was an additional burden. Limited resources compounded the problem.

The change initiative seemed like extra work and resource strain at a time when the pressures of daily activities were already high.

In many projects, managers were expected to continue all of their current duties in addition to the duties of implementing the change.

Page 26: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Manager resistance

3. Lack of skills and experience needed to manage the change effectively. Managers were fearful of the new demands that would be placed on them by the business change. Several skill areas were identified as areas of concern.

First, managers were uncomfortable with their role in managing the change. Some feared recrimination while others did not have the experience or tools to effectively manage their employees’ resistance. Managers also were concerned about the demands and responsibilities placed on them by the new business processes, systems or technologies.

Page 27: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Manager resistance

4. Fear of job loss.Managers felt that the business change would ultimately impact their own job security. Middle management is often the victim of large-scale business change.   “They were eliminated in the change, so no resistance was recorded.”

Page 28: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Manager resistance

5. Disagreement with the new way. Some managers disagreed specifically with the change. They did not feel that the solution was the best approach to fixing the problem. Managers who did not play a role or provide input in the design and planning phases tended to resist the solution. Some participants felt that the resistance was due to the solution not being the idea of the manager ("not invented here").

Page 29: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Manager resistance

6. Skepticism about the need for change. Managers were not convinced of the need for change. They did not see the business issues driving the change, or they did not identify the same problems as the design team.

Page 30: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Change Management Principles

1. At all times involve and agree support from people within system (system = environment, processes, culture, relationships, behaviors, etc., whether personal or organizational).

2. Understand where you/the organisation is at the moment.

3. Understand where you want to be, when, why, and what the measures will be for having got there.

Page 33: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

The six phases personal or professional change

1. Anticipation. The waiting stage. They really don't know what to expect so they wait, anticipating what the future holds.

2. Confrontation. People begin to confront reality. The realize that change is really going to happen or is happening.

3. Realization. Post change - Realizing that nothing is ever going to be as it once was.

Page 35: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

The six phases personal or professional change

5. Acceptance. Aacceptance of the change emotionally. Although they may still have reservations, they are not fighting the change at this stage. They may even see some of the benefits even if they are not completely convinced.

Page 37: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

The key phases for managing employees during change:

• Awareness of the need to change • Desire to participate and support

the change • Knowledge of how to change (and what

the change looks like) • Ability to implement the change on a day-

to-day basis • Reinforcement to keep the change in

place

Page 38: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Ways to reduce resistance to change:

• Involve interested parties in the planning of change by asking them for suggestions and incorporating their ideas.

• Clearly define the need for the change by communicating the strategic decision personally and in written form.

• Address the "people needs" of those involved. Disrupt only what needs to be changed. Help people retain friendships, comfortable settings and group norms wherever possible.

Page 39: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Ways to reduce resistance to change:

• Design flexibility into change by phasing it in wherever possible. This will allow people to complete current efforts and assimilate new behaviours along the way.

Allow employees to redefine their roles during the course of implementing change.

• Be open and honest. • Do not leave openings for people to return to the

status quo. If you and your organization are not ready to commit yourselves to the change, don't announce the strategy.

Page 40: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Ways to reduce resistance to change:

• Focus continually on the positive aspects of the change. Be specific where you can.

• Deliver training programs that develop basic skills as opposed to processes such as: conducting meetings, communication, teambuilding, self-esteem, and coaching.

Page 42: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

‘Eight steps to successful change'

• Get the vision right - get the team to establish a simple vision and strategy, focus on emotional and creative aspects necessary to drive service and efficiency.

• Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications - make technology work for you rather than against.

Page 43: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

‘Eight steps to successful change'

• Empower action - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognise progress and achievements.

• Create short-term wins - Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones.

Page 44: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

‘Eight steps to successful change'

• Don't let up - Foster and encourage determination and persistence - ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones.

• Make change stick - Reinforce the value of successful change via recruitment, promotion, new change leaders. Weave change into culture.

Page 45: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Achievement Goal of Change Management

• High Performance Organization

• Good Governance

• Quality Management

• Financial Stability

Page 46: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

John P Kotter's 'eight steps to successful change'

• John Kotter's highly regarded books 'Leading Change' (1995) and the follow-up 'The Heart Of Change' (2002) describe a helpful model for understanding and managing change.

• Each stage acknowledges a key principle identified by Kotter relating to people's response and approach to change, in which people see, feel and then change

• Kotter's eight step change model can be summarised as:

Page 55: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Change management environment

Fast changing environments • Planning, implementing and managing

change in a fast-changing environment is increasingly the situation in which most organizations now work.

• Dynamic environments such as these require dynamic processes, people, systems and culture, especially for managing change successfully, notably effectively optimising organizational response to market opportunities and threats.

Page 56: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Key elements for success:

• Plan long-term broadly

- a sound strategic vision, not a specific detailed plan (the latter is impossible to predict reliably).

- Detailed five years plans are out of date two weeks after they are written.

• Focus on detail for establishing and measuring delivery of immediate actions, not medium-to-long-term plans.

Page 57: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Key elements for success:

• Establish forums and communicating methods to enable immediate review and decision-making.

• Participation of interested people is essential.

• This enables their input to be gained,

their approval and commitment to be secured, and automatically takes care of communicating the actions and expectations.

Page 58: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Key elements for success:

• Empower people to make decisions at a local operating level

- delegate responsibility and power as much as possible (or at least encourage people to make recommendations which can be quickly approved).

Page 59: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Key elements for success:

• Remove (as far as is possible) from strategic change and approval processes and teams (or circumvent) any ultra-cautious, ultra-autocratic or compulsively-interfering executives.

• Autocracy and interference are the biggest obstacles to establishing a successful and sustainable dynamic culture and capability.

Page 60: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Key elements for success:

• Encourage, enable and develop capable people to be active in other areas of the organization via 'virtual teams' and 'matrix management'.

• Scrutinise and optimise ICT (information and communications technology) systems to enable effective information management and key activity team-working.

Page 61: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Key elements for success:

• Use workshops as a vehicle to review priorities, agree broad medium-to-long-term vision and aims, and to agree short term action plans and implementation method and accountabilities.

• Adjust recruitment, training and development to accelerate the development of people who contribute positively to a culture of empowered dynamism.

Page 62: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Key elements for success:

• Use workshops as a vehicle to review priorities, agree broad medium-to-long-term vision and aims, and to agree short term action plans and implementation method and accountabilities.

• Adjust recruitment, training and development to accelerate the development of people who contribute positively to a culture of empowered dynamism.

Page 63: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

People Centered Implementation PCI

• PCI is a change management methodology developed by Changefirst, which has been continuously improved since the 1990s. It has been applied in the field of people change management by organizations and their change agents in over 35 countries around the world.

• PCI describes the six critical success factors that must be managed to build commitment to change initiatives and create behavior change.

Page 64: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Six critical success factors that must be managed

1. Shared Change Purpose - create and share a powerful case for change in the organization

2. Effective Change Leadership - develop strong change leadership for the initiative

3. Powerful Engagement Processes - build and deliver plans to engage people in the change

Page 65: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

Six critical success factors that must be managed

4.Committed Local Sponsors - build understanding and commitment of middle and front-line managers

5.Strong Personal Connection - create commitment and behaviour changing actions for front-line people

6.Sustained Personal Performance - support people as they learn to adapt, managing their resistance sensitively and empathetically.

Page 66: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

ADKAR model for individual and organizational change management• The ADKAR model for individual and

organizational change management was developed by Prosci with input from more than 1000 organizations from 59 countries.

• This model describes five required building blocks for change to be realized successfully on an individual level. The building blocks of the ADKAR Model include:

Page 67: Change Management Assoc. Prof. Dr. Wongsa Laohasiriwong

The building blocks of the ADKAR Model

1. Awareness – of why the change is needed

2. Desire – to support and participate in the change

3. Knowledge – of how to change

4. Ability – to implement new skills and behaviors

5. Reinforcement – to sustain the change