Charan Singh - Assignment No. 1

Charan Kamal SinghMBA(HR)

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Assignment No. 1On

Planned vs. Unplanned Change,Perspectives of Change Management,

Forces and Models of Change

Subject: Seminar on Management of Change

Submitted to: Submitted by:

Dr. Rupinder Bir Kaur Charan Kamal Singh

MBA-HR

Date: 26/12/2013 Semester II

University Business School (UBS),Panjab University, Chandigarh


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INDEX

S.No. Contents Page No.1 Planned vs. Unplanned Change 2-6

2 Various Perspectives to Change 7-10

3 Forces of Change 11-13

4 Models of Change 14-27

References 28


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Assignment No. 1

Q1. Planned vs. Unplanned Change.

Ans. Oganisation Change can be defined as the any alteration (planned or unplanned) thatcauses a shift in the status quo and affects the structure, processes or resources of a business.

Organisations adopt their change initiatives depending on the nature of the change. Suchchange initiatives can be classified into various types:

Planned vs. Unplanned Change

Episodic vs. Continuous Change

Developmental, Transitional, and Transformational Change

Planned vs. Unplanned Change

Planned change is an organisational change that is deliberate, and based on consciousreasoning and actions. On the other hand, at times and for many reasons, organisations opt forunplanned change. This is also known as the emergent change. These two types of change areexplained in two different types of situations.

In the first instance, a manufacturing company changed from a job to an assembly line systemin order to optimise cost. A job shop manufacturing process requires people with multipleskill sets, as it has the flexibility to accommodate customer-specified designs andspecifications, to meet customers varied requirements. However, the process is slow and

frequent job changeover often causes problems of skill mismatch. Obviously, the cost ofproduction becomes high and the firm cannot enjoy economy of scale. An assembly system,on the other hand, standardizes the manufacturing process, by breaking the total job intooperations. Each operation is then assigned to a specific workstation with people performinga particular task with specific plant and machinery. Although the initial investment for settingup an assembly line is very high, the firm can enjoy economy of scale and can hence optimizecost when they opt for bulk production. The hypothetical organisation had to choose such a


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change in the manufacturing process, as they had decided to manufacture auto spares for amajor global automobile company.

This type of change can be categorised as planned change. The firm had to make people, whowere earlier doing multiple jobs, perform a specific repeated task.

Any change based on unspoken, unconscious assumptions, the external environment, and thefuture of the organisation (Mintzberg 1989) is regarded as unplanned change. Mintzbergcategorized this type of change process by drift rather than by design. This type of changecan be influenced by both external and internal factors. External factors are the economicsituation, competitors behaviour, the political situation, legislative changes, etc. Internal

factors may the sudden power of different stakeholders on interest groups, knowledgemanagement practices, building up of the capability of the people, etc.

In the second situation, after the collapse of the two hundred year old EncyclopaediaBritannica, the new promoter had to opt for product differentiation, introducing both the CDversion and a single volume encyclopaedia to sustain in a competitive market.

To explain unplanned change, Dawson (1996) said that although the change process requiresplanned perceptive analysis, at times it cannot be isolated from the effects of coincidence,uncertainty, and chance etc. Thus, organisational change need not always be planned, fixed,or linear; it may be unplanned for emergent element.

Beer and Nohria theory of Planned vs. Unplanned change

According to Beer and Nohria (2000) there are two types of changes: - top down (or planned)and bottom up (or emergent).

Planned or Top-Down change is what many people immediately think of when changemanagement is mentioned. This is the traditional, Management driven change, pushed downfrom the top, most commonly found in market driven economies such as the UK and USA.This tends to focus on short term programmatic changes to organisational structure orsystems, in order to generate economic value for the company. However, once the driving


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force is removed the Organisation will often try to revert to its original state. The main reasonis usually that the underlying culture is not aligned to the revised situation.

In contrast Emergent or Bottom-Up change is more participative in nature and allows theemployees to define the change, thus making the end result more emergent. In this type ofchange the Management can only put in place appropriate circumstances and encourage thechange, but have limited control in order to plan or manage it. The type of change that resultsdevelops the organisations capability and can also change the culture. Whilst being difficultto control this type of change has the ability to deliver substantial benefit to the company,leading to long term results and strengthening of the enterprise. However, culture change canbe unpredictable and deliver unexpected results.

The key to success in organisational change management is to start with a top down changebut then to anchor it in the culture in order to perpetuate the new reality.

Beer & Nohria (2000) warn that it is important to avoid trying to implement both types ofchange simultaneously as there is an inherent conflict between the two, with Top Downchange often destroying organisational capability as the organisation restructures, whilst theBottom Up type change is trying to build it. Many of the most successful changes havecombined the two approaches by seeking short term gains via a planned change, and thenusing a longer term emergent approach to reinforce it, embed it in the culture and increase theorganisational capability.


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Q2. Various Perspectives to Change.Ans. Change management can be viewed from two perspectives: - from those implementingthe change and from the recipients of change. View of change management variesdramatically if you are the executive demanding the change versus the front line employeewho may be unsure why a change is even needed.

In many cases at the onset of a new change, neither the executive nor the front-line employee

is knowledgeable about managing change. The executives want the change to happen now;the employees are simply doing their job. It is the project managers, consultants or membersof the project team that first learn about the necessity for change management. They are thefirst to realize the two dimensions of change management: the top-down managersperspective and the bottom- up employees' perspective.

Managers Perspective (I need results)

The managers perspective on change is results oriented. They are very aware of the business

issues facing the organization and are accountable for the financial performance of thecompany. When a change is needed, they require action quickly.

In many cases, executives or senior business leaders must weigh the return on investment ofthis change as compared to other strategic initiatives in the company. Their primary concernsare:

When can the change be completed?

How much improvement will be realized?

How will this change impact our financial performance?

What is the required investment?

How will this change impact our customers?


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If the answers to these questions are favourable to business leaders, then the directive to aproject manager or project team is typically lets get it done.

Front Line Employees Perspective ("What will this change mean to me?")

Another perspective of Change Management is the perspective of front-line employees (andin many cases their supervisors and managers within the organization). They generally do nothave a day-to-day view of the business issues. Day-to-day operations are their focus. Servingcustomers, processing orders, getting the job done these are the primary areas of interest;these tasks combined with the number of personal issues that we all face every day.

When changes are made, many employees lack the broader context or knowledge base ofwhy the change is being made. They also do not share the same accountabilities as managers.They question, therefore, how the change will impact them personally.

For e.g. consider the consultant or project team who is responsible to design and implementthe change. They have their own agenda acting on behalf of the business leaders who chartedthe change.

The result is a potentially dangerous mix of different priorities, different knowledge sets anddifferent driving forces. If the change is not managed properly, these different values anddriving forces clash resulting in unfortunate outcomes for the business.

Employees resist the change.

Valued personnel leave the organization. Critical projects are delayed. Customers feel the impact indirectly through upset employees. Productivity declines.

Many organizations learned the hard way through failed projects. They learned that changemanagement is not something addressed after the fact. Change management must start at thebeginning of the project and be integrated into all facets. Both perspectives of changemanagement must be addressed: the managers and the employees.


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The two perspectives

These two perspectives of change management can be referred to as:

Organizational change management Individual change management

Change management is the effective management of a business change such that executiveleaders, managers and front line employees work in concert to successfully implement theneeded process, technology or organizational changes.

The goal of change management is to implement these business changes quickly to:

minimize the impact on productivity avoid unnecessary turnover or loss of valued employees eliminate any adverse impact on your customers achieve the desired business outcomes as soon as possible

Organizational change management

Organizational change management is the management of change from the perspective of amanager or project team. It is the perspective of business leadership from the top looking

down into the organization. The focus is around broad change management practices andskills that will help the organization understand, accept and support the needed businesschange. The primary focus is around change management strategies, communication plansand training programs. The involved parties include project team members, human resourcesand key business leaders that sponsor the change.

Organizational change management provides the knowledge and skills to implement amethodology and tools for managing change throughout an organization.


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For organizational change management, there is a need to build knowledge and abilities inthe following areas:

Change management team structures

Change management roles

Critical barriers to implementing change

Change management planning and strategies

Managing employee resistance

Organizational change management methodologies

Building executive sponsorship

Creating communication plans

Creating training and educational programs

Incentive and recognition programs

Individual change management

Individual change management is the management of change from the perspective of theemployees. They are the ones who ultimately must implement the change. The focus here is

around the tools and techniques to help an employee transition through the change process.The primary concerns are the coaching required to help individuals understand their role andthe decisions they make in the change process. In this arena, you will need to provide toolsthat employees can use to navigate their way through the change.

For individual change management, the need is to build knowledge in the following areas:

Diagnosing resistance to change

Models for managing individual change

Decisions and consequences around supporting change that face employees

Coaching tools and techniques for helping employees navigate the change process

Activities and exercises for supervisors to use with their employees to manage change


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Q3. Forces of Change.Ans. The organizational change can arise from any of the same forces that define theenvironment in which companies must compete: competitive forces, economic forces,

political forces, global forces, demographic forces, social forces and ethical forces. Examplesof how each of these forces can impact organizational design include the following: -

(i) Competitive forces

Competitive forces generally require actions that will allow the company to keep up with andsurpass the skills of competitors with respect to efficiency (e.g., cost of production),innovation and product quality and reliability.(ii) Economic and political forces

Economic and political forces continuously impact the market conditions and rules underwhich companies produce and sell their goods and services and will cause them to reconsiderhow and where they engage in production and sales activities. The rise of economic andpolitical unions (e.g. European Union) and increasing use of free trade agreements haschanged traditional notions of market entry strategies and provided foreign competitors withnew advantages.

(iii) Global forces

Global forces are clearly important as companies expand into new foreign markets withdifferent languages, cultures and business practices. Changes in the organizational structurewill be required in order to allow companies continue to achieve the economies of scale andother advantages associated with global strategies while simultaneously acting like a localfirm in foreign markets and satisfying the specific requirements of customers in each country.

(iv) Demographic forces

Demographic forces are important internal and external factors for companies. In theworkplace companies must address the rising levels of diversity among personnel and mustcreate and effectively administer managerial and reward systems that take into account theneeds and expectations of employees drawn from a wide demographic spectrum. In the


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marketplace companies must be prepared to tailor their products and services to the uniquedemands of specific demographically defined customer groups.

(v) Social forces

Social forces have a substantial impact on what employees expect and want out of theircareers and the companies they select for employment. Employees have a keener interest inlifestyle balance that employers must consider accommodating and firms must also beprepared to offer employees more opportunities for professional development throughtraining and job rotation.

(vi) Ethical forces

Ethical forces are continuously pushing companies to embrace socially responsible businesspractices and act in an honest and ethical manner. Laws and regulations pertaining to ethicalbehaviour have proliferated in the United States and in many foreign countries andcompanies must establish and follow internal rules and procedures to ensure that laws areobeyed and ethical problems are brought to light, independently reviewed and positivelyresolved. Ethical forces are also at work when companies develop strategies to carry out theiractivities in ways that preserve the environment and respect the human rights of others (e.g.,ensuring the foreign suppliers refrain from operating sweatshops and otherwise mistreating

their workers).

Forces of change as described by the American Business Community are:

(i) Balance shiftSignificant population growth in emerging markets will continue to shift the current worldorder. Developed economies will be faced with an aging and shrinking population. Theaccelerating move to urban living will affect all markets, alongside rapidly growing levels ofpoverty and inequality. Health challenges will be polarised, with both growing levels ofobesity and malnutrition.


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(ii) Fragile earthThe scarcity of resources on the planet is being compounded by the impact of theirdegradation upon the climate. This will affect business in a variety of ways, including risingcost of resources and migration of populations seeking to avoid hostile climates. Technologywill help but creating sustainable societies means a fundamental re-evaluation of whathumans need and what they can do without.

(iii) ProtectionIf present trends continue one half of all species of life on earth will be extinct in less than100 years. As society, government and businesses wake up to the immediacy and threat ofdeclining natural capital a widespread reassessment of our values and the predominanteconomy is inevitable. This reassessment will be enshrined legally by global treaties andnational legislation.

(iv) TransparencyYour business is now everyones business. The information-hungry consumer has access to

more information than ever before. It is becoming impossible for companies to operatebehind closed doors so transparency is the new paradigm for conducting businesssuccessfully.

(v) ConnectednessConsumers can form instant global communities and redefine your business overnight. Thishas benefits in cost and time, provides new opportunities and threatens those that try tomaintain business as usual.

(vi) Values shiftWe are undergoing a widespread reassessment of the values that underpin society, around theworld there is declining trust in business and institutions. Corporations that understand thiswill find ways to work with consumers, employees and other stakeholders to turn this into anopportunity.


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Q4. Models of Change.Ans. There is probably not one change management model that can be used for all changesand improvements in one company. The challenge is to select the best bits and pieces fromeach that are right for using in company given its unique situation, and then create the model,plan and approach that will deliver success for your organization. The key is to develop andimplement an approach that supports an understanding of the current situation and how bestto influence it at that time.

Some of the famous models are discussed below:

(a) John Kotter 8 Critical Steps ModelJohn Kotter, the retired Harvard Business School professor published in 1995, the article'Why Transformation Efforts Fail'. The change management article outlines eight critical

success factors from establishing a sense of extraordinary urgency, to creating short-termwins, to changing the culture ("the way we do things around here").

Kotter say's "Leaders who successfully transform businesses do eight things right (and theydo them in the right order)." Years later, the change management model developed and thiswork on leading change still remains very relevant.

Kotter opens the article with his explanation of how he watched over 100 companies try tomake fundamental changes to help cope with a new, more challenging market environment,including small and large organizations from Ford and British Airways to LandmarkCommunications. Some were successful some failed and from his observations John P Kotterdetermined that in the change process itself is a series of phases and a change managementprocess that requires a considerable amount of time.

Further Kotter identified eight stages of change a company must successfully complete toachieve lasting sustainable change and business improvements, and eight reasons whytransformation efforts fail.

In addition to the eight stages necessary for obtaining and maintaining successfulorganizational change, Kotter also identifies corresponding possible pitfalls for each stagethat can derail the change project all-together.


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Following are the eight critical success factors of the John P Kotter change management

model for leading change, and the eight major errors identified in the change managementarticle that can halt a change project, or even destroy any positive change management plansand changes made thus far.

Eight Steps to Transforming Your Organization

1. Establishing a Sense of Urgency

John Kotter Risk 1: Kotter refers to this risk of this first phase as: Not Establishing a

Great Enough Sense of Urgency.

During this first step it is essential to acquire the cooperation of many individuals and toensure they are motivated to participate. Kotter writes in his article that well over 50% of thecompanies he watched failed in this first phase.


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Begin by examining the firm's competitive realities, market trends, and the effects onfinancial performance.

Communicate this information dramatically in respect of the potential crises.

Convince at least 75% of a company's management that the current situation is totallyunacceptable, and pursuing change is less risky than maintaining the status quo. Buildmotivation, involvement and support.

When the urgency rate is not high enough to prevent very serious internal problemslater on in the process.

Underestimating the complexities and potential struggles required to shiftmanagement and staff from their comfort zones.

Tendencies to become overwhelmed by the risk involved in retreating to the statusquo.

2. Forming a Powerful Guiding Coalition

John Kotter Risk 2: Not Creating a Powerful Enough Guiding Coalition.

Form a powerful coalition is terms of titles, information and expertise, reputations,and relationships.

Operate outside of the normal hierarchy by definition, outside of formal boundaries,expectations, and protocol.

Emphasis team work and whilst recognizing the power of a strong line managementleadership within the coalition.

Maintaining the existing hierarchy where if that were working well, there would be noneed for a major transformation.

Coalition members having no history of teamwork at the top and therefore undervaluethe coalitions importance.

Not lead by a strong line manager.

3. Creating a Vision

John Kotter Risk 3: Lacking a Vision.

A vision beyond the numbers that clearly defines where the organization is going.


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Clear and precise project plans that take the organization in the direction it needs tomove to achieve the vision.

Plans, directives, and programs with no vision, but confused staff.

List of confusing and incompatible projects and activities that can take theorganization in the wrong direction or nowhere at all.

Quote John P Kotter: If you can't communicate the vision to someone in five minutesor less and get a reaction that signifies both understanding and interest, you are notdone!

4. Communicating the Vision

John Kotter Error 4: Under communicating the Vision by a Factor of Ten.

Brighten up the companies existing communications methods. Try new and differentmethods for sharing the vision.

Use every vehicle possible to communicate the strategies for achieving it.

Emphasise and teach new behaviours by the example of the guiding coalition.

A vision is developed, but only a single form of communication is used.

Management not walking the talk. Deeds speak louder than words.

Not enough communication to remind of the desired behaviours.

5. Empowering Others to Act on the Vision

John Kotter Error 5: Not Removing Obstacles to the New Vision.

Action is essential in getting rid of obstacles to change and in time, the big ones mustbe confronted and removed.

Empower people to maintain the credibility of the change effort as a whole, to try newapproaches, to develop new ideas, and to provide leadership.

Change Systems and structures that seriously undermine the vision.

Encourage risk taking and non-traditional ideas, activities, and actions.

Failing to remove powerful individuals who resist the change effort and who resistindividual employees who want to help make it happen.


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Organizational structures such as human resource systems that remain intact evenwhen there are clearly inconsistent compensation or performance-appraisal structures.

6. Planning for and Creating Short-Term Wins

John Kotter Error 6: Not Systematically Planning for, and Creating, Short-Term Wins.

Develop clear performance improvements goals and measurement systems andreward the people involved when they are achieved.

Maintain commitments to achieve short term goals to help maintain a high urgency

level and force deep thinking that can clarify visions.

Without short-term wins, too many people give up or actively join the ranks of thosepeople who have been resisting change.

Absence of defined and measured short term goals - urgency levels can drop.

Leaving results to chance.

7. Consolidating Improvements and Producing Still More Change

John Kotter Error 7: Declaring Victory Too Soon

Use increased credibility from early wins to change 'the old way we do things aroundhere' systems, structures, and policies that are undermining the vision and have notbeen confronted before.

Understand that renewal efforts take not just months but often years. Promote, hire, develop employees and use change agents who can implement the

vision.

Declaring victory before the changes and business improvements have sunk deeplyinto a company's culture.

Having premature victory celebrations that kill ongoing momentum.

Allowing the powerful resistors associated with tradition take over.

Quote John P Kotter: After a few years of hard work, managers may be tempted todeclare victory with the first clear performance improvement.

While celebrating a win is fine, declaring the war won can be catastrophic.


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8. Institutionalizing New Approaches

John Kotter Error 8: Not Anchoring Changes in the Corporation's Culture

Communicate frequently how the new approaches, behaviours, and attitudes haveimproved performance.

Create leadership development and succession plans consistent with the newapproach.

New behaviours not rooted in social norms and shared values; they are subject todegradation as soon as the pressure for change is removed.

Not ensuring that the next generation of top management understand thetransformation that has taken place and personify themselves, the new approach

Poor succession decisions because boards of directors are not an integral part of therenewal effort.

In the final analysis, change sticks when it becomes "the way we do things aroundhere," when it seeps into the bloodstream of the corporate body. Until new behavioursare rooted in social norms and shared values, they are subject to degradation as soonas the pressure for change is removed.

(b) Kurt Lewin 3 Phases Change Management Model

Kurt Lewin change theory and Lewin's three step model is very much a significant part ofchange management strategies for managing change in the workplace in the 21st century.

This change management model was developed during the 1940's and the concept of'Unfreezing-Transition-Freezing' still remains very relevant today.

Kurt Lewin's change management model is a fantastic change model for understanding thebasic concepts of a straight-forward change management process.


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Lewin's Three Step Change Model Phases are:

Unfreeze: Reducing the forces that are striving to maintain the status quo, anddismantling the current mind set. Usually by presenting a provocative problem orevent to get people to recognize the need for change and to search for new solutions.

Transition: Developing new behaviours, values, and attitudes, sometimes throughorganisational structure and process changes and developmental techniques. Theremay be a period of some confusion as we move from the old ways of doing things tothe new.

Freeze: The final stage of crystallizing and the adaptation of ownership of the new 'asis'. The organization may revert to former ways of doing things at this point unless thechanges are reinforced through freezing.

Unfreeze

How do we unfreeze an organisation? Typically a provocative problem or event needs to bepresented to people to get them to recognize the need for change and to search for newsolutions. This problem or event is the catalyst that creates the pressure for movement ofattitude or thinking, and for change to occur. And key to this unfreezing catalyst iscommunication.

Two examples are:

By doing attitude surveys of all staff, it may show management that moral is quite low andthat as a result of this low morale the risk to safety is quite high. This may influence a

manager who has been resisting change to begin to take action.


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Similarly when information is being delivered to the field, but then negative events in thefield are continuing to occur, this may convince management that the message is not beingheard and some required changes are in order.

During the unfreezing step generally most staff and management are willing to change. Thosethat are not usually require something meaningful to provoke them to change their attitude.These two examples above demonstrate that there are many positive and constructive ways todo that.

Kurt Lewin's model suggests that one of the best ways to motivate people to change is to firstget people to see the need for change. Even when a change if for the persons long term healthbenefits such a ceasing a bad destructive habit, few people ever change because someone elsetells them to. People generally need to see for themselves the need for change, for the catalystto occur, to provoke them to "unfreeze".

Educating employees in regards the pressures for change is a first step. Following on fromthat leaders can begin to highlight gaps between the current and desired states and present avision as it needs to be. Then further begin to convey the change in terms of specificoutcomes that the company expects from the operation and employees and their confidenceand belief that these changes are possible.

The existing system needs to be broken down before a new way of operating can be installed.

As change agents the goal at this stage is to create a strong reaction. To get the relevant staff

and management involved and examining the status quo. To create an upsetting of the applecart, where people are forced to seek out a new and better way to do things. To re-set thenormal order of things to new heights and standards.

Tips to Unfreeze

Change cannot be change for change sake but change because compelling informationabout the business, market or product or so on is telling us this is necessary. Do theanalysis to determine what change is required. Internal research, market data, etc.Build an understanding.


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Break down the existing status quo before developing a new way of doing things."Break the failing system while maintaining order".

Compel people to understand and know the old ways cannot continue and use priorpoor outcomes as references to this old status quo. Get the message out. The who,what, when, where, how, and why changes and improvements are required.

Maintain regular and frequent communication lines open with all employees. Have anopen door policy from the leadership group that allows employees in to discussconcerns and such can help eliminate barriers to change and fears in terms of directingthe need to change.

Remain open and honest with feedback to staff and continue to build cohesivenessamong the groups affected.

Build a guiding coalition and support from management and understand and payattention to the needs of stakeholders.

Transition

During the transition phase we aim to shift or alter the behaviour of the individual,departments, or organization in which the changes are taking place.

People are at this stage looking for new and better ways to do things. The behaviour mayinitially be mechanical but they are starting to perform and behave in ways that support thenew direction.

This process can be lengthy and almost certainly will not happen in a matter of just a fewdays. It will take time for people to feel comfortable and start to act in ways that aresupporting the change initiative. There may be some mayhem and confusion at this pointthough with a properly structured approach to the change this can be managed well.

Once people begin to see how the change is benefiting them, the company and those aroundthem, they will begin to take ownership in the change and drive it. However we must not asleaders and change agents take for granted that everybody will be the same. Some people


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even though they themselves can see the benefit for the business and its people, may stillcreate difficulties and may have to be removed. Unfortunately this is a fact of business life.

During this transition phase be prepared to deal with people who benefit from not changing.For them the best situation is the status quo. Have plenty of time and plenty ofcommunication. People need time to take things in and through the continual communicationthey will feel more involved and connected to the process. It will benefit the project and isgreat for leaders and the change initiators to get out in the field and talk and be a part of thepeople's approach. This aspect is part of what makes a good leader.

Tips for Transition

Communicate, Communicate and Communicate.

Involvement, Involvement and Involvement.

Immediately address any barriers of negative people, and keep things real and comingback to how it relates to the business and the need for change.

Provide empowerment for people that is matched to consequences, and their readinessto change.

Make use of milestones and measurements.

Be open to continual negotiation.

Freeze

When the people, structure, and strategy elements all seem okay, when things are lookingwell, it is time to lock things in. We act here to make sure that the improvements stick andthis is the freezing phase. We continue here until the changes become the 'way we do thingsaround here'.

Kurt Lewin's three step model assumes that organizations tend to revert to their former waysof doing things unless the changes are reinforced. Kurt Lewin's model requires a process bein place that supports and maintains the changes. This may include things such as new


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employee performance appraisal systems and reward systems to influence those to adhere tothe firm's new values.

These aspects are also referred to and supported in John Kotter's leading change model suchas in "John Kotter Error 5, not removing obstacles to the new vision". This is very importantpoint because it reinforces that to sustain change, to freeze, something has to be in place tomaintain it. This may mean removing existing business systems and structures, etc that arenow clearly inconsistent with the new 'as is'.

Importantly, in recognizing that we continually change, this stage of freezing may only betemporary in a continually improving environment. But freezing is still necessary in the

continuity of operations. It is necessary before moving on to the next stage of unfreezingagain. This is because freezing eliminates confusion for people who may not be sure of whatneeds to be done if things were not locked in to become standard operating procedure (at leasttemporarily).

Another benefit of freezing is that even though it may just be temporary, we have confirmedthe need to improve and become more compelled when the pressure for change builds again.

Tips to Freeze

Be sure to recognize and celebrate success as a standard part of the change process.

Use force-field analysis to identify and eliminate barriers to the change sticking,whilst maintaining a forward looking focus on the new installations.

Establish performance and reward systems for monitoring the influencing the changeconsistency.

Maintain regular review meetings with key staff and adapt the organisations meetingstructure and agenda's to support the improved status and processes.

Train personal where necessary and invite continued involvement in the processes.


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(c) Deming Cycle - PDCA Cycle

The Deming Cycle or PDCA Cycle or Shewhart Cycle (named after Walter Shewhart andfurther developed by W. Edwards Deming) is a four stage change management model usedby companies for continuous business improvement and incremental problem solving.

This change management model benefits companies by providing a systematic approach toachieving continuous improvement. The objective is to continually progress through eachstage while aiming to achieve a better quality output of products or services or information asdefined by our customers.

The Deming Cycle is often phrased in the change management process and in businessimprovement fields as the PDCA cycle. It is often graphically presented as a circle or wheelbecause it requires repeating the same stages over and over in the continuous changemanagement effort to improve processes and outputs. The circle is represented in fourquadrants of plan-do-check-act.

Other variations to the name include, Deming Circle, Deming Wheel, Deming Quality Wheeland Deming Management Wheel. When I have seen this change management model referredto as Deming Circle or Deming Wheel the four quadrant names plan do check act have beencalled plan do study act. They all refer to the same model and process.

The five stages of Deming Cycle are:

(i) Plan an improvement

The goal at this stage is decide what needs to be done and how it best can be done. Achievethis goal by reviewing and studying the current work process and available data. This stage


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really involves examining the current method or the problem area. Change management toolsand methods to use here include:

Customer supplier relationships analysis

Flowcharting - business process mapping

Pareto Analysis

Idea generation Sessions - Brainstorming

Value Driver Trees

Assessment matrices

Root cause and effect analysis

(ii) Do the planned activity

Implement the improvement or problem-solving plan by actually doing it. This is theimplementation stage during which the plan is actually tried out in the operation. The peopleresponsible need to be trained and equipped with the resources necessary to complete thetask. This stage itself may involve a mini PDCA cycle as the problems of implementation arediscovered and resolved and we begin to see if the implementation of the plan is providingresults. Resources and skills required include:

Team Leader and Supervisory leadership skills

Experiment design and implementation knowledge

Operations management problems handling skills

Conflict resolution skills and

On the Job Training

(iii) Check the results

The new implemented solution is evaluated to see whether it has resulted in the expectedperformance improvement. Analyze the new data available and measure the results to see ifthe implementation of the plan is giving the results that it should. Change Managementmethodologies and tools at this stage include using:

Data check sheets,


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Control charts, and

Key Performance Indicators

(iv) Repeat the Deming cycle

Continue the cycle again. Plan and implement further improvements. Even better though, aswe continue with the Deming Cycle we have the benefit of having new data and learnedexperiences from the previous cycles. We are well positioned to continue to carry out theseprocess improvement activities and achieve ongoing results.

Deming Cycle Key Points

If the process of work is automated, largely mechanical then the ability for operators toimprove and implement changes is limited, and so responsibility lies more with the designersand managers of the process. However if the process is perhaps more hands on or servicefocused, such as a truck driver delivering coal to a quarry, then because the interaction withthe customer is higher, then the ability and responsibility of the truck driver to input here forimprovement is more so and necessary.

This is a particularly important point that links to the broader organizational changemanagement. Why? Because as mentioned in my page on stakeholder analysis, we mustinvolve the front line when considering changes and improvements, because they actually dothe process and have particular requirements, and because they can influence the projectoutcomes. The PDCA model recognizes this.

The 'Deming cycle' benefits what is change management considerably because of its intendednature, which is of continually reviewing and changing to do better. This change modelimplies the never ending process or repeatedly questioning the details of our work.

Although the 'PDCA cycle' was originally developed from within a manufacturingframework, it applies to all business types. It is particularly useful for service providers forreviewing customer and supplier relationships and the inputs and outputs to thoserelationships and processes.


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Effective use of the 'Shewhart cycle' is heavily reliant upon process design and planning andprocess control, process improvement initiatives and the process of obtaining gains andredesigning processes around those gains, then starting again.

Deming Cycle Pitfalls and Limitations

Some of the pitfalls and limitations of the Deming Cycle that I have recognized when used asa guide by operators include:

The model does not deal with the human side of change, resistance and motivation.

Leadership styles when implementing the approach are overlooked.

Communication methods between management and operators are not considered.

The PDCA cycle implies that improvement becomes a part of every person's jobthough individuals may not be competent or sufficiently trained to do so.

The actual work process itself may not be well enough designed to be capable ofoutputting the promised level of conformance to plan, disadvantaging both the processand the operator. So therefore quality has to be built into every element of the processbefore delegating to individual people to improve.

All those responsible for implementing the PDCA cycle require good knowledge andcontrol of the process and the improvement initiative for it to be accepted and for it tobe effective.

The PDCA Deming cycle is limited in scope. It applies more too individual processesfor improvement more so than to broader organizational changes. It does not take intoaccount at the process face, the operational and strategic objectives of the business. Itcan become a process or activity working in isolation away from a broader system ofinitiatives.


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References

1. Book on Organisational Change by Harsh Pathak. Publisher: Pearson Education India Pub.

2. Book on Organisational Change and Development by Dipak Kumar Bhattacharyya.Publisher: Oxford University Press

3. Book on Change Management: A Guide to Effective Implementation, by ProfessorRobert A Paton, James McCalman

4. Website: http://www.bitc.org.uk/our-resources/report/forces-change-global-mega-trends

5. Website: http://www.change-management-consultant.com

6. Website: www.businessballs.com/changemanagement.htm

Documents

Charan Singh - Assignment No. 1