Module No. M 4.4 Title Business Entrepreneurs and Change Management Module type SU Language of Instruction English Teaching Methods Frequency Weekly Semester 2 CHW 4 ECTS-Credits 5 Workload* 48 / 34 / 34 / 34 Responsibility for the Course

Prof. Dr. Paul Sudnik

Lecturer Prof. Dr. Paul Sudnik Corresponding Courses Prerequisites Assessment Method StA Study aids to be used

*Workload in hours: presence in lectures / Preparation and follow-up of lectures / self study / revision for assessments

Intended Learning Outcomes (Skills, Knowledge, Attitude) When leading the development and implementation of change management projects, managers need to be able to initiate and guide organisational strategic change and to understand human behaviour. This module will offer the following learning opportunities to help successful students master these skills:

• Evaluate the complex nature of change and the role of change management in organisations

• Analyse various theoretical models of organisational change and apply them

• Analyse the relationship between environmental change and organisational capability. This will include analysing the areas of complexity, ambiguity and other challenges arising from the business environment.

• Analyse and evaluate the role of managers, internal and external change agents in the promotion and

implementation of change.

• Understand reactions to change and consider strategies to manage these

• Critically evaluate the importance of addressing the cultural dimension of change.

• Apply the notion of the learning organisation and its impact on change.

• Evaluate contemporary issues and the impact in business management, including sustainability, globalisation, corporate social responsibility, diversity and governance.

Contents This module develops students‘ critical understanding of key theories, principles and concepts of organisational change management. It will examine current theory and academic debate within the context of the managemement of the change process. Special attention will be paid to organisational culture, and the role it has to play in the management of change. Participants will critically assess theories of organisational culture and the psychological contract. They will analyse the principles of organisational development and discuss the concepts of the learning organisation and Knowledge Management within the context of organisational change. A range of tools and techniques will be examines the application of which can facilitate the change process. The central issue for large organisation transformations is seldom only about strategy, structure, culture or systems but it is always about changing the behaviour of people. The implementation of large and/or innovative IT systems often requires change management and understanding of human behaviour. Companies that organise and manage people with strategic precision have a distinctive advantage. They are better able to seize new opportunities, adapt quickly to changing conditions and to deploy talent to maximum effect.

This module provides participants with a comprehensive understanding of the relationship between business strategy, organisation and human resources/talent. It presents proven methods to manage change and human resources. The programme follows the following route: PART ONE - INTRODUCTION

• Defining a change by differentiating between changes and continuing operations. • The change lifecycle - from concept to termination. • The factors that necessitate formation of a change team. (Scope, unfamiliarity, complexity of the change and its

importance to the organisation). • The human resource consequences of change team organisation. The pros and cons of the various change team

structures. The conflict between line and change managers. Responsibility exceeding authority. • Pitfalls - recognising the environment (technical, financial, political, end user, strategic, human resource and legal)

in which a change exists, and the most common reasons for change failure. • The necessary competencies of a change manager.

PART TWO - THE CHANGE MANAGER AS CHANGE INITIATOR 1. Basing the Change on a Clear Need

• The unused product delivered to time, cost and performance - a change failure? • The importance of understanding the needs and values of the customer and of change definition. • Understanding stakeholders and their different interests and requirements. • Understanding a product or completed change from the customer’s viewpoint. • Understanding the psychological as well as the technical attributes of a product. • The gap between the customer’s perception of a product and its physical features.

2. Putting the Case

• Changes as the outcome of strategic decisions. • Understanding how changes are initiated and selected and why it is important for a Change Manager to be aware

of this process. • The need to understand the evaluation process before you start. What do decision-makers want to know? • The end result and the fit with the customer’s needs. • Benefits and risks. Early exit costs. • Plan for logistic support and administration. • Past experience of team and organisation. • How change proposals are assessed by the organisation: • Non-numeric criteria (Strategic objectives, operating necessity, development of new capabilities). • Numeric criteria – financial appraisal, probability / risk analysis. • How to sell the idea within the organisation.

PART THREE – THE SKILLS OF A CHANGE MANAGER 1. Managing People and Leadership Styles

• The origins of power (physical, resource, position, charismatic, expert and negative). • Leadership styles - dependent on task, leader, individuals, team and organisational setting. • The importance of motivation. Recognising that different individuals are motivated differently from each other and

from the Change Manager. • Creating and building teams - characteristics of effective teams; stages in team development. • Managing meetings. The danger of wasting time en masse. The importance of effective planning and

chairmanship. Phases of a meeting: outlining purpose, ensuring effective discussion, establish conclusions and gaining acceptance.

2. Commercial Negotiation

• The nature of trade: a transaction which two or more parties each perceive as being to their own advantage. Negotiation as the process of dividing the benefits of trade.

• The types of negotiation likely to be encountered by a Change Manager, both within and external to the organisation.

• Recognising the opportunities for win-win situations. • Stages of negotiations: preparation, meeting, settlement and implementation. • Principles of effective negotiation.

3. Commercial Contracts

• Reasons for a contract: definition of agreement, reduction of risk to supply of resources. • Types of contract and contractor / supplier reimbursement options.

• The issues that should be covered in a contract. PART FOUR - CHANGE PLANNING, MONITORING AND EVALUATION 1. Planning

• The need for planning. Setting an appropriate level of planning. • Identifying the means, resources and actions necessary to accomplish one or more objectives. • Knowledge of the broad planning required to implement a change of medium sized complexity. • Knowledge of the main planning and presentation techniques. • Experience of preparing a Change Plan for a medium-sized change.

2. The Change in Context

• The importance of quality and safety. • Quality Systems – their role in change organisations.

3. Work Definition

• Definition of the product. • Product and Work breakdown structures. • Task responsibility matrices.

4. Resources

• Understanding the resources at the disposal of the change. • Understanding the ways a cost estimate may be prepared, appreciation of estimating accuracy and of the use of

contingency funds. 5. Scheduling

• Determining the best means of achieving project objectives. Coping with changes. • Knowledge of scheduling techniques, especially of networks. • Networks and Gantt charts. Critical Path Analysis. • Knowledge and experience of computer-based planning tools.

6. Dealing with Risk

• The nature of risk. • Methods for evaluating and dealing with project risk. • Use of a risk register.

7. Project Monitoring and Control

• Monitoring tools and control tools. • Familiarity with budget management and progress evaluation.

8. Project Performance Measurement

• Relating physical progress with cost status. • Measures of cost and schedule performance. • Understanding of Earned Value concepts.

9. Managing Complexity

• Sources of complexity, and why it can be a problem. • Use of processes. • Knowledge of change control process.

Applied methods in Economics and Business administration Analysis models and methods (research and analysis models):

• The module provides an opportunity for students to develop an understanding of the theoretical frameworks of entrepreneurship and organizational change.

Quantitative empirical methods (comparative – statistical, mathematical methods, data analysis): • Analyse of empirical data

Qualitative and interpretative methods (expert interviews, polls, standardised surveys): • Expert interviews and surveys

Teaching and Learning Styles

The class is delivered in a discussion-oriented style, comprising lectures in which the students are presented with a mixture concepts and theory; mini-cases studies; experiential learning and practical activities central to understanding entrepreneurship in the context of a technology based business. Students will be encouraged to undertake cross-disciplinary learning. The technical diversity of the group will be leveraged so as to expose students to the reality of collaborating in interdisciplinary teams. Literature Students will be expected to purchase 10 of this permanently evolving range of Harvard Business School cases – the set for each semester will be specified separately:

• Pierre Frankel in Moscow (A): Unfreezing Change • Teradyne: Corporate Management of Disruptive Change • Procter & Gamble Brazil (A): 2 1/2 Turnarounds • GE's Two-Decade Transformation: Jack Welch's Leadership • The National Geographic Society • Campbell and Bailyn's Boston Office: Managing the Reorganization • ABC Sales and Service Division: A Case Study of Personal and Organizational Transformation • Diageo and East African Breweries Ltd.: Tapping New Markets for Social Good • Merck & Co., Inc.: Corporate Strategy, Organization and Culture (A) • Procter & Gamble in the 21st Century (C): Integrating Gillette • Rebirth of the Swiss Watch Industry--1980-92 (A)

The following represent good background reading:

• Brown, A (1998) Organisational Culture, FT Pitman • Carnall, C (2003) Managing Change in Organisations, (4th ed), Prentice Hall • Hayes, J (2002) The Theory and Practice of Change Management, Palgrave • Kirkpatrick, D (2001) Managing Change Effectively, Gulf Publishing • Schein, E H (2004) Organisational Culture and Leadership, (3rd ed) John Wiley and Sons

Further indicative reading will also be provided in module materials