ByProf. (Dr.) Vijay Kr Khurana

Understanding the Nature & Importance of Change Forces & Types of Change Diagnosing Organizational capability to Change - Strategy, Structure, Systems and People;

How do external forces influence organizational change? What are various forces of change from (a) individual perspective and (b) organizational perspective. Give diagrammatic representation of Change Process. How does Kurt Lewin explain the process of change. List its various phases and activities in each phase.

The quality of a successful man is to flow and not to freeze Ralph Waldo Emerson.

What is Organizational Change ?

At the heart of change management lies the change problem, that is, some future state to be realized, some current state to be left behind, and some structured, organized process for getting from the one state to the other state. At a conceptual level, the change problem is a matter of moving from one state (A) to another state (B). In simpler terms, the change problem can be treated as smaller problems having to do with the how, what, and why of change. a. Change as a 'How Problem b . Change as a What Problem c. Change as a Why Problem

Change makes things differentChange is inevitableChange is usually an ongoing activityChange results from factors both inside and outside the organizationChange offers new opportunities and poses new challengesChange takes place in all parts of an organisationChange takes place at varying rates in different parts of an organization.

Contd Changes take place at different levels of an organization Change may be both planned & unplanned The rate of change may be slow or fast.The quantum / magnitude of change may be of First Order (Incremental) or Second Order (Radical).Organizational changes are not always uniform.

Change brings risk and uncertainties, which, if not managed properly, may lead to huge costs to the organization or even collapse of the organization Change sometimes bring challenges without which life and business activities may become monotonous and repetitive.Change may bring new business opportunities Change sometimes brings new threats which act as stimuli for improvements

Contd Change process may be used by the organizations to move from current state of business operations to next higher state of business operations.Change process may enable the organization to abandon some negative cultural values, some outdated & obsolete practices and methods etc.Change process can be used to raise motivation viz. by creating desire to support and participate in the change Change process may lead to more satisfaction through improvement in worker skills and more worker participation

Planned Change (intentional or goal oriented) and Unplanned Change (accidental)Fast Change and Slow Change ( in terms of rate of change)First Order Change (incremental) and Second Order Change (fundamental or radical) in terms of magnitude / quantum

some External Factors are:Change in government policiesTechnological advancement / Progress in external environmentChange in demographic characteristicsMarket changesChange in economic conditions boom vs recessionIncrease in raw material / input costsSocial pressures etc.

b. some Internal Factors are:Change in leadershipStructural reorganizationAdoption or Implementation of new technologyDecline in profitabilityProductivity concernsIndustrial Relation Problems etc.

Demographic ChangesEducation & Awareness Political & social factors - demand for social justice, inclusive growthStruggle for Balance of Power- Have vs have-nots, Developed vs Developing countries, North vs southEnviron-mental issuesHealth Care issues - medical tourism etcTech & Innovation breakthrough & disruptive technologies / innovationEconomic Transformation globalization, open & inter-connected economies Rising needs for InfrastructureSafety and Security

It is the process which changes the state or which results in changeChange process as Unfreezing, Changing & RefreezingChange process as problem solving & problem finding

Also known as Unfreeze-Change-Refreeze ModelLewin suggested following three steps for ensuring successful change

Unfreeze efforts undertaken to overcome the pressures of resistance to change. Driving forces for change should be greater than restraining forces working for status quo. Following steps should be taken: Determine what needs to be doneEnsure there is strong support from upper managementCreate the need for changeUnderstand & Manage doubts & concerns

contd 2. Change moving to new state. Following steps should be taken: Communicate oftenDispel rumours Empower actionInvolve people in the change process

contd 3. Refreeze Stabilizing the change; making new change permanent. Following steps should be taken: Anchor the changes into cultureDevelop ways to sustain the changeProvide support & trainingCelebrate success

Diagnosing the Organizational capability to change Formula for ChangeBringing change - Seven Levels of Change Model

a. Diagnosing the Organizational capability to change Before initiating change process, it is very important to diagnose / assess the organizational capability to change. If it is not assessed / diagnosed, then, at later stages, change process may go out of control, leading to huge costs to the organization.Following parameters can be used to diagnose / assess organizational capability to change: -----Organization cultureVision for futureCommitment of top management

Contd .... Diagnosing the Organizational capability to change Risk taking attitude of top managementRisk taking capabilities of the organizationDegree of flexibility in organizational systems and overall workingEffective communicationStrong leadership Pool of dedicated managers and senior executivesCommitment, motivation and participation of workforceConvergence of organizational goals and individual goals

How will you diagnose the Organizational capability to change StrategyStructureSystemsPeople ????

Strategy is a high levelplan to achieve one or more goals under conditions of uncertainty. Strategy becomes necessary when it is known or suspected that there are problems or insufficient resources to achieve these goals. Asystemis aset of interacting or interdependent components forming an integrated or a set of elements (often called'components') andtheir relationships. Structureis a fundamental, tangible or intangible notion referring to the recognition, observation, nature, andpermanence ofpatterns and relationships of entity(ies).

b. Formula for ChangeThe formula for change was developed by Richard Beckard and and David Gleicher. It is sometimes referred to as Gleichers formula. The Gleichers formula stresses that the combination of organisational dissatisfaction, vision for the future and the possibility of immediate, tactical action must be stronger than the resistance within the organisation in order for meaningful change to occur.Driving forces must be > restraining forces

c. Bringing change Rolf Smiths Seven Levels of Change Model - (7 types of changes from easiest to difficult )Level 1: Increasing EffectivenessDoing The Right Things Use Pareto principleLevel 2: Improving EfficiencyDoing Things Right Level 3: EnhancingDoing Things BetterLevel 4: Cutting or Abandoning the Unnecessary Things viz Product simplification

Contd Bringing change Rolf Smiths Seven Levels of Change Model Level 5: Copying / Imitation i.e Doing Things which Other People are Doing viz Copying / Imitation, Reverse engineering, Benchmarking Level 6: Doing Different Doing Things No One Else is Doing Re-engineeringLevel 7: Doing ImpossibleDoing What Cannot be Done - some Breakthrough- a revolutionary or shocking departure from convention Disruptive innovation / Business model innovation

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