Managing Change: The Role of HR

Dr. Elijah EzenduFIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM,

PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr

Learning Objectives

At the end of the course, participants should be able to do the following:

Identify role of HR in Change Management Identify the appropriate relationship between HR and internal

customers during a change project Explain the importance of change initiative Develop and implement strategies for managing change Conduct evaluation of change using appropriate analytical

tools Develop strategic change report

“A method of problem solving…..moving from one state to another – from the problem state to the solved state.” – Ramesh Mehay

“the coordination of a structured period of transition from situation A to situation B in order to achieve lasting change within an organization”. - BNET Business Dictionary

“Change Management is preparation for major changes in the present and the future, as a means of strengthening the agility, the internal resilience, and the peripheral vision of the organisation.”

- Peter Gumpert

Reactions of Human Beings to Change

• Denial• Anger• Antagonism• Battle• Bargaining• Depression• Acceptance

Why People Resist Changei. Fear of the unknownii. Fear of becoming somewhat irrelevantiii. Fear of redundancyiv. Fear of aspiration negationv. Fear of disconcerting work environmentvi. Fear of structural displacementvii. Fear of failure in new pathviii. Clasping old habitsix. Lack of trust and supportx. Lack of competencexi. Lack of effective communicationxii. Learning Aversionxiii. Peer Pressurexiv. Obstinate Paradigmxv. Short-termismxvi. Wrong Timingxvii. Organisational politicsxviii. Perception of poor benefits and rewardxix. Inhumaneness of top management xx. Belief that the change is a fadxxi. Belief in supposed superior alternativexxii. Inability to identify the needxxiii. Previous experiencexxiv. Inflexible and punitive implementation strategiesxxv. Non-participatory planning process

Three Human Disposition to Change

Exploratory Engagement

• List the tactics HR Leaders should deploy in handling human resistance to change?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Dave Ulrich Model of HR Roles

IPMA Model of HR Roles

Leader

Business Partner

ChangeAgent

HR Expert

“Of course change management isn’t restricted exclusively to HR. Line managers are the owners of change while HR can be seen as its architect, facilitator and designer. Nobody ever said that only HR manages change.”

- Dave Ulrich

Change management is a core HR Professional Skill, leveraging on people dynamics and organisational systems for planning, executing and coordinating change-direction and human capital control at the pre-change, active change and post change phases.

HR as Change Agent1. Provide impetus for conducting change at every

organisational stratum2. Provide structured framework for change3. Align top management with other employees 4. Develop requirements for appropriate organisational

agility5. Identify and establish workable change management

processes6. Reinforce change management communication as a

driver for attainment of effective change7. Act as overwhelming influence for successful change

Operational Spheres of Change Agent

D

A

GF

E

CB

ChangeAgent

Elijah Ezendu, Change Management

Requisite Abilities for Change Agents• Diagnose Problems• Build Relationships with Clients• Ensure Vision is Properly Articulated• Set Leadership Agenda• Solve Problems• Implement Plans to Achieve Change Goals• Tolerate Ambiguity• Manage Conflict• Manage Projects• Mitigate Resistance• Manage Risk• Coordinate Effective Communication• Apply knowledge of business, products and work processes

Adapted from Dave Ulrich and Other Commentators

“Successful organizational change is about coordinating the four different leadership roles in an organization to produce employees that are Ready, Willing, & Able to Change.”

- Randal Breaux, Managing Organisational Change

Change Agent in a Nutshell• A Change Agent is a person tasked with creating

needed employee behavior change• Successful organizational change is about

coordinating the four different leadership roles in an organization to produce employees that are Ready, Willing, & Able to change

• Good Change Agents know how to manage upwards effectively.

• Only successful change projects can fuel long-term improvement in an organization’s change environment.

Adapted from Holland & Davis

Multiple Roles of HR as Change Architect

Two Phases of HR Role in Change Management

• Planning• Implementation

Planning Phase• Evaluation of Viewpoint• Strategic forecasting of Initiatives and

directions• Development of business strategy for

initiatives and directions• Determination of action points and elements

of execution• Identification of performance targets for

action points.• Establishment of communication plan

Evaluation of Viewpoint

The management should identify the need for change in a specific area, and resolve its attributes with the aim of protecting strategic interest of the firm.

Strategic Forecasting of Initiatives and Direction

This involves the use of analysis, synthesis and review for determination of appropriate initiative and direction. Probable initiatives should be evaluated using STEEPLED analysis, Issue analysis, SWOT analysis, and Stakeholder analysis.

Industry direction should be identified by using four trajectories of industry change analysis.

The specific forces of change in the industry and their impact can be ascertained to a reasonable level by using driving forces analysis.

Thereafter, several permutation levels of industry direction and feasible action points of the organisation shall be appraised by using Thirteen Forces analysis.

Change Initiatives

• Leadership Change• Cost Change• Quality Change• Process Change• Cultural Change• Strategic Change

Four Trajectories of Industry Change Analysis

This tool was developed by Anita McGahan in 2004. It’s used for identifying and understanding change in an industry, so as to know whether to move out of it.

How to Conduct Four Trajectories of Industry Change Analysis

• Identify all the core assets and core activities of an industry.• Check-up threats to the core assets and core activities.• Identify the trajectory of industry change occurring in the

industry using the format below:(Radically: Core assets and core activities are threatened to become obsoleteProgressive: Core assets and core activities are not affected.Creative: Core assets are threatened but core activities are stable.Intermediating: Core activities are threatened but core assets still have capacity to create value.

• Establish appropriate course of action.

Driving Forces Analysis

This tool is used for identifying the driving forces of change and uncertainties in an industry, in addition to assessing their impact, in order to proffer solution.

How to Conduct Driving Forces Analysis

• Identify all the main driving forces in a particular industry.

• Assess and rank the impact of each driving force.

• Consider impact and proffer solution.

Identifying Driving Forces

Every set of stakeholders within a particular industry and the ensuing macroenvironmental factors would be examined in order to find out associated driving forces.

Assessing and Ranking Driving Forces

A rating system of 1 to 10 (signifying weak to strong) can be used to mark the strength of each driving force as well as the ease of influencing it. Thereafter, the sum of strength and influence would be used to determine rank of each driving force.

The Thirteen Forces

Suppliers IndustryCompetitors Buyers

Substitutes

PotentialEntrants

SocialShifts

TechnologicalShifts

DemographicShifts

EthicalShifts

EconomicShifts

EnvironmentalShifts

PoliticalShifts

LegalShifts

Implementation Phase

1. Lewin’s model2. Kotter’s model3. Lippitt, Watson and Westley model4. Prochaska and DiClemente model

Lewin’s Model

• Unfreeze the status quo• Movement from current level to a new

equilibrium• Refreeze the new values to achieve stability in

new equilibrium

Kotter’s Model

• Unfreeze to overcome resistance, while coordinating the employees towards the new vision

• Movement by establishing lines of action for every employee to participate and celebration of short term success

• Refreeze by institutionalizing the new act

Lippit, Watson and Westley Model1. Diagnose the problem.2. Assess the motivation and capacity for change.3. Assess the resources and motivation of the change agent. This includes

the change agent’s commitment to change, power, and stamina.4. Choose progressive change objects. In this step, action plans are

developed and strategies are established.5. The role of the change agents should be selected and clearly

understood by all parties so that expectations are clear. Examples of roles are: cheerleader, facilitator, and expert.

6. Maintain the change. Communication, feedback, and group coordination are essential elements in this step of the change process.

7. Gradually terminate from the helping relationship. The change agent should gradually withdraw from their role over time. This will occur when the change becomes part of the organizational culture

Prochaska and DiClemente Model

• Pre-contemplation• Contemplation• Preparation• Action• Maintenance

Change impacts activities, processes, systems, techniques, work-flow streams and talents thereby stimulating a particular level of performance.

Causal Mode of Organisational Performance & Change

ExternalEnvironment

Individual and OrganisationalPerformance

Mission & Strategy

Motivation

Work Unit Climate

Management Practices

Organisational Culture

Leadership

Task and Ind. Skills

Structure

Individual Needs and Values

Systems (Policies & Procedures)

Adapted from Burke and Litwin

Performance in Change

In accordance with Burke-Litwin Model, change occurs in response to external environment and affects transformational factors that in turn impact transactional factors thereby influencing motivation and finally determines performance.

The Human Resource Leader should carry out responsibility of Change Architect by crafting Strategic Change Report that shall act as transparent and feasible prodder.

Strategic Change Report

This is a standard blueprint showing current situation of an entity, required change, issues in execution of change, and expected result within specific timespan.

Contents of Strategic Change Report

• Current Corporate Condition• Statement of Problem• Statement of Solution• Change Analysis• Structure of Change Progression• Performance of Change • Expected Corporate Condition

Source: Elijah Ezendu, Change Management

Exploratory Engagement

What are Characteristics of Effective Strategic Change Report?……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………......................

Change Management CaseThe management of Angular Corporation had realised the

need for enterprise-wide exploration of Social Media. The decision was based on effects of social media literacy and applicability of social media as competitive advantage through boosting of collaboration, innovation, competitive intelligence, inductive learning, interactive engagement, esprit de corps, business development, intrapreneurship, corporate brand and techno-human driven performance. You are required to develop a Strategic Change Report.

Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning & International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE) and Hon. President, Worldwide Independent Inventors Association. He functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting, Nigeria; Chairman (Certification & Training), Lead Assessor & Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Director, Fortuna, Gambia; Director, The Greens; Director of Programmes & Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria. He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nig) and Jones International University (USA). He also works as Adjunct & Visiting Professor of Universities and holds Interim Management Assignments on Boards of Companies.

Thank You