Introduction to Organizational Change Management

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Introduction to Organizational Change Management

• Global Business Management
• U.C. Riverside
• Extension Programs

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Objectives

• Develop a better understanding of organizational
  changes
• Learn basic rules of OCM (Organizational Change
  Management)
• Develop a plan to apply OCM rules in the work
  environment

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What is an Organizational Change?

• An event that creates a significant (positive or
  negative) disruption of established or expected
  patterns at work

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Why is change necessary?

• Obsolete systems
• Advancement
• Competition
• Cost of the status quo is greater than the cost
  of change

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Characteristics of a turbulent work environment

• More interaction and interdependence between
  components of change - people, tasks, issues,
  problems and opportunities
• More unanticipated consequences
• Less time to react to events
• Less predictability and control
• Less durability of solutions

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What can a change impact adversely?

• Competence
• Confidence
• Comfort

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Why is managing change so important?

• Employee retention
• Customer retention
• Continuity
• Prevent decline in performance
• Minimize change related expenses

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Successful management of change

• Achievement of a stated business objective on
  time and within budget - without creating a major
  disruption in the work environment

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OCM Rule 1

• Different changes need to be managed differently

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OCM Rule 2

• Build necessary commitment and resolve needed to
  complete the change process successfully

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OCM Rule 3

• Create a Sponsorship structure
• by identifying sponsors at each level to support
  and sustain the change through completion.

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Definitions Sponsors, Agents and Targets

• Sponsors prepare the change agents to fulfill
  their roles, giving them the necessary skills to
  manage not only the technical aspects of the
  engagement, but the human aspects as well.
• Sponsors may also have organizational control
  over the targets that need to change.

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OCM Rule 4

• Agents or advocates must possess the skills
  necessary to successfully deal with the human and
  the technical problems associated with the change.

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OCM Rule 5

• Enable sponsors, agents and targets to work
  efficiently as a synergistic team throughout the
  change process

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What is a Synergistic work environment?

• Total output generated by a group/team of people
  is greater than the sum of their individual
  efforts
• There is no fear
• There is 5-way communication
• There is a feeling that everyone can influence
  the outcome
• Commonality of goal creates a special bond

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OCM Rule 6

• Resistance to any change is a normal reaction.
  It cannot be completely eliminated. It can only
  be minimized.
• The greater the change, stronger is the expected
  resistance

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How can resistance be managed?

• Resistance can be managed using a preventive or a
  healing approach
• Preventive costs are the costs invested to build
  commitment to the change objectives.
• Healing costs are the maintenance costs for
  change forced on targets

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OCM Rule 7

• Only ask for the required level of commitment
  necessary to achieve the objectives.

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OCM Rule 8

• Current organizational culture is a key variable
  that can either be an enabler or a barrier for
  the implementation of a change initiative

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What is organization culture?

• Organizational culture is the basic pattern of
  shared beliefs, behaviors, norms, values, and
  expectations acquired over a long period of time.
• Whenever there is a clash between a change in
  culture and current culture, current culture is
  likely to prevail/win.

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OCM Rule 9

• Management must possess the ability to help the
  targets become more resilient and adaptable to
  accommodate the changes in their environment

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OCM Rule 10

• Change management is necessary to succeed in a
  Global Business Environment. It must be treated
  as an integral part of the overall strategy of
  any business.

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Summary

• What did we learn today?
• How does it apply to your work environment?
• Questions, Comments, Concerns ???
• Thank you !!!!