CHANGE MANAGEMENT

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CHANGE MANAGEMENT

• NIGEL H. TOMLINSON
•  
• CHIEF EXECUTIVE
•  
• SHEFFIELD CHAMBER OF COMMERCE INDUSTRY

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Some Thoughts About Change
Things do not change we change. Henry David
Thoreau We must be the change we wish to see in
the world. Gandhi There is a better way for
everything. Find it!. Thomas Edison Everyone
thinks of changing the world, but no-one thinks
of changing himself. Leo Tolstoy We do not
succeed in changing things according to our
desire, but gradually our desire changes.
Proust And if not nowwhen? Talmud Treat
people as if they were what they ought to be and
you help them to become what they are capable of
being. Goethe
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The Imperative of Change

• Expect nothing be prepared for anything
  Samurai saying
• At this time there are six major external changes
  which influence organisations
• A bigger global market-place made smaller by
  technology and competition from abroad.
• 2. A worldwide recognition of the environment
  as an influencing variable.
• Health consciousness as a permanent trend amongst
  all age groups throughout the developed
  world.
• 4. The demographic slump in the developed
  world means there are fewer young people to go
  round.
• 5. The changing workplace and skills shortages
  create a need for non-traditional employees.
• 6. Women in work and management is an ever
  increasing trend.

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The Major Causes of Change

• Think of changes that have occurred in your
  working life.
• How often were the following causes of change
  involved in some way?
• Changes in the level of technology used?
• Changes in customer expectations or tastes?
• Changes as a result of competitors activities?
• Changes as a result of Government legislation?
• Changes as a result of alterations in the
  economy?
• The Result You will change.
• There is no alternative.
• The organisation and employees can either be
  reactive or pro-active. Those that survive will
  be world class.
• The quality of people and their management is
  going to make a bigger difference than the
  quality of products or the quality of services
  Rosabeth Moss Kanter

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Examples of Environmental Influences
Economic Factors and Restructuring e.g. re-united
Germany 1990s
Capital Markets e.g. corporate losses
Labour Market e.g. drive to reduce costs, higher
skills
Competition e.g. increase in tendering organic
and acquisitive
Labour Policy Industrial Relations
Economic Forecasting
Financial Policy
Marketing Policy
Demographics e.g. ageing population
Demographic
Lobbying
Government e.g. national and trans-national
budgets, interest rates, employment law
The Enterprise
The Enterprise
Forecasting
Representation
Environmental Sensing R D Policy
Environmental Sensing R D Policy
Purchasing Policy
Supplies e.g. raw materials scarcity, supply and
demand
Ecology e.g. environmental laws and protection
Technology e.g. reduces product life cycle,
investment costs increase
Socio-Cultural e.g. quality of life, health,
mobility
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The Major Obstacles to Change

• I do not know the key to success, but the key to
  failure is trying to please everybody Bill
  Cosby
• People being too close to see what the problem
  is.
• Those who are part of the problem.
• Being unwilling to confront issues when status
  and remuneration are involved.
• Those who are part of the power system being
  examined.
• Those who are afraid to challenge the needs and
  demands of superiors.
• Those who quite simply do not like change or
  having to think about something.
• Habit is either the best of servants or the
  worst of masters. Nathaniel Emmons

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The Sheffield/South Yorkshire ScenarioThe Past

• Sheffield was the industrial and commercial
  powerhouse of its region.
• Heavy dependence on, and dominance by, Steel,
  Heavy Engineering and Mining.
• High proportion of small/medium/large
  family-owned companies operating a paternalistic
  management style. Exclusive reliance upon
  authority which only encouraged counter measures,
  minimal performance, even open rebellion.
• Lack of innovation and acceptance of new ideas
  and/or technology whilst the competition embraced
  them.
• Heavily Unionised with specific and rigid job
  demarcation, workforce with narrow skills base.
• City/Town Councils and Government constantly at
  odds with one another.
• Public and Private Sector saw no need to
  co-operate.
• Highly reactive to external and internal issues
  and forces.

Result Uncompetitive, outdated, lack of
investment and left in the political and business
wilderness. We needed to move to be World Class.
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Mines and steel mills closed - Rationalisation
through technology improvements, changes in
demand and competition.Thriving Medical, IT,
Service Cultural and Sports related sectors.Over
70 of businesses are micros (1-10) or SMEs
(10-199). Almost all of our large producers are
owned by foreign companies.New entrepreneurial
spirit has led to innovation, technologies and
ideas to allow companies to compete.Job
demarcation is giving way to transferability of
skills, skills base being increased, flexible
manufacturing systems being designed and
adopted.Change of Government with a very
different agenda. Sheffield City Council
Executive working closely with business sector
and beginning to revolutionise its own work
practices.Public and Private Sector have come
together in Sheffield First Partnership, South
Yorkshire Forum to achieve Objective 1
status.Much more proactive approach across the
region to secure inward investment,
re-development, reduce social exclusion and
promote change.
The Sheffield/South Yorkshire ScenarioThe Present
Result We are still behind the pace setters but
we have a better chance of catching up.
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Where did we go wrong?
We had highly mechanistic organisations
characterised by

• Task differentiation and specialisation.
• Hierarchy for co-ordination of tasks, control
  and communications.
• Control of all communications from the top,
  information provided on a need-to-know basis.
• Interaction and emphasis placed on vertical
  reporting lines.
• Loyalty to the organisation and its officers.
• Value placed on internal knowledge and
  experience.

We needed to have organic organisations
characterised by

• Continuous assessment of task allocation
  through interaction to utilise knowledge which
• solves real problems.
• The use of expertise power relationships and
  commitment to total task. Sharing of
• responsibility.
• Open and widely used communication patterns
  which incorporate horizontal and diagonal as
• well as vertical channels.
• Commitment to task accomplishment, development
  and growth of the organisation rather than
• loyalty to officials.
• Value placed on general and transferable
  skills which are relevant to the organisation.

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What makes a Change Environment

• There must be agreed requirements
  (Internal/External) - all employees develop
  willingness to provide service - establish needs.
• 2. Customer requirements must be met first
  time, every time.
• 3. Quality improvements to reduce waste and
  total costs - everyone uses their time
  effectively and more meaningfully.
• 4. A focus on the prevention of problems,
  reduce fire-fighting manner - Preventative
  rather than reactive.
• 5. Improvement can only result from initial
  management action, but everyone must be
  encouraged to participate in shaping the process.
• 6. Every job must add value - Overall
  enhancement of quality of work and personal
  quality of life.
• 7. Everybody must be involved from all
  levels and across all functions.
• 8. A culture of continuous improvement must
  be established.
• 9. An emphasis on measurement to assess and
  meet improvements in processes.
• An emphasis must be placed on promoting
  creativity - the most valuable organisational
  resource is the human element NOT technology.
  Attitude is the key.
• An understanding that there is NO finishing line.

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A FRAMEWORK FOR MANAGING STRATEGIC CHANGE
Effective change management is a continuous
process of confrontation, identification,
evaluation and action James McCalman Robert
Paton
As designed by Kindercare Inc, USA
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The Seven Dynamics of Change (i) 1      People
will feel awkward, ill at ease and self conscious
2      People will think about what they have to
give up 3      People will feel alone, even if
everyone else is going through the
change 4      People can handle only so much
change 5      People are at different levels of
readiness for change 6     People will be
concerned that they dont have enough resources
(time, money, skills etc) 7      If you
take the pressure off, people will then revert
back to old behaviour  
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The Seven Dynamics of Change (ii)
Strategies for dealing with each dynamic in a
work related situation 1                People
will feel awkward, ill at ease and self conscious
Acknowledge it  2               People will
think about what they have to give up Dont just
sell people the benefits. Legitimise the losses
and time for people to mourn the loss
 3               People will feel alone, even if
everyone else is going through the
change Structure activities which create
involvement. Encourage the sharing of ideas and
working together. Instil the idea of joint
working and support  4               People can
handle only so much change Set priorities and
keep an eye on the outcome 5               
People are at different levels of readiness for
change Dont label or pick on people.
Recognise that some people are risk takers and
others take longer to feel secure 6              
  People will be concerned that they dont have
enough resources (time, money, skills
etc) Encourage and support creative problem
solving  7               If you take the
pressure off, people will then revert back to old
behaviour Keep a focus on maintaining the change
and manage the journey as well as the outcome.
Build in slippage
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STYLES OF MANAGING CHANGE Implementation
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Organisational Resistance to Change   It is
widely assumed that resistance to change is a
common and natural phenomenon A
Huczynski            The strategic direction of
an organisation builds up a MOMENTUM of its
own which may be reinforced by ongoing
success               The CULTURE of the
organisation is likely to support this momentum
of strategy. These two factors
when linked may result in ORGANISATIONAL
INERTIA when it comes to change
            Faced with change there may be
POLITICAL resistance within and around the
organisation  
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• Machiavelli on Change and the Political Process
• There is nothing more difficult than to take the
  lead in the introduction of a new order of
  things. Because the innovator has for enemies
  all those who have done well under the old
  conditions, and only lukewarm support is
  forthcoming from those who would prosper under
  the new. Their support is lukewarm partly from
  fear of their adversaries, who have the existing
  laws on their side, and partly because men are
  generally incredulous, never really trusting new
  things unless they have tested them by
  experience.
• In consequence, whenever those who oppose the
  changes can do so, they attack vigorously, and
  the defense made by the others is only lukewarm.
  So both the innovator and his friends could come
  to grief
• Source The Prince by Niccolo Machiavelli
• Machiavellis 3 Principles
• Establish whether you are in the position, in
  case of need, to maintain
• yourself alone, or whether you need the
  protection of others
• Esteem your nobles (managers), but do not
  make yourself hated by the
• populace (general staff)
• Follow the example of Ferdinand, King of
  Aragon and Spain, who
• continually contrived great things which
  have kept his subjects minds
• uncertain and astonished, and occupied in
  watching their result

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McClellands Motivation Model
Direction Motivated by Description
Towards Power Winning, beating everyone else, being the boss, top dog in charge
Away from Power Away from losing, having to take orders or being second best
Towards Affiliation Want to be loved, liked, popular, being part of the group
Away from Affiliation Fear that people wont like me, wont want me around. Not being part of the group
Towards Achievement Succeeding at whatever goal I have set myself
Away from Achievement Fear of not succeeding of failure
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Implementation  Unfreezing the Management of
Change
Organisational Symptoms Stages Pressures for Conformity
        Rumours and signals Questions and challenges Unfreezing Mechanisms         Early signals made sense of within paradigm
Felt need for change Organisational Anticipation         Political pressures not to rock the boat
        Competing views of causes of problems and remedies Organisational Flux
Information collection Information Building Information made sense of within paradigm
Political testing of support Experimentation Resistance to new ideas
New ideas tested out Refreezing (the signalling or confirmation of change)
Gerry Johnson Kevan Scholes Corporate
Strategy
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What are you worth?Whatever your age, your
upbringing, or your education, what you are made
of is mostly unused potential George Leonard
In simple terms ...

• Enough fat to make 7 bars of soap
• Enough iron to make one medium size nail
• Enough sugar to sweeten 7 cups of tea
• Enough lime to whitewash a chicken coop
• Enough phosphorous to make 2,200 match tips
• Enough magnesium to make a dose of salts
• Enough potash to explode a toy car
• Enough sulphur to clear a dog of fleas

What are you really worth to the
organisation? As an innovative
team playing reliable
flexible disciplined
results orientated person ... You are worth
your weight in gold!!
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Some Thoughts About Attitude
Your work is to discover your work, and then
with all your heart, to give yourself to it.
Buddha One of the most important factors, not
only in military matters but in life as a whole,
is the ability to direct ones whole energies
towards the fulfillment of a particular task.
Field Marshall E Rommel Once you say you are
going to settle for second, thats what happens
to you. John F Kennedy Its your attitude, not
your aptitude, which determines your altitude in
life. Anonymous Im a great believer in luck,
and I find the harder I work, the more I have of
it. Thomas Jefferson The pessimist sees
difficulty in every opportunity. The optimist
sees the opportunity in every difficulty.
Winston Churchill
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KAIZEN - The Ki Principle
KI (crisis)
KI KEN DANGER THREAT DEAD END
KI KAI GOOD CHANCE OPPORTUNITY SUCCESS
IT IS ALL ABOUT ATTITUDE!!
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KAIZEN - Cultural Differences
The Western Perception
Top Management - Middle Management Supervisors -
Staff Results Exclusion Top down
dictatorship Poor morale Communication through
the grapevine
Innovation
Maintenance
The Japanese Perception
Top Management - Middle Management Supervisors -
Staff Results Participation involvement Enhanc
ed morale Increasing communication Improvement
in discipline Better time management Greater
skills development
Innovation
Maintenance
GENERAL IMPROVEMENTS IN ATTITUDE
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KAIZEN - the Values
KAIZEN Means Improvement Ongoing improvement
including everyone!! KAIZEN Philosophy
Simplicity - That our way of life be it working
or social or home deserves to be constantly
improved. KAIZENS Focus Improvement through
- Adaptability/Teamwork/Attention to
detail People orientation/Open and shared
information Cross functional
orientation/Comprehensive feedback Building on
existing technology/Systems KAIZENS
Requirements Inherent desire for quality A
belief that it will pay in the long
run Behavioural change Positive attitude to
change and improvement Missionary zeal A
clear understanding that there is No End It is
Continuous
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KAIZEN - What Does It Do?
It demands continuous improvement in

• Customer orientation
• Total Quality Control
• Suggestions/Ideas
• Productivity

• Zero defects
• Small group activity
• Co-operative communications
• Transferability of skills

In order to eliminate Muda (Waste) - Muri
(Excess) - Mura (Uneveness) In

• Manpower
• Technique
• Method
• Time

• Facilities
• Way of thinking
• Output

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KAIZEN - How?
1) Team Briefing 2) Training - Driven from the
top-down and available to all 3) Objectives ie S
- Specific M - Measurable A - Agreed R -
Realistic T - Timebound 4) Suggestions i -
Improvements in ones own work ii - Saving in
energy, material and other resources iii -
Improvements in the working environment iv -
Improvements in systems v - Improvements in
office work vi - Improvements in the quality of
our products and services vii - Ideas for new
products and services viii - Improvements in
customer service and customer relations ix -
Others
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KAIZEN - How?
ie Consideration is given to any
change/suggestion if it contributes to these
goals i - Making the job easier ii -
Removing the drudgery from the job iii -
Removing nuisance from the job iv - Making the
job more productive v - Improving product and
service quality vi - Saving time and
cost No suggestions means - No need for
improvement which means - You do not recognise
the problem or - You are comfortable passing
the buck to - Your colleagues and customers
alike !! KAIZEN suggestions must be supported
from the bottom up - WHY? - because the BEST
solutions for IMPROVEMENT come from those closest
to the PROBLEM!
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KAIZEN - How?
Who What Where Who does it? What to
do? Where to do it? Who is doing it? What is
being done? Where is it done? Who should be doing
it? What should be done? Where should it be
done? Who else can do it? What else can be
done? Where else can it be done? Who else should
do it? What else should be done? Where else
should it be done? When Why How When to do
it? Why does he do it? How to do it? When is it
done? Why do it? How is it done? When should it
be done? Why do it there? How should it be
done? What other time can it Why do it then? How
can this method be be done? used in other
areas? What other time should Why do it that
way? Is there any other way to do it? It be done?
The overall result - a never ending programme
of Perceptiveness - Idea development - Decision
making - Implementation - Effect
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The S.P.E.A.K.E.R. Model Specific Positive Evide
nce Awareness Knowledge Ecology Responsibility
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POWER taking SPEAKER further   Any project or
change can be taken through SPEAKER to check it
out. You can then use the POWER model. By going
through the POWER process first you have a lot of
information that will help you to firm up your
SPEAKER Outcome.   P resent Situation O
utcome W hy E ffects R esources
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Tell me and I will forget. Show me and I will
remember. Involve me and I will understand
Confucius
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Ten Key Factors in Effective Change Management
1. Change is all pervasive. 2. Effective
change needs active senior management support.
3. Change is a multi-disciplinary activity.
4. Change is about people, pure and
simple. 5. Change is about success.
6. Change is a perpetual process.
7. Effective change requires
competent change agents. 8.
In terms of methodology, there is no one best
way. 9. Change is about
ownership. 10. Change
is about fun, challenge and opportunity. CONCLUSI
ON It must be a continuous process
of Confrontation Identification
Evaluation Action.
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15 Key Competencies required for Effective Change
Management
If you can imagine it you can achieve it, if you
can dream it you can become it William Arthur
Ward

• Goals
• Sensitivity to changes in key personnel, top
  management perceptions and market conditions, and
  to the way in which these impact on the goals of
  the project
• 2 Clarity in specifying goals, in defining the
  achievable
• Flexibility in responding to changes, perhaps
  requiring major shifts in project goals and
  management style, and risk taking
• Roles
• 4 Team-building abilities, bringing together
  key stakeholders, establishing and maintaining
  appropriate contacts
• 5 Networking skills in establishing and
  maintaining appropriate contacts
• 6 Tolerance of ambiguity, to function
  comfortably, patiently and effectively in an
  uncertain environment
• Communication 
• Communication skills to transmit effectively the
  need for change, project goals and individual
• tasks/responsibilities
•  8 Interpersonal skills particularly in
  identifying the concerns of others
•  9 Personal enthusiasm, in expressing plans
  and ideas
•  10 Stimulating motivation and commitment in
  others involved

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15 Key Competencies required for Effective Change
Management (ii)
Negotiation 11 Selling plans and ideas, by
creating a desirable and challenging future
vision 12 Negotiating with key players for
resources, procedural changes and conflict
resolution   Managing Up   13 Potential
awareness, in identifying potential coalitions
and balancing conflicting goals and perceptions
14 Influencing skills, to gain commitment to
project plans and ideas from potential sceptics
and resisters  15 Overall perspectives, to
stand back and take a broader view of priorities
D Buchanan D Boddy The Expertise of the
Change Agent Public Performance and Backstage
Activity
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WHAT ATTRIBUTES DOES A LEADER REQUIRE IN THE NEW
MILLENNIUM? 
Managers deal with complexities, Leaders deal
with change Richard Branson
Integrity (not necessarily honesty) Decisive
Charisma Visionary
Builds Trust Holistic
Pragmatic (but not duplicitous) Adaptable
Socially Aware Communicative
Politely Autocratic Presentation
Sense of Timing
Attributes will always be moulded and dictated by
the environment
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• 13 Fatal Errors Managers make
• If at first you dont succeed, try, try and try
  again. Then quit. No use being a damn fool
  about it
• W. C. Fields
• Refuse to accept personal change
• Fail to develop people
• Try to control results instead of influencing
  thinking
• Join the wrong crowd
• Manage everyone the same way
• Forget the importance of profit
• Concentrate on problems rather than objectives
• Be a buddy, not a boss
• Fail to set standards
• Fail to train your people
• Condone incompetence
• Recognise only top performers
• Try to manipulate people
• Source W Steven Brown, President of the Fortune
  Group

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What Does Change Provide
It provides an organisation with an opportunity
to be a world class player through an environment
of ... Excellence Persistence
Belief Attitude Imagination
Courage Teamwork Desire Goals It
does not provide an organisation with a promise
or a certainty of becoming a world class
player. SOME FURTHER THOUGHTS A mind that is
stretched to a new idea never returns to its
original dimension Oliver Wendell Homes There
are precious few Einsteins among us. Most
brilliance arises from ordinary people working
together in extraordinary ways. Roger Von
Oech Dont find fault, find a remedy. Henry
Ford We will either find a way, or make one.
Hannibal He who stops being better stops being
good. Oliver Cromwell In every passionate
pursuit, the pursuit counts more than the object
being pursued. Bruce Lee
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• Successful Change Management
• A Perspective
• Jumping to conclusions, is the only exercise
  some people get Anonymous
• It is not about job cuts
• It is about eliminating the work..eliminating
  the job
• It is not more for less..but more often more for
  the same
• It is about doing the job faster
• It is a journey..not a leap
• It is largely incrementalnot a leap
• It is easy to say..but hard to do
• It is as much to do with culture..as process
• It results in everything being at the elbow
• It will lead to
• Motivated and aligned employees
• Accountability to deliver
• Closing the skills gap
• but todays solutions are tomorrows problems
• Allan Leighton, Chairman The Royal Mail

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Its Not My Job
This is a story about four people, named
Everybody, Somebody, Anybody, and Nobody. There
was an important job to be done and Everybody was
sure that Somebody would do it. Anybody could
have done it, but Nobody did it. Somebody got
angry about that, because it was Everybodys
job. Everybody thought Anybody could do it but
Nobody realised that Everybody wouldnt do it. It
ended up that Everybody blamed Somebody, when
Nobody did what Anybody could have. The success
of a team depends upon how well the members play
together and this means being willing to lose
ones identity for the sake of the team Unknown
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Conclusions    -    Those organisations that
manage change effectively are more like open
learning systems  -               Sensitivity
to the external environment is part of the
organisations culture  -               It is
dangerous to think of change management as a
prescribed set of activities. It differs by
organisation and by market  -               Strat
egic change is inextricably linked with
operational change  -              It is
imperative that change is continued and
incremental and becomes a way of life e.g.
Kaizen  -              Human resource
management must be an integral component of the
change process  
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Above all Consistency, Direction, Strategy,
Feasibility, Clarify With one aim Competitive
Advantage Our deepest fear is not that we are
inadequate. Our deepest fear is that we are
powerful beyond measure. It is our light, not
our darkness, that most frightens us. As we let
our own light shine, we unconsciously give other
people permission to do the same. As we are
liberated from our own fear. Our presence
automatically liberates others Nelson Mandella
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Final Thoughts     In the traditional
bureaucratic corporation, roles were so
circumscribed that most relationships tended to
be rather formal and impersonal. Narrowly
defined jobs constricted by rules and procedures
also tended to stifle initiatives and creativity,
and the atmosphere was emotionally repressive.
The post-entrepreneurial corporation, in
contrast, with its stress on teamwork and
co-operation.brings people closer together,
making the personal dimension of relationships
more important  Rosabeth Moss Kanter   You
firmly believe that sound management means
executives on one side and workers on the other,
on one side men who think and on the other men
who can only work. For you, management is the
art of smoothly transferring the executives
ideas into the workers hands.   We are beyond
this business as we know, is so complex and
difficult, the survival of organisations so
hazardous in an environment increasingly
unpredictable, competitive and fraught with
danger, that their continued existence depends on
their ability to constantly change through the
mobilisation of every ounce of intelligence.  Kon
osuke Matsushita