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Change management

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Title: Change management


1
25 of the Organizational Culture and Change
Course Free Sample
2
Ground Rules
3
Position
Name!
Organization
Education
Experience
Knowledge about KPIs!
4
Chapter One Introduction Chapter Two
Organizational Change Chapter Three Change
Resistance Chapter Four Organizational
Development Chapter Five Best Practices
Outlines
5
Chapter One
Introduction
6
"I think there is a world market for maybe five
computers."
  • Thomas Watson, chairman of IBM, 1943

7
Bill Gates
  • 640 Kbyte should be enough memory for anybody
  • 1981

8
Ken Olson
  • President from Digital Equipment Corporation was
    a pioneering American company in the computer
    industry said in 1977
  • There is no reason that anybody would like to
    have a personal computer at home

9
It is generally much easier to kill an
organization than change it substantially.
Kevin Kelly, Out of Control
10
What is Change?
Change is the process of moving from one state
(current state) to another (future state)
Current State
Future State
Transition
11
The Heart of Change. . .
The central issue to creating change is never
just strategy, structure, culture, or systems.
The core of the matter is always about changing
behavior of peoplehow they see and think about
what is new or proposed... John
Kotter The Heart of Change
12
Change Management
  • Change Management to make changes in a planned
    and systematic way by introducing new methods in
    an ongoing organization.
  • Change Management is concerned with two sets of
    people i.e., one those who want to effect change
    and second is those on whom change is to be
    effected.
  • Change management is the effective process of a
    business change such that executive leaders,
    managers and front line employees work in
    consonance to successfully implement the
    technology or organizational changes.

13
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?

14
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

15
Some Thoughts About Change
  • 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

16
Key Concepts Of Change
Unfreezing
Changing
Refreezing
Future State
Present State
Transition State
17
Unfreezing
  • Breaking down existing ways of doing things
  • Discarding conventional methods behavioral
    patterns
  • Introduce new methods behavior
  • Techniques
  • Education,
  • Communication,
  • Participation in decision-making, etc.

18
Changing or Moving
  • Move towards proposed change
  • New learning
  • It is a time of trial error
  • Careful guidance problems arise tackled
    efficiently

19
Refreezing
  • New beliefs, attitudes gained, behavior learnt
    are implemented
  • Manager Change agents role
  • Reinforcement

20
But when organization say Change, Employees say
  • This is a waste of time.
  • Why change if it was working just fine before?
  • If it isn't broken, don't fix it.
  • They never tell us whats going on!
  • How soon will this happen?
  • How will this impact me?
  • Will I receive new training?
  • Whats in it for me.
  • I doubt they are really serious about this.

21
Forces For Change
Shifting Demographics
Technology
World Politics
Economic Shocks
Globalization
Competition
22
Eight Steps to Transform an Organization
Establishing Sense Of Urgency
Powerful Guiding Coalition
Creating a Vision
Communicating the Vision
23
Eight Steps to Transform an Organization
Empowering Others
Short Term Wins
Consolidating Improvements
Institutionalizing
24
Why Do Employees Resist Change
  • Surprise
  • Unannounced significant changes threaten
    employees sense of balance in the workplace.
  • Misunderstanding and lack of skills
  • Without introductory or remedial training, change
    may be perceived negatively.

25
Why Do Employees Resist Change
  • Emotional Side Effects
  • Forced acceptance of change can create a sense of
    powerlessness, anger, and passive resistance to
    change.
  • Lack of Trust
  • Promises of improvement mean nothing if employees
    do not trust management.

26
Why Do Employees Resist Change
  • Fear of Failure
  • Employees are intimidated by change and doubt
    their abilities to meet new challenges.
  • Threat to Job Status/Security
  • Employees worry that any change may threaten
    their job or security.
  • Fear of increased responsibility
  • Some staff may question whether they will have
    more responsibilities and/or accountabilities as
    a result of a change.

27
Inappropriate Change Management
  • Change is often resisted because of failures in
    the way it is introduced
  • Failure to explain the need for change
  • Failure to provide information
  • Failure to consult, negotiate and offer support
    and training
  • Lack of involvement in the process
  • Failure to build trust and sense of security
  • Poor employee relations

28
Reasons for failure of Change Management
  • Allowing too much complexity
  • Failing to build a substantial coalition
  • Failing to understand the need for a clear vision
  • Failure to clearly communicate that vision
  • Permitting roadblocks against that vision
  • Not planning for short term results and not
    realizing them
  • Declaring victory too soon
  • Failure to anchor changes in corporate culture

29
Culture
  • What is Culture?

It is the set of important understanding that
members of community share in common.
30
Henry Mintzberg on Culture
Culture is the soul of the organization
the beliefs and values, and how they are
manifested. I think of the structure as the
skeleton, and as the flesh and blood. And culture
is the soul that holds the thing together and
gives it life force.
31
Types of Culture
SOCIETAL Consists of patterned ways of thinking,
feeling and reacting that are acquired by
language and symbols that create a
distinctiveness among human group.
ORGANIZATIONAL The deeper level of basic
assumptions and beliefs that are shared by
members of an organization, that operate
unconsciously and define in a basic taken for
granted fashion an organization's view of its
self and its environment.
32
Organizational Culture
  • An iceberg whereby the surface is based on a much
    deeper (and bigger) reality, yet this reality is
    usually unexamined.

33
The Organizational Iceberg
34
Organizational Culture Change
  • Organizational life is not as neat, tidy or
    predictable as formal elements of organization
    such as structure, strategy technology may
    imply.
  • The culture and politics of many organizations
    constrain the degree of change and transformation
    in which they can successfully engage, even
    though such change may be highly desirable for
    meeting the challenges and demands of the wider
    environment.

35
Chapter TwoOrganizational Change
36
Change-Important Facts
  • Change is the single most important factor in
    business today
  • every business is an ongoing source of change.
  • every professional discipline is a process of
    change.
  • Every market force (customers, competitors,
    technology, regulations, distribution channels,
    suppliers, etc.) creates change that forces our
    change in response.
  • Complex change is typically accepted if enough
    time is allowed.
  • Rapid change can occur if its a small adjustment.

37
Organizational Change
  • What is Organizational Change?
  • Organizational change is in regard to
    organization-wide change, as opposed to smaller
    changes such as adding a new person, modifying a
    program, etc.
  • Also known as Organizational Transformation.

38
Organizational Change
  • What is Organizational Change?
  • It designates a fundamental and radical
    reorientation in the way the organization
    operates.
  • Example of organization-wide change include a
    change in mission, restructuring operations e.g.
    restructuring to self-managed teams, layoffs,
    etc., new technologies, mergers, major
    collaborations, "rightsizing", new programs such
    as Total Quality Management, re-engineering, etc.

39
Organizational Change
  • Management of Organizational Change
  • Management of change is defined as a conscious
    and concerted initiative by managers.
  • To watch over the behavior of uncontrollable
    forces, to assess their impact and influence of
    the controllable forces.
  • And to evolve appropriate strategies and action
    programs to maintain a dynamic equilibrium
    between these 2 forces.

40
Organizational Change
  • What is provokes Organizational Change?
  • Change should not be done for the sake of change
    it's a strategy to accomplish a goal.
  • Organizational change is provoked by major
    outside driving forces like substantial cuts in
    funding, addressing major new markets/clients,
    need for dramatic increases in productivity/servic
    es, etc.
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