Chapter 10 Management of Change

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Chapter 10Management of Change

• Managing the Information Technology Resource
• Paula Goulding

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Chapter Outline

• Change is complex organization concept
• Why people resist change
• How IT is player in change management
• Successful planning of change
• Global factors in change management

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Using Lewin-Schein for Managing Change Through IT
Source Adapted from Lewin and Schein, CHristin
Bullen.
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Pain As a Motivator

• Possible Sources
• Inability to see critical information about
  business trends, competition, customers
• Discovery that competition has information
  technology that provides data being sought
• Directly from customer(s)
• Need to integrate disparate systems resulting
  from acquisition
• Individuals inability to perform their work due
  to IT constraints

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Unfreezing

• Planning a Change to Address the Issues
• Pain As a Motivator
• Becomes clear organization is failing
• Missing potentially advantageous opportunities
• Real Job Benefits as Motivator
• Improves way individual carries out job
• Charismatic Leader as Motivator
• If champion of change is respected, others will
  follow
• IT As Changer and Changee

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IT As Changer

• Targets
• Hardware
• Systems Software
• Applications Software
• Connected Information/NWs
• Personnel
• Processes

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IT As Changee

• Anticipate or react to opportunities or problems
• Change in objectives, processes, regulation,
  economy, innocent bystander
• Scarcity of labor, raw materials, etc.
• Mergers and acquisitions
• Customer demands
• Actions of competitors

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Five Phases of Positive Cycles

• Uninformed Optimism
• At beginning of change effort
• Believe everything will go as planned
• Informed Pessimism
• Begin to learn difficulties, doubt and concern
• Hopeful Realism
• Visible progress and support is received
• Informed Optimism
• Confidence is built as completion nears
• Completion
• Satisfaction of succeeding and reaching objective

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Conners Stages of Positive Change
Source Conner, Daryl, Managing at the Speed of
Change, Random House (1992).
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Conners Negative Response to Change

• Immobilization
• Information shocks the system
• Denial
• Assume position will fade away
• Anger
• Feeling of helplessness

• Bargaining
• People voice concerns and become involved
• Depression
• Feel helpless to change destiny
• Testing
• Confidence is built and can adjust
• Acceptance
• Embrace and work to support change

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Conners Stages of Negative Responses
Source Conner, Daryl, Managing at the Speed of
Change, Random House (1992).
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Organization Change Process
Build Sense of Urgency
Create a Clear Tomorrow
Reinforce the New Behavior
Develop a Migration Plan
Source Belasco, James, Teaching the Elephant to
Dance, http//www.belasco.com/elephant
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Implementing Change

• Leadership Plus Facilitation
• Get Right People Involved
• Team Building
• Secure Resources

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Leadership Plus Facilitation

• All levels participate to create value
• Get others creativity, cooperation, support
• Front line employees are closest to the work
• Listen to their ideas
• Consider alternatives
• Envision how technology can enable solutions

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Benefits of Getting Right People Involved

• Benefits from creativity and innovation
• Best people provide role models for others
• Gains respect by virtue of talent involved
• More likely to remain on budget and on time
• Successful process become model for others
• Achieved goal is respected

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Characteristics of High Performing Teams

• Clear Elevating Goal
• Results-Driven Structure
• Competent Team Members
• Unified Commitment

• Collaborative Climate
• Standards of Excellence
• External Support and Recognition
• Principled Leadership

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Secure Resources

• Focus resources on accomplishing strategy
• Time
• People
• Money
• Careful study of required resources
• Ensure allocation of resources

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Stakeholder Roles in Change

• Change sponsor
• Top management initiating program of change
• Change agent or champion
• Responsible for implementing change in middle- or
  lower-level management
• Change target
• Individuals or groups directly affected by change
• Influence
• Help target through process of change

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Reasons People Resist Change

• Loss of Face
• Loss of Control
• Excess Uncertainty
• Surprise
• Difference Effect
• Can I Do it?

• Ripple Effect
• More Work
• Past Resentments
• Real Threats
• Competing Commitments

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Refreezing

• Institutionalize processes and systems to become
  organizational norm
• Information system needs to be adequate
• Managers may need to change old habits
• May threaten individuals power, status, income

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Understanding Resistance to Change

• Listening to what people are and are not saying
• Communicate so people feel knowledgeable and
  involved
• Address concerns so real issues of resistance are
  surfaced and managed
• Apply 80/20 rule putting effort into preparing
  for the change

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80/20 Rule

• Determine people in target population who are in
  top 20 percent of business producers
• Spend 80 percent of time for people issues with
  top 20 percent
• Spend 80 percent of personnel development budget
  on top 20 percent
• Study work and determine what 20 percent of job
  results in 80 percent of returns
• Train assistant to do remaining 80 percent
• Enlist top 20 percent to do on-the-job training
  for next 20 percent

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Overcoming Resistance to Change

• Expect resistance
• Find the resistance
• Understand the motivations of resistance
• Use reward system/incentives
• Build in benefits to the users
• Knowledge
• Intervention techniques
• Indoctrination and coercion

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Why Improvement Efforts Fail
Source Brynjolfsson, Erik, http//ebusiness.mit.
edu/erik/
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Elements of Planning Change

• Guidance, Structure, and Process
• Shared Vision
• Backers and Supporters
• Symbols, Signals, and Rewards
• Standards, Measures, and Feedback
• Local Participation and Innovations
• Policy and Systems Review
• Communication, Education, and Training

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Elements of Planning Change
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Mistakes in Managing Change

• Management assumes employees know how to behave
  as company wants
• Do not allow for change to take time and
  persistence
• Trapped in thinking if focused, cooperation of
  target population is ensured
• Do not plan adequate time for managerial tasks
• Resort to coercive management techniques
• Believe change will increase shareholder value

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Localization Barriers

• Languages
• Cultures, values
• Business practices
• Taste
• Competitors
• Proximity to local customer
• Risk
• Cost
• Pace
• Food

• Authority
• National and regional protectionism
• Laws, regulations, tariffs
• Communications weakness
• Labor unions
• Transportation
• Quality of labor
• New technology
• Organization

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Tasks for Focus Outside Country

• Research on stakeholders city and country
• Learn pronunciation of names
• Research political, economic, religious, social,
  intellectual, and artistic contexts
• Learn customs and taboos
• Seek advice from others who have interacted from
  same location
• Find out about individuals
• Assess own prejudices about people/location

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Cross-Cultural Stereotypes
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Who Moved My Cheese? Lessons

• Change happens
• Anticipate change
• Monitor change
• Adapt to change quickly
• Change
• Enjoy change
• Be ready to change quickly and enjoy it again