LEADING THE CHANGE

Basic Concepts

Change:

The process of becoming different.

Change Management: A structured approach to helping individuals, groups and organizations move
from a current state to a desired future state.

Bringing organizational systems and processes into line with the current and future internal and external
environments

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Change Management & Leadership

Change management is a style of management that aims to encourage organizations and individuals to
deal effectively with the changes taking place in their work.

Change management is a basic skill in which most leaders and managers need to be competent

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The Framework for Change:

HEAD (Why should I change?) Thinking & understanding

HEART (What’s in it for me?) Motivation/ Emotion

HANDS (What do I do differently?) Behavior

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Change Management
Change Management exists to minimize disruption and accelerate the acceptance of

Change

Be responsive to questions and give people the information they need

Help ingredients realize the benefits of the implementation

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Basic Principles of Change Management

Kept in mind:

1. Different people react differently to change.

2. Everyone has fundamental needs that have to be met.

3. Change often involves a loss, and people go through the "loss curve“.

4. Expectations need to be managed realistically.

5. Fears have to be dealt with.

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An effective Change Management program maximizes performance at

Understanding

Involvement

Acceptance
Transition Design Implement Improve

Level of Accept

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Types of Organizational Change

1. Anticipatory changes: planned changes based on expected situations.

2. Reactive changes: changes made in response to unexpected situations.

3. Incremental changes: subsystem adjustments required to keep the organization on course.

4. Strategic changes: altering the overall shape or direction of the organization

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Forces of Change

1 External Forces

Market Place

Government Laws and Regulations

Technology

Labor market

Economic Change

2 Internal Forces

Changes in Organizational Strategies

Workforce change

New Equipment
Employee Attitude

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Key Benefits of Change Management Reduces Process Inconsistencies

Reduces the Number of Failed Changes and Rework

Facilitates Delivery and Planning of Prompt Changes

Assesses Risks- quality, time, cost, etc

Manage employee resistance to change

Build change competency onto organization

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Management of complex change

VISION +SKILLS +INCENTIVES +RESOURCES +ACTIONPLAN =CHANGE

SKILLS+ INCENTIVESACTION +PLAN RESOURCES =CONFUSION

VISION + INCENTIVES + RESOURCES + ACTIONPLAN =ANXIETY

VISION + SKILLS + RESOURCES + ACTIONPLAN =GRADUALCHANGE

VISION + SKILLS +INCENTIVESACTION + ACTIONPLAN =FRUSTRAION

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Leading the Change

John Paul Kotter (born 1947) is a professor at the Harvard Business School and author, who is regarded
as an authority on leadership and change. In particular, he discussed how the best organizations actually
"do" change.

Kotter is the author of 15 books, and his books are in the top 1% of sales from Amazon.com.

His international bestseller Leading Change, outlined an actionable, 8-step process for implementing
successful transformations

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The 8 Stage Process of Creating Major Change

1. Establishing a Sense of Urgency

2. Creating a Guiding Coalition with enough power to lead the change

3. Developing a Vision & Strategy

4. Communicating the Change Vision

5. Empowering others to act on vision

6. Generating Short-Term Wins

7. Consolidating improvements, reassess changes & producing more change

8. Anchoring new approaches in the

Culture & reinforce the change

Creating Major Change

1. Establishing a Sense of Urgency

Examining the market & competitive realities

Identifying & discussing crisis, potential crisis, major opportunities

Concepts:

Create a crisis: highlight major weaknesses, allow errors to compound

Set goals & targets unrealistically high

Distribute company-wide performance data highlighting deficiencies to more employees

Force interaction with unsatisfied “customers, suppliers, shareholders.”

Use consultants to force more relevant & honest appraisals

Bombard people with information on future opportunities, rewards for capitalize on those
opportunities, & potential “lost opportunities.”

2. Creating a Guiding Coalition

Putting together a group with enough power to lead the change

4 Key Characteristics of Guiding Coalition:

i. Positional Power: Are enough key players on board, especially the main line managers, so those left
out cannot easily block progress?

ii. Expertise: Are the various points of view, relevant to the tasks at hand,adequately represented so that
informed, intelligent decisions can be made?

iii. Credibility: Does the group have enough people, with good reputations, that its pronouncements will
be taken serious by the other employees?
iv. Leadership: Does the group include enough proven leaders to be able to drive the change process?

3. Developing a Vision & Strategy

Creating a vision to help direct the change effort

Developing strategies for achieving that vision

Characteristics of an Effective Vision

Imaginable: Conveys a picture of what the future will look like

Desirable: Appeals to the long-term interests of employees, customers, stakeholders. ? Feasible:

Focused: Is clear enough to provide guidance in decision making

Flexible: Is it general enough to allow individual initiative & alternative responses in light of changing
condition. ? Communicable: Is easy to communicate, can be successfully explained within 5 minutes

4. Communicating the Change Vision

Using every vehicle possible to constantly communicate the new vision & strategies

Having the guiding coalition role model the behavior expected of employees

Key elements in communicating the vision:

Simplicity. All jargon & technobabble must be eliminated.

Metaphor, Analogy & Example. A verbal picture is worth a thousand words.

Multiple Forums. Big meetings & small, memos, newspapers, formal and informal meetings….

Repetition. Ideas sink in only after they have been heard many times

Leadership by Example. Behavior by important people that is inconsistent with the vision overwhelms
other forms of communication.

Explanation of Seeming Inconsistency. Unaddressed inconsistencies undermine the credibility of all

Give & Take. Two way communication is always more powerful and oneway communication.
5. Empowering Broad-Based Action

Getting rid of obstacles

Changing systems or structures that undermine the change vision

Encouraging risk taking & non-traditional ideas, activities & actions

Empowering People to Effect Change

Communicate a sensible vision to employees.

Make sure structures are compatible with the vision.

Provide the training employees need. ? Align information and personnel systems to the vision.

Confront supervisors who undercut needed change.

6. Generating Short-Term Wins

Planning for visible improvements in performance, or “wins”

Creating those wins

Visibly recognizing & rewarding people who made the win possible

1. Provides evidence that sacrifices are worth it.

2. Reward change agents.

3. Helps fine-tune vision & strategies.

4. Keep bosses on board.

5. Build Momentum.

7. Consolidating Gains & Producing More Change

Using increased credibility to change all systems, structures & policies that don’t fit together and don’t
fit the transformation strategy

Hiring, promoting, & developing people who can implement the change vision
More change, not less. The guiding coalition uses the credibility afforded by the short-term wins to
tackle additional and bigger change projects

More Help. Additional people are brought in, promoted and developed to help with all the changes

Leadership from Senior Management. Senior people focus on maintaining clarity of shared purpose,
keeping urgency levels up.

People management & leadership from below. Lower ranks in the hierarchy provide both leadership &
management for specific projects.

Reduction of unnecessary interdependencies. To make change easier in both short/long-term, managers

8. Anchoring New Approaches in the Culture

Creating better performance through customer- & productivity oriented behavior, more and better
leadership, & more effective management

Articulating the connections between new behavior & organizational success

Developing means to ensure leadership development & succession

Concepts:

Culture changes come last, not first. Most alteration in norms & shared values come at the end of the
transformation process

Results matter. New approaches usually sink into a culture only after it is very clear that they work and
are superior to the old methods.

Requires a lot of talk. Without verbal instruction and support, people are reluctant to admit the validity
of new practices.

May involve turnover. Sometime the only way to change a culture is to change key people.

Makes decision on succession crucial. If promotion processes are not changed to be compatible with the
new practices, the old culture will reassert it

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