MANAGING CHANGE CREATIVELY

By: Dr. (Mrs.) Edna N. AKAGBUSUM

0803-356-1918 /0909-652-2656 /0808-011-5428
[email protected]
 Learning Outcomes
At the end of the session, participants will be able to:

v discuss the change management process;

v identify the issues in creating a compelling vision of
change;
v establish the nexus between leadership styles and
change management;
vstate reasons for resistance to change; and
v explain how leaders can deal with resistance to
change.
 Table of Content
1) Overview of Change Management
2) Creating a Compelling Vision of Change
3) Change Management Process
4) Models of Change Management
5) Leadership Styles and Change Management
6) The Creativity Twist
7) Reasons for Resistance to Change
8) Dealing with Resistance to Change
9) Case Study/ Group Exercise
10) Conclusion
Overview of Change Management
vChange management is the application of a structured
process and set of tools for leading the people side of
change to achieve a desired outcome.

v Ultimately, change management focuses on how to help

people engage, adopt and use a change in their day-to-
day work.

vDeveloping a structured approach to change is critical to

help ensure a beneficial transition while mitigating
disruption.
Overview of Change Management Contd.
vChange may be forced on an organization either internally
or externally - by investors, a new chief executive
(leadership), government decisions, etc.

vIn this age of new technologies, new knowledge and skills,

new markets and competition, change is a necessary
ingredient for survival.

“The only thing that is constant (in life)

is change”. ...Heraclitus
Overview of Change Management
vOrganizational change is an exceedingly difficult task.

vEvery leader recognizes that organizations must

continuously adapt to changes in the external
environment. Nonetheless, the introduction of
organizational change creates anxiety and fear.

vTo introduce continuous change, such as that required in

today's turbulent environment, leaders need to recognize
the importance of motivation and the involvement of
employees.
 What Is Change?
v Change is the act or process of altering; the state of
being altered.

v To make the form, nature, content, future course of

(something) different from what it is.

v Change is:
• any alteration that occurs in the overall work
environment.
• a replacement of the old with the new.
• shifts to new types of behaviour.
• shifts to new ways of thinking and interacting.
• a transition that occurs from one state to another. 7
What is Change Management?
vChange management is a collective term for all
approaches to prepare, support, and help individuals,
teams, and organizations in making organizational
change. ----Wikipedia

vChange management is the process, tools and

techniques to manage the people side of change to
achieve the required business outcomes. ----Prosci

vChange management is defined as the methods and

manners in which a company describes and
implements change within both its internal and external
processes. 8
 Creating a Compelling Vision of
Change
vLeaders must have vision.
vThere are many stakeholders – employees, shareholders,
governments, special interest groups, the media, etc,
who simply demand to know:
* “Where is this organization going, and
* What is going to get it there?”

vEvery leader or would-be-leader of an organization,

division, department or team, must be able to formulate,
articulate and communicate a compelling vision if s/he is
to engage and inspire people to follow him/her.
 Creating a Compelling Vision of
Change Contd.
vThey must also ensure that their followers find
meaning in this vision, the context in which they
operate.

vIf followers can find this meaning, if they can grab

on to it, hold it in their hands and make it a mental
bookmark, their actions are likely to reflect and
support their leader’s vision.

v This way the vision will be propagated, clearly

understood and adhered to by all and sundry.
 Creating a Compelling Vision of Change:
What Is Compelling Vision For Change?
v A compelling change vision serves to engage and help
motivate others to let go of the past and follow the
change team into the future.

v It is intellectually solid, but must make a conscious

appeal to the emotions of the broad population
impacted by the change.

v A compelling vision is powerful and logical.

v It is also reasonable and works intellectually.

 Creating a Compelling Vision
of Change
vTo be compelling, your vision must be:
* Positive – Something others see as desired.
* Personal – Something that will benefit
others personally or directly (not just abstractly
or “it seems like a good idea”).
* Possible – A destination people can see
themselves reaching.
* Visual – Something people can see.
 Three Attributes of A Compelling
Vision
vA truly compelling vision that moves people to action,
change their behaviors, focus on key priorities, and follow
the pathway that the leader lays out, have three
attributes that can be summarized under the broad
headings of Content, Context and Credibility.

vIn addition, they are developed as part of a collaborative

process that engages key stakeholders.

v A vision may be appealing and the visionary may have

some degree of personal credibility, but if the vision
seems too fantastic, too implausible, it will not be seen as
compelling.
 Content
vThe content or substance of a leader’s vision must
appeal to would-be followers as well as the leader.

vThis appeal generally rests on the belief of

followers-to-be, that the leader can deliver
something that they want and need – the feeling
that their leader serves their needs and that they
can achieve through their leader.

vFor any leader, the challenge is to figure out what

will “turn people on,” at least those people who will
be essential for achieving the vision.
 Content in the Vision
vIt is not essential that everyone agrees with every
aspect of a vision, only that they find something in
that vision which resonates with them.

vIf visions are to motivate, especially employees, it’s

essential that employees find the vision meaningful
in the context of their work.

vDesperate people, experiencing material or

psychological threats to their immediate wellbeing,
are primed to respond to a leader who promises the
hope of delivering them.
Vision and the necessity for Context
vWe also see the ability of a vision to mobilize in a
corporate context.
vA business leader in a turnaround situation may be
able to articulate a vision that compels people to act,
whereas that same vision, articulated a year earlier,
before the enterprise ran into trouble, may fall on
deaf ears.
vTime and circumstances may compel a shift of a
particular vision.
vAs the global meltdown unfolds, organizations have
to re-think their goals in the light of what is
achievable over a specific time frame
Credibility of Vision and Visionary
vThe credibility of the visionary rather than the content
of the vision matter a lot.

vThe leader with a good track record, who is known for

having achieved what he sets out to do in the past,
who “knows the business” and is recognized as an
expert by those he is seeking to influence, is more
likely to inspire a following than one who lacks such
credentials.

vSuch a leader has personal credibility which, when

allied with the right content and context may provide
powerful transformational leadership.
 Collaboration: Whose Vision Is It?
vFor any new leader, the challenge is to create a vision that
reflects the wants, needs and aspirations of those who will
be tasked with achieving it.

vThe challenge is to envision rather than to have a vision,

and this is best done by engaging people in the process of
developing that vision and giving them a meaningful
opportunity to shape the product of this engagement.

vCommitment to it will develop only from this

empowerment; mere involvement in a process will not
result in commitment.
Characteristics of Compelling Vision
v The vision must be developed in a collaborative way with
those that will be responsible for its enactment.
v The content or substance of the vision must appeal to the
salient wants and needs of those you seek to inspire
v Elements of the vision should appeal to all those essential to
making it happen. They must see something of value in it.
v The vision should be articulated clearly so that followers will
see what’s in it for them.
v Timing for launching the vision should be right when
potential followers will receive it better
v The proposition in the vision should be credible to those
who will embrace it
v The Visionary must be personally credible in his role.
 Change Management Model
Kurt Lewin's 3-Step Change Management Model
* Unfreeze * Change * Refreeze
a) Unfreeze
v Organization must “unfreeze” their current process and
perceptions when preparing for upcoming changes.
v Prepare the organization to accept that change is necessary
v Break down existing status quo to build up a new way of
operating
v Develop compelling messages for why the existing way of
doing things cannot continue
v Challenge the organizational beliefs, values, attitudes, and
behaviors
v Expect uncertainty 20
Kurt Lewin's 3-Step Change Management Model

b) Change
vPeople begin to resolve their uncertainty and look
for new ways to do things.

vPeople start to believe and act in ways that support

the new direction.

vThey take time to embrace the new direction and

participate proactively in the change.

vThey realize that not everyone will fall in line just to

support the change and its benefit(s).
Kurt Lewin's 3-Step Change Management Model
c) Refreezing
vChange begins to take shape and people embrace the new
ways of doing things.

vOutward signs include a stable organization chart,

consistent job descriptions, and so on.

vChange is internalized or institutionalized through

incorporation into everyday business.

vAcknowledgement of people’s efforts reinforces their

belief in future changes.

vCelebration of the success of the change helps people find

closure.
Change Management Model Contd.

23
 Change Management Process
1) Prepare the organization for Change. Acknowledge and
understand the need for change.

2) Craft a Vision and Plan for Change. This should include: The
Strategic Goals, Key Performance Indicators, Project
Stakeholders and Team, and Project Scope. Develop change
plans with its vision so everyone knows why the change. Also
communicate it properly.

3) Implement the Change

4) Embed Change Within Organization’s Culture and Practices.

5) Review Progress and Analyze Results. Evaluate progress and

celebrate success.
 Leadership Styles and Change
Management
v Change leadership is a proactive approach to change
management, where change is seen as an opportunity for
growth and improvement.
v Change leaders create an inspiring vision, and advocate for
that vision throughout the organization.
v Change leaders take a people-centric approach.
v Several leadership styles can act as promoters in change
management processes but the five most common and how
they can influence an organization's success are:
v Authoritarian leadership (Autocratic) , Participative
leadership (Democratic), Delegative leadership (Laissez-faire),
Transactional leadership (Managerial) and Transformational
leadership (Visionary) styles.
1. Authoritarian(Autocratic) Leadership

vAuthoritarian leadership style allows a leader to impose

expectations and define outcomes.
v A one-person show can turn out to be successful in
situations when a leader is the most knowledgeable in
the team.
vAlthough this is an efficient strategy in time-constrained
periods, creativity will be sacrificed since input from the
team is limited.
vThe authoritarian leadership style is also used when
team members need clear guidelines.
vHowever, it can increase employee turnover rate.
 Advantages & Disadvantages of
Authoritarian Leadership
Advantages
• Time spent on making crucial decisions can be reduced.
• Chain of command can be clearly emphasized.
• Mistakes in the implementation of plans can be reduced.
• Using Authoritarian leadership style creates consistent
results.
Disadvantages
• A very strict leadership style can lead to employee rebellion.
• It kills employee creativity and innovation.
• It reduces group synergy and collaboration.
• Group input is reduced dramatically.
• Authoritarian leadership increases employees turnover rate.
2.Participative(Democratic) Leadership
vParticipative leadership styles are rooted in
democratic theory.
vThe essence is to involve team members in the
decision making process.
vTeam members thus feel included, engaged and
motivated to contribute.
vThe leader will normally have the last word in the
decision-making processes.
vHowever, if there are disagreements within a group, it
can be a time-consuming process to reach a
consensus.
 Advantages & Disadvantages of
Participative Leadership Style
Advantages:
• It increases employee motivation and job satisfaction.
• It encourages use of employee creativity.
• Helps in the creation of a strong team.
• High level of productivity can be achieved.
Disadvantages:
• Decision-making processes become time-consuming.
• Leaders have a high probability of being apologetic to employees.
• Communication failures can sometimes happen.
• Security issues can arise because of transparency in information
sharing.
• Poor decisions can be made if the employees are unskilled.
3. Delegative (Laissez-faire) leadership

vDelegative leadership style focuses on delegating

initiative to team members.

vThis can be a successful strategy if team members

are competent, take responsibility and prefer
engaging in individual work.

vHowever, disagreements among the members may

split and divide a group, leading to poor motivation
and low morale.
 Advantages & Disadvantages of
Delegative Leadership Style
Advantages
• Experienced employees can take advantage of their
competence and experience.
• Innovation and creativity is highly valued.
• Delegative leadership creates a positive work
environment.
Disadvantages
• Command responsibility is not properly defined.
• Delegative leadership creates difficulty in adapting to
change.
 4. Transactional (Managerial)
Leadership Style
vTransactional leadership styles use "transactions"
between a leader and his or her followers - rewards,
punishments and other exchanges - to get the job done.

vThe leader sets clear goals, and team members know

how they'll be rewarded for their compliance.

vThis "give and take" leadership style is more concerned

with following established routines and procedures in an
efficient manner, than with making any transformational
changes to an organization.
 Advantages & Disadvantages of
Transactional Leadership Style
Advantages:
• Leaders create specific, measurable and time-bound goals that are
achievable for employees.
• Employee motivation and productivity is increased.
• Transactional leadership eliminates or minimizes confusion in the
chain of command.
• It creates a system that is easy to implement for leaders and easy to
follow by employees.
• Employees can choose reward systems.
Disadvantages:
• Innovation and creativity is minimized.
• Empathy is not valued.
• Transactional leadership creates more followers than leaders among
employees.
5.Transformational(Visionary) Leadership

vIn transformational leadership style, the leader

inspires his or her followers with a vision and then
encourages and empowers them to achieve it.

vThe leader also serves as a role model for the vision.

vHowever, transformational leadership style is

recommended for effective change management
process.
 Advantages & Disadvantages of
Transformational Leadership Style
Advantages:
• It leads to a lower employee turnover rate.
• It places high value on corporate vision.
• High morale of employees is often experienced.
• It uses motivation and inspiration to gain the support of
employees.
• It is not a coercive approach to leadership.
• It places high value on relationships.
Disadvantages:
• Leaders can deceive employees.
• Consistent motivation and constant feedback may be required.
• Tasks can’t be pushed through without the agreement of
employees.
 The Creativity Twist
v Creativity is the fuel behind change. Using critical thinking,
problem solving, and decision-making could define your
creative change success.
v Creativity empowers a ‘Steve Jobs’ approach: creating new
products and opening new markets.
v Using the following steps, any organization can increase
its creativity quotient:
• Start with identifying each individual's Creative
Intelligence. Match abilities with requirements and place
people in their best fit positions.
• Allow greater flexibility in positions. Creative people easily
become bored. By providing rotation and challenging
positions, management is able to retain valuable
employees.
 The Creativity Twist Contd.
• Allow greater use of teamwork and recognize
accomplishment.
• Make the organization more flexible by introducing
training that expands the horizons of the employees
• Encourage an “open” organization, where questioning
and differences are accepted and respected. Creativity
dislikes “limits”
• Most important, recognize that a small investment in
individuals often has tremendous payback.
• In managing creativity, always remember tradition-
bound corporate culture of the organization.
 Reasons for Resistance to Change

• Naturally, employees resist change that result in their

role being eliminated or reduced.

• Stakeholders will resist change without any rewards.

• The less the organization knows about the change and its
impact on them, the more fearful it becomes.

• Man is a social creature, so stakeholders will resist change

to protect the interests of their group
 Reasons for Resistance to Change
5) Concerns about Competence
• Change is resisted when it makes people feel unwanted, so
they express scepticism whether it will work or not.
6) Climate of Mistrust
• Mutual mistrust will doom an otherwise well-conceived
change initiative to failure.
7) Organizational Politics.
• To prove a point: decision is wrong, the person leading is
wrong, they want to see it fail.
8) Fear of failure : Why change from their comfort zone!
9) Lack of Tact or Poor Timing
• Change is introduced in an insensitive manner or at an
awkward time.
 Dealing With Resistance To Change
(Strategies)
Broad strategies and techniques for reducing resistance to
change include:

1. Communication and Education

• Common issues that cause resistance to change include
fear of the unknown and a misunderstanding of why
change is needed.
• People will only accept change if they believe the risk of
doing nothing is higher than the risk of changing
direction.
• Communication and education about the change should
begin before it is initiated.
 Dealing With Resistance To Change
(Strategies) Contd.
2. Participation
• A lack of belief that the organization can cause resistance.
Likewise, when people aren’t consulted and change is
forced upon them, there is likely to be more resistance.
• It is critical that the stakeholders and those implementing
change are involved in its design.
• A collaborative effort will engage people in the change,
and in the identification of potential issues and solutions.
• People are far less likely to resist change that they have
helped to create.
 Dealing With Resistance To Change
(Strategies) Contd.
3. Support
• Organizational transformation is usually accompanied by
a change to routines, taking people out of (long-
established) comfort zones. This may also lead to
exhaustion.

• So, people must be given the support needed to enable

new skills to be developed and ensure that change
burnout does not occur.

• Support requires managers to develop their emotional

intelligence and connect with their people.
 Dealing With Resistance To Change
(Strategies) Contd.
4. Agreement
• Resistance to change is also precipitated when people feel
they will be negatively affected by its consequences.

• This may be because of a perception that their earnings or

career potential will be harmed.

• To combat this, an organization may consider offering

incentives. Such incentives may include extra pay, improved
benefits, or offering structured career plans.

• This strategy requires negotiation to reach agreement.

 Dealing With Resistance To Change
(Strategies) Contd.
5. Co-opting
• People become connected to the way that things have
always been done which they, may have been at least,
partly responsible for developing.

• One strategy is to co-opt those who may be most

resistant to change into central roles in the
implementation of the change initiatives.

• This can gain the support of would-be resistors relatively

cheaply, though it does come with a caveat.
 Dealing With Resistance To Change
(Strategies) Contd.
6. Coercion
• Sometimes it is necessary to coerce people into accepting
change.
• This is often the case where people feel they cannot learn
the new skills needed or if they feel that change is a
temporary fad that will be reversed.

• Techniques for implementing change include wielding the

threat of disciplinary action while insisting that people fall
in line with required behaviors and actions.

• If speed of change is critical, coercion may be the only

viable option.
 Conclusion
vChange is the only thing constant in life.

vTherefore to ensure change effectiveness we

must have a compelling vision of change.

vDifferent leadership styles can enhance change

effectiveness, but the transformational
(visionary) style is more effective.
 Conclusion Contd.
vHowever effective, employees still resist change for
various reasons bur organizations must use
appropriate ways to deal with change for
effectiveness.

vEffective communication is one of the most

important success factors for effective change
management.

vA leader who engages stakeholders when developing

a vision will, in the end, articulate one that resonates
strongly and impels people to act.