models for change

MODELS OF CHANGE MANAGEMENT

Dr. S.P. ChauhanProfessor (OB & HR)

Asia-Pacific Institute of Management, New Delhi

Change Management Models

While there are many change management models, most companies will choose at least one of the following three models to operate under:

- Lewin’s Change Management Model- McKinsey 7-S Model

- Kotter’s 8 Step Change Model- ADKAR MODEL

http://quickbase.intuit.com/blog/2012/08/28/three-types-of-change-management-models/

Lewin’s Model

Lewin’s Change Management ModelThis change management model was created in the 1950s by psychologist Kurt Lewin. Lewin noted that the majority of people tend to prefer and operate within certain zones of safety. He recognized three stages of change:

1. Unfreeze 2. Transition 3. Refreeze

Lewin’s Model

Lewin’s Change Management Model

1. Unfreeze – Most people make an active effort to resist change. In order to overcome this tendency, a period of thawing or unfreezing must be initiated through motivation.

Lewin’s Model


2. Transition – Once change is initiated, the company moves into a transition period, which may last for some time. Adequate leadership and reassurance is necessary for the process to be successful.

Lewin’s Model


3. Refreeze – After change has been accepted and successfully implemented, the company becomes stable again, and staff refreezes as they operate under the new guidelines.

Process of Planned Change

Unfreezing RefreezingMoving

• Provide rationale for change

• Create minor levels of guilt/anxiety about not changing

• Create sense of psychological safety concerning change

• Provide information that suspects proposed changes

• Bring about actual shifts in behavior

• Implement new evaluation systems

• Create minor levels of guilt/anxiety about not changing

• Implement new hiring and promotion systems

Kurt Lewin

McKinsey 7-S Model

IntroductionThe Seven S Framework first appeared in "The Art

Of Japanese Management" by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey: it's sometimes known as the McKinsey 7S model.

Introduction

Managers, they said, need to take account of all seven of the factors to be sure of successful implementation of a strategy - large or small. They're all interdependent, so if you fail to pay proper attention to one of them, it can bring the others crashing down around you. Oh, and the relative importance of each factor will vary over time, and you can't always tell how that's changing. Like a lot of these models, there's a good dose of common sense in here, but the 7S Framework is useful way of checking that you've covered all the bases.

McKinsey 7-S Model

The McKinsey 7-S model offers a holistic approach to organization. The 7 factors that operate as collective agent of change are:1. Shared Values2. Strategy3. Structure4. Systems5. Style6. Staff7. Skills

The McKinsey 7S Framework• How do you go about analyzing how well your

organization is positioned to achieve its intended objective? This is a question that has been asked for many years, and there are many different answers.

Some approaches look at internal factors, others look at external ones, some combine these perspectives, and others look for congruence between various aspects of the organization being studied. Ultimately, the issue comes down to which factors to study.

Ensuring that all parts of your organization work in harmony

The McKinsey 7S Framework

• The Seven Elements

• The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:

Hard Elements Soft Elements Strategy Structure Systems

Shared Values Skills Style Staff


"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.


• You can use the 7S model to help analyze the current situation, a proposed future situation and to identify gaps and inconsistencies between them. It's then a question of adjusting and tuning the elements of the 7S model to ensure that your organization works effectively and well once you reach the desired endpoint.


• Sounds simple? Well, of course not: Changing your organization probably will not be simple at all! Whole books and methodologies are dedicated to analyzing organizational strategy, improving performance and managing change. The 7S model is a good framework to help you ask the right questions - but it won't give you all the answers. For that you'll need to bring together the right knowledge, skills and experience.


• When it comes to asking the right questions, we've developed a Mind Tools checklist and a matrix to keep track of how the seven elements align with each other. Supplement these with your own questions, based on your organization's specific circumstances and accumulated wisdom.

Strategy• Strategy:

– What is our strategy?– How do we intend to achieve our objectives?– How do we deal with competitive pressure?– How are changes in customer demands dealt with?– How is strategy adjusted for environmental issues?

Structure

• Structure:– How is the company/team divided? – What is the hierarchy?– How do the various departments coordinate activities? – How do the team members organize and align themselves?– Is decision making and controlling centralized or decentralized?

Is this as it should be, given what we're doing? – Where are the lines of communication? Explicit and implicit?

Systems and Shared Values• Systems:

– What are the main systems that run the organization? Consider financial and HR systems as well as communications and document storage

– Where are the controls and how are they monitored and evaluated?– What internal rules and processes does the team use to keep on

track? • Shared Values:

– What are the core values?– What is the corporate/team culture?– How strong are the values?– What are the fundamental values that the company/team was built

on?

Style, staff, Skills• Style:

– How participative is the management/leadership style?– How effective is that leadership?– Do employees/team members tend to be competitive or cooperative?– Are there real teams functioning within the organization or are they just nominal

groups? • Staff:

– What positions or specializations are represented within the team?– What positions need to be filled?– Are there gaps in required competencies?

• Skills:– What are the strongest skills represented within the company/team?– Are there any skills gaps?– What is the company/team known for doing well?– Do the current employees/team members have the ability to do the job?– How are skills monitored and assessed?

The McKinsey 7S FrameworkIn brief:

– Strategy: the plan devised to maintain and build competitive advantage over the competition.

– Structure: the way the organization is structured and who reports to whom.

– Systems: the daily activities and procedures that staff members engage in to get the job done.

– Shared Values: called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.

– Style: the style of leadership adopted. – Staff: the employees and their general capabilities. – Skills: the actual skills and competencies of the employees working for

the company.

Benefits of McKinsey 7-S Model

The McKinsey 7-S Model offers four primary benefits:

1.It offers an effective method to diagnose and understand an organization.2. It provides guidance in organizational change.3. It combines rational and emotional components.•All parts are integral and must be addressed in a unified manner.

Disadvantages of the McKinsey 7-S Model

Disadvantages of the McKinsey 7-S Model are:- When one part changes, all parts change, because all factors are interrelated.- Differences are ignored.- The model is complex.- Companies using this model have been known to have a higher incidence of failure.

Prof. John Kotter’s 8 Step Change Model

Kotter’s Change Management Model

John Kotter’s eight-step Model. According to Kotter, to successfully implement a change in an organization all the eight steps have to be followed in sequence. Skipping any one stage may cause an illusion of speed but does not result in the effectiveness or improvement in the organizations. The eight steps are: (contd….)


1. Create a sense of urgency2. Establishing a powerful group to guide the

change3. Develop a vision4. Communicate the vision5. Empower staff6. Ensure there are short-term wins7. Consolidate gains8. Institutionalize the change in the culture of the

organization.


1. Create a sense of urgency:This stage calls for studying the market trends and

analysing the requirements for implementing the change in the organization. It also emphasizes the importance of identifying the problems and highlighting the opportunities available for change to be implemented. The next task in establishing urgency is to make people/employees aware of the importance of this change to meet these challenges.


2. Establishing a powerful group to guide the change:

This involves identifying right kinds of people and trying to bring them together so that they can help steer this change programme. Also enough power needs to be given to this group so that they can pursue the change effort.


3. Develop a vision:This stage entails developing a vision to

bring about the change in the organization. Kotter proposes that this vision should be highly focused and stated in very simple terms so that everyone involved in the process accepts and understands it.


4. Communicate the vision:the vision created has to be communicated

to all employees in the organization so that everyone is aware of it. Multiple channels such as brochures, word of mouth, meetings, and action should be used to communicate the vision.


5. Empower staff:for a vision to be converted in to reality, it is

important that hurdles in its direction need to be removed. Management is expected to provide enough resources and autonomy to its employees to help them achieve this vision. Risk taking in organization also needs to be encouraged so that employees are able to bring in value to the organization.


6. Ensure there are short-term wins:As people do not have the patience to wait

for a longer duration to see the benefits of change, it is essential to bring in short-terms wins in between as it helps to retain the motivation levels of employees. These wins also help support the need for change.


7. Consolidate gains:To let the process of change continue

smoothly, management should continuously focus on removing organizational policies and processes that inhibit change and reward those who are engaged positively with the change. Attempts should be made to establish new, related change projects.


8. Institutionalize the change in the culture of the organization:

Any change programme which has been carried out in the organization should get embedded in the culture of the organization and it should be linked to organizational performance and leadership. By this, it becomes a permanent component of the organization.

Advantages of Kotter’s 8 Step Change Model

Significant advantages to the model are:

- The process is an easy step-by-step model.- The focus is on preparing and accepting change, not the actual change.- Transition is easier with this model.

Disadvantages of Kotter’s 8 Step Change Model

There are some disadvantages offered by this model:- Steps can’t be skipped.- The process takes a great deal of time.

ADKAR MODEL

ADKAR MODELADKAR has become one of the most requested change

management models from Prosci. Initially developed over a decade ago, this simple acronym has helped thousands more effectively manage change around them - whether changes happening at work, at home or in the community. In 2006, Prosci released the latest work on ADKAR, Jeffery M. Hiatt's book ADKAR: a model for change in business, government and our community.

http://www.change-management.com/adkar-book.htm


ADKAR model

The ADKAR model presented in ADKAR: a model for change is a framework for understanding change at an individual level. This model is then extended to show how businesses, government agencies and communities can increase the likelihood that their changes are implemented successfully.


ADKAR ModelThe ADKAR model has five elements or objectives. It is useful to think of

these elements as building blocks. All five elements must be in place for a change to be realized.

A - Awareness of the need for change

D - Desire to support and participate in the change

K - Knowledge of how to change

A - Ability to implement required skills and behaviors

R - Reinforcement to sustain the change

Awareness represents a person’s understanding of the nature of the change, why the change is being made and the risk of not changing. Awareness also includes information about the internal and external drivers that created the need for change, as well as “what’s in it for me.”

Desire represents the willingness to support and engage in a change. Desire is ultimately about personal choice, influenced by the nature of the change, by an individual’s personal situation, as well as intrinsic motivators that are unique to each person.

Knowledge represents the information, training and education necessary to know how to change. Knowledge includes information about behaviors, processes, tools, systems, skills, job roles and techniques that are needed to implement a change.

Ability represents the realization or execution of the change. Ability is turning knowledge into action. Ability is achieved when a person or group has the demonstrated capability to implement the change at the required performance levels.

Reinforcement represents those internal and external factors that sustain a change. External reinforcements could include recognition, rewards and celebrations that are tied to the realization of the change. Internal reinforcements could be a person’s internal satisfaction with his or her achievement or other benefits derived from the change on a personal level.

THE ADKAR MODELIn brief:– Awareness of the need for change (why).– Desire to support and participate in the change

(our choice).– Knowledge about how to change (the learning

process).– Ability to implement the change (turning

knowledge into action).– Reinforcement to sustain the change (celebrating

success).

Order of ADKAR model

The elements of the ADKAR model fall into the natural order of how one person experiences change. Desire cannot come before awareness because it is the awareness of the need for change that stimulates our desire or triggers our resistance to that change. Knowledge cannot come before desire because we do not seek to know how to do something that we do not want to do. Ability cannot come before knowledge because we cannot implement what we do not know. Reinforcement cannot come before ability because we can only recognize and appreciate what has been achieved.

Limitation of ADKAR Model

Not Everyone Changes at the Same Pace

Create ADKAR Profile for Each EmployeeEmployees A D K A R

1 4 2 4 4 32 4 1 3 3 33 3 2 4 2 24 2 4 2 2 25 3 4 2 3 26 4 1 3 4 47 1 4 3 3 28 3 3 3 2 39 4 1 3 2 2

10 3 2 4 3 3

Best Practices Approach to Reinforcing Change

Preferred senders • Immediate supervisor

Best Practices: • Repeat messages 5 to 7 times• Use face-to-face• Answer WIIFM (What’s In It For Me)• Utilize question and answer format• Understand their interpretation

Factors Influencing Employee’s Perspective on Change

• Whether they trust the sender• What they have heard from others• How satisfied they are with work• Experience with other changes at work

Common Change Management Error

A common mistake change management teams make is to not train managers and supervisors in the basic principles and tools for managing change. These managers will be instrumental in your overall success.

Thank You

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