organizational development change management 05.26.15 final

Organizational Development –

Change Management

Organizational Development - HRMG 1

Objectives:

• Acquire new information and knowledge about

what Organizational Development and Change

Management

• Explain the importance of anticipating and

managing change

• Describe the necessary actions in preparing

people/organizations for change

• Get the affected employees involved in planning

and executing change


Objectives:

• Build teamwork at all levels of the organization

as they work together to implement the change

• Establish a foundation for change that will make

future changes easier


What is Organizational Development?

• According the Richard Beckhard, OD has five stage model.

1. Planned

2. Organization-wide action

3. Managed through its internal hierarchy which

4. Increases organizational efficiency and sustainability through

5. Use of planned interventions into organizational processes that are informed by behavioral-science knowledge


Use of OD

OD is most useful when an organization needs to

1. Change a managerial strategy;

2. Adjust the organizational climate for

consistency with both individual needs and

shifting environmental demands;

3. Change some aspect of its normative “culture”

or group psychology;

4. Change organizational structure and roles;

5. Improve intergroup (and inter-organizational)

collaboration;


Use of OD

OD is most useful when an organization needs to

6. Open up its communication systems;

7. Have better plan and strategies;

8. Cope with internal problems from mergers and

acquisitions;

9. Improve employees motivation, and/or;

10. Adapt to a changing environment.


Why OD for SFGC?


Why OD for SFGC?

Organizational Development - HRMG

Culture System People Structure

8

Examples of Core Competency

Company Core Competencies Customer Value

Federal Express Logistics Management On-time package

delivery

Sony Miniaturization Pocketability

Glaxo Discovery of new drugs Better therapies


“An organization’s capability to improve existing

skills and learn new ones is the most defensible

competitive advantage of all.”

Gary Hamel

Strategy Professor


What is Change ?

• To transform or convert

• To pass gradually into

• A variation or deviation

• to make a shift from one to another

• to undergo transformation, transition, or substitution

Sources: Merriam-Webster and Dictionary.com


What is Change?

• The word "change” can possibly scare even the strongest person. When we consider organizational change, it is often necessary to adapt a few positive changes to keep pace with the developments in the market and constantly evolving world.

• Organizations who fail to recognize the required change may fall behind their competitors and may end up in poor growth. For example, the technology used by an organization say on a daily basis may be outdated and has to be replaced, which means the organization should be responsive towards the required change.



Why Changes Happen?

13


Why Changes Happen? –

Understanding Change and Development

• Individuals and modern organizations are complex

• Successful organizational change begins with a clear vision of organizational health and effectiveness

• Organizational effectiveness is grounded in respect for the human side of enterprise

• Learning is at the core of effective organizational change

• Effective organization development is a collaborative search for the best forms and approaches to organizing to match a client system’s unique circumstances

14

Factors that result in organizational

change

• Competition – With increase in population and

trend, we see a lot of new entrants in the market.

• Innovation in Technology – Technological

changes are rapid.

• Growth – Businesses wanting to attain huge

growth in the market might have to change their

method of operations.



change

• Leadership – Leadership transitions are critical

moments. Transitions in leadership offer an

opportunity to make changes in many areas of

the organization



change

• Process Improvement – Businesses needs to

introduce new methods to increase efficiency

and effectiveness.

• Government rules and regulations -

Government sets a roll of rules over different

business types.



change

• Rules Change - We live in a world of ever-

increasing change. Instant communication,

email, global web connectivity, smart phones,

and other tools have increased the pace of our

lives dramatically.

• Sometimes the basic rules of the game shifts. No

one announces the shift. Some people or

organizations simply start to work with it and

begin to achieve new levels of success. This

phenomenon is called a “paradigm shift”.


Top 10 Factors to the Failure of Change

Management

1. An utter lack of a PLAN to guide the change

2. Failure to define a clear rationale for the

change

3. Ignoring culture

4. Weak follow-through by sponsors

5. Not investing resources in the change effort


Top 10 Factors to the Failure of Change

Management

6. Gaps in Change Agent skills

7. Haphazard communications

8. Fear of feedback

9. Declaring success too early

10.Neglecting to reinforce the change


PARADIGM SHIFT QUESTION

• What today is impossible to do in your

business, but if it would be done, would

fundamentally change in your business for the

better?


An Introduction to Change Management


Change Management

• Change management is the application of a

structured process and set of tools for leading

the people side of change to achieve a desired

outcome.


Change Management

• Change management emphasizes the “people

side” of change and targets leadership within all

levels of an organization including executives,

senior leaders, middle managers and line

supervisors. When change management is done

well, people feel engaged in the change process

and work collectively towards a common

objective, realizing benefits and delivering

results.


Change Process Framework


Change Process Framework


Desired

State Interventions

Actual

State

Analysis/

Diagnosis

Action Research

Appreciative Inquiry

Total Quality Management Business Process Reengineering

Pro-active

Intervention

Planning

26

8 Steps To Transforming Organizations

1. Establish a sense of Urgency – Leaders

convince employees with the urgency of the

change to get buy in

2. Forming a Powerful Guiding Coalition – Build a

team dedicated to change by identifying

effective leaders in the organization



3. Create a Vision – Identify the values that are

central to change and create a strategy for

execution and direction

4. Communicate the Vision - Creating a

communication strategy and accommodate

different communication styles



5. Empowering Others to Act on the Vision –

Empowering staff with the ability to change by

removing obstacles to execute the change

6. Planning for and Create Short-Term Wins –

Reward the people who help the organization

meet the goals



7. Consolidating Improvements and Producing Still

More Change – Keep looking for improvements

8. Institutionalizing New Approaches – Anchor the

changes in corporate culture. Make the change

permanent


Think about it for one minute. Why do most

overhyped change programs ultimately fail?

Because they lack accountability, they fail to

achieve credibility, and they have no authenticity.

- Jim Collins



Evolution Revolution

The Process

Continuous Discontinuous

Linear, orderly Nonlinear, chaotic

Sequenced, incremental Reciprocal, simultaneous

The Results

Renewal, fine tuning Death, rebirth

Quantitative change Qualitative change

New content New context

Path to known state Odyssey to unknown state

Evolution VS Revolution in OD

33

Activity – NASA Exercise

• Group of 5

• Assign a Leader

• Assign a Secretary


Change Cycle, Reactions and

Approaches to Change


People are often quite uncomfortable with

change, for all sorts of reasons. This can lead

them to resist it and oppose it.

That is why it is important to understand how

people are feeling as change proceeds, so that

you can guide them through it and so that, in the

end, they can accept it and support it.

• There are stages of Transition that people

through when they experience change.

1. Ending, Losing and Letting Go

2. The Neutral Zone

3. The New Beginning





Employees are forced to let go of something that

they are comfortable with & they have to deal with

losses and mentally prepare to move





They may feel the following emotions:

- Fear

- Denial

- Anger

- Sadness

- Uncertain

- Frustration




• Guiding People Through Stage One

- Accept people’s resistance, listen to them

emphatically

- Allow them time to accept the change and let go

- Communicate openly. Use team huddles or morning

meetings

- Emphasize how people will be able to apply their

skills, experience, and knowledge once you have

implement the change

- Continuous education about a positive future




2. The Neutral Zone

This is the bridge between the old and the new.

Employees will still be attached to the old system,

while trying to adapt to the new.

They might be confused and impatient.





2. The Neutral Zone


- Resentment towards the change initiative

- Low morale and low productivity

- Anxiety about their role, status or identity

- Skepticism about the change initiative

Despite the above, this stage can also be one of great creativity, innovation, and renewal.



• Guiding People Through Stage Two

- Guidance, though it may seem unproductive

- Frequent feedback (performance, team goals,

how they feel)

- Set short-term goals and set rewards

- Boost their morale and continue reminding them

how they can contribute to the success of the

change





This is the time of acceptance and when change

begins to work. Employees have embraced the

change initiative & might be seeing small wins

from their efforts.






- High energy

- Openness to learning

- Renewed commitment to the group




• Guiding People Through Stage Three

- Use MBO or Management By Objectives, link

people’s personal goals to the long-term

objectives of the organization

- Regularly highlight stories of success brought

about by the change

- Celebrate! Reward your team




Change vs. Transition


Unfreezing Stage Establishing a Sense of Urgency

- Examining market and competitive realities

- Identifying and discussing crises, potential crises or major opportunities

Forming a Powerful Guiding Coalition

- Assembling a group with enough power to lead the change effort.

- Encouraging the group to work together as a Team


Unfreezing Stage Change Agents – Their DNA

• No specific function

• Does not need to be a “Big” person

• Passionate

• Takes the lead

• Willing to take the risks

• Resilient

• Well-grounded

• Fair

• Recognizes that “Change” is inevitable

• Humble

• Accountable


Managing the Change

Top 10 Skills Needed in Leading Change

1. A creative dissatisfaction with the present, so

that a better way can be seen.

2. The ability to explore different options &

scenarios.

3. Visionary decision-making: choosing a change

path which will lead to both short-term and

long-term advantage.

4. A capacity to present strong and persuasive

arguments to support the case for change.


Managing the Change


5. Administrative skills to establish management mechanisms to control the change process.

6. Fluent and capable communication skills to explain, persuade, encourage, align and facilitate.

7. Project management disciplines: to provide a methodology for managing a temporary organization.

8. Teambuilding effectiveness: to weld people into cooperative groups.


Managing the Change


9. Listening: no change leader can get it right all

the time.

10. Learning: so that mistakes & errors are not

repeated and good practices are enforced


Managing Change Communication Strategies

- Use every vehicle possible to communicate vision, change efforts, feedback.

- Talk to your internal and external customers directly through targeted communications.

- Involve everyone in making decisions through effective and timely consultation:

• Improve your employees understanding of the need for change and gain their commitment

• Identify and address employees’ concerns

• Tap into the knowledge and creativity of our staff


Managing Change

Removing Obstacles and Empowering Others

- Identify change leaders whose main role is to display change

- Look at your organizational structure, job descriptions, performance and compensation systems to ensure they are in line with the vision

- Identify people who are resisting the change, and help them see what’s needed

- Recognize and reward people for making the change happen


Managing Change

• Change Agent Credo

- Reflect on your personal and professional

experiences

- Create a detailed personal statement and

“artistic portrait” that reflect your beliefs, values,

skills, passions, commitments, and strengths as

a leader and facilitator of change

- Submit and present on ______________


Refreezing Stage

Building Momentum of Change

- After every win/project, analyze what went right

and what needs improvement

- Set goals to continue building on the momentum

- Learn about Kaizen, the idea of continuous

improvement and its application


Refreezing Stage

Institutionalizing the Change

- Change sticks when it becomes “the way we do

things here”, when it seeps into the bloodstream

of the corporate body

- Talk about the progress every chance you get.

Tell success stories about the change process

- Include the change ideals and values when

hiring and training new staff


Refreezing Stage

Institutionalizing the Change

- Publicly recognizes key members of your

change coalition and make sure the rest of the

staff – new and old – remembers their

contributions

- Conscious attempt to show people how the new

approaches, behaviors, and attitudes have

helped improve performance


“It will not be the Strongest nor the

Intelligent species will survive, but

the most Responsive to Change”

Charles Darwin


References:

• Richard Beckhard. “What is Organizational

Development?”

• W. Warner Burke. “Where did OD come from?”

• Lecture notes from Angelito Cruz’s Managing OD class

at DLS-CSB SPACE, 2014

• Lecture notes from Reynaldo Villegas’ Systematizing

Excellence in OD class at DLS-CSB SPACE, 2014

• ACAS.ORG.UK. Managing Change

• William Bridges. “Managing Transitions”


End of 1st day


organizational development change management 05.26.15 final

Recruiting & HR