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Definition

Change management is an aspect of management focusing on and ensuring that the firm responds to the environment in which it operates

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Change is the result of dissatisfaction with the present strategies

It is essential to develop a vision for a better alternative

It is necessary to develop strategies to implement change

Resistance to the proposals at some stage

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Change often arises from:Change often arises from:

› The development of new products › The entry of new competition › Changes in consumer tastes &

preferences › Changes in the cultural, political,

economic, legal and social framework › Changes in technology leading to

technological obsolescence or new product opportunities

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Change affects all aspect of people management

› Organizational structure › Personnel of teams › Process › Location › Work load › Work role › Work practices › Supervision › Work teams

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Forces for change in business –

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Internal forces To increase profitability To increase efficiency Conflict between departments To change organizational culture External forces Customer demand Competition Cost of inputs Tax changes New technology Political Technological obsolescence

A degree of resistance is normal since change is:

Disruptive

Stressful

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Self interest

Misunderstanding

Low tolerance of change

Disagreement over the need for change

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Tradition and set ways Loyalty to existing relationships Failure to accept the need for change Insecurity Preference for the existing arrangements Break up of work groups Different person ambitions Fear of: Loss of power Loss of skills Loss of income The unknown Inability to perform as well in the new situation

Change is often resisted because of failures in the way it is introduced

Failure to explain the need for change Failure to provide information Failure to consult, negotiate and offer

support and training Lack of involvement in the process Failure to build trust and sense of

security Poor employee relations

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Change can produce positive benefits for the individual

Opportunities for personal change and development

Provides a new challenge Reduces the boredom of work Opportunity to participate and shape

the outcome

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This model defines three stages in the process of change:

› Unfreezing

› Change

› Refreezing

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› Environmental analysis. › Set out the strengths and weaknesses of the organization › Current provisions› Resources› Identify the change required › Determine the major issues › Identify and assess the key stakeholders › Win the support of key individuals › Identify the obstacles › Determine the degree of risk and the cost of change › Understand why change is resisted › Recognize the need for change, identify current position

devise a suitable method

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Building the vision

› Develop a clear vision › Make it people clear about what a

change involves and how they are involved in it

› What is involved › What is the proposed change › Why should we do it › What the major effects will be › How we can manage the change

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Plan the change

› Devise appropriate strategies to introduce change› Design the change› Identify the significant steps in the change process› Discuss the need for change and the full details of what

is involved› Allow people to participate in planning change› Communicate the plan to all concerned› Produce a policy statement› Devise a sensible time scale › Produce action plans for monitoring the change› Allow people to participate in planning change› Get all parties involved in and committed to the change› Inspire confidence by forestalling problems and

communicating regularly› Devise a sensible time scale for implementation of

change› Anticipate the problems of implementation› Understand why change is resisted

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Implementing the change

› Check on and record progress› Make sure that change is permanent› Evaluate the change› Improve on any weak areas› Overcome resistance› Involve  all personnel affected› Keep everyone informed› Devise an appropriate reward system› Be willing to compromise on detail› Ensure that strategies are adaptable› Select people to champion change› Provide support and training› Monitor and review

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Step change

› Dramatic or radical change in one shot› Radical alternation in the organization › Gets it over with quickly › May require some coercion

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Incremental change

› Ongoing piecemeal change which takes place as part of an organization’s evolution and development

› Tends to be more inclusive

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Allowing too much complexity Failing to build a substantial coalition Failing to understand the need for a clear

vision Failure to clearly communicate that vision Permitting roadblocks against that vision Not planning for short term results and

not realizing them Declaring victory too soon Failure to anchor changes in corporate

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