MANAGING CHANGE Tom Peters

- “To up the odds of survival, leaders at all levels must become obsessive about change”

- “Change must become the norm, not cause for alarm.” Jack Welch

- “When the rate of change on the outside exceeds the rate of change on the inside, the end is in sight”

Essential skills that the manager must master if the organization is to compete globallyManaging changeDealing with its impact on the corporate culture>>>Organizations today are beset by change>>>Others have trouble transferring their skills to a new assignment in different industry.

To be successful, managers must be able to adapt the following changes:

a growing organizations new assignment changing customer needs changing employee expectations changing competition

Change as a global issue

>>One of the driving pressures for change is the desire to compete globally.America’s Global Trading Partners:

1. Japan2. China3. Europe

Erick A. Cronson<<“Change has to be radical – if

you stay in your comfort zone, you will not be internationally competitive.”

Joseph V.Marulli<<Transformation has to be in

the leader‘s heart, in your heart, and in the hearts of all the senior people

Types of change

1.Technological Changes2. Environmental Changes3. Internal Changes

Types of changes affecting organizations

TechnologicalMachines

EquipmentProcessesAutomationComputersNew raw materialsRobots

EnvironmentalLawsTaxesSocial trendsFashion trendsPolitical trendsEconomic trendsInterest ratesConsumer trendsCompetitionSupplierspopulation trends

Internal

PoliciesProceduresNew MethodsRulesReorganizationBudget adjustmentRestructuring of jobsPersonnelManagementOwnershipProducts/services sold

The change processO Kurt Lewin— Change is a function of the forces

that support or promote the change and those forces that oppose or resist the change

Lewin’s Three –Step Model for Change1. Unfreezing-deals with breaking down the forces

supporting or maintaining the old behavior2. Presenting a new alternative-involves

offering a clear and attractive option representing new patterns of behavior

3. Refreezing-requires that the change behavior be reinforced by the formal or informal reward systems and by the work group.

Reasons for resisting change

1. Fear of the unknown2. Economics3. Fear that skills and

expertise will lose value4. Threats to power5. Additional work and

inconvenience6. Threats to interpersonal

relations

Four Basic Situations Usually Occur:

1. If employees cannot foresee how the change will affect them, they will resist the change or be neutral at best.

2. If employees perceive that the change does not fit their needs and hopes, they will resist the change.

3. If employees see that the change is inevitable, they may first resist and then resign themselves to the change.

4. If employees view the change as being in their best interests, they will be motivated to make the change work.

STEPS ARE RECOMMENDED BEFORE ISSUING A CHANGE DIRECTIVE

5. Determine the response needed from the employee to accomplish the task effectively.

6. Estimate the expected response if the directive is simply published or orally passed to the employee (as many are)

3. If a discrepancy exists between the needed response and the estimated response, determine how the two responses can be reconciled(opposition is never an acceptable response)

Employee response model

Request made or directive issued to

employee(CHANGE)

Employee considers effect

of change on self

Employee responds

1. Very negative 1. Opposition2. Neutral 2. Acceptance3. Very Positive 3. Commitment

SEVERAL SUGGESTIONS FOR REDUCING RESISTANCE TO CHANGE

1. Build Trust2. Discuss Upcoming Changes3. Involve the Employees4. Make Sure the Changes Are

Reasonable5. Avoid Threats6. Follow a Sensible Time Schedule7. Leading Change8. Establish a Sense of Urgency9. Create a Guiding Coalition

Model for leading change

1.Establish a sense of urgency.2.Create a Guiding Coalition3.Develop a vision and strategy4.Communicate the change vision5. Empower broad-based action

Model for leading change

6.Generate short-term wins

7.Consolidate gains and produce more change.

8.Anchor new approaches in the culture.

SEVERAL SUGGESTIONS FOR REDUCING

RESISTANCE TO CHANGE10. Develop a vision and strategy11. Communicate the Change Vision12. Empower Broad-Based Action13. Generate Short-Term Wins14. Consolidate Gains and Produce

More Change15. Anchor New Approaches in the

Culture

ORGANIZATIONAL DEVELOPMENT

O --is an organizationwide, planned effort managed from the top, with a goal of increasing organizational performance through planned interventions in the organization

O Ultimate goal---to structure the organizational environment so that managers and employees can use their skills and abilities to the fullest

MOST ORGANIZATIONAL DEVELOPMENT EFFORTS INCLUDE

THE FOLLOWING PHASES

O Diagnosis—in this stage one should collect data for a reason

Most frequently used methods for doing diagnosis

1. Review available records.2. Survey questionnaires.3. Personal interviews.4. Direct observations.

MOST ORGANIZATIONAL DEVELOPMENT EFFORTS INCLUDE THE FOLLOWING

PHASESO Change planning-the data collected in the diagnosis stage must be carefully interpreted to determine the best plan for organizational improvement

--the key to interpreting data is to look for trends and areas of general agreement

--the end result of the change planning process is to identify specific problem areas and outline steps for resolving the problemsO Intervention/education—its purpose is to share the

information obtained in the diagnostic phase with the affected employees and help them realize the need for change

Most frequently used intervention/education methods

o Direct Feedbacko Team Building

SOME OF THE SPECIFIC ACTIVITIES USED:

1. Clarifying employee roles2. Reducing conflict3. Improving interpersonal relations4. Improving problem-solving skills

Most frequently used intervention/education methods

O Sensitivity Training—designed to make one or more aware of oneself and one’s impact to others

O ---involves a group, usually called a training group or T-group, that meets and has no agenda or particular focus

O EVALUATION---the most difficult phase in OD process the basic question to be answered is, Did the OD process produce the desired results?

Managing innovationsINNOVATIONS—is an organization’s best sustainable source of growth, competitive advantage , and new wealth.

Four Principles According to Robert Tucker

1. An organization’s approach to innovation must be comprehensive.

2. Innovation must include systematic, organized and continual search for new opportunities

Four Principles According to Robert Tucker

3. Organizations must involve everyone in the innovation process.4. An organization must work constantly on improving its climate for innovation.

The Learning Organization

O >>has been defined as an organization skilled at creating , acquiring and transferring knowledge , and in modifying behavior to reflect the new knowledge

Five Principles for Creating a Learning Organization---Peter Senge

1. Systems Thinking—managers must learn to see the big picture and not concentrate only on their part; they must learn to recognize the effects of one level of learning on another

2. Personal mastery--Individual managers and employees must be empowered to experiment, innovate and explore

3. Mental models—Managers and employees should be encouraged to develop mental models as ways of stretching their minds to find new and better ways of doing things

4. Shared vision—Managers should develop and communicate a shared vision that can be used as a framework fro addressing problems and opportunities.5.Team building—Team learning is the process of aligning a team so as to avoid wasted energy and to get the desired results.HONDA, CORNING & GENERAL ELECTRIC>>>examples of companies that have become good learning organizations

Thank you..& Godbless us!!!

OBy: MARJORIE R. VILLAFUERTE(MAED-EM)

March 19,2011