MANAGEMENT OF CHANGE

- A HBR ARTICLE PRESENTATION HOSHEDAR BATLIWALLA

CMBA2 - 1314

"ITS NOT SO MUCH THAT WE ARE AFRAID OF CHANGE, OR SO MUCH

IN LOVE WITH THE OLD WAYS, BUT ITS THE PLACE IN BETWEEN WE
FEAR... ITS LIKE BEING IN BETWEEN TRAPEZES... THERES NOTHING TO
HOLD ONTO.
- MARILYN FERGUSON
(1938-2008, AUTHOR THE AQUARIAN CONSPIRACY)

CHANGE AS A HUMAN PROBLEM

CHANGE IS NOT JUST A PROFESSIONAL CONCEPT. CHANGE IS A NATURAL PART
OF THE HUMAN CONDITION. IT IS LIKELY THAT PEOPLE REACT TO PROFESSIONAL
CHANGE IN THE SAME WAY AS THEY REACT TO CHANGE IN OTHER ASPECTS OF
THEIR LIVES, SUCH AS MARRIAGE, ACCIDENTS, GROWING UP ETC.
CHANGE IN ONE ASPECT OF A PERSONS LIFE WILL HAVE AN EFFECT ON, AND
BE AFFECTED BY, OTHER ASPECTS. REACTIONS TO PROFESSIONAL CHANGE,
THEREFORE CAN OFTEN HAVE LITTLE OR NOTHING TO DO WITH THE ACTUAL
CHANGE ITSELF, BUT MAY BE CONDITIONED BY APPARENTLY UNRELATED
FACTORS.
CHANGE POSES A POTENTIAL THREAT TO THE KEY MEANINGS OF OUR LIVES.
KEY MEANINGS PROVIDE STABILITY AND SECURITY, AND MAKE OUR BEHAVIOUR
MEANINGFUL. EXAMPLES OF KEY MEANINGS ARE OUR RELATIONSHIPS WITH
OTHER PEOPLE, OUR PERCEPTION OF OUR STATUS, OUR MORAL OR RELIGIOUS
VALUES, OUR GROUP ALLEGIANCES, OUR HABITS AND ROUTINES. ANY CHANGE
POSES A THREAT TO ONE OR MORE OF THESE KEY MEANINGS.

THE 8 COMMON ERRORS TO

ORGANIZATIONAL FAILURE
ALLOWING TOO MUCH COMPLACENCY
FAILING TO CREATE A SUFFICIENTLY POWERFUL GUIDING
COALITION
UNDERESTIMATING THE POWER OF VISION
UNDER COMMUNICATING THE VISION BY A FACTOR OF
10
PERMITTING OBSTACLES TO BLOCK THE NEW VISION
FAILING TO CREATE SHORT TERM WINS
DECLARING VICTORY TOO SOON
NEGLECTING TO ANCHOR CHANGES FIRMLY IN THE
CORPORATE CULTURE

THE CONSEQUENCES
NEW STRATEGIES ARENT IMPLEMENTED WELL
ACQUISITIONS DONT ACHIEVE EXPECTED SYNERGIES

REENGINEERING TAKES TOO LONG AND COSTS TOO MUCH

DOWNSIZING DOESNT GET COSTS UNDER CONTROL
QUALITY PROGRAMS DONT DELIVER HOPED-FOR RESULTS

WHO SAID CHANGE CANNOT BE DONE??

HOW TO DO IT?
THE THOUGHT PROCESS

SUCCESSFUL CHANGE MANAGEMENT IS MORE THAN A SET OF ACTIVITIES

OR TOOLS
IT IS A WAY OF THINKING AND WORKING.

Elizabeth Kbler Ross

CHANGE MANAGEMENT = PAIN MANAGEMENT?

HTTP://JAKEHUBER.FILES.WORDPRESS.COM/2013/01/1-LEADINGCHANGE-WHY-TRANSFORMATION-EFFORTS-FAIL.PDF

THE EIGHT STAGE PROCESS OF

CREATING MAJOR CHANGE

Leaders who successfully transform businesses do eight things right (and they do them in the right order)

ESTABLISH A SENSE OF URGENCY

ACTION NEEDED:
EXAMINING THE MARKET AND COMPETITIVE REALITIES

IDENTIFYING AND DISCUSSING CRISES, POTENTIAL CRISES,

OR MAJOR OPPORTUNITIES
PITFALLS:
UNDERESTIMATING THE DIFFICULTY OF DRIVING PEOPLE
FROM THEIR COMFORT ZONES
BECOMING PARALYZED BY RISKS

FORM A POWERFUL GUIDING COALITION

ACTION NEEDED:

ASSEMBLE A GROUP WITH SHARED COMMITMENT AND

ENOUGH POWER TO LEAD THE CHANGE EFFORT

ENCOURAGE THEM TO WORK AS A TEAM OUTSIDE THE

NORMAL HIERARCHY
PITFALLS:

NO PRIOR EXPERIENCE IN TEAMWORK AT THE TOP

RELEGATING TEAM LEADERSHIP TO AN HR, QUALITY, OR
STRATEGIC-PLANNING EXECUTIVE RATHER THAN A SENIOR
LINE MANAGER

CREATE A VISION

ACTION NEEDED:

CREATE A VISION TO DIRECT THE CHANGE EFFORT

DEVELOP STRATEGIES FOR REALIZING THAT VISION

PITFALLS:

PRESENTING A VISION THATS TOO COMPLICATED OR

VAGUE TO BE COMMUNICATED IN MINUTES

COMMUNICATE THE VISION

ACTION NEEDED:

USE EVERY VEHICLE POSSIBLE TO COMMUNICATE THE

NEW VISION AND STRATEGIES FOR ACHIEVING IT
TEACH NEW BEHAVIOURS BY THE EXAMPLE OF THE
GUIDING COALITION

PITFALLS:
UNDER COMMUNICATING THE VISION
BEHAVING IN WAYS ANTITHETICAL TO THE VISION

EMPOWER OTHERS TO ACT ON THE VISION

ACTION NEEDED:

REMOVE OR ALTER SYSTEMS OR STRUCTURES UNDERMINING

THE VISION

ENCOURAGE RISK TAKING AND NON-TRADITIONAL IDEAS,

ACTIVITIES, AND ACTIONS

PITFALLS:
FAILING TO REMOVE POWERFUL INDIVIDUALS WHO RESIST
THE CHANGE EFFORT

PLAN FOR AND CREATE SHORT-TERM WINS

ACTION NEEDED:

DEFINE AND ENGINEER VISIBLE PERFORMANCE

IMPROVEMENTS
RECOGNIZE AND REWARD EMPLOYEES CONTRIBUTING TO
THOSE IMPROVEMENTS

PITFALLS:
LEAVING SHORT-TERM SUCCESSES UP TO CHANCE
FAILING TO SCORE SUCCESSES EARLY ENOUGH (12-24
MONTHS INTO THE CHANGE EFFORT)

CONSOLIDATE IMPROVEMENTS AND

PRODUCE MORE CHANGE
ACTION NEEDED:

USE INCREASED CREDIBILITY FROM EARLY WINS TO CHANGE

SYSTEMS, STRUCTURES, AND POLICIES UNDERMINING THE
VISION.
HIRE, PROMOTE, AND DEVELOP EMPLOYEES WHO CAN
IMPLEMENT THE VISION
REINVIGORATE THE CHANGE PROCESS WITH NEW PROJECTS
AND CHANGE AGENTS
PITFALLS:
DECLARING VICTORY TOO SOONWITH THE FIRST
PERFORMANCE IMPROVEMENT
ALLOWING RESISTORS TO CONVINCE TROOPS THAT THE WAR
HAS BEEN WON

INSTITUTIONALIZE NEW APPROACHES

ACTION NEEDED:

ARTICULATE CONNECTIONS BETWEEN NEW BEHAVIOURS

AND CORPORATE SUCCESS
CREATE LEADERSHIP DEVELOPMENT AND SUCCESSION PLANS
CONSISTENT WITH THE NEW APPROACH

PITFALLS:

NOT CREATING NEW SOCIAL NORMS AND SHARED VALUES

CONSISTENT WITH CHANGES
PROMOTING PEOPLE INTO LEADERSHIP POSITIONS WHO
DONT PERSONIFY THE NEW APPROACH

MANAGEMENT OF CHANGE

THANK YOU