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Paul Sinclair

Module Code: CB697

Module Title: Managing People and Teams

Seminar Group: Group 01

Surname: Atieno

First Name: Tracy

Login: TA429

Student Number: 14885495

Required Word Count: 2000 words

Actual Word Count: 2009 words

Declaration: I confirm the work submitted is entirely my own and have fully
referenced my sources as appropriate. I am aware of the penalties for plagiarism.

Date: 23/03/2016

Official Stamp
Question: What is change management with reference to specific organisational
examples and academic theory explain why change management often fails.

Moran and Brightman, 2001: 111 defined change management as the process of continually
renewing an organizations direction, structure, and capabilities to serve the ever-changing needs
of external and internal customers. Change management initiatives are a necessary component
for any business that wants to succeed. It has been stated that an overwhelming majority of
businesses fail within five years and and estimates suggest that 70-80% of major reorganisations
fail within five years.(Holbeche, 2005) Charles Darwin states that It is not the strongest of the
species that survive, nor the most intelligent, but the ones most responsive to change. This
statement can be translated to businesses in that only those businesses that are willing to adapt to
change will be able to survive. This essay seeks to define change management using various
academic theories as well as explain the various reasons why change management initiatives can
be said to fail often.

In order for an organisation to successfully adapt to the dynamic world of business it is required to
be flexible. A flexible business is one that is able to anticipate the changes in their sphere of
operation and then catch up or even surpass said changes. In terms of an organisation, change
usually occurs due to various sources of pressure. The two main ways we categorise the elements
that trigger change are external sources and internal sources .

External sources of change are factors that put pressure on the organisation inevitably leading to
change. These are usually elements that have constant influence on the business such as
international, political, social, technological and economic factors.

Internal sources of change are factors that come from within the organisation that put pressure for
said organisation bringing about change. One of the internal sources of change is the employees
and managers within the organisation. These individuals must alter their current working strategy
and practice in order for the organisation to be able to change, they are a key factor in the change
process. Another internal factor is the organisational structure of the company, if it is found that the
current structure of the organisation is inadequate it could become a source of change. Another
source of change in an organisation is the performance of the organisation. If the organisation is
seen to be performing poorly then the organisation will have to asses the organisation as a whole
and see what the cause of this poor performance is. Thereafter management will be expected to
initiate a change process that will cause an improvement in the performance of the organisation.

There are various approaches that are used in the school of change management, for the purpose
of this essay we will be looking at two particular approaches. The first approach we will be looking
at in the planned approach which was increasingly popular between the 1940s and the 1970s. The
planned approach is the approach to change that requires managers to make concrete plans
beforehand. When using the planned approach, an area requiring change is identified and then a
plan with the aim of solving the issue is structured and finally implemented. In order for the planned
approach towards change management to be successful it is imperative that managers are able to
forecast areas that they would need to change to keep up with the business climate. However, it is
important to note that sometimes change is implemented to deal with an ongoing problem in the
business.

With the planned approach usually linear models of change are used. Linear models of change set
out the change process as sequential. Linear models have been described as being too simplistic,
as on the road to change there are likely to be many interruptions, and unforeseen circumstances.
However linear models are helpful because they allow for managers to get a skeleton with which
they can work.
The most popular linear model of change is Lewins three stage model that came about in the early
1950s. The first stage unfreezing this is where the relevant parties come to the realisation that
change is necessary. Usually when an organisation is required to change something the change
makers will be met by resistance. A period of allowing people to come to terms with the change
process is necessary. The second stage is moving, this is the stage when change takes place. The
proposed changes are imposed and tested at this stage. The final stage of change is freezing, this
takes place after the changes have successfully been implemented. The company goes through a
process of ingraining the changes into company culture. The major disadvantage of using this
model of change is that it is long term so it does not apply to changes that need to be made
urgently. However, due to the fact that it is an easy model of change companies like to use it.

Kotters eight stage change model of change has been described as being very influential, it can
be described as being a more thorough version of the three stage model. The first stage of the
model is establishing a sense of urgency; at this stage effort is put into informing the organisation
as a whole that there is a need for change. The second stage is when the guiding coalition is
formed; at this stage a group is put together whose main aim is to get people on board with the
change. The third stage is developing a strategy and vision; this helps the organisation understand
the desired outcome. The fourth step is communicating the change vision with the employees of
the organisation, this includes addressing the issues that the workers may have with the vision.
The fifth step is empowering employees for broad-based action; this means that any potential
obstacles should be removed from the work environment. The sixth step is generating short term
wins; when a company does this they keep employee momentum up and geared toward change.
The seventh step is consolidating gains and producing more change; the organisation needs to
keep looking for ways to improve. The final step in this model is anchoring new changes in the
culture; at this point the change is made permanent and becomes a part of the organisations
culture.

The next approach to change we are going to look at is the emergent approach to change, this
approach to change emerged in the 1980s and is still the preferred approach t change
management. When we speak of emergent change, we are looking at a type of change that is
unplanned in the sense that it involves a trial and error method from the implementors. The
changes to be implemented with this approach are not predictable and it can be described as
continuous. Strategy and implementation take place alongside each as opposed to the planned
approach where implementation follows strategy. Emergent change is more focused on the
attributes and activities connected with the accomplishment of revolutionary change to constant
competitive advantage.

When assessing the reason behind the failure of change initiatives we read the literature of various
practitioners. This section looks at the works of such practitioners and explains their thoughts on
why change initiatives often fail.

Buchanan and Bahdman (1999) gave various explanations as to why change management
initiatives are likely to fail. One of the suggested reasons was that change management initiatives
often fail due to the fact that when managers are looking to initiate change they do not bother to
properly understand the theory they have chosen to apply. Another reason is that sometimes when
a particular methodology is applied to a organisation it is not full applied. If these two issues are at
play in any given organisation it would that the change management initiative is not going to be
successful. These particular issues can be overcome if practitioners took time out to research and
fully understand change management theory before they put it into practice as well as making sure
they apply it full to the organisation.

It is suggested that thorough organisational change is viewed as being necessary as well as near
impossible, Burke (2002) gave various explanations for why such change rarely works. One of the
reasons being that changing the culture of an organisation would be problematic, due to the fact
that the culture is deeply ingrained in the organisation. Another reason was that proving that an
organisation would benefit from change would be difficult especially if the organisation was
performing at a good level. Finally, it was stated that at the time of writing not enough was known
about organising and initiating change.

Using Kodak as an example of a company where change initiatives fail we can describe one of the
reasons that change initiatives fail is complacent as Listed by Kotter in 1996. When Kodak was at
its prime it was a market leader and even at one point described as the fourth most valuable brand
in the world. However, by 2012 the company had filed for bankruptcy which can be described as
the end in a long downward spiral. The company is said to have developed digital technology in
1973, but did not release it. As the company were enjoying success in this period they did not feel
that it would be a worthwhile risk as they were already market leaders. When they did eventually
put out digital technology they were already way behind their competitors and unable to catch up.
Another area in which they were complacent was their business model. It is also suggested that
another factor that contributed to the failure of Kodak was the fact that they did not change their
business model. When Kodak did begin innovating new products, new marketing strategies as well
as design they did not change their business model. It is assumed that the thinking behind this was
that since that particular business model had gained them success previously it would do so again.
However, since the business model was not designed for the business climate at that given time it
was not helpful in gaining them a competitive advantage.

It is suggested that one of the reasons that change initiatives often fail is because it is destined to
fail. Griffith (2002) stated there can be no such things as successful change management
programmes, actions and skills. In short, the whole industry is a fraud. This perspective is built on
the idea that organisations are not made to last forever. it works on the premise that organisations
are built to satisfy a certain need and are tailored to fit the environment in which they work. It works
with the idea that once the original environment begins to change, the organisation ceases to exist
and one that can work within the new environment emerges. The argument that managing change
is a task that is near impossible due to the fact that adequately anticipating change is near
impossible. It is said that managers are not able to anticipate what changes they will be required to
make, much less the magnitude of change that will be required so they can plan adequately. In that
light it is said that change management is said to be a type of management that is impractical, this
problem is mainly associated with the planned approach.

in conclusion, it can be said that change is a very complex factor of organisational management
and for success to occur it is paramount that its complexity is taken into consideration. Although
the strategy between organisations may vary the fact remains that change is seen as an integral
part of any organisations lifespan especially if they are expecting to experience longevity. One very
important thing to note is that it would benefit managers greatly to learn from previous instances of
failure both within and outside their organisation if their intention is for their organisation to
experience a long life span. The view that change management as a school is a waste of time can
be disputed by the fact that although most change management initiatives fail some do succeed
and some companies do experience longevity.
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