Organisational Change

You’ll never
get me up on
one of those
butterfly
things!
CORPORATE LESSON 1
A crow was sitting on a tree, doing nothing all day.

A small rabbit saw the crow, and asked him,

"Can I also sit like you and do nothing all day
long?”
The crow answered: "Sure, why not.”

So, the rabbit sat on the ground below the

crow, and rested.

All of a sudden, a fox appeared,

Jumped on the rabbit... and ate it.

Moral of the story is….

To be sitting and doing nothing

you must be sitting very, very high up.
CORPORATE LESSON 2
A turkey was chatting with a bull.

"I would love to be able to get to the top of that tree," sighed the
turkey, "but I haven't got the energy.”
"Well, why don't you nibble on some of my droppings?" replied
the bull. They're packed with nutrients."
The turkey pecked at a lump of dung and found that it actually
gave him enough strength to reach the first branch of the tree.
The next day, after eating more dung, he reached the second branch.
Finally after a fortnight, there he was proudly perched at the top of the
tree
Soon he was spotted by a farmer
Who promptly shot the turkey out of the tree.
CORPORATE LESSON 2

Moral of the story:

Bullshit might get you to the top,

but it won't keep you there.
 CORPORATE LESSON 3
A little bird was flying south for the winter.

It was so cold, the bird froze and fell to the ground in a large field.

While it was lying there, a

cow came by
and dropped some dung
on it.

As the frozen bird lay there in the pile of cow dung, it began to
realise how warm it was. The dung was actually thawing him out!
PURR.... He lay there all warm and happy, and soon began to sing for joy.
A passing cat heard the bird singing and came to investigate.

Following the sound, the cat discovered the bird under the pile of cow
dung, and promptly dug him out and ate him!
CORPORATE LESSON 3

The morals of this story are:

1) Not everyone who drops shit on

you is your enemy.
2) Not everyone who gets you out of
shit is your friend.
3) And when you're in deep shit,
keep your mouth shut
 Introduction
Change is the singly most important element
of successful management
To remain effective, organizations (and
individuals in them) have to adopt a
positive attitude to change
Ignoring or trivialising change can be costly
 Change
No organization is
immune to change
To cope with new
external and
internal forces,
leaders have
sought to
fundamentally alter
the way their
organizations work
 What is Organizational
Change?
• An alteration of an organization’s
environment, structure, culture,
technology, or people
– A constant force
– An organizational reality
– An opportunity or a threat
• Change agent
– A person who initiates and assumes the
responsibility for managing a change in an
organization
 Organizational Change Management

What is Organizational Change?

It is generally considered to be an organization-wide

change, as opposed to smaller changes such as
adding a new person.

It includes the management of changes to the

organizational culture, business processes, physical
environment, job design / responsibilities, staff skills /
knowledge and policies / procedures.

When the change is fundamental and radical, one

might call it organizational transformation
Change
To Make Different in Some Particular: ALTER
To Make Radically Different: TRANSFORM
To Give a Different Position, Course or Direction
-- Webster’s Collegiate Dictionary
 Organizational Change Management
It can be very difficult to introduce change to an
organization. Failure to recognize and deal
with this fact has been the cause of many
project failures.

Folger & Skarlicki (1999) - "organizational change

can generate skepticism and resistance in
employees, making it sometimes difficult or
impossible to implement organizational
improvements" (p. 25).
 Using Change Agents:
Qualities of change agents
Realistic
Eager for Effective
improvement Communication

Restless Attentive
listener
Good
collaborator Ideas
person
Upper Management undertakes these projects because
they believe that there is sufficient gain to the
organization to warrant the expense.

And Upper Management usually moves forward on the

basis that since it is in everyone’s best interest, those
individuals affected will of course endorse the project
and work to make it a success.

And all too often Upper Management receives a rude

shock.
 Organizational Change Management

As the Management Team, you must be aware

of the extent to which your projects may
introduce organizational change, and then
you must deal with this issue.

Coetsee (1999) states "management's ability to

achieve maximum benefits from change depends
in part on how effectively they create and maintain
a climate that minimizes resistant behavior and
encourages acceptance and support" (p. 205).
 Organizational Change Management
What provokes Organizational Change?
Examples:

Management adopts a strategy to accomplish some

overall goal
May be provoked by some major outside driving
force, e.g., substantial cuts in funding
An Organization may wish to evolve to a different
level in their life cycle, e.g. from traditional banking
to e-banking
Transition to a new chief executive can provoke
organization-wide change when his or her new and
unique personality pervades the entire organization
 Forms of Organisational Change
Mergers
Acquisitions
Takeovers
Organisational redesign and restructuring
Organisational transformation
Change of organisational culture
Change of organisational processes
Change Readiness Assessment
What Identifies key factors which may help or hinder the change process and
What is used to determine readiness to change. Action plans can then
be developed to leverage strengths and minimise potential risks.

How A series of one day workshops delivered to a select number of staff

How representing identified stakeholder groups. Surveys and other tools
will be used to identify potential risks to implementation.

Benefit
Benefit Action plans to address implementation issues
Greater ownership and awareness of Upgrade Project

Value
Value of
of Structured approach to identify potential implementation risks
Objective methods to determine potential implementation risks
Approach
Approach Involvement of stakeholder groups throughout
Comparison of perceived risks across management levels and locatio
Comparison of perceived risks over time
Communications Strategy and Plan
What Determines the strategies, goals, themes, messages and vehicles used
What communicate with key stakeholders (internal and external) throughout
throughou
the duration of the Upgrade Project.

How Working directly with Project Teams and Task Force staff, drawing
How on the results of the Change Readiness Assessment and using Consult
methods to identify most appropriate communications methods.

Accelerates contact, awareness, understanding and acceptance of the

Benefit
Benefit intended changes
Reduces stakeholder resistance resulting in positive action
(thinking and behaviour)
Greater ownership and awareness of Upgrade Project

Value
Value of
of Structured approach to develop communication plans
Approach Greater re-use of data collected during Change Readiness Assessmen
Assessme
Approach
Change Facilitator Network
What Establishing an internal network of change champions to build awaren
What and understanding of change management principles.

How
How Network is established initially by involving client staff in a one day
workshop to explore business change principles and concepts within
the context of the Upgrade Project.

Establishing a change infrastructure of staff who will promote the

Benefit
Benefit Upgrade Project
Generating greater communication across the network
Involvement of those most affected by the changes
Greater understanding of change and their important role in the proc

Structured approach to managing change

Value
Value of
of Opportunities for testing management potential
Approach
Approach Build on Change Readiness Assessment results
Develop a link to customer facing staff in the branches
Opportunities for breaking down barriers between branches
Transition Management Plan
What Incorporates data gathered during the Change Readiness Assessment,
What Change Facilitator workshops and communication planning stages to
produce a comprehensive roadmap addressing the human aspects of
change for the duration of the project. It will also provide other peopl
related issues which are beyond the scope of Phase 1.

How Working with project managers and the Task Force to thread together
How relevant information.

Benefit
Benefit Provide further issues to consider to help align business needs with
desired behaviour

Value
Value of
of Structured approach to managing change
Approach
Approach Assistance with the identification of HR issues using Consultant’s
Organisational Alignment methodology
 The Drivers for Change
 Customer expectations
 Technology
 Competition
 Legislation
 Economy
 Organisational Realignment
 Performance Management
Where are you now?
Where do you want to be?
 Resistance to Change:
The relevance of Conflict, Power and Politics
• Conflict, Power and Politics indisputable affects
social and organisational life
• Challenge is to ensure that each is used in positive
ways to enhance change an reduce resistance
• Resistance to change found at three levels:
– Individual (Uncertainty and insecurity, selective
perception and retention, Habit)
– Group (Group norms, Group Cohesiveness, Groupthink)
– Organisational (Power, Politics and Conflict, Functional
differentiation, Structure and Culture)
Dealing with Change
 A Nine-step Process For
Leading Organizational Change
1. Create a Sense of 6.
Urgency
2. Decide What to 7.
Change
3. Create a Guiding
Coalition and Mobilize
Commitment 8.
4. Develop and
Communicate a Shared
Vision
9.
5. Empower Employees
to Make the Change
Generate Short-Term
Wins
Consolidate Gains
and Produce More
Change
Anchor the New Ways
of Doing Things in the
Company Culture
Monitor Progress and
Adjust the Vision as
Required
 Resistance To Change
• Organizations and individuals resist
change
• In one sense this is positive since it
provides a degree of stability and
predictability to bahaviour
• Without resistance organizational
behaviour will lead to chaotic randomness
 Resistance To Change
• Is a source of functional conflict
• Can stimulate healthy debate
• Hinders adaptation and progress
Resistance to Change : Individuals
• Sources of resistance – Habit; Security;
Economic Factors, Fear of the Unknown
• Habit, i.e., programmed responses helps
us cope with complexities of life; when
confronted with change this tendency to
respond in our accustomed ways becomes
a source of resistance
 Resistance to Change:
Individuals
• Security – People with a high need for security
are likely to resist change because it threatens
their sense of insecurity
• Economic Factors – Concern that changes will
result in lower income; Fear that they cannot
perform new tasks or routines especially when
pay is closely tied to productivity
 Resistance to Change:
Organizations
• Organizations are conservative –
actively resist change change through
structural and group inertia and threats to
member expertise, power relationships
and established resource allocations
 Resistance to Change:
Organizations
• Organizations have built-in mechanisms to
produce stability – systematically select certain
people and certain people out, people are hired
into an organization are chosen for for and then
shaped and directed to behave in certain ways
• When the organization is confronted with change
this structural inertia acts as a counter balance
to sustain stability
 Resistance to Change:
Organizations
• Even if individuals want to change their
behaviour, group norms act as a constraint
• Any redistribution of decision-making as the
result of change threatens the long-established
power relationships
• Groups in the organization that control sizeable
resources often see change as a threat, those
that benefit from current al.location of resources
feel threatened by changes that may effect
future allocations
 Resistance to Change
No matter how noble the cause, most
organisational change efforts are resisted
by employees, managers, clients, and
other stakeholders. Resistance to change
may take the form of passive,
noncompliance, complaints, absenteeism,
turnover, or collective action e.g. stricke
action.
 Resistance to Change
Driving Forces Restraining Forces

Customer expectations Direct cost

R
E Saving face
Technology
S
I
S Fear of the unknown
Competition T
A
Legislation N Breaking routines
C
E
Incongruent systems
Organisational Realignment

Incongruent team dynamics

 Managing organisation change
Force Field Analysis Restraining
Force

Driving
Force

Restraining
Force

Restraining
Force
Driving
Force

Driving
Force
 Process of Force Field Analysis

MOVING

Unfreezing From old behaviour

Resistance to change
lessened,
to the new Refreezing
(Changes) Change made
need for change created
permanent
(Equilibrium disturbed)
 Unfreezing
‘Shaking up’
Disconfirmation of old ways of doing things
Change agents need to unfreeze the status
quo by creating a disequilibrium between
the driving and restraining forces.
 Moving
Making the actual changes to move to the new
state of existence.
Includes the development of new strategies,
structures, systems & responsibilities and the
shedding of old ones.
Change agents needs to increase the driving force
and focus on reducing the restraining forces.
Create an urgency for change and stakeholders
must be motivated to accept change. Stake
holders must accept that the status quo is less
acceptable to transform the organisation into
unknown future state.
 Refreezing
Stabilizing, institutionalising the changes.
Making sure the organisation doesn't go
backwards to the old state.
Reinforcement of the changes through
symbols, such as changed logos, dress,
building design, structures.
It occurs when organisations systems and
teams dynamics are reconfigured so that
they support the desired change.
How to undermine resistance
• Provide rewards for accepting change
• Communicating reasons for why change
is necessary
• Including people who will be effected by
the change to participate in change
decisions
 Managing Change Requires
Looking at All the Dimensions
• Past History in Putting Change in Place
• Degree of Sponsorship
• Authenticity of Sponsorship
• Organizational and Individual Current Stress
• Who Will Be Impacted by the Change
• Cultural Fit of the Change
• Addressing “What’s in It for Me”
• Communication of the Change and Its Progress
• Skill Sets of the Change Agents
Change = Motivation X Vision X
Next Steps
• Motivation – Some Good Reason to Give up the Status
Quo
• Vision – A Clear and Practical Vision of the Desired
Future State
• Next Steps – an Understanding of the Next Steps
Required to Progress Toward the Vision
• If One Is Missing, Little Change Will Take Place
YOU must be the change you wish to
see in the world
Mahatma Gandhi