CMS Final Exam
The Tipping Point
"The tipping point is the magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire."
Punctuated Equilibrium Change
- Chart looks like two peaks This illustrates situations where periodically there is a sudden burst of activity. It suggests that the organization has carried on with the change within the range of stability, though every now and then people had to move out of their comfort zones to respond to various demands in the market and the environment.
Early adopters
- Gatekeepers of new ideas into a system - The "opinion leaders"
Why Organizations Fail (Reasons 6-10 in order)
- Ignores or actively denies new trends in the market - Too slow to change even when obvious - Announces various profit warnings; reduces number of staff - Share price goes down - Further cuts and change in senior management
Intentionality vs. Planned Change vs. Unplanned change
- Intentionality -> purposefully implemented - Planned Change -> intentional activities towards specific goal - Unplanned change -> unintentional
Laggards
- Isolated from social network - Will be the last to change - Suspicious of change agents - Show little or have no "opinion leadership"
Why Organizations Fail (First 5 reasons in order)
- Management focuses on problem solving rather than leadership - Increased bureaucracy (a complex organization that has multilayered systems and processes) - Emergence of competitive middle managers; "Elastic Band" - Focus changes to revenue generation than making great products - Organizational culture increasingly resistive to change
Infrastructural Changes in Managing Change
- Set correct pace - Use workshops. - Carry out surveys - Provide management training - Use project-based approach - Use external support - Monitor and control (360 feedback)
Late majority
- Skeptical to change - Might adopt as a result of increased pressure from peers
Skill & Will
- Skill. This suggests how good a person is in carrying out a specific task. - Will. This suggests how willing or motivated a person is in carrying out a task
5 Types of Change (5 different curves)
- Smooth Incremental - Bumpy Incremental - Discontinuous Change - Punctuated Equilibrium - Continuous Transformation SBDPC
Who moved my cheese? Spencer Johnson's Change stages
1. Change Happens 2. Anticipate Change 3. Monitor Change 4. Adapt to Change Quickly 5. Change 6. Enjoy Change! 7. Be Ready to Change Quickly and Enjoy it again
Skill Management Steps for Skill Matrix
1. Define Skill Level 2. Develop a Skills Profile for Each Employee 3. Identify Critical Skills 4. Analyze the Data to Generate Conclusions
Three feelings that are not on track with Personal Transition Curve
1. Denial (after Happiness, before Fear) 2. Disillusionment (after Threat, before Guilt) 3. Hostility (after/during Depression) DDH
OPM Workforce Planning Model (Federal Change Mgmt)
1. Develop Strategic Objectives and HCM req. 2. Conduct Workforce Analysis 3. Consider Scenarios & decide on a path 4. Plan for structural and cultural change 5. Manage Transformation through ongoing HCM strategies and evaluation Objectives, plan, manage
5 Stages of Adoption (KPDIC - adopt or reject)
1. Knowledge (exposed to innovation, not inspired to find more info about it) 2. Persuasion (Has become interested, actively seeks info) 3. Decision (Decides to adopt or reject) 4. Implementation (Seeks info for better understanding) 5. Confirmation (Finalizes decision to continue using the innovation)
Three Components of Managing Change (OIR)
1. Outcome - Expected structural & cultural changes, benefits, process 2. Infrastructure - What strategy do you need to follow to achieve this goal? 3. Resources - What resources do you need to achieve this change?
Nadler and Tushman 7 Principles of Effective Change
1. The Vision Principle 2. The Energy Principle 3. The Diagnosis Principle 4. The Centrality Principle 5. The Three-Theme Principle 6. The Magic Leader Principle 7. The Leader-is-Not-Enough Principle
The Entrepreneurial stage of Change Life Cycle
1st stage of Life Cycle • Focus is on manufacturing products or providing the service. • Key strategy is to survive. • Success brings growth and the need to recruit. • Employees need managing and organizational strategy becomes more complex.
The Collective stage of Change Life Cycle
2nd stage of Life Cycle The organization is more formally shaped into departments. • Professional managers are recruited who share the same vision as leadership. • Further growth requires more management control and delegation. • Responsibilities are well defined and there is a stronger sense of autonomy as it increases efficiency.
The Formalization stage of Change Life Cycle
3rd Stage of Life Cycle Systems of communication and control become more formal. • Bureaucratization occurs. • Systems of rewards and incentives, salary structures, and organizational hierarchy are formalized. • Low level mangers become more autonomous as the organization grows. • There is a differentiation between strategic management and management required to implement policy.
The Elaboration stage of Change Life Cycle
4th stage of life cycle • Strategic change expected. • The organization may reach a plateau or may even show the first stages of decline. • Middle managers may need to learn new skills to achieve change. • This stage may include rapid turnover and replacement of senior management.
The Energy Principle
A successful organization is usually stable. This stability helps them to handle threats. However, the downside is that this stability makes them resistive to change. To get past this resistance, the organization must have energy to carry out the change. You must work on increasing this energy by creating a sense of urgency and motivating people to act.
The Leader-is-Not-Enough Principle
Although a magic leader is essential, by its own is not enough to sustain a change. Successful change depends on an army of supporters, helpers and people who believe and have a stake in the change. Attempts must be made to broaden the change leadership beyond one or two people. The change executive team must possess a consistent shared vision of the change.
Analyze the Data to Generate Conclusions steps (3 steps, has to do with skill matrix)
Analyze Skill Matrix -> Identify Skill Gap -> Identify Training Needs
Types of change
Areas of specialization mature through differentiation Structural, technological, cultural
Continuous Transformation Change
As communication technology has significantly changed the environment and has introduced dramatic changes, it seems that the incremental punctuated model of change will no longer be sufficient to keep pace. Instead, a continuous transformation model is proposed where an organization needs to proactively reinvent itself and initiate change while responding to environmental changes. It means that rate of change will frequently go out of the range of stability as the organization aims to stay on top.
Chasm
At 16% and in between early adaptors and early majority
Breadth of Change
Breadth of change refers to the extent that the change is applied across the organization. - Breaths low. Change focused on one area, project or department. - Breadth high. Change across the board affecting many systems and areas.
Disadvantages to Acquiring Staff
Can be expensive, Costly to find the right skills, Can lead to friction, Source of resentment Need to settle in their new organization, Settling through change can be challenging, Need 2-3 years to establish loyalty Can leave when a crisis occurs
The Personal Transition Curve by John Fisher (all 8 parts that are on track with the curve)
Captures how individuals deal with change 1. Anxiety 2. Happiness 3. Fear 4. Threat 5. Guilt 6. Depression 7. Gradual Acceptance 8. Moving Forward AHFTGDGaMf
Theory E
Change based on economic value - Hard Approach This is the kind of change that leads to headlines. It involves substantial redundancies, heavy use of economic incentives, downsizing, cost saving, selling parts of the business to save costs and so on.
Theory 0
Change based on organizational capability - Soft Approach Here, the goal is to develop a corporate culture through organizational training and learning. It is a long term approach and involves self-reflection, feedback, implementing more changes and gradually developing a new corporate culture with new ways of working.
Motivating (Change Management)
Change cannot happen automatically and without cost. It is common to see that many people in corporations that go under change need to work many hours, as much as 60 to 70 hours per week, during the change process. It is absolutely important for individuals to be motivated about the change
The Vision Principle
Change is about going from one state to another. This requires knowing where you want to go and a vision to get you there. As part of communicating the vision you must establish the need for change. You will need to consider: • Rationale of change • Impact on stakeholders • The values behind the change • Performance objectives • Target operational culture
Review Theory E vs Theory 0 Charts
Chart in Notes - Compare difference between Aims, Focus, Results, Leadership, Process, Use of Consultants, Rewards
Mentoring (Part one of Coaching vs Mentoring)
Concerned with implications beyond the task *Long term* relationship Feedback is focused on behavioral issues
Smooth Incremental Change
Consistent line of rate of change vs. time • Change evolves slowly and follows a clear path. • The changes are minor and people can cope with them.
Depth of Change
Depth of change. Depth of change refers to the extent the planned changes affect the way things are done in the organization. - Depth low. People can handle the change with minor adaptations. - Depth high. Planned changes move people away from the range of stability (they can be out of their comfort zone).
The Diagnosis Principle
Diagnostic thinking means that you need to know the "what" as well as the "how". This helps avoiding organizational mimicry which is copying other organization's response to a changing environment without understanding its relevance to your organization
Important things to keep in mind about the Personal Transition Curve (in regards to the individual and learning)
Different people transit through the curve at different speeds. Hence, you will end up with a team where each person thinks slightly differently about the change and hence behaves differently. This is why the management needs to provide a tailored solution to accommodate various needs and reassure the staff accordingly
What is Diffusion?
Diffusion is a process where a change or an innovation is communicated in a social network through various channels over time
Discontinuous Change
Discontinuous change is a radical change and a significant shift away from the way currently things are done. This can be as a result of a crisis in the external environment, possibly affecting the whole industry and not just your organization. Alternatively, the crisis could be due to actions of a competitor. The key point is that the organization is under threat and needs to act fast, and change fast to accommodate. Because of the urgency, management is likely to provide instructions for change rather than consult for a way forward. The aim is short-term results and compliance. Once the crisis is over, management can proceed to gain long term commitment and anchor the change into organizational culture.
Advantages to Training Current Staff
Employees know the organization, No induction necessary, The organization knows the employees, Can design effective tailored training, Employees know each other's strengths, Already part of the network Established loyalty
Industrial revolution stages
Factory (textiles, large scale mechanization and production) -> Mass Production (Ford, Model-T, made luxury products like cars cheap to produce. Companies had to adjust to compete) -> Mass Customization (manufacturing and services going digital, reducing cost of production through economy of scale, customize your order, Tesla, 3D printing, etc.)
Coaching (Part one of Coaching vs Mentoring)
Focused on tasks Focused on *short term* needs Feedback is specific Focused on skills and performance Specific agenda sets the pace for learning skills More effective when it is formal
Force Field Analysis (Management Tool)
Force Field analysis was developed by Kurt Lewin in the 1940s. The idea is that in order to bring change, you must first understand the pressures and tensions that are maintaining the status quo. - Brainstorming session dividing stakeholders in to Driving and Resisting Forces The model captures the situation in one specific moment. Hence, as the circumstances change you will need to update it to be relevant.
The GROW Model (r Graham Alexander and Sir John Whitmore)
Goal - Final objective, short and long term goals, clearly defined Reality - The current situation and how far the client is from the goal Obstacles/Options - What has prevented the client from achieving the goal and the alternate strategies needed to avoid the obstacles What/Way Forward - Options need to be converted to action steps which will guide
Why Organizations Fail (General summary)
Growth forecast warning, downsizing, political infighting, share price crashes and increased volatility, redundancies, a series of management changes, still losing market share and becoming increasingly irrelevant in the industry.
Diffusion of Innovations theory by Everett Rogers
How people react to change and how ideas spread - Bell curve with innovators (2.5%), early adaptors (13.5%), early majority(34%), late majority(34%), laggards (16%)
Happy Medium between training and acquiring
In practice you can also consider combining these two approaches to get the best from both. Increasingly, many organizations also consider using contractors which can quickly give them a specific skill set and an ability to bring fresh people into the organizations. Since there is no long term commitment, this allows employers to manage staff smoothly once the change program is completed.
The Centrality Principle
It is absolutely critical to define the position and labeling of the change accurately so that the change is clear to the entire organization.
Mentoring and Coaching philosophy
It is not about providing solutions, it is about asking the right questions that lead to self reflection for the mentee It is also independent from the Line Manager and the goal can change over time
Individual level change vs group-level vs organizational level
Know the differences
The Magic Leader Principle
Large scale organizational change can significantly benefit from the existence of a unique leader who can represent, articulate and encourage the change. Such magic leaders have the following qualities: - Can create a sense of urgency - Have distinctive behavior - Provides Theme consistency - Can exhibit a mix of styles
Mind Mapping Management Tool
Mind Maps were developed by Tony Buzan in 1960s. A mind map helps to visualize a concept and makes it easier to generate more associations. - Best to create on a mind map software, on paper is difficult
Power and Interest Matrix
Most focus should be on Q1 (powerful stakeholders, lobby and raise interest) Q2- Seek Commitment and contribution Q3- Harmless at Present (low power, low int.) Q4 - Be Careful not to Alienate
Management Examples
Organizing • Planning • Budgeting • Staffing • Problem solving • Controlling • Resource management • Providing policies and procedures • Delegating • Monitoring
Organizational Life Cycle Phases (with 5 crises phases)
Phase 1: Crisis of Leadership (Small size of org, and young age) Phase 2: Crisis of Autonomy (linear increase on chart) Phase 3: Crises of Control Phase 4: Crises of Bureaucracy Phase 5: Next Crisis? (Large and most mature) LACBN
Breadth vs. Depth Matrix
Q1: Breadth High, Depth Low - You need multi-disciplinary panels and quality control teams who can work out techniques that help improve efficiency. Q2: Breadth High, Depth High. - You need to provide an extensive and elaborate companywide support for change. It should address training for new skills and structural changes will be required as a result of using these new skills. Q3: Breadth Low, Depth Low - You need to implement specific procedures for specific areas or departments under consideration. Q4: Breadth Low, Depth High - You need to provide internal coaching and training to help people deal with the process of change.
Advantages to Acquiring Staff
Require minimum training, Picked based on required skills, Bring fresh ideas, Can overcome resistance naturally, Can be catalysts Can be role models, Can show how to move on
Disadvantages to Training Current Staff
Resistance to change, Some could be fixed on their old habits and resist change, Focused on old ideas, May lose the opportunity to get fresh new idea
4 Primary Plays to reshape your workforce (Federal CM, 4 Re's)
Step 4 - plan for structural and cultural change Restructure, Resize, Reskill, Recruit & hire
HCM System Focus Areas
Step 5 - Manage Transformation through ongoing HCM strategies and evaluation Strategic planning Evaluation Talent Management Performance Culture HC Framework Diagnostic tool
Early majority
Take more time to adopt - Can be influenced by early adopters - Seldom hold a position of "opinion leadership"
Clark's answer to is change inevitable
The linear trend forms the evolution and revolution stages of a company. Flat lines are the evolution and the zigzags are the revolution
Who Should be A Coach or Mentor
The most ideal coaches or mentors are those who are not directly involved in tasking the employee on a daily basis. - Also similar to Q2 in skill/will matrix
Skill/Will Matrix (Hersey and Blanchard)
The relation between motivation and a person's skills can be captured using what is known as a skill/will matrix. Originally developed by Hersey and Blanchard, it is a relatively simply model to apply
Solution to keep organizations from failing
The solution is to initiate change early and create a culture of leadership.
Two Theories of Change by Michael Beer and Nitin Nohria
Theory E and Theory O
6-3-5 Technique (Management Tool)
This method was introduced by Warfield et al. in 1975. The model allows you to generate ideas systematically. The technique involves 6 people who write down 3 ideas and think about them 5 minutes at a time, hence the name 6-3- 5. - You will still need to use other techniques to sort and select from the large generation of ideas
Leadership vs. Management relevant to Organizational Change
Transforming an organization depends a lot more on leadership than it does on management. Unfortunately, many want to manage change while in practice they should focus on leading the organization through change
Bumpy Incremental Change
Up and down line of rate of change vs. time • There is some degree of predictability in the external environment but it is difficult to predict frequency, duration or magnitude of change.
Leadership Examples
Vision • Strategy • Producing change to achieve the vision • Influence direction and thought process • Create teams • Create coalitions that understand the change • Motivating and energizing • Overcoming bureaucratic barriers
The Frog by Charles Handy
What happens when someone reacts too slowly to a changing environment, they get "boiled alive"
How to Deal with Resistance: Stakeholder Engagement
When going through change, it is important to gain the support of key stakeholders. Research shows that if a significant percentage (about 75%) of top management is not involved or convinced of the change, the change is likely to fail. Stakeholders are not all equal and should not be treated uniformly
Direct
Will down, skill down • Provide training • Provide guidance • Identify incentives • Increase communication • Praise Can be most difficult to handle • Increase their knowledge of change • Inform them constantly of positive results due to change
Motivate
Will down, skill up Provide plenty of Praise • Show that the organization cares • Increase communication and involvement • Provide incentives • Identify constraints or demotivators • Valuable resource • Can use own initiative • Communicate specific benefits • Identify hot buttons & show stoppers
Skill/Will Matrix Quadrants 1-4
Will on left, skill on right Q1: Provide Guidance & Training (Advise) Q2: Provide Autonomy & Authority (Delegate) Q3: Provide Specific Directions (Direct) Q4: Provide Incentives to Get Them Excited (Motivate)
Advise
Will up, skill down Provide training, guidance, praise, endorse Might have accepted change, but may not know how to contribute, get them involved
Delegate
Will up, skill up • Give responsibility • Give authority • Collaborate on decisions • Provide resources • Praise Those most devoted to change • Empower them to persuade others • Give authority, responsibility • Instill a sense of ownership
Innovators
Willing to take risks - Slightly radical - Crave change and innovation - Cope well with uncertainty - Well informed with multiple sources of information
The Three-Theme Principle
You cannot run and manage several potentially contradictory changes at once. When bombarded daily with a variety of changes employees start to become selective and ignore anything they can get away with. Change must be focused. As a general rule, change managers can initiate and sustain approximately three key themes during a specific period. You must focus on areas that most people associate with and have energy to engage in.
Developing a Skills Profile for Each Employee
can be used with 360 degrees review, define in sets of hard skills and soft skills, have the employee assign their personal 1-4 scale based on strength of skill
Organizational Mimicry
copying other organization's response to a changing environment without understanding its relevance to your organization - has to do with diagnosis principle
Resources in Managing Change
• Impact on senior management's time? • Monetary resources are required? • Impact on business objectives? • Disrupted systems? • Replacement equipment/man power/services? • Information?
Critical Skills Examples
• New skills because of change. To move to new machinery, you may require staff to have the new skill to operate it. • New skills to increase efficiency. Suppose there have been customer complaints on handling phone calls. You think this is a critical skill and you want to train staff to be at skills level 3 or 4 on this. • New transient skills for the change process.
Why People Resist Change: 9 Sources of Fear
• Reorganization. Disturbs the status quo and gets people out of their comfort zones. • Loss. Desire not to lose something of value. • Implications. Misunderstanding of the change and its implications. It is effectively fear of "walking off a cliff while blindfolded." • Uselessness. Belief that the change does not make sense for the organization. • Loss of control. Change is exciting when it is carried out by us but threatening when it is done to us. • Direct change. Some individuals have low tolerance to change. • Losing face. Belief that by going with the new change, they are accepting that their previous decisions and processes were wrong. They resist change to remain consistent with the past. • Surprise. When change is suddenly announced, most people are so shocked that they would rather resist the change or undermine it than to accept it. • Unknown. People are afraid of what will happen if they go through change. One of your aims should be to make the status quo appear more dangerous than launching to the unknown.
