Organizational Change

How can leaders/you influence change

Be passionate in your own commitment. Delegate as much accountability for change as possible. Make people feel needed and a key part of our future success (fill people's "longing for belonging"). Be intolerant of weak commitment. Recognize and build momentum as change starts to occur. Recognize and reinforce wins (even small ones). Communicate, communicate, communicate. - at some point, resistance has to go away

Other Change Management Outcomes

Confusion, Anxiety, Gradual Change, Frustration, False Starts

External Forces for Change

Demographic characteristics Technology changes Customer and market changes Social changes/pressures Political changes/pressures

People react differently to change

"Persistent Pessimists" -- "Fence Sitters" -- "Early Adapters" PP -- very slow to change - may leave system rather than change - 20% of employees Fence Sitters - your target -- 60% of employees Early Adapters - move through personal change journey quickly - become your evangelists - 20% of employees

Possible losses during transition

- Attachments: membership, reporting relationships, friends - Turf: physical territory, responsibilities, title - Structure: comfortable routine, way of working, office or view - Future: dreams, goals, plans for advancement - Meaning/Significance: where do I fit in? - Control: loss of power to create outcomes Tangible or Intangible Might be a big deal to other people even if its little to you

Helping people with endings

- accept the reality and importance of loss; acknowledge it openly and sympathetically - expect and accept signs of grieving - anger, bargaining, anxiety, sadness, disorientation, and depression - compensate for losses when possible - define what is over and what is not in as much detail as possible - mark the endings - treat the past with respect; recognize it as a foundation to build on - let people take a piece of the old way with them -company history and values are important to the company

Lessons regarding individual transition

- there is no beginning without an ending - there is almost always a period of exploration before any new beginning - there are no shortcuts and transition is rarely orderly - each phase of transition serves a different and important purpose - there are often multiple changes and transitions occurring at the same time

Lewin's Model of Change

1) "Unfreezing" - Creates the motivation to change (benchmarking is good tool for this) - Allows people to feel "safe" in considering change 2) "Changing" - Provides new information, new behaviors, new ways of looking at things - Use role models, mentors, experts, training, systems/tools, etc. to help people change 3) "Refreezing" - Reinforcing desired change, new behaviors, etc. - Positive reinforcement is probably the best way to do this - Ongoing coaching, modeling, mentoring to help make it permanent

Change requires three critical elements

1) A strong dissatisfaction with the current situation -Feeling that what's been done in the past isn't good enough -A desire to go from being good to being great -Wanting to make positive change happen -A personal commitment to doing whatever it takes to change 2) A compelling vision for a successful future -A model for the future that is inspirational and engaging -A clear understanding of "where we are", and "where we need to be" -A widely communicated and clearly articulated vision for the future 3) A process to help make change happen -Information to acquaint people with the importance of change -A process to help them understand the "what" and "how" of change -Communication materials to help ensure understanding of the change -Systems and tools to help drive change throughout the organization

Kotter's Eight Steps

1. Establish a sense of urgency 2. Create the guiding coalition 3. Develop a vision and strategy 4. Communicate the change vision widely and get buy-in and commitment 5. Empower the broad-based action 6. Generate and recognize short-term and small wins 7. Consolidate gains and keep moving - don't let up 8. Anchor new approaches in the culture to make change stick

Transition

A psychological event, it is a three-phase process that individuals go through over time to come to terms with the external changes. It starts with an ending.

Eight Reasons why Change Fail

Allowing too much complexity Failing to build a substantial coalition Not understanding the need for a clear and compelling vision Failing to clearly communicate the vision Permitting roadblocks against the vision Poor planning and failing to achieve (and recognize) short-term wins Declaring victory too soon Not anchoring changes in corporate culture

Change

An event that is observable, situational, external to oneself; sets into motion the transition process. It starts with a beginning.

Internal Forces for Change

Aspiration-performance discrepancies - Low job satisfaction and/or engagement - Increased absenteeism and turnover - Low performance, productivity and/or efficiency Value changes of organizational members Changing needs, desires, preferences of organizational members Organizational "life cycle" forces

Change Equation

Change = Dissatisfaction * Vision * Process > Resistance = ( D * V * P ) > R - Dissatisfaction, a clear vision, and good process are all critical for success in change - Model is multiplicative; if any elements are missing change will not occur - commitment to change needs to be greater than the resistance to change - leaders play a crucial make or break role in sponsoring change - need to stay on top of all these elements to ensure successful change

Pulling people to new beginnings

Clarify and communicate the purpose. Paint a picture of how the outcomes will look and feel. Lay out a plan for phasing in the outcome. Give each person a part to play in the plan and the outcome. Be consistent in messaging. Ensure some quick successes and celebrate them! -- why vision is so important -- helps expedite the emotional process

The Importance of Change Management

Change is an ongoing aspect of organization functioning. Many different kinds of change situations (e.g., tactical vs. strategic). Managing change effectively is critical to organizational success. Organizations are experiencing more and more change over time. Organizations need to develop a consistent approach to change management that:  -Builds discipline and capability around change management -Is flexible enough to be applied to different types of change situations -Provides consistency and makes "managing change" part of the culture

Strategies for overcoming resistance to change

Education and Communication Participation and Involvement Facilitation and Support Negotiation and Agreement Manipulation and Co-optation Explicit and Implicit Coercion

Emotions of Individual Transition - applies to relationships as well

Effective change implementation allows people to transition more quickly 1. endings 2. exploration / learning "the neutral zone" 3. new beginnings Chart in slides Don't skip stages by drawing a straight line Allow people to feel emotions in order to transition Leader responsible for moving them along through all emotions

Moving beyond the resistance barriers

Expect resistance and don't be offended by it. Get resistance out into the open. Enlist your "evangelists". Convert your "fence sitters". Outrun the pessimists and resisters. Remember to address the "What's in it for me?" issue. Involve as many people in the change as possible. Wear your own commitment "on your sleeve"--be a strong supporter of change. Over-communicate.

Fundamental Truths about Change

Organization change happens individual by individual, work group by work group, throughout an organization. People do not necessarily resist change, they resist being changed by others. In order for people to change, they must feel a compelling personal reason to change. All change is personal. In order to change, people must understand how their personal need to change fits with the organization's reason for change. In order for organizations to change, there must be compelling reasons to do so. Successful organization change requires that people have a clear understanding of what they are changing to. In general, people are more willing to change if they feel a degree of ownership in how the changes which must affect them will be designed and implemented.

Minimizing the Neutral Zone

Set short-range goals for people to aim toward along the way to long-term outcomes. Ensure goals are realistic. Provide training on new skills needed for success. Protect people from further changes while they regain their balance. Be encouraging and help people stay optimistic. Involve people in different ways to keep them engaged. Find ways to encourage collaboration and team orientation. - getting people through neutral zone as quickly as possible

Why do people resist change

They are predisposed against change (some people just don't like it). Fear of the unknown and/or fear of failure. Lack of trust in the organization, its leadership, etc. Loss of status and/or job security. Peer pressure. Disruption of tradition, existing relationships, etc. Personality conflicts. Poor timing. Reward systems not aligned and/or not supporting the change.

Change Management Outcome

Vision - Skills - Incentives - Resources - Action Plan - CHANGE