1.8 change and Management of Change Chapter 8

Change Change is the continuous adoption of business strategies and structures in response to internal pressures or external forces. How has MPHS changed since your freshman year and why?

External Causes Globalization: interdependence between countries economies (new opportunities and new markets) Technological advances (computers, iphones, robotics) Fiscal policy, interest rates, business cycle (boom or recessions, disposable income) Legal changes (changes in laws) Competitors’ actions (new products, lower prices) Environmental factors (going green, concern for climate change)

Internal Causes Organizational Changes (Delayering-flattening the org chart) Relocation (moving operations) Cost-Cutting to improve competitiveness (investment in equipment rather than labor, closing ineffective operations, consolidations)

Strategies to Reduce Impact of Change 4 Questions to help you manage change Is the change anticipated or unexpected? Is the change likely to be dramatic or have a less significant impact on business Have managers planned for change? To what extent can change be controlled by management?

Stages of Change Checklist Things to consider before and as your organization embarks on change 1. are we now and why is chanWhere ge necessary?

Stages of Change Checklist 2. New vision and objectives Have they been developed and communicated?

Stages of Change Checklist 3. Are resources in place to enable change? If change cannot be completed, poor results are likely.

Stages of Change Checklist 4. Give maximum warning Staff should not be surprised by change.

Stages of Change Checklist 5. Involve staff in the change plan and its implementation. Change will more likely be accepted if staff is involved.

Stages of Change Checklist 6. Communicate Communicate with staff at all stages.

Stages of Change Checklist 7. Introduce initial changes that bring quick results. Positive experience fosters more change with less ill effects.

Stages of Change Checklist 8. Focus on Training Helps staff feel involved in the change process.

Stages of Change Checklist 9. Sell the benefits of change. When positive changes benefits employees and stakeholders – that is a good thing and needs to be explained.

Stages of Change Checklist 10. Always remember the individual. “Soft” approach will make employees feel supported and will create loyalty.

Stages of Change Checklist 11. Check on people through the change process How are people coping? A sink or swim philosophy could be damaging.

Lewin’s Force Field 2 opposing forces: Driving Forces Helps push organizations towards change Restraining Forces Might prevent organizations from reaching their “change” goal

Lewin’s Force Field Driving Forces Increased administrative efficiency 3 Improved customer service 3 Improved internal communications 2 Improved supplier communication 2 New IT System Restraining Forces Cost of IT System 4 Staff losses 3 Staff concern about new technology 2 Environmental impact 2 Total 10 Total 11 Rating system of 1-5 (1 being low; 5 being) creates a numerical system to evaluate the forces.

Project Champion A person assigned to support and drive the project forward.

Project Group Small groups that are used to recommend solutions on the path to change.