PowerPoint slides by R. Dennis Middlemist Colorado State University Chapter 2 Managing Change

2 ©2005 Prentice Hall Learning Objectives Explain why personal change is critical to managerial success Describe the general process of change Discuss three common failures of change Describe the general process of enhancing change success After studying this chapter, you should be able to:

3 ©2005 Prentice Hall Nature of Change It is easier to deal with predictable change than unpredictable change Change may be increasingly unpredictable Highly unpredictable Unpredictable Predictable Highly predictable 12% 28% 60% Adapted from Exhibit 2.1: Predictability of Change

4 ©2005 Prentice Hall Rate of Change If rate of change is increasing: managers benefit by increasing their ability to anticipate change If change is somewhat unpredictable: managers benefit from increasing their ability to respond quickly to changes 13% 87% Increase Decrease Stay the same Adapted from Exhibit 2.2: Rate of Change

5 ©2005 Prentice Hall Managerial Competency for Leading Change Excellent Good Fair Poor Does not have the leaders to do it 0%10%20%30%40%0% Adapted from Exhibit 2.3: Prevalence of Change Management Capability 5% 35% 39% 20% 1%

6 ©2005 Prentice Hall Managerial Competency for Leading Change Leading change is a critical managerial activity Senior executives do not see an ample supply of lower level managers with this skill

7 ©2005 Prentice Hall Forces for Change: New competition External Forces Technology Shift in customer preference Change in regulations Change in general economic environment

8 ©2005 Prentice Hall Forces for Change: Change in internal environment Internal Forces Change in leadership

9 ©2005 Prentice Hall Forces for Change: At the micro level it is important to have an understanding of The general process of change The general forces for change failure The keys for successful change Three Conclusions

10 ©2005 Prentice Hall Process of Change Change goes through three distinctive phases Unfreezing Movement Refreezing

11 ©2005 Prentice Hall Phase 1: Unfreezing Habits are strongly patterned ways behaving We can also have patterned ways of viewing and interpreting events To change a patterned way of behaving or thinking, that pattern must be “unfrozen”

12 ©2005 Prentice Hall Phase 2: Movement Major determinants of movement Level of certainty or uncertainty associated with the change Magnitude of the change

13 ©2005 Prentice Hall Phase 3: Refreezing Habitual behaviors and perceptions are strong Change may not be permanent After a change is made, actions should be taken to prevent reversion to old patterns Reinforce the change until it becomes more established

14 ©2005 Prentice Hall Forces for Failure Done well Done poorly Right ThingWrong Thing 2. Movement 1. Unfreeze3. Refreeze Adapted from Exhibit 2.4: Change Failure Framework

15 ©2005 Prentice Hall Unfreezing: The Failure to See The power of past mental maps The longer a mental map has been successful, the harder it is to see the need for a new one Overly simplistic view of the past and future Difference in the context may not be seen Maintaining equilibrium People resist pressures to change in order to maintain equilibrium

16 ©2005 Prentice Hall Movement: The Failure to Move Change uncertainty Lacking clear alternatives, people may intensify their efforts doing what they know Outcome uncertainty Lacking clear answers are to questions, people are less likely to change

17 ©2005 Prentice Hall Movement: The Failure to Move Requirement uncertainty Believing they may lack essential skills, knowledge, or tools, people are unlikely to make a needed change, even if a great reward awaits them for changing

18 ©2005 Prentice Hall Refreezing: The Failure to Finish Most significant change does not produce instant, positive consequences The lack of reinforcement of the new behaviors allows old behaviors to reappear

19 ©2005 Prentice Hall Overcoming the Failure to See Create high contrast Adapted from Exhibit 2.5: Declining Contrast Focus people’s attention on key differences Focus on the core contrasts Help people see and remember those key differences (create images)

20 ©2005 Prentice Hall Overcoming the Failure to See Create confrontation Managers often have to confront their people with the key contrasts between the past, present, and future Present the contrasts repeatedly Inescapable experiences Involve as many of the senses—touch, smell, sight, sound, taste—as possible

21 ©2005 Prentice Hall Overcoming the Failure to Move Educate employees as to the desired change Help employees see the new destination Help them see the anticipated benefits of going there

22 ©2005 Prentice Hall Overcoming the Failure to Move Know and understand what it takes to execute the change Assess the level of employee capabilities Provide training, tools, or other resources

23 ©2005 Prentice Hall Overcoming the Failure to Finish Create early wins and reinforce desired behavior Help people see the progress of the change Inform them of their personal progress Inform them of collective progress Repeat messages of old and new maps often

24 ©2005 Prentice Hall Overcoming the Failure to Finish Create high impact, inescapable confrontations Involve as many of the senses as possible Physically assure experiences cannot be avoided