Managing Organizational Change

Today’s Agenda Know the class Review the course outline A case of organization change

In your opinion, what could we study in a course of change management?

Overview of the syllabus Images of Managing Change Why Organizations Change What Changes in Organizations Diagnosis for Change Resistance to Change Implementing Change Linking Vision and Change Strategies and Skills for Communicating Change Sustaining Change 1-4

Week2: Images of Managing Change Each person Operates with an image or mental model of what s/he thinks is achievable. Has a different management style and image. Images Illuminate certain aspects of change. Take us away from paying attention to certain aspects. We will suggest some images and assess the strengths and weaknesses of different images. 1-5

Week2: Why Organizations Change External forces for change e.g. new technology e.g. geopolitical environment Internal Forces for change e.g. a new CEO e.g. growth cycle Forces for stability Think: Do we really need this change? what are the likely returns (economic, other) of this change? 1-6

Week3: What Changes in Organizations Common types of changes: Mergers and acquisitions Downsizing Technological changes Proactive Vs. reactive changes Scale of change Incremental transformational 1-7

Week3: Diagnosis for Change Organization models to assess where changes are needed in an organization Strategy Structure Operations Culture Management behaviours and mindsets Employee behaviours and mindsets Communication Reward mechanisms Modes of interaction Component analysis tools to assess the changes needed in each part of the organization E.g. force-field (strategy), PESTEL (environment), cultural web (culture) Assessing readiness to change 1-8

Week4: Resistance to Change Why do people resist to change Experiences with past change Discomfort with uncertainty Lack of conviction that change is needed Perceived negative effect on interests Lack of clarity as to what is expected Belief that the timing is wrong Managing resistance The resistance cycle The power of resistance 1-9

Week5,6: Implementing Change Implementation method is important: A good idea for change may be badly managed and fail. How much do we involve people When things will be done Two main approaches: Organization development (OD) Appreciative Inquiry Change Management Contingency approaches 1-10

Week7:Linking Vision and Change Content of meaningful visions Process by which visions are emerged Three dilemmas: Does vision drive change or emerge during change? Visions help or hinder change? Vision belongs to organizations or to leaders? 1-11

Week8: Guest Speaker 1-12

Week9: Strategies and Skills for Communicating Change Strategies for communicating change What, how, and to whom Modelling the communication process How much communication Selling vs. buying in Media Skills for enacting those strategies Upward (common language) Downward (listening skills) with the outside world (corp. reputation) 1-13

Week10: Sustaining Change Actions to sustain change: Redesign roles and reward systems Measure progress Celebrate Fine-tune 1-14

1-15 Images we have of ourselves as managers of change influence the things we need to do to sustain change The strategy and skills we use and to communicate change The importance we place on the role of vision in change The underlying theory we use to implement change The approach we take to handling people’s reaction to change How we go about diagnosing what we think needs to be changed How change unfolds and what change looks like Why we think the organization needs to change 1-15

Stories of Change

Change can be interpreted in different ways Managing Change Change can be interpreted in different ways Using the stories of change we can see how change means different things to different people Using the stories of change we can see a wide range of issues that affect why and how change occurs 1-17

Kodak How have past downsizing efforts affected how Kodak now approaches downsizing? What reactions would employees be likely to have to the continued downsizing? 1-18

Kodak Managing reactions to change Key change issues: Both internal and external stakeholders interpret and react to change differently Communication strategies need to be directed at both groups of stakeholders History of past changes influence the reactions and the way managers deal with change 1-19

IBM Change can come from above and below What are the differences between change from below and change from above? Key change issues: The diffusion of change helps consolidate change across the organization Symbolic images of change can give more importance to change from above for employees Champions of change gain support for change 1-20

Hewlett Packard Managing a merger Key change issues: Organizational politics and lobbying Merging of cultures as a form of change Communicating change to internal employees and company stakeholders Restructuring the organization as a common type of change 1-21

McDonald’s External pressures for change Key change issues: The external environment can lead to organizational changes Organizations may consider that they have a social responsibility to the external community, and this can lead to pressures for change Not all planned changes come to fruition 1-22

Change at Google – New Leadership http://au.youtube.com/watch?v=WZ83MffY3lI http://au.youtube.com/watch?v=JV2HcNta1gU&feature=related

For the next session, please: Make groups Have a copy of the book Read Chapter1 A group for the first case of the book: IBM A group for the first case from practice