Copyright © 2011 Pearson Education Module 1

 “Change or die” starts in the mid of 1970 in the U.S Because of the competition in all industries.  There are no sure instructions that can be followed to make change succeed.  Changing is messy, confusing, and loaded with unpredictability.  In order for change to succeed, certain procedures must be convinced (accepted by all who have to change), followed, and must be implemented( change must be decided, implemented and accepted to succeed) 1 - 2

 Change process is conceived as a sequence of steps with certain tasks assigned to each and performed by different ranks in the org.  Who should decide, accept and implement? 1. Change strategists: leaders, visionaries, etc 2. Change implementers, agents, teams…etc 3. Change recipients: who will be affected “ They” do the changing and “we” will tell them how. “they” might resist or not, implementing on people invites problems

 A top- down sequencing change model may conflict with the goals of a change program. If the change process (quality program) is conceived as a top down driven, but change is encouraged as bottom-up participation, there is a conflict between process and intended results.  Managing change fully understood; when envisioning, implementing, and receiving change are seen as fundamentally interrelated activities.  Cases and readings have been chosen and arranged to introduce change as an integrated process 1 - 4

In this Module:  What drives change?  What kinds of changes organization pursue?  When change is to be introduced?  What factors enable that introduction?  What reactions change evokes? 1 - 5

Definition Change: is a planned or unplanned response to pressures and forces. Forces of change: - Technology - Economic - Social and demographic - Political and Regulatory - competition 1 - 6

Ch. 3: Business Model and Strategic Plan Competitive Economic Political and Regulatory Technological Social and Demographic

Three types of change “ Linda Ackerman”: 1. Developmental of change: to improve skills, methods, or conditions. 2. Transitional change: current ways of doing things are replaced by something new( reorganization, mergers, new service, new product, process, systems, technology, Quality programs…etc) 3. Transformational change: initiated when other options appear to have failed. Radical conceptualization of the organization’s mission, vision, culture, leadership…etc Determining of what changes an organization needs is envisioning the future (Speculation)

When to Change Organizations can institute change when: - Things are going well - When results are mixed - When a full fledged crisis is upon it - When encounter a problem or responding to a competitor who recently introducing new product - Introducing change when the org-in crisis could be easier in process ( situation is clear to all, survival in on the line, the way things have been done won’t work anymore). Other suggests to manufacture a sense of crisis, rather than wait for real one to appear……!!! 1 - 9

Enabling Change - Pace: Is the time needed to complete the change process. How much time does the organization have to respond to its customers, competitors, demands.. 1. Scope: is the size of change. Should we start small and grow, or should it start big?, where and whom?... -Depth: how many changes can be introduced in any one area? -Publicity: how loud, long and to whom should the org-announce change is on the way?. The degree of explicit information and to whom it’s given may vary

Enabling Change 2. Supporting Structure: How much should be done through normal management processes and how much should be specially be created? ( Many change projects died because they become too reutilized). 3. Deciding who drives the change: a. classic approach of senior staff or CEO develop the vision, then assigned to middle managers, then.. b. classic approach is the reserve, from bottom-up c. uses an outside consultant/facilitator

Reacting to Change Managing change includes managing reaction to change Sources of resistance to change: - Loss of control - Status quo - Conservative culture - Barriers to being able to respond quickly - People are alert to downsizing, layoffs, …etc - Organization like individuals can become saturated and be either unwilling or unable to change

Overview of case reading - Change Agent (Edition 1) - Managing the challenges of Trigger events - The 36 hour work Day (A) - Changing the Culture of British Airways - Re-Energizing the Mature Organization