1. Chapter 2
Hitt
Black
Porter
Managing Change
m a n a g e m e n t

2. Learning Objectives
After studying this chapter, you should be able to:
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

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

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

6. 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. Forces for Change: External Forces New competition Technology
Shift in customer preference
Change in regulations
Change in general economic environment

8. Forces for Change: Internal Forces Change in internal environment
Change in leadership

9. Forces for Change: Three Conclusions
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

10. Process of Change Change goes through three distinctive phases
Unfreezing
Movement
Refreezing

11. 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. Phase 2: Movement Major determinants of movement
Level of certainty or uncertainty associated with the change
Magnitude of the change

13. 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. Forces for Failure Right Thing Wrong Thing Done well Done poorly
3. Refreeze
1. Unfreeze
Done poorly
2. Movement
Adapted from Exhibit 2.4: Change Failure Framework

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

20. 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. 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. 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. 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. Overcoming the Failure to Finish
Create high impact, inescapable confrontations
Involve as many of the senses as possible
Physically assure experiences cannot be avoided