1. Chapter 10
Leading Change

2. Leading Change in Organizations
Chapter 10
Leading Change in Organizations

3. Learning Objectives
Understand the different reasons for resisting change
Understand the psychological processes involved in making major changes
Understand the different ways that leaders can influence the culture of an organization
Understand the characteristics of an effective vision

4. Learning Objectives (Cont.)
Understand how to develop an appealing vision for the organization
Understand how to implement a major change in an organization
Understand the characteristics of a learning organization
Understand how leaders can increase learning and innovation in organizations

5. Organizational Change
The activities associated with planning, designing, implementing, and internalizing, tools, procedures, routines, processes, or systems that will require people to perform their jobs differently.

6. Types of Organizational Change
Changing attitudes
Changing work roles
Changing technology
Changing strategy

7. The Change Process Force-field model: Unfreezing Changing Refreezing
Two-forces at work:
Driving forces
Restraining forces

8. Eight-Stage Model Establish sense of urgency
Form powerful guiding coalition
Develop a compelling vision
Communicate the vision widely
Empower employees to act on the vision
Generate short term-wins
Consolidate gains
Institutionalize changes in the organizational culture

9. Changing Culture Attention Reaction to crisis Role modeling
Allocation of rewards
Criteria for selecting and firing members
Design of systems and procedures
Design of organizational structure
Design of facilities
Stories
Formal statements

10. Reasons for Resistance to Change
Lack of trust
Belief that change is unnecessary
Belief that the change is not feasible
Economic threats
Relative high cost
Fear of personal failure
Loss of status and power
Threat to values and ideals
Resentment of interference

11. Why people resist to change
Learning anxiety
Uncertainty
Lack of confidence that change will be successful
Distrust of leadership
Fear of being manipulated

12. Stages in the Change Process
Lewin’s Force-Field Model
Unfreezing
Changing
Refreezing
Response to Repeated Traumatic Change
Leaves people less resilient and more vulnerable
Leaves people inoculated and better prepared to deal with change

13. Stages in Reaction to Change
Denial – “This isn’t happening.”
Anger – Look for someone to blame.
Mourning – People stop denying that change is inevitable, acknowledge what has been lost, and mourn it.
Adaption – Accept the need to change and go on with one’s life.

14. Prior Experience and Reaction to Change
How a person reacts to change depends on:
The person’s general confidence about coping with change successfully
How much change they have previously experienced
Can increase resilience
Can increase stress and frustration

15. Different Types of Organizational Change
Attitude-Centered Change
Role-Centered Change
Changes in Technology
Change in Competitive Strategy
Economic or Human Factor Changes
Generic Change Programs

16. Systems Models for Organizational Change
Problems have multiple causes
Actions have multiple outcomes
Changes have delayed effects
Actions that appear to offer quick relief may make things worse in the long run
The best solution may offer no immediate benefits

17. Influencing Organizational Change
Nature of Organizational Change
Ways to Influence Culture
Leadership Behavior
Programs, Systems, Structures, and Cultural Forms

19. Culture and Growth Stages of Organizations
Founders have strong influence on the organizational culture
More difficult to change culture in mature organizations
In mature organizations, the culture influences the leader more than the leader influences the culture

20. Developing a Vision Desirable Characteristics for a Vision
Elements of a Vision
Mission Statement
Value Statement
Slogan
Strategic Objectives
Project Objectives

21. Procedures for Developing a Vision
Involve key stakeholders
Identify strategic objectives with wide appeal
Identify relevant elements in the old ideology
Link the vision to core competencies
Evaluate the credibility and refine the vision
Continually assess and refine the vision

22. Implementing Change Responsibility for Implementing Major Change
Support from top management
The Pace and Sequencing of Changes
Rapid versus gradual introduction of change
Change interdependent subunits simultaneously
Changes in the organizational structure to make it consistent with the strategy

24. Innovation and Organizational Learning
Internal Creation of New Knowledge
Internal departments
Pilot testing new ideas
External Acquisition of New Knowledge
Best practices
Hiring outsiders
External consultants
Joint ventures

25. Innovation and Organizational Learning (Cont.)
Knowledge Diffusion and Application
Information systems
Written or electronic documents
Special purpose conferences
Seminars and workshops
Learning Organizations

26. Guidelines for Increasing Learning and Innovation
Encourage appreciation for flexibility and innovation
Encourage and facilitate learning by individuals and teams
Help people improve their mental model
Leverage learning from surprises and failures

27. Guidelines for Increasing Learning and Innovation (Cont.)
Encourage and facilitate sharing of knowledge and ideas
Set innovation goals
Reward entrepreneurial behavior

28. Guidelines to overcome resistance to change
Show support and commitment
Communicate the need for change
Maintain ongoing communication
Empower people and avoid micromanagement
Ensure that change efforts are adequately staffed and funded
Anticipate and prepare people

29. Guidelines to overcome resistance to change
Assemble a coalition of supporters
Align structure with strategy
Fill key positions with competent supporters
Recognize and reward contributions
Use teams and task forces when necessary