1. Change Management IACT 418/918 Autumn 2005 Gene Awyzio SITACS University of Wollongong

2. 2 Preface Some claim that almost any change is a good thing simply because it is a change ! Can’t have changes without consequences. So, WHO benefits from the consequences of the change ? Will these benefits be for the organisation as a whole or for individuals’ private agendas ?

3. 3 Overview Your network does not exist in a vacuum. The influences (internal & external) on your business and its network will require that you make changes, or respond to changes imposed upon it. Change Management is what happens when an organisation attempts to control changes and their consequences. It is not a simple thing to define…

4. 4 Three Basic Definitions At least three broad areas need to be considered when trying to define what ‘change management’ is: –The task of managing change –An area of professional practice –A body of knowledge

5. 5 The Task of Managing Change This definition has two meanings: –Making deliberate planned changes Implementing new systems and/or methods These are “internal” changes –Responding to unplanned changes Adapting, coping, responding These are “external’ changes –Legislation (standards, regulations, tax etc) –Social/political change –Actions of competitors –Technological innovations

6. 6 Change Management as a Professional Practice Claimed to be a profession, usually made up of consulting “Change Managers” or “Change Agents”. –Some claim to help clients manage they changes happening TO them –Some claim to help clients MAKE changes Professional Change Agents tend to treat the PROCESS of change separately from the specifics of the situation »[is that a good thing?]

7. 7 Change Management as a Body of Knowledge (paradigm) Can be considered to be a set of –Models –Methods & Techniques –Tools –Skills Drawn from psychology, sociology, business admin, economics, industrial/system engineering etc. THERE IS NO SINGLE BEST METHOD !!

8. 8 Problem Solving Planned Change model: –Concerned with moving from a problem state to a solved state –Concerned with ENDS and MEANS “problem” or “opportunity” ? –lets just say that a ‘problem’ is simply a situation requiring action, where the required action is not yet known

9. 9 Problem Finding 2nd part of the Planned Change model –Searching for situations requiring action –Perhaps to avoid or cope with something ‘bad’ or to change direction to take best advantage of the environment Identifying and settling on a course of action that will bring about some desired and predetermined change in the situation

10. 10 The Change Problem Move from ‘old state’ to ‘new state’ by meeting three goals: –TRANSFORM GOALS Identify differences between the two states –REDUCE GOALS Determining ways of eliminating the differences –APPLY GOALS Taking the steps and setting up the processes that will eliminate these differences

11. 11 The Change Problem II Define the outcomes of the change effort Identify the changes necessary to produce these outcomes Find and implement ways and means of making the required changes The Change problem can be treated as smaller problems of HOW, WHAT & WHY

12. 12 “How” Problems Initial formulation of the change problem Means-centred Diagnosis is ignored or at best, implied The goals are more or less implied Examples: How do we get staff to be more productive? How do we introduce self-management teams? How do we move to e-commerce? How do we minimise user errors?

13. 13 “What” Problems Since ‘how’ problems don’t conduct diagnosis, they don’t concentrate on the ‘ends’ WHAT ARE WE TRYING TO ACHIEVE –ie: what are the ‘ends’ Typical WHAT questions: What changes are necessary? What standards apply? What indicators tell us we have succeeded? What performance measures are we trying to affect?

14. 14 ‘Why” Problems Means & Ends are relative Need to trace sets of ends-means relationships to find the real ends of change WHY questions determine the ultimate purpose of functions and reveal new ways of performing them. –Why questions can also get into the ‘politics’ and motivations of those driving change

15. 15 Managers’ Mindset A person’s position within the organisation often defines the scope, scale & kind of changes they’re involved with. Sometimes changes with fundamentally restructure the whole organisation Some organisations are designed to protect core operations from change turbulence and have ‘core’, ‘buffer’ and ‘perimeter’ units.

16. 16 Managers’ Mindset Core units (systems, operations) stick to standard procedures and tend to ask “HOW” questions Buffer units (upper mgmt, support) responsible for performance, tend to ask ‘WHAT” questions Perimeter units (sales, customer service etc) co- ordinate and ask “HOW” & “WHAT” “WHY” is asked by people with a ‘top-down’ view, not concerned with day-to-day operations, ie: Senior Management –[should “WHY” questions be the sole province of senior management? Does involvement in day-to-day operations prevent you from asking WHY?]

17. 17 “Unfreezing, Changing & Refreezing” Another Change Management ‘model’ This model gives rise to a ‘staged’ approach, look before you leap However, too reliant upon ‘stasis’ at the beginning and end of the change Cannot cope well with highly flexible environments (such as I.T.?) Too much internal stability can stifle growth

18. 18 Skills Required for Change Management Political Skills Change Agents must not get stuck in internal organisational politics, but MUST understand them! Analytical Skills Clear analysis will overcome many objections need financial analysis & workflow operations / systems analysis

19. 19 Skills Required for Change Management People Skills Communications & Interpersonal skills. Ability to listen & speak with all sections, and reconcile conflicts. Systems Skills Arrangement of resources and routines. ‘Systems analysis’ & ‘General Systems Theory’ Business Skills How businesses work: Money, Market, HR, R&D, IR, EEO etc.

20. 20 Four Basic Strategies for Change Rational -Empirical People are rational and follow self interest change based on communication of information and offering incentives Normative -Re-educative People are social beings and follow social norms change based on redefining and reinterpreting existing norms, & developing commitment to new norms Power -Coercive People are mostly compliant, do as they’re told change based on the exercise of authority and the imposition of sanctions Environmental -Adaptive People oppose loss/disruption but adapt readily change based on building a new organisation and gradually transferring people to the new one

21. 21 Factors in Selecting Strategies There is no single perfect strategy … –You need to consider ALL of the following

22. 22 Factors in Selecting Strategies Degree of Resistance –Strong: Power-Coercive & Environmental- Adaptive –Weak: Rational-Empirical & Normative-Re- educative Target Population –Large populations need all four strategies in a mix ‘something for everyone’

23. 23 Factors in Selecting Strategies The Stakes –High stakes need all four strategies in a mix ‘nothing left to chance’ The Time Frame –Short: Power-Coercive –Longer: Rational-Empirical & Environmental- Adaptive & Normative-Re-educative

24. 24 Factors in Selecting Strategies Expertise –Mix the strategies according to the expertise of the Change Agents Dependency –If organisation is dependant on its people, managements ability to lead is limited –If people are dependant on the organisation, their ability to resist or oppose is limited –Mutual dependency requires negotiation

25. 25 How to Manage Change Jump in, get into the scenario Clear sense of mission (simpler the better) Build a team Flat organisational structure, keep the information flow informal & flexible Pick people with relevant skills and high energy levels Throw out the rule book, new circumstances mean old procedures are out of date Action-feedback model, short plan-action intervals

26. 26 How to Manage Change Flexible priorities, must be able to shift your focus to an urgent issue Treat everything as a temporary measure Ask for volunteers Set up a good team leader and let them do their job Give team members everything they want - EXCEPT authority Concentrate dispersed knowledge – keep an issues logbook, let anyone speak to anyone Bring order to chaos, don’t pretend it’s already well organised !