1. BUDI LUHUR UNIVERSITY POST GRADUATE PROGRAM OF INFORMATION TECHNOLOGY IT PROJECT MANAGEMENT

2. CHANGE MANAGEMENT

3. The nature of change The change management plan Dealing with resistance and conflict

4. CHANGE MANAGEMENT Gartner Group: The transforming of the organization so it is aligned with the execution of a chosen corporate business strategy. It is the management of the human element in a large-scale change project In IT project management, smoothing the transition and implementation of the new IT solution

5. THE NATURE OF CHANGE Focus: How change affects individuals ? How change affects organization ? Source of Change: Global events Local events Organization Personal relationship Personal decisions

6. THE NATURE OF CHANGE: The Impact of Change Jeanie Duck (2001) –Nearly all change in our lives entails some amount of anxiety –Anxiety combined with hope is anticipation, while anxiety combined with apprehension is dread Each change is accompanied by a certain amount of stress

7. THE NATURE OF CHANGE: The Impact of Change Daryl Conner (1995) in Managing at the Speed of Change An individual must deal with a variety of changes We must assimilate these changes overtime There will be a problem if one can not assimilate change fast enough Change tends to have a cumulative effect, while man can only assimilate change at a given pace

8. THE NATURE OF CHANGE: The Impact of Change Davidson (2002): Assimilation The process of adapting to change and determines our ability to handle current and future changes

9. THE NATURE OF CHANGE: The Impact of Change When an individual passes a certain change threshold, he or she may become stressed and exhibit dysfunctional behavior Organizations are made up of people. Each change adopted by an organization must be assimilated and managed within the change threshold Dysfunctional behavior of organization: –Inability to take advantage of new opportunities or solve current problems (reflected in ability of gaining profit)

10. THE NATURE OF CHANGE: Change as a Process Force Field Analysis: A technique for developing a big picture that involves all the forces in favor or against a particular change Needed in deciding change strategy Driving forces: initiating and motivating the change Resisting / restraining forces: barrier for changes

11. THE NATURE OF CHANGE: Change as a Process Change process (Marchewska, based on Kurt Lewin model) Present State Transition State Desired State Responsibility KL: unfreezing Changing Refreezing Driving forces Resisting forces This model suggests that beginning a change starts with an ending of the present state

12. THE NATURE OF CHANGE: Change as a Process Neutral Zone (Bridges 1991) Equal to transition state Rushing individuals through the transition often results in confusion on the part of those in the neutral zone. And the resisting forces tend to push those individuals back to their present state, or escape

13. THE NATURE OF CHANGE: Emotional Responses to Change 5 Stages of Reaction of loss (K ü bler-Ross, 1969: ‘On Death and Dying’) 1.Denial 2.Anger To blame whoever is responsible for creating the change 3.Bargaining Cooperative, try to make deals in order to avoid the change 4.Depression Occurs when there is an overwhelming sense of the loss of the status quo 5.Acceptance Happened when a person comes to grips with the change

14. THE CHANGE MANAGEMENT PLAN Key : To plan for and to manage the change and its associated transition effectively

15. THE CHANGE MANAGEMENT PLAN : Assess willingness, readiness, and ability to change Develop or adopt a strategy for change Implement change management plan and track progress Evaluate experiences and develop lessons learned From: Change management plan (Marchewska, 2003)

16. THE CHANGE MANAGEMENT PLAN : Assess Willingness, Readiness, and Ability to Change Defining the players (stakeholders) involved in the change will be, their roles, and how they will interact with each other (Davidson 2002) Roles in a change initiative (Conner, 1995): –Sponsor –Change agents –Targets

17. Sponsor Individual / group that has the willingness and power, in terms of authority and making resources available, to support the project Initiating sponsor (making the decision to fund and support the project) Sustaining sponsor (the primary sponsor of the project) THE CHANGE MANAGEMENT PLAN : Assess Willingness, Readiness, and Ability to Change

18. Change agents Individual / group responsible for making the change happen in order to achieve the project’s goal and objectives Targets Individual /group that must change THE CHANGE MANAGEMENT PLAN : Assess Willingness, Readiness, and Ability to Change

19. The assessment includes: 1.Clarifying the real impacts of the change. 2.Understanding the breadth of change 3.Defining what’s over and what’s not 4.Determining whether the rules for success has changed People become confused and disoriented when the rules for success change or are no longer clearly defined THE CHANGE MANAGEMENT PLAN : Assess Willingness, Readiness, and Ability to Change

20. Leavitt’s Model: THE CHANGE MANAGEMENT PLAN : Assess Willingness, Readiness, and Ability to Change TECHNOLOGY PEOPLE TASK STRUCTURE Change in people, technology, task, or organizational structure can influence the other areas

21. THE CHANGE MANAGEMENT PLAN : Develop or Adopt a Strategy for Change 4 Approaches to change management: 1.Rational - empirical approach 2.Normative - reeducation approach 3.Power - coercive approach 4.Environmental - adaptive approach

22. THE CHANGE MANAGEMENT PLAN : Develop or Adopt a Strategy for Change Rational-Empirical Approach People will follow their own interest People follow predictable patterns of behavior WIIFM= what’s in it for me A change agent must be persuasive in convincing, explaining, and demonstrating how a particular change will benefit a particular target of change Information should be: –Consistent (throughout the organization) –Accurate & timely (to avoid gossip, etc)

23. THE CHANGE MANAGEMENT PLAN : Develop or Adopt a Strategy for Change Normative-Reeducation Approach Idea (Kurt Lewin): People are social beings and that human behavior can be changed by changing the social norms of a group Focus on group culture components (core values, beliefs, established relationship) Difficult Time consuming (activity: study existing values & beliefs  unfreezing the existing values ) Helping people redefines their existing social norms into a new set that support the change effort.

24. THE CHANGE MANAGEMENT PLAN : Develop or Adopt a Strategy for Change Power Coercive Approach To gain compliance from the change target through the exercise of: power, authority, rewards, threat of punishment for non conformance Deceptively easy and straightforward approach Risky in the wrong situation

25. THE CHANGE MANAGEMENT PLAN : Develop or Adopt a Strategy for Change Environmental-Adaptive Approach Premise: Although avoid disruption and loss, people can still adapt to change Making the change permanently by abolishing the old ways and instituting the new structure as soon as possible People come to a point of no return (installing new s/w during the week-end)

26. THE CHANGE MANAGEMENT PLAN : Implement the Change Management Plan and Track Progress Implement the plan Use various project tools for tracking progress Make a list of milestones and significant events Establish effective lines of communication Project team & project sponsor should create open channel communication to various groups those be the change target

27. THE CHANGE MANAGEMENT PLAN : Evaluate Experience and Develop Lessons Learned Experiences should be documented Success of the change management should be documented and made available for other team Evaluate at the end of the project

28. DEALING WITH RESISTANCE AND CONFLICT Resistance & Conflict : @ A natural part of change @ Approaches for dealing with

29. Resistance Human nature, and natural part of any change process The project team and sponsor are the agents / proponents of change Resistance should be anticipated from the outset of the project PM has to understand what an individual or group perceives as a loss

30. Conflict (Davidson 2002) Conflict arise when people perceive that their interests and values are challenged or not being met Although conflict can be positive and help form new ideas and establish commitment, negative conflict left unresolved can lead to :  damaged relationships  mistrust  unresolved issues  continued stress  dysfunctional behavior  low productivity and morale

31. Conflict (Verma, 1998) The best way to reduce conflict is to confront it Views of Conflict: Traditional View (1850s – mid 1940s) Conflict leads to poor performance, aggression, and devastation if left to escalate. It should be eliminated as soon as possible. Contemporary View (mid 1940s – 1970s) Conflict is inevitable and natural. Conflict can be either positive (stimulate ideas and creativity) or negative Interactionist View (1970s – now) Conflict is an important and necessary ingredient for performance

32. Conflict (Verma, 1998) Conflict within project associated with one or combination of: goals, objectives, or specifications of the project administration, management structures, underlying philosophies Interpersonal relationships based on work ethics, styles, ego, personalities

33. Approaches for Dealing with Conflict (Verma, 1998; Blake & Mouton, 1964) 1. Avoidance 4. Compromise 2. Accommodation 5. Collaboration 3. Forcing The choice depends on: Type of conflict and its relative importance to the project Time pressure Position of power of the parties involved The emphasis: maintaining the goals/objectives or maintaining relationship

34. Approaches for Dealing with Conflict Avoidance –Retreating, withdrawing/ignoring conflict. –Apply cooling-off period when emotions and tempers are high. Accommodation –Used when the goals is more important than the personal interests. –Tends to work only in a short run

35. Approaches Dealing with Conflict Forcing –Results in win-lose situation. –Used when no common ground exist: you sure you are right, an emergency situation exist, time is of the essence

36. Approaches Dealing with Conflict Compromise –Used when complex problems should be solved in a short time and when the risks and rewards are moderately high Collaboration –Used when the risks and the benefits are high. –The focus is learning from others and gaining commitment, trust, respect, and confidence from various party involved

37. Advise to Handle Conflict Kenneth Cloke & Joan Goldsmith 1Look inward8Collaborate 2 Set the stage for dialog 9Use the right tools 3Listen carefully10Be forgiving 4Speak carefully11Don’t surrender 5Dig deeper12Look outward 6Don’t get personal13Search for completion 7Think creatively

38. DEALING WITH RESISTANCE AND CONFLICT : Polarity Management Provides a collaborative approach for dealing with resistance and conflict Crusaders and Tradition Bearers work together to develop a polarity map Polarity Map defines the upsides and downsides of each pole that C & TB advocate C & TB work together to develop a solution for maintaining the upsides of each poles while minimizing the down sides

39. DEALING WITH RESISTANCE AND CONFLICT : Polarity Management C & TB work together to develop a solution for maintaining the upsides of each poles while minimizing the down sides TB+ C-TB- C+ Upsides Downsides Current situation Future situation

40. A Process of Change Management Martin Diese, Conrad Nowikow, Patrick King, Amy Wright 1.Create change vision 2.Define change strategy 3.Develop leadership 4.Build commitment 5.Manage people performance 6.Deliver business benefits 7.Develop culture 8.Design organization

41. A Process of Change Management Martin Diese, Conrad Nowikow, Patrick King, Amy Wright 1. Create change vision –Understand strategic vision  –Def: : Create compelling change story –Make vision comprehensive & operational 2. Define change strategy: –Assess readiness change –Select best change configuration –Establish change governance

42. A Process of Change Management Martin Diese, Conrad Nowikow, Patrick King, Amy Wright 3. Develop leadership –Create leadership resolve  –Lead change programs –Develop leadership capability 4. Build commitment –Build teams –Manage stakeholders –Communicate –Manage resistance –Transfer knowledge & skill

43. A Process of Change Management Martin Diese, Conrad Nowikow, Patrick King, Amy Wright 5. Manage people performance –Establish needs  –Implement performance management –Implement people practices 6. Deliver business benefits –Build business case  –Quantify benefits  –Sustain benefits

44. A Process of Change Management Martin Diese, Conrad Nowikow, Patrick King, Amy Wright 7. Develop culture –Understand current culture  –Design target culture  –Implement cultural change 8. Design organization –Understand current organization  –Design target organization  –Implement organizational change

45. Thank you Ruth Drayer