1. Organizational Change Management Ganesh Botcha, Ajoy Chatterjee 21 Sep ’15, Monday

2. Agenda – Organizational Change Management
# Topic Speaker Minutes
Basic Reasons for Org Changes Ganesh B 2
Typical Org Changes Ganesh B 3
What happens during an Org Change Ganesh B 2
Kotter’s 8 Steps Model for OCM Ganesh B 5
Steps 1 thru 6 Ganesh B 10
Steps 7 thru 8 Ajoy C 5
Benefits of OCM Ajoy C 5
Change Fatigue Ajoy C 15
Reframing OCM Ajoy C 3
References
Q&A Ajoy C, Ganesh B 10

3. Change is the key The rate at which our world is changing is
increasing but our ability to keep up with it
is not ..
Dr. John Kotter

4. Basic Needs/Reasons for an Organizational Change
Reduce Operational Costs
Increase Revenues and Profits
Improve Efficiency and Effectiveness
Increase Speed of Delivery

5. Business Globalization Change
Typical Changes in an Organization ..
Many Other Changes - New Business Strategies, etc.,
Mainframes
Client Server
Web-Desktop
Mobile Wireless
Technology Changes
Business Globalization Change
Org Structure Changes
Current State
Future State
Process Changes
Regulatory Changes

6. Lengthy Duration for Change Adoption
What happens during an Org Change?
Performance Dip
Lengthy Duration for Change Adoption

7. Why Performance Dips? Active Resistance Passive Neutral Enthusiastic
Support
Acceptance

8. Organizational Change Management in a Nutshell
Courtesy: Gavin Wedell

9. Solution - Kotter’s 8 Steps for OCM/Transformation
Organizational change management (OCM) is a solution framework for managing the effect on people due to implementing a new business process, technology or org structure in an enterprise. It addresses the people side of change management. 3
Form a Strategic Vision and Initiatives 2
Build a Guiding Coalition 1
Create a Sense of Urgency 7
Sustain Acceleration 6
Generate Short-Term Wins 5
Enable Action by Removing Barriers 4
Enlist a Volunteer Army 8
Institute Change
Phase - I
Create a Climate for Change
Phase – II
Engage and Enable the Organization
Phase – III
Implement and Sustain the Change
BIG OPPORTUNITY

10. (Phase I : Create a Climate for Change)
Step 1 - Create a Sense of Urgency
(Phase I : Create a Climate for Change)
If you see even glimmer of a Big Opportunity, it's important to engage and mobilize around it as quickly as possible to be ahead of competitors.
Companies with engaged employees have 5 times more Shareholder Returns.
Leadership must describe the opportunity (What are the stakes if we succeed, Consequences if we do not act up on it quickly, etc., ) such that it will appeal to the employees’ heads and hearts and they sign up for the change instantly ..
71% workforce is actively disengaged. This costs USA annually 300 Billion.

11. (Phase I : Create a Climate for Change)
Step 2 - Build a Guiding Coalition
(Phase I : Create a Climate for Change)
Establish a guiding coalition with group of Leaders, Managers, SMEs that bring expertise, energy, and perspective to institute the change and most importantly to sustain that change.
Avoid resisters from this coalition.
Real collaboration is about stepping
outside of traditional institutional
structures to focus on results. In fact,
there is an 81% correlation between
collaboration and innovation.
81%

12. (Phase I : Create a Climate for Change)
Step 3 - Form a Strategic Vision and Initiatives
(Phase I : Create a Climate for Change)
Shape a vision to help steer the change effort and develop strategic initiatives to achieve that vision.
Business Week attributes 30% higher return on several key
measures for the companies with
well-crafted mission statements
describing why the business exists
and its optimal desired future state.

13. Step 4 - Enlist a Volunteer Army
(Phase II : Engage and Enable the Organization)
Large-scale changes can occur only when significant number of employees work for a common opportunity and driven in the same direction.
Raise a large force of volunteers from various levels of organization who are ready and willing to drive the change.
Organizations with a high number of actively engaged employees have an average of 147% higher Earnings
Per Share (EPS) than the norm.

14. Step 5 - Enable Action by Removing Barriers
(Phase II : Engage and Enable the Organization)
Remove barriers of hierarchies, processes that pose threat to achievement of vision and provide necessary freedom to employees to work across boundaries and create real impact.
44% of leaders agree that their own management strategies are too bureaucratic and are a nuisance.
“Innovation is less about generating brand-new ideas and more about knocking down barriers to making those ideas a reality.”
- John Kotter

15. Step 6 - Generate Short-Term Wins
(Phase II : Engage and Enable the Organization)
Consistently produce, track, evaluate and celebrate volumes of small and large accomplishments – and correlate them to results.
Wins are the molecules of results. They must be collected, categorized,
and communicated — early and often — to track progress and energize
your volunteers to drive change.

16. (Phase III : Implement and Sustain the Change)
Step 7 - Sustain Acceleration
(Phase III : Implement and Sustain the Change)
Change leaders must adapt quickly in order to maintain their speed. Whether it's a new way of finding talent or removing misaligned processes, they must determine what can be done — every day — to stay the course towards the vision.
Identify and resolve issues with org structure, culture that may impede upon the change execution.
Ensure that policies, procedures and systems align with the change vision.
Hire, promote, develop and reward employees to implement change vision.
Reinvigorate the process with new projects, themes and volunteers.
Agile firms see a 37% increase in revenue when they employ leaders who strategically adapt to any situation.

17. (Phase III : Implement and Sustain the Change)
Step 8 - Institute Change
(Phase III : Implement and Sustain the Change)
To ensure new behaviors are repeated over the long-term, it is important that you define and communicate the connections between these behaviors and the organization's success.
Big Opportunity
Volunteer Army
Results

18. Organizational Change Fatigue
A passive resistance from the organization toward change
Can be individual or team in nature
Studies show, 70% of organizational changes fail in their purpose due to change fatigue
Changes executed in a wrong way, or too many changes at the same time lead to fatigue
Exhausts the employees
Employees don’t see a value for themselves
How to overcome fatigue:
Reiterate again and again, what not changing would impact to the future of the organization
Device ways to show them the value of changing
Make people love the change as people will embrace it only if they love it

19. Reframing Organizational Change

20. Benefits of implementing OCM
Successful implementation of OCM will decrease the Performance Dip and shortens the duration of Change Adoption.

21. References The 8-Step Process for Leading Change Transition Process
Transition Process
Forbes Study - Why Change Management Fails - And How To (Perhaps) Succeed
change-management-fails-and-how-to-perhaps-succeed/
Perspective on Leading Strategic Change
Kotter, J. P., & Schlesinger, L.A. (1979). Choosing strategies for change. Harvard Business Review Bridges, W. (1991). Managing transitions: making the most of change. Reading, MA: Wesley Publishing Company.
Dent, E. & Goldberg, S. (1999, March). Challenging "resistance to change." Journal of Applied Behavioral Science
Kegan, R. & Lahey, L. (200 1, Nov). The real reason people won't change. Harvard Business Review

22. Questions?