1. Chapter 10 Management of Change
Managing the Information Technology Resource
Jerry N. Luftman
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 1

2. Chapter Outline Change is complex organization concept
Why people resist change
How IT is player in change management
Successful planning of change
Global factors in change management
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 2

3. Using Lewin-Schein for Managing Change Through IT
Source: Adapted from Lewin and Schein, CHristin Bullen.
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 3

4. Pain As a Motivator Possible Sources:
Inability to see critical information about business trends, competition, customers
Discovery that competition has information technology that provides data being sought
Directly from customer(s)
Need to integrate disparate systems resulting from acquisition
Individuals’ inability to perform their work due to IT constraints
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 4

5. Unfreezing Planning a Change to Address the Issues Pain As a Motivator
Becomes clear organization is failing
Missing potentially advantageous opportunities
Real Job Benefits as Motivator
Improves way individual carries out job
Charismatic Leader as Motivator
If champion of change is respected, others will follow
IT As Changer and Changee
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 5

6. IT As Changer Targets Hardware Systems Software Applications Software
Connected Information/NWs
Personnel
Processes
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 6

7. IT As Changee Anticipate or react to opportunities or problems:
Change in objectives, processes, regulation, economy, “innocent” bystander
Scarcity of labor, raw materials, etc.
Mergers and acquisitions
Customer demands
Actions of competitors
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 7

8. Five Phases of Positive Cycles
Uninformed Optimism
At beginning of change effort
Believe everything will go as planned
Informed Pessimism
Begin to learn difficulties, doubt and concern
Hopeful Realism
Visible progress and support is received
Informed Optimism
Confidence is built as completion nears
Completion
Satisfaction of succeeding and reaching objective
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 8

9. Conner’s Stages of Positive Change
Source: Conner, Daryl, Managing at the Speed of Change, Random House (1992).
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 9

10. Conner’s Negative Response to Change
Immobilization
Information shocks the system
Denial
Assume position will fade away
Anger
Feeling of helplessness
Bargaining
People voice concerns and become involved
Depression
Feel helpless to change destiny
Testing
Confidence is built and can adjust
Acceptance
Embrace and work to support change
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 10

11. Conner’s Stages of Negative Responses
Source: Conner, Daryl, Managing at the Speed of Change, Random House (1992).
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 11

12. Organization Change Process
Build Sense
of Urgency
Reinforce the
New Behavior
Create a
Clear
Tomorrow
Develop a
Migration Plan
Source: Belasco, James, Teaching the Elephant to Dance,
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 12

13. Implementing Change Leadership Plus Facilitation
Get Right People Involved
Team Building
Secure Resources
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 13

14. Leadership Plus Facilitation
All levels participate to create value
Get other’s creativity, cooperation, support
Front line employees are closest to the work
Listen to their ideas
Consider alternatives
Envision how technology can enable solutions
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 14

15. Benefits of Getting Right People Involved
Benefits from creativity and innovation
Best people provide role models for others
Gains respect by virtue of talent involved
More likely to remain on budget and on time
Successful process become model for others
Achieved goal is respected
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 15

16. Characteristics of High Performing Teams
Clear Elevating Goal
Results-Driven Structure
Competent Team Members
Unified Commitment
Collaborative Climate
Standards of Excellence
External Support and Recognition
Principled Leadership
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 16

17. Secure Resources Focus resources on accomplishing strategy
Time
People
Money
Careful study of required resources
Ensure allocation of resources
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 17

18. Stakeholder Roles in Change
Change sponsor
Top management initiating program of change
Change agent or champion
Responsible for implementing change in middle- or lower-level management
Change target
Individuals or groups directly affected by change
Influence
Help target through process of change
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 18

19. Reasons People Resist Change
Loss of Face
Loss of Control
Excess Uncertainty
Surprise
“Difference” Effect
“Can I Do it?”
Ripple Effect
More Work
Past Resentments
Real Threats
Competing Commitments
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 19

20. Refreezing
Institutionalize processes and systems to become organizational norm
Information system needs to be adequate
Managers may need to change old habits
May threaten individual’s power, status, income
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 20

21. Understanding Resistance to Change
Listening to what people are and are not saying
Communicate so people feel knowledgeable and involved
Address concerns so real issues of resistance are surfaced and managed
Apply 80/20 rule putting effort into preparing for the change
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 21

22. 80/20 Rule
Determine people in target population who are in top 20 percent of business producers
Spend 80 percent of time for people issues with top 20 percent
Spend 80 percent of personnel development budget on top 20 percent
Study work and determine what 20 percent of job results in 80 percent of returns
Train assistant to do remaining 80 percent
Enlist top 20 percent to do on-the-job training for next 20 percent
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 22

23. Overcoming Resistance to Change
Expect resistance
Find the resistance
Understand the motivations of resistance
Use reward system/incentives
Build in benefits to the users
Knowledge
Intervention techniques
Indoctrination and coercion
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 23

24. Why Improvement Efforts Fail
Source: Brynjolfsson, Erik,
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 24

25. Elements of Planning Change
Guidance, Structure, and Process
Shared Vision
Backers and Supporters
Symbols, Signals, and Rewards
Standards, Measures, and Feedback
Local Participation and Innovations
Policy and Systems Review
Communication, Education, and Training
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 25

26. Elements of Planning Change
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 26

27. Mistakes in Managing Change
Management assumes employees know how to behave as company wants
Do not allow for change to take time and persistence
Trapped in thinking if focused, cooperation of target population is ensured
Do not plan adequate time for managerial tasks
Resort to coercive management techniques
Believe change will increase shareholder value
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 27

28. Localization Barriers
Languages
Cultures, values
Business practices
Taste
Competitors
Proximity to local customer
Risk
Cost
Pace
Food
Authority
National and regional protectionism
Laws, regulations, tariffs
Communications weakness
Labor unions
Transportation
Quality of labor
New technology
Organization
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 28

29. Tasks for Focus Outside Country
Research on stakeholder’s city and country
Learn pronunciation of names
Research political, economic, religious, social, intellectual, and artistic contexts
Learn customs and taboos
Seek advice from others who have interacted from same location
Find out about individuals
Assess own prejudices about people/location
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 29

30. Cross-Cultural Stereotypes
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 30

31. “Who Moved My Cheese?” Lessons
Change happens
Anticipate change
Monitor change
Adapt to change quickly
Change
Enjoy change
Be ready to change quickly and enjoy it again
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 10 - Slide 31