1. Change Management It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change- Charles Darwin

2. Change Management: External Envt Global Integration of economies, industries, and markets due to reduced transaction costs caused by Enabling communication, Internet, faster & cheaper modes of transport, convergence of consumer tastes Convergence of institutions and ideologies Technological specialization Reduced cycle times: speed of change Business and economic interdependencies: location and size

3. Change Management: Strategic Change Reduced product life cycles, Increased sunk costs in R&D, Manufacturing, Marketing Reduced firm scope, high risk and earning volatility Reconfiguration of value chain activities Pressure for developing dynamic capabilities Increased pressure for fast innovations Nimble and Flat organizations, and cross- functional teams Entrepreneurial orientations Visionary leadership Performance driven culture

4. Change Management: The Human toll Short term orientation: driven by speed, greed and fear- ethical crisis Need for continuous evolution of personality, skills, and behaviours required Basic human nature : preference to stay in comfort zone Contradiction in work demand and human behaviour Result is resistance to change Initial reaction is denial, followed by anguish, passive resistance to active sabotaging, depending on situation and balance of power

5. Change Management: Conditions of change Speed of change required Degree and magnitude of change required Bargaining power of change agents versus resistors Overcoming resistance: education, Participation, Facilitation, Negotiation, Coercion

6. Change Management: Soft & hard issues Soft: Culture, leadership, motivation Hard: Duration of reviews- shorter; Project teams skills, commitment of top leadership to change programme, Extra effort required by employees Need to change multiple & interconnected factors simultaneously (structures, systems and action levers) – there is no magic bullet, thus require patience and mid-course review and correction, and some early results to sustain change strategy

7. Instrumental Leadership and Levers of Change Structural Levers Formal: macro/ micro Informal: Networks/ culture System Levers Resourcing: Human,Capital Informational Control: Hard, Soft Desired Change Action Levers Power, Communication Role modeling