1. Change Management Prof. Archana Shukla Indian Institute of Management Lucknow

2. 2 Triggers to change Discontentment with existing reality Threats from external environment Opportunities available in the external environment

3. 3 Triggers to change (examples) External Government regulations Changes in economy Competition Raw material prices/ availability Market for finished goods Pressure groups Technology changes Labor scarcity Changes in consumer preferences/ profile Internal Changes in corporate leadership Mergers, acquisitions, JV New technology Decline in performance Changes in employee profile Union actions Low morale, motivations, etc.

4. 4 Issues in change management Handling resistance to change Sources of resistance/ inertia Burden of past experience Defensive routines Tunnel vision Bounded rationality

5. 5 Challenges in change Organizations are the shadows of their leaders You can’t create what you can’t define Behavioral change occurs at the emotional, and not at the intellectual level

6. 6 Change orientations OrientationTheme InactiveLet us not worry about tomorrow ReactiveLet us go back to the good old days ProactiveLet us plan and be prepared to deal with the likely future InteractiveLet us redesign the future

7. 7 Response types IncrementalStrategic AnticipatoryTuningReorientation ReactiveAdaptationRe-creation In the same direction In a new direction Before environment change After environment change UP Awas Vikas Parishad implementin g ISO India Post entering Speed Post & ePost Indian pharma companies doing basic research 3M getting into new product- markets away from mining

8. 8 What to change? Environment, Resources, History Structure Culture Systems Competence Organizational outcomes Meeting stakeholder expectations Strategy

9. 9 How to change? Targets of change What can I change at my level Targets of influence What can I change by influencing others Targets of coping What I can’t do anything about

10. 10 There are three kinds of people! When it comes to the future, there are three kinds of people … Those who let it happen Those who make it happen Those who wonder what happened

11. 11 Eight steps for managing change Establish a sense of urgency Form a powerful guiding coalition Create a vision Communicate the vision Empower others to act on the vision Plan for and create short-term wins Consolidate improvements and produce still more change Institutionalize new approaches

12. 12 Ten commandments of change Fundamental change requires changing the fundamentals Change the mindset Seek cooperation and support Identify impediments to change See that the results of change are visible Recognize and reward good performance Strengthen HR practices Develop the will to enforce rules Provide leadership for change Start changing what you can, and then influence others

13. 13 Institutionalizing new approaches Culture (Media/ education/ police) Ordering of corporate goals and objectives Change all aspects that will get affected (structure/ systems/ culture) Training programmes for competence building and mindset change Internal communication and publications

14. Thank You Archana Shukla