Change

Requirements

63
 Change Management
in Power Distribution 7.1 INTRODUCTION

"There's nothing ‘Managing’ change is one of the most taxing tasks faced by organisations
more difficult to
take in hand, more
across the globe today. Typically the task is highly demanding for the top
perilous to conduct, management, which is responsible for initiating and facilitating the changes in
or more uncertain in the organisation. Implementing a major and enduring change requires
its success, than to
managers to develop a variety of skills in order to strike a delicate balance
take the lead in
introducing a new between individual and collective actions, paying attention to the content as
order of things." well as the process of change and pursuing both short-term and long-term
Niccolo goals. Over the years, change experts have devised strategies to help
Machiavelli, 1532 managers address the complexities of change management issues. Despite
in volumes of literature on planned change, proliferation of consultants, and the
best efforts of corporate leaders, organisational change still appears to be a
The Prince
much less understood process.

Since the distribution reforms have brought about many changes in the
organisation of distribution utilities, it is important for you to understand the
change process and its requirements. You will agree that the work culture and
work environment in your organisation needs to be changed to meet the
objectives of the reforms with the help of the same workforce. As a manager,
you have a vital role in implementing the new policies. The success of the
reforms would ultimately be determined by ensuring active participation of all
personnel involved in the work-chain. In this unit you will learn about the role
of the individuals involved in change process and various models used
successfully so far.

7.2 KEY ROLES IN MANAGING CHANGE

A number of individuals are involved in implementing, facilitating, and

stabilising the change process in an organisation and they play an important
role in the process. Prominent among them are Change Agents, Change
Niccolò di Bernado dei
Machiavelli (May 3, Makers, and Change Leaders.
1469 – June 21, 1527)
Florentine political
philosopher, musician,
poet, and romantic
comedic playwright.
Machiavelli was also a
key figure in the
Renaissance and the
development of realist
political theory.

Fig. 7.1: Prominent Actors in the Change Process

64
7.2.1 Change Agents Change
Requirements
A Change Agent is a person who pilots the transformation of a company into
an organisation of eminence by

• providing direction during the planning phase,

• facilitating the implementation process,
• supporting those who set off the changes, and
• mobilising those who resist the change.

Change agents are individuals who use their knowledge of the

change process to influence decisions, thereby creating
desirable change. The effective Change Agent is one who is
capable of

• orchestrating events,
• diagnosing the potential problem,
• developing a plan to deal with it,
• communicating to everyone, and finally
• executing it.

In effect, a change agent helps a team achieve something new.

Who could be a Change Agent

A change agent may be a manager / non-manager, a full time organisational

development professional, or a leader of a division charged with the
responsibility of bringing about change in his/her area.

A typology of change agents has been developed based on the following four
categories:

• a change agent could be an individual, a group, or an organisational unit;

• his/her organisational position could be either internal or external;

• his/her cultural background could be indigenous or non-indigenous,

governmental or private , or a combination of both; and

• the organisation system could be an economic, service, commonwealth,

mutual benefit, or community system.

Internal vs. External Change Agents

There is always a deliberation if the change agents should be internal or

external. Some experts have argued that change should be introduced by
external professional consultants. The reason given is that external
consultants can be open-minded in making a diagnosis of problems. S/he
could provide helpful information, resources, and procedures, serve as a 65
Change Management stimulus for redefining the situation, provide initiative in exploring difficult or
in Power Distribution unknown problem areas, and free the personnel in the organisation to
participate in the training process. On the other hand, some others have
advocated for an internal change agent. The argument for and against
external agents is summed up in Fig. 7.2.

The insider possesses the

Only a skilled outsider-
intimate knowledge of the client-
consultant can provide the
system (and the power to
perspective, detachment
legitimize) that the external
and energy so necessary
change agent lacks. In addition,
to effect a true alteration
the internal change agent does
of existing patterns.
not generate the suspicion and
mistrust the outsider often does.

Fig. 7.2: Arguments For and Against External Change Agents

SAQ 1: Change agents

a) Explain the role of a Change Agent.

………………………………………………………………………………….

………………………………………………………………………………….
b) In your organisation, should the change agents be internal or external?

………………………………………………………………………………….

………………………………………………………………………………….
c) Discuss the pros and cons of having internal and external change
agents.

………………………………………………………………………………….

………………………………………………………………………………….

66
7.2.2 Change Makers Change
Requirements
Change Makers are the people in the organisation who are actually engaged
in the change implementation process. Any change programme requires
the participation of the entire organisation in order to be successful.
Employees in an organisation can be divided into three broad change
categories:

• Change Strategists,
• Change Implementers, and
• Change Recipients.
Change Strategists are responsible for identifying the need for change,
creating a vision of the desired outcome, deciding what change is feasible,
and choosing who should sponsor and defend it.
Change Implementers “make the change happen”. They manage the day-do-
day process of changes, coordinate various activities and relationships among
people that give the organisation its internal shape and culture.
Change Recipients represent the largest group of people that adopt, and
adapt to change. Recipients, in fact, give the desired change its ultimate
shape and sustainability. It is their behaviour which determines whether a
change will last or not. They are also the primary source of resistance. Some
of the key characteristics of Change Makers are given in Table 7.1.
Table 7.1: Key Change Makers

Change Role and mindset Orientation to Action focus Typical Dominant

makers change (kind of organi- stage of
motion) sational involvement
level
Change Visionary External Ends Top Unfreezing
Strategist environment
Instigator Corporate
values and
business
results
Corporate view
Change “Project Image” Internal Overcoming Middle Changing
Implementers Translator Coordination Resistance
Division or “Project
Department Image”

Change User and Adapter Distribution of Means-ends Bottom Refreezing

Recipients Power and Consequence
Proceeds

Institutionaliser Personal
benefits
Personal view
Operational
Source: Ancona, et al., 1999.
67
Change Management If you are involved with the change process and looking for a checklist to
in Power Distribution overcome the problems, we would like to tell you. There is no one best way
to implement change. We give some suggestions in Box 7.1.

Box 7.1: Suggestions for Change Implementation

• Analyze the organisation and its need for change: Look at the company’s
history of changes (successes and failures), patterns of resistance; analyze the
forces for and against change (Force field analysis).

• Create a shared vision and common direction: This should reflect the core
values of the company; the vision should include the rationale, the benefits,
personal ramifications, among others.

• Develop a non-threatening and preferably participative implementation

process: Present plans skillfully, share information and make it readily
available; explain the benefits for end users; start small and simple; go for
quick wins; publicize successes.

• Separate from the past: if needed.

• Create a sense of urgency

• Support a strong leader role: The change advocate role is critical for creating
a vision, motivating employees to embrace that vision and crafting a structure
to reward those who strive towards the realisation of the vision.

• Line up political sponsorship: Broad based support (both formal and

informal) is important for success; identify target individuals and groups whose
support is needed; define the critical mass of support needed; identify where
each key player is on the continuum (from "no commitment", "may let it
happen", "help it to happen" to "make it happen").

• Craft an implementation plan: This plan maps out the effort.

• Develop enabling structures: Examples include pilot tests, off-site

workshops, training programmes, new reward systems, symbolic changes like
redesigned work spaces.

• Communicate with and involve people and be honest: Every change effort
may not call for full involvement, communication and disclosure but most do;
wherever possible, there should be a meaningful dialogue that gives people a
stake in the change.

• Reinforce and institutionalise change: It is important to reinforce the

change; reward those who take risks and incorporate the new behaviours.

We discuss the role of change leaders, in detail after acquainting you with
various approaches to change management. But before moving on you may
68 like to answer an SAQ.
 Change
SAQ 2: Change makers Requirements

Identify the key change makers in your organisation for implementing

the changes brought about by the reforms. Discuss the measures they
can take to facilitate change in the organisation.

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….
……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

7.3 APPROACHES TO CHANGE MANAGEMENT

Change management deals with how people are being affected by an

organisational change of any kind, and what interventions have to be
undertaken to make the change effort a success for all stakeholders, i.e., the
owners, the employees, and the customers. Change interventions insinuate
a set of planned change activities performed by internal or external people,
intended to help an organisation increase its effectiveness. Three features
characterize Change interventions (Box 7.2).

Box 7.2: Features of Change Interventions

Change interventions

• are based on valid information about the organisation’s

functioning;

• provide organisational members with opportunities to make

free and informed choices; and

• gain members’ internal commitment to these choices.

In the change management literature a large number of approaches are

available. These approaches to change management can be classified into six
categories: Psychology of the Individual, Social Psychological, Cultural,
Innovation, Global Change and Practitioners Approaches (Table 7.2). The
rows in the table represent interventions and the columns represent the
domains of intervention, namely, individual, group, organisation and
environment. The black blocks in Table 7.2 indicate the potential impact of the
respective interventions on the domains (individual, group, organisation and
environment). 69
Change Management Table 7.2: Major Change Management Approaches
in Power Distribution
Individuals Groups Organisation Environment

1. Psychology of the
Individual

2. Social Psychological
Approaches

3. Cultural Approaches

4. Innovation
Approaches

5. Global Change
Approaches

6. Practitioner
Approaches

Source: www.bpmg.org

SAQ 3: Change implementation

Based on your experience, outline the basic issues to be borne in mind
by any change implementer while implementing any kind of change,
minor or major, in your organisation.

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

• Psychology of the Individual Change Approaches: This approach

focuses on the individual. But it is ironical that most consultants focus on
organisational change and do not pay enough attention to the impact that
the change has on the individual worker. It would be desirable to intervene
at the level of the individuals affected by change.

• Social Psychological Change Approaches: These are based on the

concept that an individual is more shaped by his/her social environment
(groups) than by his/her genes.

• Cultural Change Approaches: These look at change from the

perspective of the culture of an organisation. Culture of an organisation or
group of people can be defined as:

“A pattern of shared basic assumptions that the group learned as it

70 solved problems of external adoption and internal integration, that has
 worked well enough to be considered valid and, therefore, to be taught Change
to new members as the correct way to perceive, think, and feel in Requirements
relation to those problems”.

This definition of culture identifies three levels of cultural phenomena:

basic assumptions, values, and artifacts.

− Basic assumptions are the circumstances taken for granted in an

organisation as the "correct" way of doing things. They constitute the
core of culture and are the hardest to change.

− Values refer to a sense of what "ought" to be and they lie at the next
higher level of culture.

− At the most superficial level,

− Artifacts are the overt behaviours and other physical manifestations of

culture. These can usually be observed directly and are easier to
change than assumptions and values. Among other things, artifacts
include procedures followed, technology used, and ways of
communicating. Unfortunately, changing the artifacts generally does
not lead to change of culture. To do that, one has to ultimately change
the values and basic assumptions.

Culture is mostly unconscious to the members of the organisation and is

able to control the behaviours of organisational change, even when the
project plan calls for new behaviours. This is one of the reasons, why new
leaders introducing change in an organisation sometimes replace key
positions with new people, external to the organisation. Do you have
similar experiences in your organisation?

• Innovation approaches look at change from the perspective of diffusion

of new ideas or practices. In this process, an innovation is communicated
through various channels over time among the members of a social
system. Resistance to process innovation can be defined as late or no
adoption by members of an organisation.

• Global Change approaches look at organisational change from a very

broad standpoint. These contemplate on global transformations, based on
life-threatening changes dictated by rapid changes taking place in an
organisation’s environment.

• Practitioner Approaches to Change are those in which the practitioners /

consultants and managers by and large take a diverse approach to
organisational change. They blend various aspects of the available
theoretical approaches they are familiar with, as well as add practical
experiences with real change processes. Practitioner Approaches typically
meddle at all levels. The untraditional approach to business reengineering
requires a new leadership style for managers leading the change. To
quote John Kotter, Konosuke Matsushita Professor of Leadership at
Harvard University. 71
Change Management
in Power Distribution
“Success in managerial jobs increasingly requires leadership, not
just good management. Even at lower levels in firms, the inability
to lead is hurting both corporate performance and individual
careers. Organisations that stifle leadership from employees are
no longer winning.”

We now discuss the role of a change leader. But before studying further, you
may like to attempt an SAQ.

SAQ 4: Role of change leader

If you were assigned the role of change leader/change maker in your

organisation, which approach (es) would you follow in implementing the
changes? Explain giving reasons.
……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….
……………………………………………………………………………………….

……………………………………………………………………………………….

7.4 ROLE OF A CHANGE LEADER

The behaviour of change leaders has an enormous impact on what value
employees place on making or breaking the proposed change. Research has
shown that the root causes of failures of many organisational change
programmes were a lack of change leadership and poor management of
employee resistance to change. Thus leadership plays a very important role in
making the change happen. The most important thing which the change
leader can bring to a changing organisation is the passion, conviction and
confidence in others. Leaders can use several techniques to take charge of
change rather than simply reacting to it. The following classic skills should be
endured by the CEOs and Managers for successful change management:

− turning in to the environment;

− challenging the prevailing organisational wisdom;
− communicating a compelling aspiration;
− building coalitions;
− transferring ownership to a working team;
− learning to preserve; and
− making everyone a hero.
72
Research has shown that those who most effectively help people and Change
organisations to manage change share a number of common characteristics Requirements
(Box 7.3).

Box 7.3: Characteristics of Change Leaders

Change leaders

• frame the change in terms of results for the organisation as a whole as

well as the effect on the individual. They challenge others to align
themselves with the new organisational change and provide the necessary
resources.

• foster and create an atmosphere that enables people to test the new
change, generate recommendations, experiment with new ways of
operating, and exhibit some dysfunctional behaviour while the change is
taking root in the culture.

• lead the change effort with every word and action. They are the role
models for the organisation. Change leaders have the responsibility to
establish compelling and legitimate business reasons for change, and at
the same time to identify and overcome potential sources of resistance.
Niccolo A Machiavelli observed long ago that "whosoever desires
constant success must change his conduct with the times.''

• display a constant dedication to making change a reality. They focus on

results and on success. They analyze failure to determine why it occurred,
and constantly encourage others to try again.

• interact with individuals and groups in the organisation to explain the who,
what, when, where, why, and how of the change.

Effective change leaders have to endeavour to orchestrate their organisation

with the current environment, ensuring stability to give employees a
feeling of security and at the same time promote change to prepare for
tomorrow's environment. This is a leadership paradox (Fig. 7.3).

ALIGN TO
TODAY’S
ENVIRONMENT

ENSURE PROMOTE
STABILITY CHANGE

ANTICIPATE
TOMORROW’S
ENVIRONMENT

Fig. 7.3: The Leadership Paradox 73

Change Management 7.4.1 Key Competencies for Change Leaders
in Power Distribution
We have to keep in mind that there is no ‘ideal’ change leader. Particular
requirements normally relate to the actual state of affairs in the organisation
(e.g., corporate culture, strategic relevance of the project, acceptance of the
project among management and staff, time-frame, resources, etc). However,
an effective leader is one who is able to envision the future, develop
plans, and mobilize support for organisational change. Change leaders
must demonstrate the ability to

• communicate clearly ,concisely, and effectively;

• motivate team members and sustain pursuit of goals and
objectives;
• coordinate, integrate, and synthesize;
• plan and prepare for implementation; and
• implement strategies and tactics.

According to some experts seven critical skills are necessary to become a

great leader. LEADERS is an acronym for these seven critical skills (Fig. 7.4).

Listen to Learn.
Empathize with Emotions.
Attend to Aspirations.
Diagnose Details.
Engage for Good Ends.
Respond with Respectfulness.
Speak with Specificity.

Fig. 7.4: Skills Necessary for Great Leaders

Change leadership is the ability to energize groups responsible for

implementing change projects that they may or may not buy into. Change
leadership also involves

• defining areas for change;

• managing change initiatives smoothly by anticipating, preparing and
responding effectively to roadblocks;
• creating an open, receptive work environment; and
• involving people at all levels in the change initiative.

74
 Change
The levels of change leadership competency on a behavioural scale start with
Requirements
the most basic level of skill and move to the most complex level (Box 7.4).
Box 7.4: Levels of Change Leadership

Level I – Accepts Need for Change

At this level, the change leader can openly describe a change and convincingly
preserve the need for the change within the organisation. The individual is able to put
up with vagueness and create an open and receptive environment.
Level I change leaders can be successful working on small change initiatives
when given clear direction and access to more experienced change leaders for
advice and confirmation.

Level II – Defines/Initiates Change

This change leader can define a specific area where change is needed and can
identify the leverage points for change in processes and work habits.
Level II change leaders can identify the need for and initiate change at the local
level.

Level III – Manages Change

This change leader is able to define an explicit vision for change based on broad
organisational visions. S/he will make the effort to deliver the message or convey a
vision for change to everyone affected. This change leader is able to redirect
individual or team approaches in the face of new opportunities and involve people in
the change. At this level the change leader ensures the success of change through
implementation of a communication strategy, the refinement of work and
organisational design models, and the facilitation of staff development.
Level III change leaders are able to translate the vision of the organisation in
the context of a specific change initiative and bring this message to the entire
organisation.

Level IV – Manages Complex Change

This change leader understands the cultural dynamics of the current state of an
organisation, including the hidden assumptions and the differences between the
stated values and the values in practice. At this level the change leader is able to
create a strategic practical course, balancing the current reality with the need for
rapid adoption of the desired future reality.
Level IV change leaders are able to generate change in a productive way.

Level V – Champions Change

At this most strategic level, the change leader publicly challenges the status quo by
comparing it to an ideal or a vision of change. This may cause a sense of crisis or
imbalance. They support dramatic actions to implement the change effort. This
change leader is responsive to and responsible for planning evolution, causing
change, and transforming the organisation.
Level V change leaders are asked to revolutionize organisations.

WHERE DO YOU STAND IN THE VARIOUS LEVELS DESCRIBED IN THIS

SECTION?
75
Change Management
in Power Distribution REMEMBER: The change leader skill sets − planning, project time
management, coalition building, decision making, active listening,
meeting management, and communications − come into play at all
levels of change leadership. You can increase your competency in
these skill sets. You may have to work harder to access the learning
tools, but if you continue to develop these skill sets you will be able
to move up the spectrum of change leadership to become a unique
Level V change leader.

Source: Jim Canterucci: Are You a Change Leader?, available at

http://www.corpchange.com/archives/article_archives/a19_are_you_a_change_leader/
a19_are_you_a_change_leader.htm

Assess yourself and find out where you fit in.

SAQ 5: Levels of change leadership

Where do you fit in the various levels of change leadership?

……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

In Box 7.5, we present some guidelines for change leaders.

Box 7.5: Guidelines for Leaders Involved in Change

1. Have and communicate a good reason for making the change.

2. Involve people in the change.

3. Select a Change Leader who is respected by the organisation.

4. Create a team to coordinate the change.

5. Provide training in the new approach and why it is desirable.

6. Bring in outside help.

7. Establish symbols of change to help celebrate and reflect change.

8. Acknowledge and reward people who help to make it happen.

7.5 ROLE OF A LEADER IN CHANGE MANAGEMENT:

CASE STUDIES

In this section, we present three case studies highlighting the role of a leader
76 in change management.
 Change
Case Study 1: The Successful Case of Ford Plastics Requirements

In 1990, a radical change took place in the charter of the Ford Plastics Plant
(USA) from "a maker of high-tech engineering plastic bits and assemblies . . .
to an engineering plastics business which was to develop other markets''. It
provided a heightened sense of urgency to the need for improving the plant’s
competitiveness. Tom Pettigrewn was appointed as manager at Ford Plastics
in early 1990. He played a key role in driving the change at Ford Plastics.
Pettigrew, who was trusted and respected by staff on the shop floor,
implemented a quality-driven business strategy which focused on striving for
quality and productivity improvements through the establishment of work area
teams, multiskilling, skills and knowledge education, the encouragement of
learning, and a participative, open management style. Under his guidance, the
"Golden Rule'' became a core precept of the fabric of change at Ford Plastics.

The "Golden Rule'' stated that all people who would contribute to realising a
decision or plan, and those others who would be affected by the decision or
plan, must participate in the making of the decision or plan. To fortify the
message, Pettigrew himself spent a lot of time “showing by doing” and
encouraging other senior personnel to do the same. The aim was to break
down the "us and them'' mentality, to encourage the sharing of ideas, and to
build a climate of cooperation and trust.

Pettigrew found a key ally and messenger for change in the internally
appointed manufacturing manager, whose skills as a negotiator and facilitator
were recognized early on by the senior executive. More importantly, he was
respected and trusted by union representatives and shop floor employees. He
became the "magic leader'' at Ford Plastics who gave purpose and meaning to
the change agenda and set the direction.

Pettigrew modelled the leadership behaviour envisaged for the collaborative,

empowered "learning organisation'' necessary for sustainable competitive
success. He took on the role of coach, counsellor and teacher and actively
created a climate for change by setting clear goals and encouraging staff at all
levels to share ideas and be involved in decision making. He also recognised
the importance of harnessing the support and commitment of key leaders
through the organisation who would help him cascade the message across
and down through the organisation (Adapted from Graetz, 2000).

SAQ 6: Qualities of a change leader

List the qualities of the change leader described in Case Study 1. Outline
the strategies used by him to drive the change in his company.
……………………………………………………………………………………….

……………………………………………………………………………………….
77
Change Management
in Power Distribution Case Study 2: Orissa Power Sector Reform

Mr. M.Y. Rao, the Chairman of the erstwhile Orissa State Electricity Board
(O.S.E.B.), and subsequently, Chairman and Managing Director of Grid
Corporation of Orissa Limited (GRIDCO), was the leading person behind the
power sector reforms that took place in Orissa w.e.f. 1st April 1996. The
reorganisation process was implemented in two phases. In the first phase, the
O.S.E.B was disintegrated into a number of new corporate entities. GRIDCO
was created to undertake transmission and distribution, O.P.G.C. to own and
operate O.S.E.B’s thermal plant, and the O.H.P.C was formed for the hydro
plant. O.E.R.C was constituted to set tariff rates and insulate the electricity
industry from political decisions and rigid bureaucratic controls. During the
second phase, the distribution function was privatised and accordingly, four
distribution companies viz. SOUTHCO, WESCO, NESCO, and CESCO were
established and licensed. In addition to providing prodigious momentum to the
reform programme in the State, Mr. Rao used the following ways to minimize
employees’ resistance to the reform and get their support. He

• personally convinced the employees about the reason and rationale for
reform;
• developed and disseminated a vision of the reform to help employees see
where their organisation would seek to go if the change was successful,
and also made them understand the value of reform to the power sector;
• personally Interacted with the trade union leaders and won their
confidence, support and collaboration for shaping the significant changes
that their organisation was planning to undergo, and for abstaining from
resistance;
• appointed many ex-employees of O.S.E.B. as facilitators to convince the
people regarding the need for reform;
• organised a number of meetings, workshops, and other forums to provide
opportunity to employees to express themselves and answer their queries;
• convinced the employees that there would not be any reduction in
workforce , rather a wider scope would be given for career growth and job
opportunities in the post-reform period; and
• demonstrated his commitment to reform by extensively involving himself in
different activities in order to gain the support and commitment of others.

You would appreciate his efforts better from this experience of the President of
the Orissa Electrical Engineers Service Association. He describes an
experience he had about the commitment and visionary leadership skill of Mr.
Rao:

“The Government of Orissa appointed nine Working Groups on

4.3.1994 to suggest measures for implementation of reform. The
recommendations of these groups predominantly relied upon the key
information that was to be provided by different field units. But they had
78
 to encounter severe difficulties as the field staff did not want to part Change
with the information. Under such circumstances, many a times Mr. Rao Requirements
himself collected and supplied the pertinent information to the Working
Groups. He also instructed, in certain cases, to the field staff to provide
necessary cooperation to the Working Groups”.

Mr Rao himself gave an account of the nature of activities performed by him

during the reform programme as follows:

“During the period when the Working Groups were functioning, my role was
more that of a facilitator. I was functioning as the Chairman of O.S.E.B, 50
percent of the time, and the remaining time as the Chief Executive who
was heading an organisation in transition. There was a theoretical concept
of reform that was put forth by the World Bank and Consultants, and then
there were the ground level realities of reforming the organisation. I acted
as a link between them. This went on practically up to 1996. But after
restructuring, most of my activity was concentrated on the nitty-gritty. I was
engaged in realizing the electricity due, metering the connections so that
we could get money into the system. I had spent about 70 percent of the
time on the operational issues” (quoted from Rajan, 2000).

In sum, the former Chairman facilitated the reforms process and mobilised
employees for their support and cooperation. One respondent puts it this way:

“The Chairman played a crucial role in crafting the reform vision,

expounded steps to enact the vision, guiding and inspiring employees to
embrace that vision. Without him, no reform was possible” (quoted from
Sweta, 2004).

SAQ 7: Learning from others

Identify the qualities and skills of the change leader in Case Study 2.
……………………………………………………………………………………….

……………………………………………………………………………………….

……………………………………………………………………………………….

Case Study 3: The Success Case of North Delhi Power Limited (NDPL)

NDPL was incorporated in July 1, 2002 as a joint venture between Tata Power
and Govt. of NCT of Delhi as a result of the privatisation of electricity
distribution in Delhi. Mr. Anil Kumar Sardana, who was working as one of the
Vice-Presidents of the Bombay Suburban Electric Supply Ltd. (BSES), was
appointed as the CEO of NDPL. Mr. Sardana took several HR initiatives such
as the following to make the change process a success. 79
Change Management • Almost all the designations were rechristened so as to make the
in Power Distribution employees feel empowered as well as dignified.

• Many employees were provided VRS, particularly the meter-readers.

Those who remained were re-deployed to undertake other functions.

• Training of all employees was emphasized. Training for 18,000 mandays

was imparted in two years in areas such as quality assurance, customer
orientation, and computer handling.

• MIS was implementated. 1200 computers were provided to 3,400

employees.

• Mobile phones were provided to all executives, junior engineers, and other
field staff for better connectivity.

• Executives and field staff were sponsored for training under peer
exchange programme to different countries. 32 personnel were sponsored
under the scheme till August 2004.

• In order to improve the customer services, the company adopted a 5s

concept which consisted of: sugam (easy), sahyog (cooperation), spasht
(unambiguous), sankalpa (determination), and sampark (communication).

• Considerable improvement was brought about in the working conditions,

welfare facilities, and employees care.

• A performance management system was devised that clearly differentiated

the performer from the non performers.

• Human Resource Information System was implemented.

On this optimistic note for the future of change management in the power
distribution sector, we would like to end the unit and present its summary.

7.6 SUMMARY

• The prominent actors involved in the change process in an organisation

are Change Agents, Change Makers, Change Leaders and they play a
strategic role in implementing, facilitating, and stabilising change.

• Change agents are individuals who use their knowledge of the change
process to influence decisions, thereby creating desirable change.

• Change Makers are the people in the organisation who are actually
engaged in the change implementation process.

• Change leaders are responsible for identifying the need for change,
creating a vision of the desired outcome, deciding what change is feasible,
and choosing who should sponsor and defend it.
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• Change interventions insinuate a set of planned change activities Change
performed by internal or external people, intended to help an organisation Requirements
increase its effectiveness.

• Change management approaches can be classified into six categories:

Psychology of the Individual, Social Psychological, Cultural, Innovation,
Global Change and Practitioners Approaches.

• Leadership plays a very important role in making the change happen. The
most important thing which the change leader can bring to a changing
organisation is the passion, conviction, and confidence in others. Classic
skills for successful change management include turning in to the
environment, challenging the prevailing organisational wisdom,
communicating a compelling aspiration, building coalitions, transferring
ownership to a working team, learning to preserve and making everyone a
hero.

• Key competencies for change leaders include communicating clearly,

concisely, and effectively, motivating team members and sustaining pursuit
of goals and objectives, coordinating, integrating, and synthesizing,
planning and preparing for implementation, implementing strategies and
tactics.

7.7 TERMINAL QUESTIONS

1. Has your organisation undergone (is undergoing) change in some form or

the other? If so, describe the change and identify the key actors in the
change process.

2. Who is/are the change agent(s) driving the reforms in the power
distribution sector? Describe their functions.

3. Based on your experience, outline the basic issues to be borne in mind

by any change implementer while implementing any kind of change, minor
or major, in your organisation.

4. In your opinion, what should the role of a change leader be in facilitating

the changes being brought about due to the power distribution reforms?
Explain with the help of examples.

5. What conclusions can you draw from the case studies presented in this
unit about change requirements?

Further Readings

• Ancona, Kochan, Scully, Van Maanen and Westney (1999) Managing for
the Future: Organisational Behaviour and Processes, Cincinnati, Ohio:
South-Western College Publishing, pp. M-8.16.
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Change Management • Dean, Peter J. (2005) Leadership for Everyone, McGraw-Hill.
in Power Distribution
• Graetz, Fiona (2000) “Strategic change leadership”, Management
Decision, 38/8, pp.550- 562.

• Jick, Todd D. (1991) "Implementing Change," Harvard Business School

Case N9-491-114.

• Kanter, Rosabeth Moss (2000) “The Enduring Skills of a Change Leader”,

Ivey Business Journal, May-June.

• Katzenbach J.R. (1996) Real change leaders. New York: Random House.

• Moran, John W., and Baird K. Brightman (2000) “Leading organisational

change”, Journal of Workplace Learning: Employee Counselling Today,
12(2), 66- 74.

• Rogers, E. (1995) Diffusion of innovations, New York: Free Press.

• Rajan, A. (2000) “Reforms, Restructuring and Infrastructural Sector: A

Study of Initiatives in Orissa Power Sector”, Vikalpa, 25(4), 11-25.

• Sweta, P. (2004) Change Management Strategies in the Organisation: A

Behavioural Study, Unpublished thesis.

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