MANAGING STRATEGIC CHANGE

 What is Change? Change refers to any alternation which occurs in the overall work environment of an organization. Coping process of moving from a unsatisfactory present state to a desired state. Change has following characteristics: Change results from pressure forces internally & externally. Whole organization is affected by the change in any part. Change takes place in all parts of organization at varying rates of speed and degree of significance. What is Planned Change? Results from deliberate attempts by managers to improve organizational operations. 2

CHANGE

STRATEGIC CHANGE
What is Strategic Change?

Strategic change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc. Also known as organizational transformation.
A fundamental and radical reorientation in the way the organization operates. Example of organization-wide change include a change in mission, restructuring operations, mergers, major collaborations etc

STRATEGIC CHANGE
Management of Strategic Change Management of change is defined as a conscious and concerted initiative by managers. To watch over the behavior of uncontrollable forces, to assess their impact and influence of the controllable forces. And to evolve appropriate strategies and action programmes to maintain a dynamic equilibrium between these 2 forces.
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STRATEGIC CHANGE
What is provokes Strategic Change? Change should not be done for the sake of change; it's a strategy to accomplish a goal. Strategic change is provoked by major outside driving forces like substantial cuts in funding, addressing major new markets/clients, need for dramatic increases in productivity/services, etc. Strategic change is undertaken to evolve to a different level in their life cycle, e.g., going from a turbulent, entrepreneurial organization to more stable and planned development. Example Change of CEO, M&A.
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TYPES OF STRATEGIC CHANGE

RESISTANCE TO CHANGE
Done at 2 levels
Individual/ People Resistance to change Organizational Resistance to change

RESISTANCE TO CHANGE
People/Individual Resistance to change
ECONOMIC FACTORS-It relates to basic economic needs of workers like life, job security and safety. Skill Obsolence Fear of Economic Loss Reduced Opportunity for Incentives PHYCHOLOGICAL FACTORS- These are sense of pride, achievement, self fulfillment etc. Ego Defensiveness Status Quo Low Tolerence for change Lack of trust in change agent Fear of Unknown
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RESISTANCE TO CHANGE
SOCIAL FACTORS- These are needs like friendship, belongingness, mutual compatible interactions etc. Desire to maintain existing social interaction Feeling of Outside Interference GROUP FACTORS

Nature of Group Dynamics Vested Interests

INDIVIDUAL FACTORS-The degree of force of resistance at Individual Level depends on how people feel about the change.
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RESISTANCE TO CHANGE
Organisation Resistance to change
Counting Past Success Stability of Systems Resource Limitation Sunk Cost Interorganisational Agreements

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RESISTANCE TO CHANGE
Is Resistance bad????? Resistance is not all bad. Resistance is important as it: forces management to check and recheck the proposals. helps identify specific problem areas where change is likely to cause difficulty. gives management information about the intensity of employee emotions on the issues. provides a means of release of emotions. This causes employees to think and talk more about the changes.

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OVERCOMING RESISTANCE TO CHANGE

Efforts at Individual Level Involvement Efforts at Organisational/Group Level Group Contact

Obtaining Commitment
Leadership Training & Psychological Councelling

Participation
Group Dynamics training for Change

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PROCESS OF MANAGEMENT OF CHANGE

Identifying need for change Elements to be changed Planning for change Assessing change forces Actions for change

Unfreezing FEEDBACK Changing

Refreezing

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 Identifying Need for change When change is required in the organisation. Information for identifying need comes from the org. feedback & control data for eg. declining profits, role conflict, need for expansion, employee turnover etc. Identification also depends on Gap Analysis. Elements to be changed Decided by need & objectives of change. Change usually required in 3 main areas i.e. Organization Structure, Technology & People. Nature & Extend depends on type of problem faced. Structural Changes-Job Design, Span of Control etc. Technological Change- P&E, Prodn Methods etc People Change-Skills, Attitude etc. 14 Some changes may touch all areas in an org.

PROCESS OF MANAGEMENT OF CHANGE

PROCESS OF MANAGEMENT OF CHANGE

Planning for change
Decision on how, who, when the change can be brought. Deciding time (when) includes nature of forces both restraining & support forces. Deciding how requires to draw up a procedure for the same, long term or short term. Deciding who requires internal mgr or external consultant as change agent.

Assessing Change Forces

Assessment of favourable & unfavourable forces. Lewins Force Field Theory.
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 Actions for change UNFREEZING Help people accept that change is needed because the existing situation is not adequate. TRANSITION Involves rearranging of current work norms and relationships to meet new needs. REFREEZING Reinforces the changes made so that the new ways of behaving become stabilized. Feedback Follow-up Actions to ensure change programme is in right direction. Problems created by change to be dealt immediately. 16 Impact of change program measured in terms of its objectives.

PROCESS OF MANAGEMENT OF CHANGE

MANAGING COMPLEX STRATEGIC CHANGE

All elements are needed to effectively manage complex change Without visionconfusion. Without skill-anxiety Without incentivegradual change Without resourcesfrustration Without action planfalse starts
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Vision Skill Incentive Resources Action Plan

 Represents that change is a gradual process in which recipients experience self-doubt about their ability to cope, which results in decreases in confidence and performance.

PROCESS OF MANAGEMENT OF CHANGETRANSITION CURVE

Change can be likened to bereavement; it usually involves a loss of the familiar, uncertainty and ambiguity.
Different individuals pass through the curve at different speeds, and employees have to be helped through the process by their managers.
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PROCESS OF MANAGEMENT OF CHANGE-TRANSITION CURVE

Role of Mgr.

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LEWINS FORCE FIELD THEORY OF CHANGE

Organizational Change occurs when: Favouring forces for change strengthen Restraining forces for change lessen, or Both processes occur simultaneously

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ORGANIZATIONAL LEARNING
MEANING Learning can be defined as a relatively permanent change in behaviour or potential behaviour that results from direct or indirect experience. The changes are brought about by direct or indirect experience. There is always reorganization or restructuring. There may be unlearning. The learning organization is a representation of a desired end. Organizational learning is a representation of the dynamic human processes required to increase the cognitive capacity of the total organization.
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ORGANIZATIONAL LEARNING
LEVELS OF ORGANIZATIONAL LEARNING
Individuality At the individual level, managers need to do all they can to facilitate the learning of new skills, norms, and values so that individuals can increase their own personal skills and abilities and thereby he builds the organizations core competence. Group At the group level, managers need to encourage learning by promoting the use of various kinds of groups- such as self-managed groups or crossfunctional teams- so that individuals can share or pool their skills and abilities to solve problems. 22 Groups allow for the creation of synergism.

ORGANIZATIONAL LEARNING
LEVELS OF ORGANIZATIONAL LEARNING
Organizational At the organizational level, managers can promote organizational learning through the way they create an organizations structure and culture. Structure can be designed to inhibit or facilitate inter-group communication and problem solving, and this affects team members approach to learning. Inter organizational Organizational structure and culture not only established the shared vision or framework of common assumptions that guide learning inside an organization, but also determine how learning takes 23 place at the inter-organizational level.

ORGANIZATIONAL LEARNING
ORGANIZATIONAL LEARNING: CURVE FOR CHANGE

It is the period of adaptation following change and there will be a temporary decline in effectiveness before a group reaches a new equilibrium. Employees need time to understand and adapt in order to accept change, trying to integrate the change so likely to be less effective. They have to get rid of old habits (unfreeze) and apply the new ones (refreeze), problems to be worked out. Procedures are upset, and communication patterns are disrupted. Conflicts develop about the change, and cooperation declines. Problems arise and time must be taken to resolve them.
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ORGANIZATIONAL LEARNING CURVE

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