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Change Management

Course Presentation

Managing Change: The Art of Balancing


by Jeanie D. Duck Instructor: Dr. Maleki Presented by: Javad Nasiri March 2004

Topics
Change is intensely personal Usual approach to change What goes wrong with organizations? Organizational Context What about human feelings? Managing the dynamic of change Not all changes are formal ones References
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Change is intensely personal


(Communication)
Each individual MUST think, feel, or do something different. Change programs fail because of:
Having a mechanistic mental model

Breaking change into small pieces

Managing the pieces

Change is intensely personal


(continued)

With change the challenge is to manage the dynamic not the pieces. Teaching personnel how to think strategically, recognize patterns, and anticipate problems and opportunities before they occur. From the managerial viewpoint, change is: Balancing a Mobile
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Change is intensely personal


(continued)

A solution: Transition Management Team, a group of company


leaders, reporting to the CEO, who commit all their time and energy to managing the change process.

Managing change for this group means:


Managing the conversation between the people leading the effort and those who are expected to implement the new strategies. Managing the organizational context in which change can occur Managing the emotional connections
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Usual Approach to change


1. Management says We have to make some changes around here (TQM, BPR, Employee Empowerment, ) 2. A task force is formed 3. This force works without communicating anyone else, trying to meet deadlines, testing a lot of what-ifs 4. The results are delivered 5. Everyone has to do his part
Keeping everyone informed is a diversion, a LUXURY we cannot afford
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Usual Approach to Change


Lack of communication
(Continued) This process guarantees failure. High failure rate in BPR, TQM, Employee Empowerment, ... Management assumption is, We havent said anything yet. We havent sent any messages. Everything managers do or not do, sends a message. Alarms go off
Information vacuum

Something is happening Gossip forms Negative mentality is made towards change 7

No sings from management or task force

Usual Approach to Change


Lack of communication
(Continued) If there is a single rule of communications for leaders, it is this:

When you are so sick of talking about something that you can hardly stand it, your message is finally starting to get through.
It takes time for people to hear, understand and believe the message especially when they dont like it. So ask yourself: Have they heard the message? Do they believe it? Do they know what it means? Have they interpreted it for themselves, and have they internalized it?

Communication is complete when the answers are YES.


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What goes wrong with organizations? Organizational Context


Especially in successful organizations: Strategic Frames Processes Relationships Values People Blinders Routines Shackles Dogmas Change Survivors
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What goes wrong with organizations? Organizational Context


(Continued)

Change Survivors: Cynical people whove learned how to


live through change programs without really changing at all. They know that change programs are only managers fads. Their reaction is the opposite of commitment. In this context every change effort will fail. Managers should change their behavior. How would we act? How would we attack our problems? What kind of meetings and conversations would we have?
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What goes wrong with organizations? Organizational Context


(Continued)

One way to prepare the context is empowerment which is a change itself. Empowerment doesnt mean abandonment. Setting the context for change means understanding what employees do and dont know, working with them, watching their performance, creating an ongoing dialogue with them.
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What About Human Feelings?


Change is fundamentally about feelings. It needs peoples heads and hearts together. Companies cannot legislate their employees feelings, but companies do rent their behavior. Winning Attitudes do make a difference, and it is important to market new ideas and approaches within the organization very carefully.
If you want a customers loyalty, you must have his positive feelings toward your idea.

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What About Human Feelings?


(continued)

Denying the validity of emotions or permitting only certain kinds of emotions has two effects: The managers cut off from their own emotional lives. They cut off the ideas, solutions and new perspectives that other people can contribute. Allow employees to express negative feelings. But you can visit Pity City, but you cannot move there. (Example)
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What About Human Feelings?


Employees Do Not Trust
(continued)

If a company is in trouble, or it is in the middle of a change effort, lack of trust automatically emerges as a serious barrier. Maslows Pyramid: In the new work environments, where companies are offering to empower employees, self-actualization is being promoted.
At the top of the Pyramid To realize and integrate our talents, intellect, values, and physical and emotional needs 14

What About Human Feelings?


Employees Do Not Trust
(continued)

With heightened competition, downsizing, and new demands from customers, there is virtually no job security.

At the bottom of the Pyramid

Feel safe from danger, harm, or risk

So managers are sending their employees conflicting messages. Then trust becomes a critical issue.
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What About Human Feelings?


What should be done?
(Continued)

Trust in the time of change is based on two things:

Predictability
People want to know what to expect. This is why in the middle of change, trust is eroded when the ground rules change. Not only is the guaranteed career path gone, but so is the guarantee of employment. The more leaders clarify the companys intentions and ground rules, the more people will be able to predict and influence what happens to them-even in the middle of a constantly shifting situation. 16

What About Human Feelings?


What should be done?
(Continued)

Capability Managers and employees must identify needed capabilities and negotiate the roles and responsibilities of those involved in the process before each will trust the situation. When each sides understands the needs, capabilities, and objectives of the other, trust can be built. The only real security the company has to offer is a chance for people to work together to create the future and to achieve their goals.
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Managing the Dynamic of Change


An organization, like a mobile, is a web of interconnections. A change in one area throws a different part off balance. Managing these ripple effects is what makes managing change a dynamic proposition with unexpected challenges.
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Managing the Dynamic of Change


A solution: Transition Management Team
Its not:
A new layer of bureaucracy A permanent job for members A steering committee (a body that convenes periodically to guide those who are actually doing the work)

This team:
Oversees the large-scale corporate change effort Makes sure that all the change initiatives fit together
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Managing the Dynamic of Change


A solution: Transition Management Team
Is made up of 8 to 12 highly talented leaders who commit all their time. Team members and what they are trying to accomplish must be accepted by the power structure of the organization The team leader is actually transition COO. He must be talented and credible, understand the long term vision of the company, have a complete knowledge of the business, and have the confidence of the CEO.
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Managing the Dynamic of Change


A solution: Transition Management Team
TMT has 8 primary responsibilities:
Establish context for change and provide guidance Stimulate conversation Provide appropriate resources Coordinate and align projects Ensure congruence of messages, activities, policies, and behaviors Provide opportunities for joint creation (Empowerment) Anticipate, identify, and address people problems Prepare the critical mass
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Not all changes are formal ones.


We can think about other forms of change that are not formal, companywide, or very pervasive like BPR, TQM, Disruptive Self-Expression Verbal Jujitsu Variable-Term Opportunism Strategic Alliance Building

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References
Managing Change: The Art of Balancing

Jeanie D. Duck, HBR on Change 2000


Why Good companies Go Bad

Donald N. Sull, HBR on Culture and Change 2002


Radical Change, The Quiet Way

Debra E. Meyerson, HBR on Culture and Change


Managing Change in Organizations (Third Edition)

Colin A. Carnall, Pearson Education, 1999


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