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Organizational Change by Magdalena Neumann, Alina Sachapow, Lucia Soskova
- 2. Organizational Change: Understanding; From Lewin’s Model to Kotter’s 8 Steps Page
- 7. What Is Change Management? Page “ The coordination of a structured period of transition from situation A to situation B in order to achieve lasting change within an organization” (BNET Business Dictionary)
- 9. Ability and Willingness to Change Page Necessity Necessity Ability Willingness
- 10. Employees and Change Page Comfort Zone Comfort Zone Learning Zone Learning Zone Fear Zone Fear Zone
- 18. Force Field Analysis II Page http://wc1.smartdraw.com/examples/content/Examples/05_Strategy_&_Planning/Force_Field_Analysis/Force_Field_ Analysis_-_Model_1_L.jpg
- 20. Puma Case II Page http://wc1.smartdraw.com/examples/content/Examples/05_Strategy_&_Planning/Force_Field_Analysis/Force_Field_Analysis_-_Model_1_L.jpg
- 22. 8 Steps of a Successful Change Page Form a Strong Guiding Coalition Create a Change Vision and Strategy Communicate This Change Vision Empower Others to Act on the Vision Generate Short-Term Wins Consolidate Improvements and Produce More Changes Secure the New Approaches Establish a Sense of Urgency
- 34. Our Iceberg Is Melting Page 2. Pull Together the Guiding Team 1. Create a Sense of Urgency
- 35. Our Iceberg Is Melting Page 3. Develop the Change Vision and Strategy 4. Communicate for Understanding and Buy-in
- 44. Thank You For Your Attention!
Notes de l'éditeur
- Change is the only constant. – Heraclitus, Greek philosopher http://www.mindtools.com/pages/article/newPPM_82.htm In other words change happens everywhere and always Change can be thought of as a condition and a process Change as a condition takes place externally, it describes what is happening in the environment and can not be controlled Change as a process is what companies foster internally in response to changes in the environment
- We live in a growing and changing marketplace with growing and quick changing competitors Effective strategic leaders understand that change is essential for a company’s success Change can be an opportunity but also threat To benefit from change companies have to continuously adopt their corporate strategy and structure to changing external conditions to stay ahead of the competition If companies do not adapt to the changing markets and demands they might not be able to survive on today’s global market Many companies feel the need to change but face the challenge of not knowing how to go about. Different change management theories have been developed over the last year We will look at the most common approachest - 3-steps of freezing and unfreezing developed by Kurt Lewin in 1947 - eight-step change process developed by John Kotter
- Why do 70% of all significant change management initiatives fail to deliver the promised benefits Why such a high failure rate? single biggest reason for the astonishingly high 70% failure rate of all significant change initiatives has been the over-emphasis on process rather than people - the failure to take full account of the impact of change on those people who are most impacted by it - the failure to recognise that organisational change is inextricably intertwined with personal change.
- Or The systematic approach and application of knowledge, tools and resources to deal with change. Change management means defining and adopting corporate strategies, structures, procedures and technologies to deal with changes in external conditions and the business environment. SHRM Glossary of Human Resources Terms, www.shrm.org. Change management is the process, tools and techniques to manage the people-side of business change to achieve the required business outcome, and to realize that business change effectively within the social infrastructure of the workplace. Change Management Learning Center
- The world is moving fast so it tell us sth what is very important that Kaizen, the continuous improvement is no longer enough, it is essential but it won’t make the big leaps to win, to offer great products and services that we need. 70 percent of the time it was found that the companies that want to make the big change fail either they don’t do it at all or they do it only half way but the good news is that about 5 percent of the companies do succeed and there is a pattern in the way they do it. It doesn’t matter where are they from US, Korea, bigger, smaller, profit or non profit. The pattern has 8 steps in it.
- What is urgency is fundamentally an attitude, the way of being, the way of feeling, the way of thinking. We need the urgency the way things are changing. Faster the world moves the more you need to change. Right at the beginning of successful change you need the sense of urgency going. And if you don’t, everything slows down, everything is tougher, things are getting frustrating hence the sense of urgency is very important. How does a sense of urgency benefits the organization? False sense of urgency people are moving around it’s only activity. Urgency is different cause it’s determined with this gut level to move now, win. It is based on realistic sense that there are great things out there, opportunities and hazards. It is a set of behaviour which is not just running around but it is running around in smart ways. It’s there that you see the important things therefore focus on them. So many people think that they don’t have the problem with establishing a sense urgency in the organization but they have this state within the organization that gets them nowhere. And this stage is very crucial for a change since those companies that fail to recognise that they are missing this sense of urgency might fail in the process of the change.
- Establishing a sense of urgency is necessary to gaining the cooperation necessary to drive a significant change effort. Most companies ignore this step - indeed close to 50% of the companies that fail to make needed change make their mistakes at the very beginning. Leaders may underestimate how hard it is to drive people out of their comfort zones, or overestimate how successfully they have already done so, or simply lack the patience necessary to develop appropriate urgency. Leaders who understand the importance of a sense of urgency are good at taking the pulse of their company and differentiating between complacency , false urgency and true urgency . For those that determine that true urgency is insufficient - and it often is - there are some tried and true approaches to developing it and one way that is almost certainly doomed to failure. The approach most likely to fail is the one that is purely intellectual, based on a solid business case that has a theoretically "compelling" rationale. The problem in failed change initiatives is rarely that the case for change is poorly thought out, or not supported with sufficient facts. The fundamental problem is that the case is all head and no heart. Consequently, leaders who know what they are doing will "Aim for the Heart." They will connect to the deepest values of their people and inspire them to greatness. They will make the business case come alive with human experience, engage the senses, create messages that are simple and imaginative, and call people to aspire.
- A clear vision serves three important purposes. First, it simplifies hundreds or thousands of more detailed decisions. Second, it motivates people to take action in the right direction even if the first steps are painful. Third, it helps to coordinate the actions of different people in a remarkably fast and efficient way. A clear and powerful vision will do far more than an authoritarian decree or micromanagement can ever hope to accomplish. A vision must provide real guidance. It must be focused, flexible and easy to communicate. It must both inspire action and guide that action in foreseeable ways. It should be a touchstone for making relevant decisions, but not be so constricting as to reduce the possibility of empowering action. Finally, it must be communicable.If it cannot be explained quickly in a way that makes intuitive sense,it becomes useless. Thus, effective visions have six key characteristics, They are: Imaginable: They convey a clear picture of what the future will look like. Desirable: They appeal to the long-term interest of employees, customers, shareholders and others who have a stake in the enterprise. Feasible: They contain realistic and attainable goals. Focused: They are clear enough to provide guidance in decision making. Flexible: They allow individual initiative and alternative responses in light of changing conditions. Communicable: They are easy to communicate and can be explained quickly.
- Gaining an understanding and commitment to a new direction is never an easy task, especially in complex organizations. Undercommunication and inconsistency are rampant. Both create stalled transformations. Most companies undercommunciate their visions by at least a factor of 10. A single memo announcing the transformation or even a series of speeches by the CEO and the executive team are never enough. To be effective, the vision must be communicated in hour-by-hour activities. The vision will be referred to in emails, in meetings, in presentations – it will be communicated anywhere and everywhere. In communicating the vision for the transformation, there are some things to keep in mind. The vision should be: Simple : No techno babble or jargon, fewer words are better Vivid : A verbal picture is worth a thousand words – use metaphor, analogy and example. Repeatable : Ideas should be able to spread by anyone to anyone. Invitational : Two-way communication is always more powerful than one-way communication.
- Typically, empowering employees involves addressing four major obstacles: structures, skills, systems and supervisors.
- For leaders in the middle of a long-term change effort, short-term wins are essential. Running a change effort without attention to short-term performance is extremely risky. The Guiding Coalition becomes a critical force in identifying significant improvements than can happen between 6 and 18 months. Getting these wins helps ensure the overall change initiative’s success. Research shows that companies that experience significant short-term wins by fourteen and twenty-six months after the change initiative begins are much more likely to complete the transformation. Realizing these improvements is a challenge. In any change initiative, agendas get delayed, there is a desire to ensure that customers are not affected, political forces are at work – all of which slow the ability to perform as promised. However, short-term wins are essential. To ensure success, short term wins must be both visible and unambiguous. The wins must also be clearly related to the change effort. Such wins provide evidence that the sacrifices that people are making are paying off. This increases the sense of urgency and the optimism of those who are making the effort to change. These wins also serve to reward the change agents by providing positive feedback that boosts morale and motivation. The wins also serve the practical purpose of helping to fine tune the vision and the strategies. The guiding coalition gets important information that allows them to course-correct.
- Resistance is always waiting in the wings to re-assert itself. Even if you are successful in the early stages, you may just drive resistors underground where they wait for an opportunity to emerge when you least expect it. They may celebrate with you and then suggest taking a break to savor the victory. The consequences of letting up can be very dangerous. Whenever you let up before the job is done, critical momentum can be lost and regression may soon follow. The new behaviors and practices must be driven into the culture to ensure long-term success. Once regression begins, rebuilding momentum is a daunting task. In a successful major change initiative, by stage 7 you will begin to see: More projects being added Additional people being brought in to help with the changes Senior leadership focused on giving clarity to an aligned vision and shared purpose Employees empowered at all levels to lead projects Reduced interdependencies between areas Constant effort to keep urgency high Consistent show of proof that the new way is working
- New practices must grow deep roots in order to remain firmly planted in the culture. Culture is composed of norms of behavior and shared values. These social forces are incredibly strong. Every individual that joins an organization is indoctrinated into its culture, generally without even realizing it. Its inertia is maintained by the collective group of employees over years and years. Changes – whether consistent or inconsistent with the old culture – are difficult to ingrain. This is why cultural change comes in Step 8, not Step 1. Some general rules about cultural change include: Cultural change comes last, not first You must be able to prove that the new way is superior to the old The success must be visible and well communicated You will lose some people in the process You must reinforce new norms and values with incentives and rewards – including promotions Reinforce the culture with every new employee Tradition is a powerful force. We keep change in place by creating a new, supportive and sufficiently strong organizational culture. A Guiding Coalition alone cannot root change in place no matter how strong they are. It takes the majority of the organization truly embracing the new culture for there to be any chance of success in the long term.
- Atlanta is the rail center of the South and has become one of the five most important distribution centers in North America
- Our Iceberg Is Melting is a simple fable about doing well in an ever-changing world it is a story that has been used to help thousands of people and organizations. The fable is about a penguin colony in Antarctica.live for many years one curious bird discovers a potentially devastating problem threatening their home, and pretty much no one listens to him The characters in the story, Fred, Alice, Louis, Buddy, the Professor, and NoNo, are like people we recognize — even ourselves
- Fred studied his observations, if the iceberg would melt many of the older and younger bird would die There was no plan for how to deal with such as catastrophe He was not one of the leaders of the colony (not even a son, brother or father of one of the leaders of the colony) He remeberd how Harald was treated when he once suggested that their home was becoming more fragile When no one seemed interested (some where just not interested and others treated him differently) The leadership council also called the Group of Ten, led by the Head Penguin Alice was one of the ten bosses (she was a tough, practical bird who had a reputation for getting things done) Fred her of his statistics she had a look and was magnivite Alice invited Alice to the next leadership council meeting Create a Sense of Urgency Help others see the need for change and the importance of acting immediately. 2. Pull Together the Guiding Team Make sure there is powerful group guiding the change-one with leadership skills, bias for action, credibility, communication ability, authority and analytical skills.
- 3. Develop the Change Vision and Strategy Clarify how the future will be different from the past and how you can make that 4. Communicate for Understanding and Buy-in Make sure as many others as possible understand and accept the vision and the strategy.
- 5. Empower Others to Act Remove as many barriers as possible so that those who want to make the vision a reality can do so. 6.Produce Short-Term Wins Create some visible, unambiguous success as soon as possible.
- Behaviors in her company mirrored penguins’ behaviors - People would see a complex problem, and then either ignore it or wait for someone else to fix it Faced enormous challenge in getting her older co-workers convinced that penguins story could help organization Most co-workers were skeptic also her manager She persevered him to read it He gave Katie approval to start applying learnings Create a Sence of Urgency: Trying to create a willingness to raise safety and operational standards People began to feel that urgency was more than just the latest fad Process of raising urgency level inside company took about 2 months After sufficient urgency was raised Formed “The Iceberg Group“ consisted of 9 people from different parts of organization
- Largest barrier raising bar on safety standards How can you make people really care about the highest possible safety standards, when current standards are already high? Make it personal - Forced people to think about their families Over time people started to change their behavior Created a high level of engagement with crew Iceberg Group set a goal for a short term win – six months injury free and communicated it broadly Has gone almost 9 months injury free and down about 97%