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Change Management
1. 1.8 Change and the
Management of Change
By Alex Arancibia, for Nuevo Mundo High School – Gye, 2012
Sources:
Business and Management for IB, Paul Hoang, 2007
Business and Management for IB, Peter Stimpson, 2011
Business and Management for IB, Paul Clark, 2009
2.
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Incremental
Incremental
Causes of CHANGE
Causes of CHANGE
Dramatic
Dramatic
3.
4.
5. 1. Customers
Demand for high quality at competitive prices
Habits and tastes >> 9/11
Factors causing change
6. 2. Competitors
They'll try to provide better products (product
development or marketing strategies)
Mergers & acquisitions
Example: Apple's iPod vs. Sony's Walkman
Factors causing change
8. 4. Government
Changes in legislation.
Age of retirement, online betting, interest rates,
exchange rates.
Factors causing change
9.
5. Management
Will managers follow market trends to ensure
competitiveness?
Factors causing change
10. According to Professor John Paul Kotter
(1979), there are 4 main reasons why people
tend to be resistant to change:
1.Self-interest
2.Misunderstandings
3.Different assessments of the situation
4.Low tolerance of change
Resistance to change (internal factors)
14. There are basically four steps to any change
management model:
1.Identify the proposed change and the rationale
for it
2.Brainstorm the driving and restraining forces
3.Develop and communicate an understanding of
these issues to key stakeholders
4.Implement actions to take advantage of the
driving forces and to overcome restraining
forces
Models and frameworks
15. The Iceberg Model
By Wildried Kruger; he argues that there are 2
levels of change but managers only concentrate
efforts on the top level
TOP level: Cost, quality, time
BOTTOM level: People – attitudes, beliefs,
perceptions, acceptance and behavior of
stakeholders (which could be + or -)
Models and frameworks
16. The Iceberg Model
Kruger suggests that there are several groups of
people who may hinder or enhance the change
process:
(a) Opponents
(b) Promoters
(c) Hidden opponents
(d) Potential promoters
Models and frameworks
17. Change Phases model
Kotter (1990) suggests that there are 8 reasons why
change management might fail. His reasons are
because managers:
– Allow too much complexity
– Fail to win support from staff
– Do not have a clear vision
– Fail to communicate a vision to stakeholders
– Allow obstructions to the vision
– Do not focus on small continuous changes (to win
support)
– Declare success too soon
– Ignore corporate culture when implementing change
Models and frameworks
18. Storey's Change model
John Storey (1987) put forward four approaches to
managing the change process in an organization:
(1) Total imposed package
(2) Imposed piecemeal initiative
(3) Negotiated total packages
(4) Negotiated piecemeal packages
Models and frameworks
20. There are four stages in carrying out a force field
analysis:
(1)List driving forces and restraining forces
(2)Allocate a weight to each of these forces, from
1 (weak) to 5 (strong)
(3)Draw a diagram
(4)Show the relative effect of each force by a
number next to it.
Force Field Analysis by Lewin
