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CHANGE MANAGEMENT –
PRINCIPLES AND PROCESS
BE A COMPETENT FACILITATOR OF CHANGE IN YOUR
ORGANIZATION
DEPARTMENT OF LABOUR (UIF)
ZAMBESI LODGE, PRETORIA
CHARLES COTTER
26-29 JANUARY 2016
 Introduction to change management principles and practice
 Describing the types of change
 Diagnosis: Identifying and applying the characteristics of change
capable organizations
 Explaining change theories and the change transition cycle
 Explaining the leadership role and contribution during change
 Differentiating between Type O and Type D oriented people and the
effective management thereof
1-DAY TRAINING PROGRAMME
OVERVIEW
 Applying the Change formula
 Identifying the reasons for resistance to change
 Describing the managerial techniques to reduce resistance to
change
 Describing Lewin’s 3-phase Planned approach to change
 Describing and applying the 7-step organizational change
management process
1-DAY TRAINING PROGRAMME
OVERVIEW
 Change and Change Management
 The need for change
 The V-U-C-A nature of the business environment
 The forces of change
 The metaphoric views of change
 First and second order change
 The areas/types of change
DEFINING THE FUNDAMENTALS OF
CHANGE
THE NEED FOR CHANGE
THE NATURE OF THE BUSINESS
ENVIRONMENT – V-U-C-A
FORCES OF CHANGE
METAPHORIC VIEWS OF CHANGE
CALM WATERS WHITE-WATER RAPIDS
 First Order change is often referred to as evolutionary or
gradual change - usually localized – it impacts on one part of a
system without major repercussions to other parts of the
system. The organization as a whole remains intact and no
overall change of its former state occurs in spite of incremental
change to one part of it.
 Second order change is often referred to as radical or
revolutionary change because it impacts on the organization as
a whole.
FIRST AND SECOND ORDER CHANGE
Change management – Principles Process & Tools
AREAS/TYPES OF CHANGE: S-P-O-T-S
 Refer to page 12 in the Learner Manual
 Apply the fundamentals of change to your organization.
 Present a summary of group discussion
SYNDICATE GROUP LEARNING
ACTIVITY 1
 The literature on “change management” is clear: over 70% of
change initiatives fail.
CHANGE MANAGEMENT SUCCESS
TRACK RECORD
Change management – Principles Process & Tools
Change management – Principles Process & Tools
Change management – Principles Process & Tools
Change management – Principles Process & Tools
Change management – Principles Process & Tools
 #1: Linking the present and the future
 #2: Make learning a way of life (learning organization)
 #3: Actively supporting and encouraging day-to-day
improvements and changes (continuous improvement
processes)
 #4: Ensuring diverse teams
 #5: Encourage out-of-the-box thinking (innovation)
CHARACTERISTICS OF CHANGE-
CAPABLE/FRIENDLY ORGANIZATIONS
 #6: Protect and shelter breakthrough ideas (intellectual
property)
 #7: Integrate technology to implement changes
 #8: Build and deepen trust (creating an organizational culture
of management credibility and integrity)
 #9: Streamline and align processes, systems and structures
 #10: Leadership have the will and conviction to change
CHARACTERISTICS OF CHANGE-
CAPABLE/FRIENDLY ORGANIZATIONS
 Refer to pages 14-15 in the Learner Manual
 Diagnosis: By referring to each of the characteristics of change
capable/friendly organizations, measure the degree of your
organization’s readiness to change.
 Analysis: Identify those areas which need to be improved and
recommend strategies to close these gaps.
 Present a summary of group discussion
SYNDICATE GROUP LEARNING
ACTIVITY 2
CHANGE TRANSITION CURVE
CHANGE TRANSITION CURVE AND
APPROPRIATE LEADERSHIP ACTIONS
 Refer to page 18 in the Learner Manual
 As a manager, describe how you can accelerate and guide
employees through the change transition cycle for the most
sophisticated/mature stage, commitment.
 Present a summary of group discussion
SYNDICATE GROUP LEARNING
ACTIVITY 3
Change management – Principles Process & Tools
 “Leaders should not only administer and manage change, but pioneer,
pilot and drive change towards barrier-busting heights of performance
improvement.” (Cotter: 2005)
 Managerial Roles and Actions
 Change Agents (internal and external)
 Building resilience and change-hardiness
 Transformational Leadership
 Develop Employee engagement strategies
 Scaling the Hierarchy of Commitment
THE ROLE OF LEADERSHIP IN
CHANGE MANAGEMENT
 Provide a future vision for change
 Leaders should possess diagnostic ability to read, scan and respond to
the changing environment in the perpetual quest for business growth
and expansion opportunities
 Be a catalytic driver of change
 Guide, support and lead people through the change transition cycle
 Be a change agent
 Lead by example during change i.e. be a role model/ambassador and
advocate for change
 Be a transformational leader
 Break down resistance to change
 To build resilience and change hardiness amongst the workforce
CHANGE LEADERSHIP ROLES AND
ACTIONS
 The five attributes of resilience include:
 Positive (they see life as complex but filled with opportunity)
 Focused (they have a clear vision of what they want to achieve)
 Flexible (they demonstrate pliability when responding to uncertainty)
 Organized (they develop structured approaches to managing ambiguity)
 Proactive (they engage with change rather than defending against it)
BUILDING RESILIENCE AND CHANGE
HARDINESS
CHARACTERISTICS OF
TRANSFORMATIONAL LEADERSHIP
Change management – Principles Process & Tools
 According to Gallup (2013) research, the best organizations
deeply integrate employee engagement into the following four
(4) areas:
Strategy and Leadership Philosophy
Accountability and Performance
Communication and Knowledge Management
Development and on-going Learning Opportunities
BEST PRACTICE EMPLOYEE
ENGAGEMENT
 According to Gallup (2013), strategies to improve employee engagement are:
 Use the right employee engagement survey
 Focus on engagement at the enterprise and local levels
 Select the right people and managers
 Coach managers and hold them accountable for their employees’ engagement
 Define engagement goals in realistic, everyday terms
 Develop employees’ strengths
 Enhance employees’ well-being
 Find ways to connect with each employee
STRATEGIES TO DEVELOP EMPLOYEE
ENGAGEMENT
Change management – Principles Process & Tools
 Refer to page 23 in the Learner Manual
 Apply the leadership roles in effectively managing change.
 Present a summary of group discussion
SYNDICATE GROUP LEARNING
ACTIVITY 4
Change management – Principles Process & Tools
Change management – Principles Process & Tools
 Refer to page 27 in the Learner Manual
 Individually: Complete the Type O vs. D-oriented
questionnaire.
 Group: As a manager, describe how you will manage your staff
with both a Type O and Type D orientation towards change.
 Present a summary of group discussion
SYNDICATE GROUP LEARNING
ACTIVITY 5
Change management – Principles Process & Tools
 Why people resist change?
 Why it is so challenging to reduce resistance to change?
 Managerial techniques to reduce resistance to change
MANAGING RESISTANCE TO CHANGE
RESISTANCE TO CHANGE –
“COMFORT ZONE”
 Uncertainty (i.e. fear of the unknown)
 People’s self-interest is threatened
 A lack of trust and misunderstanding
 Belief that change is incompatible with the goals and the interest of the
organization
 A low tolerance for change is also a barrier to organizational change
 Other general reasons (e.g. include inertia where people do not want to change
the status quo, poor timing, and unexpected, extreme or sudden change and
peer pressure)
WHY PEOPLE RESIST CHANGE?
 People and their behaviour is the most difficult to change because
unlike structure and technology, in which managers have absolute
control, managers do not have absolute control over peoples’
thinking, attitudes and perceptions.
 “Unlike technology, structure, processes and strategy, people talk
back when confronted by uncomfortable levels of change.” (Cotter:
2014)
 People are the greatest source of resistance to change because
people have minds of their own i.e. they have personalized and
subjective views regarding change.
 Change must involve the people - change must not be imposed upon
the people
WHY IT IS SO CHALLENGING TO REDUCE
RESISTANCE TO CHANGE?
 Refer to page 30 in the Learner Manual
 In your work environment, identify the five (5) foremost
reasons why employees resist change. For each of these 5
reasons, describe the ways and means that you as a manager
can use to break down these “walls of resistance”. Provide
practical examples.
 Present a summary of group discussion
SYNDICATE GROUP LEARNING
ACTIVITY 6
MANAGERIAL TECHNIQUES TO
REDUCE RESISTANCE TO CHANGE
Change management – Principles Process & Tools
 Refer to pages 32-33 in the Learner Manual
 By referring to each of the 6 techniques to manage employee
resistance to change, describe how you as a manager can apply
these techniques in your working environment. Provide
practical examples. Also indicate at which stage of the change
process, each of these techniques is most appropriate.
 Present a summary of group discussion
SYNDICATE GROUP LEARNING
ACTIVITY 7
Change management – Principles Process & Tools
 At all times involve and agree support from people within system
(e.g. the environment, processes, culture, relationships, behaviours -
whether personal or organizational)
 Understand where you/the organization is at the moment (status
quo)
 Understand where you want to be, when, why, and what the
measures will be for having got there
 Plan development towards above in appropriate achievable
measurable stages
 Communicate, involve, enable and facilitate involvement from
people, as early and openly and as fully as is possible.
BEST PRACTICE CHANGE
MANAGEMENT PRINCIPLES
LEWIN’S 3-PHASE MODEL OF
CHANGE
KOTTER’S CHANGE MANAGEMENT
PROCESS
 STEP 1: Forces for change (internal and environmental forces) which affect:
 STEP 2: Performance outcomes (individual, group and organizational) which encourages
 STEP 3: Diagnosis of the problem (information, participation and change agent) which
leads to
 STEP 4: Selection of appropriate intervention (structural, behavioural and technological)
as constrained by S-P-O-T-S
 STEP 5: Limiting conditions (leadership climate, formal organization structure and
organization culture)
 STEP 6: Selection and Implementation of the method (timing, scope and
experimentation) provision for
 STEP 7: Evaluation of the method (feedback, adjustment, revision, reinforcement)
APPLYING THE 7-STEP, ORGANIZATIONAL
STRATEGIC CHANGE MANAGEMENT PROCESS
 Step one of the strategic change management process starts with an
assessment of the organization’s Mission and Vision, challenges (pains),
enablers and values.
 The following strategically-relevant items form the scope to be scrutinized by
business managers:
 The company's mission statement
 The company's strategic plan/vision
 The financial status of the organization
 How the organization is currently structured and operating
 The level of expertise of their employees
 Customer satisfaction level
 Tools:
 SWOT Analysis
 PESTEL Analysis
STEP 1: FORCES FOR CHANGE - INTERNAL
AND EXTERNAL STRATEGIC ASSESSMENT
STEP 5: LIMITING CONDITIONS -
FORCE FIELD ANALYSIS
 Refer to page 37 in the Learner Manual
 By referring to the 7-step organizational change management
process, apply each of the steps in your working environment.
 Present a summary of group discussion
SYNDICATE GROUP LEARNING
ACTIVITY 8
 Summary of the key learning points
 Questions
 Conclusion
 Good luck with the implementation of change management
processes, systems and tools in DoL (UIF)
CONCLUSION
CONTACT DETAILS
 Charles Cotter
 (+27) 84 562 9446
 charlescot@polka.co.za
 LinkedIn
 Twitter: Charles_Cotter
 http://www.slideshare.net/CharlesCotter

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Change management – Principles Process & Tools

  • 1. CHANGE MANAGEMENT – PRINCIPLES AND PROCESS BE A COMPETENT FACILITATOR OF CHANGE IN YOUR ORGANIZATION DEPARTMENT OF LABOUR (UIF) ZAMBESI LODGE, PRETORIA CHARLES COTTER 26-29 JANUARY 2016
  • 2.  Introduction to change management principles and practice  Describing the types of change  Diagnosis: Identifying and applying the characteristics of change capable organizations  Explaining change theories and the change transition cycle  Explaining the leadership role and contribution during change  Differentiating between Type O and Type D oriented people and the effective management thereof 1-DAY TRAINING PROGRAMME OVERVIEW
  • 3.  Applying the Change formula  Identifying the reasons for resistance to change  Describing the managerial techniques to reduce resistance to change  Describing Lewin’s 3-phase Planned approach to change  Describing and applying the 7-step organizational change management process 1-DAY TRAINING PROGRAMME OVERVIEW
  • 4.  Change and Change Management  The need for change  The V-U-C-A nature of the business environment  The forces of change  The metaphoric views of change  First and second order change  The areas/types of change DEFINING THE FUNDAMENTALS OF CHANGE
  • 5. THE NEED FOR CHANGE
  • 6. THE NATURE OF THE BUSINESS ENVIRONMENT – V-U-C-A
  • 8. METAPHORIC VIEWS OF CHANGE CALM WATERS WHITE-WATER RAPIDS
  • 9.  First Order change is often referred to as evolutionary or gradual change - usually localized – it impacts on one part of a system without major repercussions to other parts of the system. The organization as a whole remains intact and no overall change of its former state occurs in spite of incremental change to one part of it.  Second order change is often referred to as radical or revolutionary change because it impacts on the organization as a whole. FIRST AND SECOND ORDER CHANGE
  • 12.  Refer to page 12 in the Learner Manual  Apply the fundamentals of change to your organization.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 1
  • 13.  The literature on “change management” is clear: over 70% of change initiatives fail. CHANGE MANAGEMENT SUCCESS TRACK RECORD
  • 19.  #1: Linking the present and the future  #2: Make learning a way of life (learning organization)  #3: Actively supporting and encouraging day-to-day improvements and changes (continuous improvement processes)  #4: Ensuring diverse teams  #5: Encourage out-of-the-box thinking (innovation) CHARACTERISTICS OF CHANGE- CAPABLE/FRIENDLY ORGANIZATIONS
  • 20.  #6: Protect and shelter breakthrough ideas (intellectual property)  #7: Integrate technology to implement changes  #8: Build and deepen trust (creating an organizational culture of management credibility and integrity)  #9: Streamline and align processes, systems and structures  #10: Leadership have the will and conviction to change CHARACTERISTICS OF CHANGE- CAPABLE/FRIENDLY ORGANIZATIONS
  • 21.  Refer to pages 14-15 in the Learner Manual  Diagnosis: By referring to each of the characteristics of change capable/friendly organizations, measure the degree of your organization’s readiness to change.  Analysis: Identify those areas which need to be improved and recommend strategies to close these gaps.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 2
  • 23. CHANGE TRANSITION CURVE AND APPROPRIATE LEADERSHIP ACTIONS
  • 24.  Refer to page 18 in the Learner Manual  As a manager, describe how you can accelerate and guide employees through the change transition cycle for the most sophisticated/mature stage, commitment.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 3
  • 26.  “Leaders should not only administer and manage change, but pioneer, pilot and drive change towards barrier-busting heights of performance improvement.” (Cotter: 2005)  Managerial Roles and Actions  Change Agents (internal and external)  Building resilience and change-hardiness  Transformational Leadership  Develop Employee engagement strategies  Scaling the Hierarchy of Commitment THE ROLE OF LEADERSHIP IN CHANGE MANAGEMENT
  • 27.  Provide a future vision for change  Leaders should possess diagnostic ability to read, scan and respond to the changing environment in the perpetual quest for business growth and expansion opportunities  Be a catalytic driver of change  Guide, support and lead people through the change transition cycle  Be a change agent  Lead by example during change i.e. be a role model/ambassador and advocate for change  Be a transformational leader  Break down resistance to change  To build resilience and change hardiness amongst the workforce CHANGE LEADERSHIP ROLES AND ACTIONS
  • 28.  The five attributes of resilience include:  Positive (they see life as complex but filled with opportunity)  Focused (they have a clear vision of what they want to achieve)  Flexible (they demonstrate pliability when responding to uncertainty)  Organized (they develop structured approaches to managing ambiguity)  Proactive (they engage with change rather than defending against it) BUILDING RESILIENCE AND CHANGE HARDINESS
  • 31.  According to Gallup (2013) research, the best organizations deeply integrate employee engagement into the following four (4) areas: Strategy and Leadership Philosophy Accountability and Performance Communication and Knowledge Management Development and on-going Learning Opportunities BEST PRACTICE EMPLOYEE ENGAGEMENT
  • 32.  According to Gallup (2013), strategies to improve employee engagement are:  Use the right employee engagement survey  Focus on engagement at the enterprise and local levels  Select the right people and managers  Coach managers and hold them accountable for their employees’ engagement  Define engagement goals in realistic, everyday terms  Develop employees’ strengths  Enhance employees’ well-being  Find ways to connect with each employee STRATEGIES TO DEVELOP EMPLOYEE ENGAGEMENT
  • 34.  Refer to page 23 in the Learner Manual  Apply the leadership roles in effectively managing change.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 4
  • 37.  Refer to page 27 in the Learner Manual  Individually: Complete the Type O vs. D-oriented questionnaire.  Group: As a manager, describe how you will manage your staff with both a Type O and Type D orientation towards change.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 5
  • 39.  Why people resist change?  Why it is so challenging to reduce resistance to change?  Managerial techniques to reduce resistance to change MANAGING RESISTANCE TO CHANGE
  • 40. RESISTANCE TO CHANGE – “COMFORT ZONE”
  • 41.  Uncertainty (i.e. fear of the unknown)  People’s self-interest is threatened  A lack of trust and misunderstanding  Belief that change is incompatible with the goals and the interest of the organization  A low tolerance for change is also a barrier to organizational change  Other general reasons (e.g. include inertia where people do not want to change the status quo, poor timing, and unexpected, extreme or sudden change and peer pressure) WHY PEOPLE RESIST CHANGE?
  • 42.  People and their behaviour is the most difficult to change because unlike structure and technology, in which managers have absolute control, managers do not have absolute control over peoples’ thinking, attitudes and perceptions.  “Unlike technology, structure, processes and strategy, people talk back when confronted by uncomfortable levels of change.” (Cotter: 2014)  People are the greatest source of resistance to change because people have minds of their own i.e. they have personalized and subjective views regarding change.  Change must involve the people - change must not be imposed upon the people WHY IT IS SO CHALLENGING TO REDUCE RESISTANCE TO CHANGE?
  • 43.  Refer to page 30 in the Learner Manual  In your work environment, identify the five (5) foremost reasons why employees resist change. For each of these 5 reasons, describe the ways and means that you as a manager can use to break down these “walls of resistance”. Provide practical examples.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 6
  • 44. MANAGERIAL TECHNIQUES TO REDUCE RESISTANCE TO CHANGE
  • 46.  Refer to pages 32-33 in the Learner Manual  By referring to each of the 6 techniques to manage employee resistance to change, describe how you as a manager can apply these techniques in your working environment. Provide practical examples. Also indicate at which stage of the change process, each of these techniques is most appropriate.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 7
  • 48.  At all times involve and agree support from people within system (e.g. the environment, processes, culture, relationships, behaviours - whether personal or organizational)  Understand where you/the organization is at the moment (status quo)  Understand where you want to be, when, why, and what the measures will be for having got there  Plan development towards above in appropriate achievable measurable stages  Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible. BEST PRACTICE CHANGE MANAGEMENT PRINCIPLES
  • 51.  STEP 1: Forces for change (internal and environmental forces) which affect:  STEP 2: Performance outcomes (individual, group and organizational) which encourages  STEP 3: Diagnosis of the problem (information, participation and change agent) which leads to  STEP 4: Selection of appropriate intervention (structural, behavioural and technological) as constrained by S-P-O-T-S  STEP 5: Limiting conditions (leadership climate, formal organization structure and organization culture)  STEP 6: Selection and Implementation of the method (timing, scope and experimentation) provision for  STEP 7: Evaluation of the method (feedback, adjustment, revision, reinforcement) APPLYING THE 7-STEP, ORGANIZATIONAL STRATEGIC CHANGE MANAGEMENT PROCESS
  • 52.  Step one of the strategic change management process starts with an assessment of the organization’s Mission and Vision, challenges (pains), enablers and values.  The following strategically-relevant items form the scope to be scrutinized by business managers:  The company's mission statement  The company's strategic plan/vision  The financial status of the organization  How the organization is currently structured and operating  The level of expertise of their employees  Customer satisfaction level  Tools:  SWOT Analysis  PESTEL Analysis STEP 1: FORCES FOR CHANGE - INTERNAL AND EXTERNAL STRATEGIC ASSESSMENT
  • 53. STEP 5: LIMITING CONDITIONS - FORCE FIELD ANALYSIS
  • 54.  Refer to page 37 in the Learner Manual  By referring to the 7-step organizational change management process, apply each of the steps in your working environment.  Present a summary of group discussion SYNDICATE GROUP LEARNING ACTIVITY 8
  • 55.  Summary of the key learning points  Questions  Conclusion  Good luck with the implementation of change management processes, systems and tools in DoL (UIF) CONCLUSION
  • 56. CONTACT DETAILS  Charles Cotter  (+27) 84 562 9446  charlescot@polka.co.za  LinkedIn  Twitter: Charles_Cotter  http://www.slideshare.net/CharlesCotter