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1. TOTAL CHANGE MANAGEMENT
Understanding, Initiating and Managing Organizational Change
By Shobrie Hardhi
http://tokosdm.blogspot.com

2. Change Management-1
Understanding, Initiating and Managing Organizational Change

3. 3
Aim
This presentation is a collection of ideas,
approaches, tips and resources for leaders at
all levels leading and driving organizational
change or transformation.
It lays out a clear roadmap for initiating, driving
and achieving change.
Leaders see, they feel, they change.

4. 4
What happens during change and what should be
done?
Agenda
What is change and why change?
How can change be introduced and managed?
Managing resistance and facilitating ‗buy-in‘ during
organizational change
Best practice and the don‘ts of change management
Summary, resources and further readings

5. Change management is a structured
approach to transitioning individuals, teams,
and organizations from a current state to a
desired future state.
5
What is change management?

6. • “It is not the strongest species that survive, nor the
most intelligent, but the ones who are most
responsive to change”
• Charles Darwin
• “Change your thoughts and you change your world”
• Norman Vincent Peale
6
Change quotes

7. • Environment – internal or
external factors
• Systems
• Processes
• Culture
• Things could be better
• Mergers
• Acquisitions
• Continuous improvement
• Take over
• Competition
• Innovation
• Upgrades
• New strategy
• Outsourcing
• Off-shoring
• Economy
• New technology
• Centralization
• Restructuring
7
Why change?
No change is without a purpose

8. 8
Few changes over the years
Nobody can go back and start a new beginning, but anyone can start
today and make a new ending.

9. 9
A changing perspective

10. Copyright 200910
Change process
Adapted from Kurt Lewin‘s Model
Unfreeze
Stability
Refreeze
Stability
Unfreezing/Change
Chaos
Unpredictability
No control
Confusion
Loss-Attachment
Fear
Shock
Anger
Desired
Situation
Undesired
Situation

11. 11
Change curve
…and 3 support stages
Information/Communication Emotional support Guidance/Directions

12. 12
5 phases of change
Only if change managers
understand these phases of
change, and only if they act
accordingly, they will be able
to successfully manage
change processes without
obliterating peoples
motivation and commitment.

13. Facts about change
Different people react differently to change.
Change often involves a loss, and people go through the "loss curve."
Most change succeeds or fails on the cooperation of the people who
must implement the change.
The key question asked or unasked on everybody‘s mind about change
is ―What‘s in it for me?‖ (known by many as WIIFM.)
A ―few‖ people and groups are almost always pivotal to a smooth and
effective change implementation.
Leadership is the key to successful change management
Everyone has fundamental needs that have to be met .
A clear plan of action is needed for each group/individual who needs to
move up in their support level for the change in order for it to succeed.
Communication and support are key ingredients when implementing
change.

14. • What do we need to achieve?
• Why?
• How?
• When?
• Who will be affected?
• How will they react?
• How do we support the people affected?
• Do we have the resources to manage the change?
• How do we communicate the change and facilitate buy in?
• How do we deal with resistance?
• What part of the change do we need help with?
• How do we know what success is and how is it going to be
measured?
• After the change, then what?
14
Questions to ask before change

15. 1
• Build trust – be open and honest
2
• Build a compelling, logical case for organizational change
3
• Match actions and words
4 • Involve the people affected
5
•Communicate a sense of confidence
6
• Repeat your main messages
15
Introducing change?

16. Assemble the puzzle and walk your way through
16
8 Steps to a successful change
1. Establish a sense of urgency
2. Create a guiding coalition
3. Develop a vision and strategy
4. Communicate the change vision
5. Empower broad-based action
6. Generate short-term wins
7. Consolidate gains and produce more change
8. Anchor new approaches in the culture

17. • Step 1: People start telling each other, ―let‘s go, we need to change things!‖
• Step 2: A group powerful enough to guide a big change is formed and they
start to work together well.
• Step 3: The guiding team develops the right vision and strategy for the
change effort.
• Step 4: People begin to buy into the change and this shows in their
behaviour.
• Step 5: More people feel able to act, and do act, on the vision.
• Step 6: Momentum builds, as more and more people try to fulfill the vision,
while fewer and fewer resist change.
• Step 7: People make wave after wave of changes until the vision is fulfilled.
• Step 8: People keep behaving in new ways despite the pull of tradition,
turnover of change leaders, etc.
Each of those steps will help create a new behavior toward change
17
Following the steps: Behaviours

18. • Do you have a clear definition and vision of what needs to change, why,
how and what the benefits of change will be?
• Have you assemble your change management team?
• Do you have the resources (technical and leadership
capacity/bandwidth)to carry through and lead the change?
• Have you planned the communication to all stakeholders?
Communication becomes critical.
• - Communicate only what you know to be true
• (not what you speculate).
• - Be sure your management approves of what you are communicating before you
start communicating.
• - Communicate what you do know as soon as you know
• - Communicate with your audience in mind. Tailor communications (same facts
different emphasis) to each affected group.
• - Communicate using multiple mediums (one on one, small group, large group,
phone conference, written information, etc.) through focus groups, discussions,
presentations, blogs, postings, videos, intranet etc..
• - Be prepared to answer questions. Significant communication should be scripted
accompanied by a companion set of questions and answers for all presenters.
• - Once you start the communication, cycle back to listening.
• - The more resistance, the more you must listen and communicate.
18
Are you ready?

19. 1. Understand the psychology of organizational
change.
2. Think strategically and make your messages
clear.
3. Listen.
4. Build engagement.
5. Get the right message to the right audience.
6. Communicate, communicate, communicate.
7. Use the right communication channels.
8. Use story-telling to paint a picture.
9. Make it easy for managers to communicate
effectively.
10. Measure results and celebrate success.
More on change communication
10 steps to minimize negativity and resistance

20. 20
Change communication model

21. Questions to increase engagement
• What do you think about this change?
• How do you feel about this change?
• What do you see your role as in this change?
• What is your opinion about this change?
• What is your experience with this type of change?
• What are you working on and how will you be impacted by this
change?
• What are your ideas about this change?
• Would you change anything about this change?
• Why do you think this change is needed (or not)?
Important note… Ask these questions and listen. No interruptions. No, ―yeah,
but…‖ Nothing. Nada. Zip it. Listen authentically. The group or person you are
talking WITH will recognize your sincere intent which establishes connection —
the foundation of any successful change.
Melissa Dutmers, FAST COMPANY
Ask your staff these questions:

22. CHANGE
• External
• Organisational
• Quicker
• More visible
• More predictable
• Physical
• Tangible
• Internal
• Personal
• Slower
• Less visible
• Less predictable
• Psychological
• Intangible
TRANSITION
22
Change vs. Transition
Change is the shift, transition is the process of one state of being to another

23. Barriers and resistance to change
• Fear
• Anger
• Habits
• Negative thinking
• Attitude
• Culture
• Subjectivity
• People
• Emotions
• Poor planning
23
(1)Parochial self interest
(2)Misunderstanding
(3)Low tolerance of change
(4)Genuine Disagreement
―The normal reaction to change is resistance.‖

24. Overcome Resistance: 1 method, 5 tools
24
Education
Facilitation Cooptation
Participation
Coercion
Negotiation

25. Change
Management
Best
Practice
Business
Case
Be Specific
Be
Assertive
Bring in an
Expert
25
5 B’s of executive buy-in

26. Best Practice of change management
26
• Have a reason for change, build a business case
• Have a roadmap, set stage for change – plan
• Be open, honest and transparent – don‘t hide bad news
• Be generous with the time and effort on handling change
correctly
• Plan your communications properly : keep the information flow
frequent to all stakeholders and listen
• Form a steering committee comprising of representatives of all the
parties to be affected by the change and involve them in its
planning and implementation at the earliest stages
• Leverage employee knowledge and empower
• Visible leadership, out of the boardroom to the shop floor, be
available and keep an open door policy
• Explore resistance to change and derive solutions accordingly
• Motivate and gain commitment
• Coach and support people
• Recognise and reward achievements
• Make change stick - Incorporate new values and attitudes and
weave into culture

27. • Lack of proactive leadership or strategy
• Not managing the people side of change or change resistance
• Lack of consistent leadership
• Poor communication, planning, support and monitoring
• Insensitive, brash approach and lack of recognition or reward
• Apathy
• De-motivated staff kept in the dark
• Lack of time, capacity, budget etc.
• Short-term approach to change, stressed out staff
• Lack of staff buy-in
• Lack of initiative to ―do something different‖.
These factors for failure then lead to the ‗tread-mill effect‘,
setting up a vicious circle
• No time for reflection, planning and learning
• No improvement in idea, design and implementation
• Increasing need to do something
• Increasing failure and unplanned consequences
27
Factors for failure

28. 28
Don'ts of change management
Don‘t just think that
change will
automatically
happen – it needs
work.
Don‘t ignore
rationale concerns,
address and derive
solutions.
Do not do a
management high
up selling alone. You
need to sell change
to all your staff and
stakeholders.
Don‘t start any
change
management
without a business
case and a
roadmap.
Don‘t do it on your
own, you need
supporters!
Don‘t ignore
communication and
support. You need
both for change to
stick.

29. 29
Change management summary
Change is difficult
because of
emotions
People will react
differently but
generally follow
the same pattern
Accept that fear,
denial, anger,
resistance is normal
and do things to
help (yourself or
your staff)
Carefully look for
the opportunities:
they will be there
Focus on removing
fear: most other
behaviours seems to
stem from this
Good information
and communication
is essential: people
are good at dealing
with change if they
know what is
changing

30. 30
Resources and further readings
• Fast Company Change Management and Organizational Change
Read the latest in content related to Change Management and
Organizational Change from Fast Company magazine.
• AHS Communication plan and example:
http://www.ahscommunications.com/images/Communication_Plan_T
emplate_and_Example.pdf
• AHS Change Communication, key messages and persuations:
http://www.ahscommunications.com/images/Communication_Brief_1
0-08_.pdf
• Making sense of change management: a complete guide to the
models, ...Esther Cameron, Mike Green -
• Change management: the people side of change Jeff Hiatt, Timothy
J. Creasey
• Change Management: A Guide to Effective Implementation Rob
Paton, James McCalman
• Change management excellence: using the four intelligences for ...
Sarah Cook, Steve Macaulay, Hilary Coldicott
• Change Management Stella Louise Cowan

31. 31
Resources and further readings
contd.
Leading Change : Overcoming the Ideology of Comfort and the Tyranny of
Custom, by James O'Toole, 302pp., Jossey-Bass, April 1995
Leading Change: Why Transformation Efforts Fail, by John P. Kotter, 187pp.,
Harvard Business School Press, September 1996
The Heart of Change: Real-Life Stories of How People Change Their
Organizations, by John P. Kotter and Dan S. Cohen, 208pp., Harvard Business
School Press, August 2002
The First 90 Days: Critical Success Strategies for New Leaders at All Levels, by
Michael Watkins, Harvard Business School Press, 2003
Good to Great: Why Some Companies Make the Leap, and Others Don't, By Jim
Collins, 320pp., Harper Collins Publishers, Incorporated, October 2002
Useful website with free tools:
http://www.businessballs.com/changemanagement.htm
http://www.changr-management-toolbook.com
sign up for its free monthly newsletter!

32. Change Management-2

33. 33
Contents
• Forces for Change
• Principles of Change
• Five Activities Contributing to Effective Change Management
• Motivating Change
• Creating Vision of Change
• Developing Political Support
• Managing the Transition
• Sustaining Momentum
• Elements of Change Enablement

34. 34
“When the rate of change outside
exceeds the rate of change inside,
the end is in sight”
Rate of Change
Jack Welch

35. 35
Forces for Change...
Electronic
commerce
Virtual organizations
Digital convergence
“Knowledge
economy”
“Information Superhighway”
... are transforming the world of business
Mergers &
acquisitions
Privatizations

36. 36
Not Very
Successful
Very Successful
Moderately Successful
Too soon to tell
Unsure33%
27%
27%
9%
4%
Rate of Success in Change Efforts

37. 37
Technical Side of Change Human Side of Change
Two Sides of Change

38. 38
1. Change is a process that can be enabled, not
managed
2. The change process must be linked to business
and performance goals
3. Building capacity to change is a strategic
imperative
4. Building capacity for change is an evolutionary
process
Principles of Change

39. 39
5. Effective change processes require a systemic
view of the organization
6. The change process involves both organizational
and personal transitions
7. Behavioral change is a function of perceived need
and occurs at the emotional, not the intellectual
level
Principles of Change

40. 40
8. Resistance to change is predictable reaction to
an emotional process and depends on a person’s
perception of a change situation
9. A handful of change enablement best practices
account for the success of most change
processes
10.Change strategies are situational
Principles of Change

41. 41
Five Activities Contributing to
Effective Change Management

42. 42
Five Activities Contributing to Effective
Change Management
1. Motivating Change
2. Creating Vision of
Change
3. Developing Political
Support
4. Managing the
Transition of Change
5. Sustaining Momentum
Effective
Change
Management

43. 43
1. Motivating Change
Motivating change
and creating
readiness for
change
Sensitize
organizations to
pressure for
change
Reveal
discrepancies
between current
and desired states
Convey credible
positive
expectations for
the change

44. 44
Force Field Analysis Model
Current
Situation
Restraining Forces for Change
Driving Forces for Change

45. 45
Force Field Analysis Model
Strengthening
or adding
driving forces
Removing or
reducing
restraining
forces
Changing the
direction of
some of the
forces
Change

46. 46
Group Exercise
• Take this opportunity to think of a situation in your organization
where Force Field Model could be demonstrated. Begin by
identifying a change being instituted in your organization.
• List the driving forces
• List the restraining forces

47. 47
Resistance to Change
20% 40% 60% 80% 100%
Source: Information Week, June 20, 1994
Limitations of Existing Systems
Lack of Executive Commitment
Lack of Executive Champion
Unrealistic Expectations
Lack of Cross-Functional Team
Inadequate Team and User Skills
Technology Users Not Involved
Project Charter Too Narrow
Barriers to Change

48. 48
Individual Resistance
Individual
Resistance
Habit
Selective
Information
Processing
Economic
Factors
Job Security
Fear of the
Unknown

49. 49
Organizational Resistance
Organizational
Resistance
Threat to Established
Power Relationship
Group Inertia
Threat to Established
Resource Allocations
Structural Inertia
Limited Focus of Change

50. 50
Denial
Resistance Exploration
Past Future
Four Phases of Transition
Commitment

51. 51
• “How good things were in the
past”
• “It can‟t happen here”
• Numbness
• Everything-as-usual attitude
• Refusing to hear new information
• Anger
• Loss and hurt
• Stubbornness
• Blaming others
• Complaining
• Getting sick
• Doubting your ability
Some of the Signs in Each Phase
Denial Resistance

52. 52
Exploration Commitment
• “What‟s going to happen to
me?”
• Seeing possibilities
• Chaos
• Indecisiveness
• Unfocused work
• Energy
• Clarifying goals
• Seeing resources
• Exploring alternatives
• “Where I am headed”
• Focus
• Teamwork
• Vision
• Cooperation
• Balance
Some of the Signs in Each Phase

53. 53
Overcoming Resistance to Change
Education and
Communication
Participation and
Involvement
Facilitation and
Support
Negotiation
Manipulation and
Cooptation
Coercion
Overcoming
Resistance
to Change

54. 54
2. Creating Vision of Change
Constructing
the Envisioned
Future
Bold and
Valued
Outcomes
Desired
Future
State

55. 55
3. Developing Political Support
Assessing Change
Agent Power
Identifying Key
Stakeholders
Influencing
Stakeholders
Developing
Political
Support

56. 56
Roles in Organizational Change
Change
Sponsor
Change
Agents
Change
Target
These are individuals or groups with
the power to determine that a change
will occur
These are individuals or groups
responsible for seeing that a previously
determined change occurs
These are individuals or groups who are
asked to change something (knowledge,
skills, or behavior) as a result of the
change

57. 57
Influencing Key Stakeholders
A set of questions designed to profile an individual stakeholder:
• Reluctant and occasional
• Make response to threats
• Assertive and direct
• Deception and subtlety
What is their
style of using
power?
• What is their source of power ?
• What they can control: money, time,
resources, people, information ?
• Who they can influence: friends, admirers,
those who feel obligation ?
Power

58. 58
Influencing Key Stakeholders
• Changes their power ?
• Affects other needs ?
• Affects goals, objectives and interests ?
• Opposition, uncertainty or support ?
• Action now or „wait and see‟ ?
• Open action or hidden action ?
• Individual action or acting with others ?
What is their likely
response to the
change?
How does the
change really affect
them?
Effect of Change

59. 59
Influencing Key Stakeholders
• Significant or limited ?
• Local or widespread ?
• Recoverable or permanent ?
What would be the
impact of their
response?
Effect of Change

60. 60
Influencing Key Stakeholders
What would make
them more
supportive of the
change?
• Information / understanding ?
• Involvement and ownership ?
• Changes in planned actions?
• Direction from more senior managers ?
• Evidence of the success of the change ?
What would make
them less
supportive of the
change?
• Personal threat ?
• Non-involvement in decisions ?
• Personal rivalries ?
• Insufficient evidence in „trial period‟
(defined by them) ?
Influencing Key Stakeholders

61. 61
4. Managing the Transition
Current
State
Desired Future
State
Transition
State
• Activity Planning
• Change Management Team

62. 62
Head
(Executive Sponsor)
Head
Organizational
Development
(Change Leaders)
Communication Role
(Change Agents)
Human Resources Role
(Change Agents)
• Corporate Management
• Key project accountability and ownership
• Report to CEO on project outcomes/success
• Coordinate overall change program
• Develop clear change strategies for change
• Responsible and accountable for overall success
• Develop individual and team change capability
• Provide clear communication to all key stakeholders
on change related issues
• Develop 2-way communication channels to foster
ongoing organizational change
• Provide expert HR advice on personal transitions and
support
• Provide Change Office & project based HR
infrastructure
Change Management Team : Roles Example

63. 63
Project Leaders
• Take responsibility for key initiatives
• Coordinate project team
• Report to business unit GM and Change Office on
project progress
• Develop leadership change management capability
• Provide ongoing change advice to leaders
• Coordinate project infrastructure & integration
• Prioritize and plan overall project timeframes
• Establish clear project performance measures and
reporting systems
• Manage ongoing project performance
• Report to Executive on overall progress
Leadership Advisory
Role
Process Co-ordination
Role
Performance
Management Role
C - 5
Change Management Team : Roles Example

64. 64
Critical Skills of Change Agents
Understands
change
dynamics
Appreciates
diversity
Anticipates
and manages
resistance
Understands
power and
influence
Has high
credibility
Manages
multiple tasks

65. 65
5. Sustaining Momentum
Sustaining
Momentum
Providing Resource for
Change
Building a Support System
for Change Agents
Developing New
Competencies and Skills
Reinforcing New Behaviors
Staying the Course

66. 66
Five Activities Contributing to Effective
Change Management
1. Motivating Change
2. Creating Vision of
Change
3. Developing Political
Support
4. Managing the
Transition of Change
5. Sustaining Momentum
Effective
Change
Management

67. 67
Elements of Change
Enablement

68. 68
Culture
Capacity
Leadership
Capacity
Individual
& Team Capacity
Future
State
Current
State
Realizing
Leadership Capacity
Individual &
Team Capacity
Change
Architecture
Communication
Performance
Management
Cultural
Capacity
Elements of Change Enablement

69. 69
Change
Architecture
Communication
Performance
Management
Organizational
Transition
Leadership
Capacity
Team & Individual
Capacity
Cultural Capacity
Personal
Transition
Change
Process
Elements of Change Enablement

70. 70
There is an explicit strategy and structure which
define the nature and sequence of specific
activities and resources required to facilitate the
change process.
Change
Architecture
Communicat
ion
An infrastructure and plan is in place to build
awareness of change goals, communicate
progress toward attainment of these goals, and
encourage collective ownership of the change
process and outcomes.
Change Enablement – Best Practices

71. 71
Human Resources processes - recruiting,
training, measuring and rewarding - are aligned
to drive new behaviors in support of the business
vision.
Performance
Management
Change Enablement – Best Practices

72. 72
Leaders‟ values and behaviors are aligned with
the business vision; leaders possess the skills to
drive the change process to completion, and
accept the responsibility for doing so
Leadership
Capacity
Team &
Individual
Capacity
Actions have been taken to increase individuals‟
and teams‟ ability to enact the business vision and
operate effectively in the new environment.
Change Enablement – Best Practices

73. 73
The organization has assessed the alignment of
the current culture with the change process and
built new values and behaviors as appropriate to
support it.
Cultural
Capacity
Change Enablement – Best Practices

74. 74
Recommended Further Readings:
1. Thomas Cummings and Christopher Worley, Organization Development
and Change, South Western College Publishing
2. Lynn Fossum, Understanding Organizational Change, Crisp Learning
Publication

75. 75
End of Material
If you find this presentation useful, please consider telling others about our site
(www.tokosdm.blogspot.com)

76. 76 Copyright 2009
Questions?
By Shobrie Hardhi
http://tokosdm.blogspot.com
http://tokosdm.blogspot.com