Get ready for change because they are always moving the cheese

1. CHANGE
MANAGEMENT
BY
YASSER HAMED
Quality Manager
2007-November

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Agenda
 What does change mean?
 Resistance to Change
 Organizational Culture
 Change Agent
 System Approach
 Successful Leaders
 Things that can get in the way
 Change management Process
 Newton’s Laws

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What does Change Mean?
There are two types of change that challenge
and impact organizations:
 Internal
 External

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Internal Change
 Undertaken to avoid deterioration of current
performance, or to improve future
performance of a process or system
 Managed from within the organization in an
orderly, planned, and systematic way

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External change
 Environmental changes that come from
outside the organization, and the organization
exercises no control over them.
 For example, shifting economic tides, new
competitors, or radical technology
developments

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Employee Resistance to Change —
Why?
 No matter how well designed and planned
your change program is, not everyone will be
singing its praises.
 Employees resist change for a wide variety of
reasons, ranging from a straightforward
intellectual disagreement over facts to deep-
seated psychological prejudices.
 Some of these reasons for employee
resistance may include:

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Employee Resistance to Change —
Why?
 belief that the change initiative is a temporary fad
 belief that fellow employees or managers are
incompetent
 loss of authority or control
 loss of status or social standing
 lack of faith in their ability to learn new skills
 feeling of change overload (too much too soon)
 lack of trust in or dislike of managers
 loss of job security
 loss of family or personal time
 feeling that the organization is not entitled to the extra
effort

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Organizational Culture
 Organizational culture can be fully difficult to
understand.
 It is defined as underlined assumptions,
beliefs, values, attitudes, and expectations
shared by the members of an organization

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The Change Agent
 Is a person who has the clout, the conviction,
and the charisma to make things happen and
keep people actively engaged in the change
process
 He, or she works to melt down resistance,
and as change is being implemented, he or
she must continue to find ways to solidify
consensus and manage the ramifications and
effect of change within organization.

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The Change Agent, cont.
 Change agents must juggle a number of
skills, they must understand, but not
participate in an organization’s politics.
 They must be keen analyzers who can clearly
defend their analyses to the organization.
 They must speak many organizational
languages-Marketing, finance, systems, etc.,

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The change Agent, Cont.,
 They must understand the financial impacts
of change
 They do this change by putting together solid
teams comprised of high energy, qualified,
and eager employees.
 A strong sense of mission, good
communication skills, and flair for offbeat and
unorthodox round out the change agent’s
character.

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A system approach
 Every kind of system whether social,
biological, mechanical, or financial has inputs,
process, outputs, and outcomes.
 The various components in the system
interact and provide feedback to one another,
and if one part is removed or modified, the
nature of the entire system will be affected.

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A system approach
 Instead of shifting a single, isolated facet of
how an organization conducts its business to
another single, isolated facet, the manager
looks at relationships among the various
parts and focuses on patterns of interactions.

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A system approach
 Closed systems are discrete and
disconnected, and they are managed by
looking at the final events rather than casual
relationships and patterns

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A system approach
 An open, dynamic system sees the forest and
the trees. It takes holistic perspective,
permitting a view of the entire structure not
the sum of its individual parts, to better
understand how each piece interacts with and
impacts the others.

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A system approach
 Open system:
 To be viable, a system must be goal oriented
(strategic), governed by feed back (measure
performance), and adaptable ( open to new
knowledge)
 This requires a commitment to knowledge
management principles and flexible approach
to new ideas

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Taking it from the top
 One of the most significant factors that
impede success in organizations is lack of
leadership. Sustained, focused, demonstrable
leadership is imperative for successful
implementation of financial management
reforms to occur, and it is better if comes from
CFO

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Taking it from the top
 Communicating the message:
 Leaders who look to facilitate organizational
change use a variety of means to
communicate their organization’s values and
beliefs

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Communicate the message
 Discuss such values and beliefs in meetings
 Internal publications
 Magazine articles
 Training

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Communicate the message
 Write a mission or vision statement that
captures the essence of an organization’s
character, purpose, and aspirations, and use
illustrative slogans
 Reward employees who live up to
organizational mission
 Communicate during the hiring process
 Use a management style that compatible with
those core beliefs

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Communicate the message
 Replace or change the responsibilities of
employees who don’t support the desired
values and beliefs
 Assign a manager to change the culture

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Successful leaders
 Successful leaders grant decision making
authority
 Use a range of tools to encourage a results
orientation ( incentive mechanisms are
aligned with the goals of the organization)
 Take steps to build the necessary expertise
and skills

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Things that can get in the way
 Cultural resistance
Such change is unlikely to be immediate;
therefore, strong leadership is necessary to
sustain long-term commitment to
performance based management

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Things that can get in the way
 Unclear goals and performance measures
 Lack of incentives for change

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How To Get beyond them
 Clear goals and performance measures
should drive daily operations
 Building the organization’s human capital is
key to achieving results
 Programs and processes must be linked to
results and customer satisfaction
 Decisions should be based on sound data

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How To Get beyond them
 Active leadership
 Clear lines of responsibility and accountability
 Incentives and consequences

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Change Management Process
 Adopting a principled approach is great, but
how do you apply these change management
principles in practice?
 This approach consists of six phases that
successful change programs progress
through.

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Change Management Process

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1- Create Tension
 Is there a clear and compelling reason for
adopting this change program?
 Is it clear how, when and where this change
will happen?
 What is required to keep the initiative moving
forward?
 Is the objective data needed to convince the
skeptics available?
 Do people feel the urgency to change?

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2-Harness support
 Who are the stakeholders in this change?
 What are the motivators for each
stakeholder?
 Does the senior executive team support this
change?
 Has a communication plan been developed?
 Are all stakeholders engaged in the change
process?

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3- Articulate Goals
 Do stakeholders take ownership of the vision
and goals?
 Are program goals SMART goals?
 Are people involved in devolving the goals to
lower levels of the organization?
 Are implementation plans in place supporting
attainment of goals?
 Are performance measurement and reporting
systems set up?

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goalsSMART
 Are your goals linked to the mission, vision and
strategic direction of your organization or
organizational unit? Or are they peripheral to the
organization, ready to be jettisoned when resources
get tight or a new fad comes along?
 Are they SMART goals? That is, are they stated so
that they are:
 Specific
 Measurable
 Achievable
 Relevant
 Time framed

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4- Nominate Roles
 Are change management and new
operational accountabilities clear?
 Are the right people selected for the right
roles?
 Do people with responsibilities have the
necessary skills?
 Are project management principles and
methods being used?
 Is the proportion of goal and task assignment
appropriate?

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5- Grow Capability
 Is the training plan sufficiently scoped and adequately
resourced?
 Are teams being developed and supported for high
performance?
 Is support in place ensuring transfer of training to the
workplace?
 Is there a focus on soft skills as well as technical
skills?
 Do information, human resource and other systems
support the new operational environment?

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6- Entrench Changes
 Are performance results reported and
successes celebrated?
 Is planning sufficient to ensure some quick
wins?
 Are remuneration, rewards and recruitment
systems aligned with the change objectives?
 Are new meanings provided through creating
workplace symbols?
 Do managers and supervisors lead by
example?

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Change Management Principles:
The Three Laws
 Change programs that succeed adhere to
certain enduring principles of effective
change management. Organizations that act
in accordance with these change
management principles are more likely to see
their efforts result in real organizational
benefits. Here are three principles that have
well stood the test of time.

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Newton’s First Law
 Newton’s First Law of Motion states that an
object will remain at rest or in perpetual
motion until an unbalanced force acts upon it.
Think of your organizational change program
for a moment as the object in Isaac Newton’s
First Law. Once your change initiative gets
going, think about what will keep the program
moving towards your goal.

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Newton’s First Law
 Just as with Newton’s First Law, the force
must be immediate for your program to
progress. A potential force that will provide an
impetus in the future is of no use in the
present. What is the immediate force that will
get your people moving and what are the
forces that will keep them moving? For some,
discussing with them the forces for change
may compel them to follow and support you.

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Newton’s Second Law of Motion
 Newton’s Second Law states that the rate of
change in motion of an object is proportional
to the force acting upon it and inversely
proportional to its mass. Consider the object
as being the people working in the new
organization and the force to keep them
moving in the right direction as the various
practical techniques such as:

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Your practical techniques could
include:
 aligning systems of reward and recognition
 feeding back performance results to employees
 achieving some quick wins
 celebrating achievements
 creating meaning through introducing symbols of the
new culture
 ensuring managers walk the talk
 operationalizing the change
 aligning recruitment and selection criteria

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Newton’s Third Law
 Newton’s Third Law states that every action is
met with an equal and opposite reaction.
What the principle teaches us is that if you
confront resisters with shouting, lies, mistrust,
sarcasm or apathy, you will be confronted
with shouting, lies, mistrust, sarcasm and
apathy in return. On the other hand, if you
treat resisters with respect, acknowledge their
feelings and listen genuinely to their
concerns, you will be met in kind. How can
you apply this principle?

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Things to consider include:
 Communicate openly and often with employees and other
stakeholders, and without using commercial confidence as an
excuse to not communicate.
 Meet resisters face to face whenever possible.
 Point out unacceptable behavior without resorting to character
assassination, sarcasm and other methods that serve to attack
people’s sense of self-esteem.
 Keep your commitments in order to build trust and respect.
Trust can be lost in an instant and take years to regain.
 Don’t shy away from bad news. Tell people candidly but
sensitively.
 Choose people for key positions that have well developed
interpersonal skills.

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Summary
 From Newton’s three laws, effective
organizational change managers draw three
very important change management
principles and apply them in practice. We can
summarize these Three Laws of Change
Management

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Summary cont’
 First Law: Overcoming the natural inertia in
organizations requires the constant
application of the forces for change.
 Second Law: The greater the inertia or
resistance to change, the greater the required
forces for change.
 Third Law: The way that change agents treat
resisters is the way that resisters will treat
change agents.

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Questions
?????