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Change management & Technological Change.pptx

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Change management & Technological Change.pptx

  1. 1. What is Change Management • It refers to the task of Managing the change. • Managing change refers to the making of changes in a planned and managed or systematic fashion. • Changes lie within but may have been triggered by factors which are not in control of Organisation Current State Managed way. Future State
  2. 2. What is Organisational Change Management • It refers to develop a planned approach to bring the change in the organisation. • Objective : • Basically, this deals mainly with the human aspect of the change. Maximising the collective benefits. Minimising risk of failure.
  3. 3. Organisational Change Reactive : Responding to macro environment Proactive : Initiating Change to achieve goals
  4. 4. 1. Advantages / importance of Change Management 2. Disadvantages of Change Management. Read…
  5. 5. Principles of change Management • At all times involves and seeks support from people within system (system = environment, processes, culture, relationships, behaviours, etc., whether personal or organisational). • Understand where you are / the organisation is at the moment. • Understand where you want to be, when, why, and what the measures will be required for reaching / getting there. • Plan development towards above No.3 in appropriate achievable measurable stages. • Communicate, involve, enable and facilitate involvement of people, as early and openly and as fully as possible.
  6. 6. Change Management Process Identify potential change Analyse change request Evaluate change Plan change Implement change Review Close Change.
  7. 7. Resistance to Change • Biggest Challenge- Disturbs o equilibrium o Existing procedures o Power structures,etc. • Resistance of Change can be : Overt / Immediate Example – Strike, slow down. Implicit / Deferred Examples: Job satisfaction, decreased loyalty
  8. 8. Resistance to Change • Resistance to change can come from employees as well as employers or management. • Resistance to change can occur at any level i.e. individual level, group level and organization level. Overt / Immediate Example – Strike, slow down. Implicit / Deferred Examples: Job satisfaction, decreased loyalty
  9. 9. Individual Resistance
  10. 10. Organisational Resistance
  11. 11. Building a Culture • Just like Rome was not built in a day, the culture is not built in a day. • Building culture for change is a time consuming exercise and involves lot of efforts. • Managers should not Impose change – People & teams need to be empowered to find their own solutions & and responses
  12. 12. Building a Culture for Change – A change should be • Describe the change process to all people involved and explain the reasons why the changes are occurring. The information should be complete, unbiased, reliable, transparent, and timely. • Be designed to effectively implement the change while being aligned with organizational objectives, macro environmental trends, and employee perceptions and feelings.
  13. 13. Building a Culture for Change - A change should be • Provide support to employees as they deal with the change, and wherever possible involve the employees directly in the change process itself • Be consistently monitored and reviewed for effectiveness. A successful change management program is typically also a flexible project
  14. 14. ADKAR Model • The ADKAR model developed by Jeff Hiatt (1998, 2006) can be highly helpful for individual change management. • The model presents five building blocks which must be obtained / implemented to realize change successfully.
  15. 15. ADKAR Model • A- Building AWARENESS as to why the change is needed • D- Creating DESIRE to support and participate in the change • K- Developing KNOWLEDGE as to how to change • A-Fostering ABILITY to implement new skills and behaviours • R- Providing REINFORCEMENTS to sustain the change
  16. 16. ADKAR Model
  17. 17. Management of Change • Involvement of People/ participation / people lever in the organisation • Leadership • Changing Technology • Negotiations & Agreement • Willingness for sake of group • Timing of Change • Training and development • Cross Cultural Change
  18. 18. People Involvement/ people lever If Managed properly, then multi-fold increase in : 1. Creativity 2. Productivity 3. Quality 4. Overall Tech. advancement If not managed properly 1. Individual resistance 2. Team resistance 3. Organisational level 4. As an employee/ Manager
  19. 19. People involvement Can be harnessed by : • Proper communication • Education & Training • Right culture • Seeking Participation • Introducing rewards • Encouraging creativity • Multifunctional teams
  20. 20. Some techniques • TQM • Quality Circles • Kaizen • Ringi For quality improvement & problem solving
  21. 21. Kaizen • Kaizen - is the Japanese concept of continuous improvement. Motto of Kaizen is – “Today better than yesterday and Tomorrow better than today.” • Kaizen practice means deep, systematic and continuous involvement of people (everybody) and by using certain techniques, but mainly by their brain, to cause a process of improvement to start, develop and never-end. • Under this concept, plant is treated as a living institution. It is continuously learning and changing. • Work-teams focus on how to improve what they are doing. • Job rotation & cross –training are frequently employed / used to give workers a complete perspective of production processes.
  22. 22. 5 elements of Kaizen • Teamwork • Personal discipline • Improved morale • Quality circles • Suggestions for improvement
  23. 23. Quality Circles • A quality circle is a volunteer group composed of workers (or even students), usually under the leadership of their supervisor (they may elect a team leader), who are trained to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees. When matured, true quality circles become self-managing, having gained the confidence of management.
  24. 24. Ringi Systems • The Ringi System is a unique way of coming to consensus about new ideas within Japanese companies. • The ideas are usually proposed by the lower rank managers who have operational responsibilities. The concept would then be discussed among the same rank personnel and once having reached the consensus it would be passed to the next level of managers, where it would undergo the same procedure. • After such broad consultations the proposal will reach the top management, where it would or would not get the final approval.
  25. 25. Role of Leadership • “ A leader is one who can take a group of people to a place they don’t think they can go”. • “ Leadership is --- we, not me; mission, not my show; vision, not division; community, not domicile”.
  26. 26. Role of Leadership • A leader can play the following positive roles by helping the management during the process of change: • Encouraging collaboration rather than competition • Encouraging customer-orientation • Encouraging training and coaching • Encouraging quality consciousness • Improving communication • Encouraging team work • Improving participation of work force • Can reduce conflicts by problem-solving • Helping and encouraging for better productivity • Can encourage creativity in an organization • Helping in creating proper culture for improvement, problem solving, prevention etc.
  27. 27. Specifically • Proper & successful management of new product development & its commercialization (innovation) • Reduction of lead time from research & development to markets. • Speeding up volume / quantum of successful new product launch • Attainment of quality leadership • Attainment of new product / technological leadership
  28. 28. Changing Technology • Need for Survival • Competitive Edge • Change in equipment, Machinery, products, processes. • Effective strategies should be adopted to avoid resistance for change in technology.
  29. 29. Training & Development • Increases rate of Change & Management Success • Training helps maintain Visibility & encourages belonging • Promotes employee engagement.
  30. 30. Change Management Strategies Strategies Empirical- Rational Normative – Reductive Power- coercive Environment – Adaptive
  31. 31. Some of the strategies are : • Proper timing or tact • Proper timing / tact • Education & communication • Seeking participation • Facilitation & support • Negotiation • Manipulation & Co-optation • Coercion • Introducing incentives / rewards
  32. 32. John P Kotters’ Eight steps to successful change Increase Urgency Build the Guiding Team Get the vision right ‘ Communication Buy-in Empower action Create short term wins Do not let up Make change stick.
  33. 33. John P Kotters’ Eight steps to successful change 1st three- Supportive Climate for change 2nd three- Employee engagement & Empowerment Last 2 : Sustaining the Change
  34. 34. What is Technological Change ? • Technological Change : This is a change which occurs through the invention of new technological applications as a result of research and development & their commercialisation
  35. 35. Technological Change, Technical Change & Technological Progress •More & Better Technology Technological Change •Subset of technological Change •Techniques & knowhow. Technical Change •Further improvement of existing product , service & process technologies •Emergence of new technologies Technological Progress
  36. 36. Factors Leading to Technological Changes
  37. 37. Factors Leading to Technological Changes
  38. 38. Factors Leading to Technological Changes
  39. 39. Characteristics of Technological Change • Inevitable in current scenario • Generally On-going activity but can be one time also. • Occurs in all organisations at varying rate • Pervasive activity • Influenced by Internal & external factors • Leads to changes in • Products • Services • Tools • Equipments • Processes • Systems • technologies
  40. 40. TECHNOLOGICAL TRANSITIONS • Technology Transitions describe how the technological innovations occur and how they are incorporated into socio economic systems and structures. • It involves : o Changes in regulations, o Industrial networks o Infrastructure o Culture
  41. 41. Technology Transitions • Two Perspectives : Technology Transition Boom & Bust Cycles Multi-level Perspective
  42. 42. BOOM & BUST CYCLES • Industrial Revolution • Victorian Prosperity • The age of steel • Oil , mass production and consumer society • Information Age Common in these Cycles – Techno Economic Paradigm – Exerts an influence on Technological Change Pervasive Technologies Production Structure Economic Structure
  43. 43. MLP- Multi-level Perspective Niche Regime Landscape
  44. 44. Transition Paths • Reproduction • Transformation • Technological Substitution • DE alignment & Realignment • Reconfiguration
  45. 45. Product Design • Product design is the process of creating a new product to be sold by a business to its customers. It is essentially the efficient and effective generation And development of ideas through a process that leads to new products. • Product design describes the process of imagining, creating, and iterating products that solve users’ problems or address specific needs in a given market.
  46. 46. Steps in Product Design • Idea Generation • Concept Screening • Competitive Analysis • Concept testing • In- depth analysis • Prototype development • Commercialisation
  47. 47. Changes in Product Design • Changing consumer • Increasing competition • Technological advancement • New opportunities (growth and development) • Risk diversification • To increase company & brand reputation • To utilise excess capacity
  48. 48. If you actually compare Laptops and Desktops, they are just two types of product design of the same product – Personal computers. However, in the last several years, we have seen that the market share of Desktops has rapidly dropped and that of laptops has increased. This is all because of a simple change in Product design. Product design is important to an organization or a brand as it differentiates the brands from others. We will always differentiate a Levi’s jeans from a Killer jeans or we will always say that Arrow shirts are different from Van heusen. This is because their product design is different.
  49. 49. Product design is the way you arrange the features and benefits of the product to be presented to the customer. The design can be a benefit in itself. When people used to listen to Boom box’s, Sony brought the Walkman and it was an instant hit. It was just a product design change which involved a different technology. Later on, Apple further changed the design of the product and brought the I pod which again took the major market share. And finally, Smartphones are taking away the market share from Ipod.
  50. 50. Process Design • Process : any part of an organization which takes a set of input resources which are then used to transform something into outputs of products or services. • Design process of originating and developing a plan for a product, service or process
  51. 51. Customer Satisfaction in Process design • Layout • Location • Process technology • Human skills
  52. 52. Factors Necessitating the Process Technology • Nature of demand • Degree of vertical integration • Flexibility • Degree of automation • Quality level and degree of customer contact
  53. 53. Interrelated Product & Process Design