Ch. 8 Change management Flashcards
Corporate culture, Management style, Organisational structure, Competition, Legislative compliance
Drivers of change
Concept of change
Internal & external influences
Vision for change and strategic planning
Change consultants & professional services
Change environment
Operational, Financial, HR, Marketing
Management strategies
Involves the process that ensures a business responds to the environment in which it operates
Change management
Change is the result of dissatisfaction with present strategies or position
Essential to developing a vision for a better alternative
Necessary to develop strategies to implement change
There will be resistance to change
Elements to change
Provides an overview of the change problems that need to be tackled by a business, splitting factors into forces for and against change
Force Field analysis
Motivator for stakeholders
Vision
Vision for change + strategic plan
Change
External experts hired by the business to examine the efficiency and effectiveness of the business - providing advice, recommendations and suggestions to address an issue
Consultant
External to the business, offering specific knowledge. Provide a service to the business. eg. Lawyers and Accountants
Professional services
If a change is required, it needs to be melted, moulded into a new desired shape and then frozen again to achieve the required change
Lewin’s theory of change
The preparation stage
The business needs to provide its stakeholders with a convincing rationale for its change.
Must involve and empower employee participation
Lewin’s change model: 1. Unfreeze
The implementation stage
Transition takes place, all stakeholders need to embrace change
Lewin’s change model: 2. Change
The solidification/normalisation stage
Changes have taken shape and the people in the organization have accepted, embraced, and implemented the change
Lewin’s change model: 3. Refreeze
Factors that drive change
Can apply pressure for a change and encourage and support the change occurring
Force field analysis: Driving forces
Factors that resist/block change
Can make the change process more difficult to implement and lead to resistance to change
Force field analysis: Restraining forces
For a business to achieve success, it first needs to overcome resistance to change and facilitate transformation by first identifying obstacles, then taking steps to eliminate them
Kotter’s change management: Theory of change
- Create a sense of urgency
- Form a powerful coalition
- Create a vision for change
Kotter’s model of change: Create the climate for change
- Communicate the vision
- Empower action
- Create quick wins
Kotter’s model of change: Engage and enable the organisation
- Build on the change
8. Make it stick
Kotter’s model of change: Implement the change
The first step is to make others aware of the need and urgency for change. This requires an honest and open approach that convinces others of the importance to take action
- Create a sense of urgency
The next step is to establish a project team to implement the change. The team should be made up of people with authority, recognition, and respect within an organisation.
- Form a powerful coalition
It is essential for the team to establish a vision and direction that will allow them to achieve the goal for change. Formulating a change vision can help everyone understand what the organisation is trying to achieve within a given time frame.
- Create a vision for change
The vision should be shared with all those who will be affected by the change. It is important to involve all stakeholders and provide opportunities for the new vision to be accepted across the entire organisation.
- Communicate the vision
It is crucial to empower others to act on the vision and try to remove any obstacles that may negatively impact on the change and the new vision.
- Empower action
Recognition and rewards should be given throughout the change process. This will show that contributions have been appreciated and will reinforce the positive aspects of embracing the change.
- Create quick wins
At this stage of the process, it is important to consolidate all of the changes that have occurred and continue the process of improvement.
- Build on the change
The final step is to anchor the changes and create a new culture. There needs to be a clear statement to show the connection between the change and the success of the organisation.
- Make it stick
Corporate culture
Management style
Organisational structure
Drivers of change: internal environment
Competition
Drivers of change: operating environment
Legislative compliance
Drivers of change: macro-environment
Shared values, attitudes, and beliefs that characterise members of an organization and guide its practices
Corporate culture
Influence and motivate stakeholders during the change process
Management style
Outlines roles and responsibilities and the different levels of management
Organisational culture
Changes to the organisation’s hierarchcy
Chain of command
Management system
Job structure
Structural changes in a business
Changes to laws can force a business to implement change
Legislative compliance
The action taken by someone when change is occurring
Resistance to change
Unknown Trust Communication Fear Timing
Reasons for resistance to change
Communication Negotiation Participation Manipulation Threat
Leadership and management strategies
Awareness Acceptance Understanding Alignment Commitment
Communication continuum strategy
Communicate: ~ The plan ~ Openly ~ Frequently ~ Confidently
Communication plan
~ Empower all employees to participate in the change by providing opportunities to contribute
~ Identify and include key change agents through participation in the change process
~ Build a leadership team to lead the change
Participation
Involves identifying resisters and talking with them in return for their support
Negotiation
• A process by which management reviews the overall performance of the organisation and its employees to determine how goals can be better achieved
Performance management
