Change Flashcards
External Factors for Change
Socio-cultural factors: shifts in market tastes /
preferences
Technological factors: digital technology, R&D
intensity
Economic factors: inflation, income levels
Political and legal factors: standards on safety,
environment, labor practices
Internal Factors for Change
Performance outcomes:
employee absenteeism, shareholder activism
Internal processes: ineffective decision-making, cumbersome procedures
New management philosophy culture / vision
New strategies: objectives, products, markets, businesses
Change agent
Someone who initiates the change
e.g. CEO, Board member, HR, consultant, private advisory company etc
Role of the Change Agent
- Identify and interpret forces causing the change
- Diagnose the problem
- Decide objectives
- Generate solutions
- Champion the change (communicate vision)
- Implement change (unfreeze > change > refreeze)
- Monitor, review results & get feedback
What often needs changing?
Power
- Power: Perhaps your company has too much top-down
Think: Theranos, Uber, Tesla
What often needs changing?
Communication
- Communication: Perhaps your company is withholding important information from its employees?
Think: Theranos, Uber, Tesla, CBA
What often needs changing?
Culture
Culture: Perhaps your company has fallen prey to greed?
Think: Theranos, Uber, CBA?
Good example = Boost = good culture
What often needs changing?
Strategy
Perhaps your company has fallen behind
technologically?
Think: Boost ==> digital transition
Types of Intervention:
Evolutionary
- Stays relatively stable
- Change individual parts or
departments - Makes the most of existing
structure and management - Incrementally change existing
production technology - Improve existing products
Types of Intervention:
Revolutionary
- Seek new equilibrium
- Transform entire organisation
- Create new structure and
management - Adopt radically new production
technology - Introduce path breaking new
products
Lewis’s Three Step Model
- Unfreeze
Driving forces > Restraining forces - Change
Driving forces»_space;> Restraining forces - Refreeze
Driving forces = restraining forces
Overcoming Resistance to Change:
Championing change
- Learning and Communication: reduce misinformation
- Involvement and Participation: enhance commitment, increase
quality of change decision - Facilitation, Support, Stress Management: reduce anxiety and fear
- Negotiation: reduce and overcome conflict
Overcoming resistance to change:
More forceful ways
- Manipulation and co-optation: make change more appealing
- Coercion: enforce change
- Realigning Staff Profiles: dismiss resistors, hire adopters of change
Refreezing: Supporting Permanent Change
Reward allocation system:
rewards that meet expectations and are aligned with new priorities
Think: Whistleblower policy with bonus $
Refreezing: Supporting Permanent Change
Transformational leadership
person with power and authority to provide legitimacy for the change
Think: New CEO of UBER
