Change Management Flashcards
Mega Trends: Drivers of Change
- People & Society
- Health & Care
- Environment & Resources
- Economics & Business
- Technology & Innovation
- Politics & Governance
People & Society
- Population
- Migration
- Values
- Education
Health & Care
- Pandemics & Other Wildcards
- Diseases & Treatments
- Caregiving
Environment & Resources
- Climate Change & Pollution
- Resources & Raw Materials
- Ecosystems at Risk
Economics & Business
- Globalization Revisited
- Power Shifts
- Sectoral Transformation
- Debt Challenge
Technology & Innovation
- Value of Technology
- Artificial Intelligence
- Humans & Machines
Politics & Governance
- Future of Democracy
- Governance & Geopolitics
- Global Risks
Relevance of Organizational Change
There is nothing more constant than change
I propose to close the office, all essential inventions have been made
There is not the slightest indication that we will ever be able to develop nuclear energy
Television will fall after the first 6 months on the market. People will get tired of staring into a plywood box every evening.
There is no reason why anyone should have a computer at home
Kondratieff Waves: Basic innovations as triggers for change
- Steam Engine, Cotton
- Railway, Steel
- Electrical Engineering, Chemistry
- Petrochemical’s, Automobiles
- Information Technology
voir graph
Top Events for Change Initiatives in Organizations
- Technology
- Product
- Processes
- Structure
- Culture
Relevance of Organizational Change
Important but challenging
Around 70 percent of transformation programs don‘t succeed, mostly due..
employee resistance to change, and management behavior (does not support change)
Levels of Change: Krüger‘s layered model of change
- Surface structures
- Deep structures
Surface structures (Krüger‘s layered model of change)
Restructuring : Structures, Processes, Systems
Reorientation : Strategies
Deep structures (Krüger‘s layered model of change)
Revitalization : Behavior, Competencies
Remodelling : Basic beliefs, Values
Levels of Change - Iceberg Model
- Rational mobilization
- Emotional mobilization
Rational mobilization - conscious
Strategies
Structures
Processes
Products
–> Rational level
Emotional mobilization - subconscious
- Leadership & Collaboration
- Organizational Culture
–> Socio-emotional level
4 Types of Change
- Reactive Change
- Proactive Change
- Incremental change
- Fundamental change
Reactive Change
- «Wait and see»
- Change in response to a perceived threat or crisis
- e.g. change in the product range due to a large number oif customer inquiries
Proactive Change
- «At an early»
- Recognizing potential opportunities or risks
- e.g. expansion of the product range before
concrete inquiries are made
Incremental change
- «First-order change», «Single-Loop»
- Evolutionary
- Improves existing applications
- Is compatible with existing ways of thinking
Fundamental change
- «Second-order change», «Double-Loop»
- Discontinuous
- Is far-reaching and happens suddenly
- Changes existing ways of thinking, goes beyond the current scope
- Can be difficult to handle for people involved
Leading incremental change means fine adjustment
- Improvement of strategies, methods and approaches
- Strengthening and refinement of structures, roles, behavior etc.
- Development of employees with an optimal fit
- Promoting engagement and commitment
- Promoting (self) trust in current ways of thinking, networks and norms
Incremental Change - Risk of organizational inertia
- Consolidation of processes and strategies
despite changing market conditions - Increasingly like-minded employees and
managers
Inertia: structural, cultural –> success in stable markets, failures when market shift
voir page 30
Leading fundamental change means developing new concepts
- Fundamental reorganization of a company
- Reconceptualization of organizational goals, strategies and identity
- Redefinition of mission and core values
- Reorganization, restructuring of relationships
Risks of fundamental change
- Loss of identity
- Professional and emotional strain
- High „social costs“ (people getting fired)
- Organizational burnout
- Lack of understanding of new markets and business segments
Organizational development pattern
- Inkcemental change
- Fundamental change
page 35 voir graph
Reality: Continuous, overlaying change processes
voir graph 36
Requirements in regard to leading change
- Set clear priorities for substantial change processes
- Successful manage change processes by dealing with „soft“ factors
Models of Change Management -
3-Stage-Model by Lewin
- Unfreeze: Preparing for change by challenging the status quo. Driving forces push for change, while restraining forces resist it, creating instability.
- Change: New behaviors and processes are introduced. Progress is non-linear due to resistance but gradually stabilizes
- Refreeze: The change is reinforced and solidified. Leadership plays a key role in sustaining the new state
8 Change Traps by Kotter
- No sense of urgency
- No guiding coalition
- No change vision
- Very low level of vision communication
- No removal of resistance to change
- No planning and rewarding of short-term wins
- Too early declaration of success
- No reinforcement of changes in the organizational culture
8 Steps Process for Change by Kotter
- Establish a sense of urgency
- Create a guiding coalition
- Create a new vision to direct the change
- Communicate the vision
- Empower others to act on the vision
- Plan for, create, and reward short-term wins
- Consolidate the improvements and adjust new programs
- Reinforce the changes in the organization
Resistance to Change: Definition of Resistance
Resistance is any kind of behavior in reaction to the pressure of changing
the status quo which tries to maintain the status quo
Management experiences resistance as all employee activities which aim at
stopping, delaying or modifying the change
2 types of sources of Resistance
- Individual sources
- Organizational sources
Individual sources
- Habits
- Safety needs
- Economic factors
- Fear of the unknown
- Selective information processing
Organizational sources
- Structural inertia
- Threat to experience
- Threat to established power relationships
- Threat to established resource allocations
Resistance to Change - Time Perspective
The emotional stages employees go through during change. Initially, they feel optimistic but become insecure and doubtful as challenges arise. Without support, this can lead to frustration and resignation. However, if managed well, employees regain hope, recognize opportunities, and ultimately accept and commit to the change. The “Check” phase emphasizes the need for addressing concerns to facilitate a positive transition.
voir graph page 47
Strategies of Dealing with Resistance by Kotter & Schlesinger
- Education and communication (e.g., one-on-one and group discussions, presentations, memos and reports)
- Participation and involvement (regarding design and implementation)
- Facilitation and Support (e.g., training, additional free time, listening and emotional support)
- Negotiation and agreement (e.g., offer incentives)
- Manipulation and co-optation (e.g., giving a desirable role in the change process to a resistance-driving employee)
- Explicit and implicit coersion (e.g., job losses and promotions)
