L11 - Change management

Question 1

What will change management tie back to?

Answer 1

So this will tie back to analysis and choice sections (why we are doing it and the implications of doing it). can realte this to PEST 5 forces for e.g.

Question 2

Explain how change was a part of FB’s strategy?

Answer 2

Originally set up for college students, if they stuck with this they wouldn’t be able to grow to what they would now. When they decided to expand there was people on board etc who didn’t like this idea. Had they not expanded and changed, history would be very different!

Question 3

Ways an org can change

Answer 3

1. Change in the environment
2. Change in product/service
3. Change in technology/methods
4. Change in management
5. Change in structure/size Post-acquisition

Question 4

Why would an org change its product service?

Answer 4

due to technology? E.g. facetime doctor appointments? This can be customer and environmentally driven

Question 5

Why would an org change as a result of tech?

Answer 5

could be leading to product being obsolete, anything! This point speaks for itself. Why has tech made it easy. Tech leads to working at home?

Question 6

Why would an org change their methods?

Answer 6

Some changes in methods lead to consequences (lack of experience). Health in safety is a good example for this as it can lead to a change in methods.

Question 7

Why would an org change its management

Answer 7

these are the people who ead the change and they sometimes may be brought in order to lead change.

Question 8

Why would an org change post acquisition?

Answer 8

To change brand post acq., change in signs etc.

Question 9

What are the two types of change?

Answer 9

reactive change

proactive change

Question 10

What is reactive change?

Answer 10

Reactive change is change forced upon an organisation arising from a need to react to a change in the company’s environment.

Question 11

What is proactive change?

Answer 11

Proactive change is change planned in advance, usually with a particular objective in mind.

Question 12

Good e.g. of reactive change?

Answer 12

Automotive industry. Car manufacturers do the same thing over long period. At what point will they all need to change? Lots of them are but not all. If they are going to survive they will need to make adjustments and overhaul things.

Question 13

Good e.g. of proactive change?

Answer 13

For e.g. Tesco trying to expand in America, but it didn’t work! As they didn’t do their research properly. Its like the strategy change we talk about in ansoff.

Question 14

What are the ways of achieving change?

Answer 14

1. Incremental – gradual

2. Transformational – major

3. Step change – unexpected

4. Planned – series of steps

5. Emergent – open-ended

Question 15

Explain incremental change

Answer 15

This is gradual change. Its what every business would prefer to do. No rush you have time to do it. But you need time on your hands for this and you don’t always have/

Question 16

Explain transformational change

Answer 16

This is major change. This happens quickly. Some org’s can do this and people think its exciting but for most org.’s this is a negative thing that would have to be done. You tranform because you have to and therefore this is a reactive change. E.g. HMV just got bought and to survive they will need to change quickly.

Question 17

Explain step change

Answer 17

This is unexpected change. It is often like a jump an org didn’t expect to make. E.g. environmental disaster. So have to work out of city Y instead of X because eof the tornado in Y. Could also be a government change in policy that was unexpected.

Question 18

Explain planned change

Answer 18

change is planned and happens in a number of steps

Question 19

Explain emergent change

Answer 19

This is open-ended change. This is often just adjustments to the environment. So strategy emerges from what you expected in the first instance.

Question 20

What are the types of internal change

Answer 20

1. Structural changes 2. Technological changes 3. Systems changes 4. Cultural change

Question 21

What are structural changes?

Answer 21

org growing and changing internally. management structure changing for e.g.

Question 22

What are technological changes?

Answer 22

being able to expand systems because.

Question 23

What are systems changes?

Answer 23

this often means cost cutting, you are streamlining, making sure processes are uniform, for e.g. invoice system. And cut duplication costs as a result. Can also make a lot of unemployment as a result of this. So you cut a lot costs via redundancies. You make the business more profitable by cutting costs rather than increasing revenue

Question 24

What are cultural changes?

Answer 24

getting people to think differently is very difficult. This is a fact.

Question 25

Managers need to make a profit in order to receive their remuneration What will managers tend to do if they are making a loss: reduce costs or increase profits?

Answer 25

They will tend to try and reduce costs as it is much easier. so they will cost cut as much as possible.

Question 26

reasons for a resistance to change?

Answer 26

1. Lack of understanding about the nature and objectives of the change;
2. Lack of trust in management;
3. Self-interest and fear of personal loss;
4. Uncertainty and fear of the unknown.

Question 27

what are the levels of change that can happen? i.e. change can occur at different levels, what are they?

Answer 27

1. Individual.
2. Organisational structures and systems
3. Organisational social, cultural and informal.

Question 28

How can change happen at an individual level? why would you want individuals to change?

Answer 28

In terms of skills, attirudes and motivations. if you get individuals to change, everything will change! Can do via training, team building etc.

Question 29

How can change happen at an Organisational structures and systems level?

Answer 29

you may need to change reward systems. Perhaps you are going to give everyone a business depending on success.

Question 30

How can change happen at an Organisational social, cultural and informal level?

Answer 30

talking to people etc. and letting them know what is going on (educate them). Although sometimes cant due to confidentiality.

Question 31

what is the hardest thing to change? and why?

Answer 31

Culture. As it is so hard to try and tell people what to do, or get them to think in a different way.

Question 32

4 models for managing change?

Answer 32

a. Lewins Force-field analysis
b. Lewins three-step model
c. Champion of change model (‘change agent’)
d. Gemini 4R model

Question 33

What is lewins force field analysis?

Answer 33

The idea behind Force Field Analysis is that situations are maintained by an equilibrium between forces that drive change and others that resist change. Both of these forces will push against the desired state. For change to happen, the driving forces must be strengthened or the resisting forces weakened. This will change the desired state.

Question 34

For e.g. the Desired state = reduce the pay for teaching assistants.

what are the driving and restraining forces?

Answer 34

Driving force – this was:

• a change in legislation. This drove the change and would have the biggest arrow as it was the biggest force due to it being the hardest thing to change
• Austerity
• Budgets

Restraining forces – this was:

• Employee responses to the desired state.
• General public (they don’t like to support these kind of things as they think ”we’ll be next”)
• Trade Union concerns

Question 35

how do you get to your desired state according to lewins force field analysis?

Answer 35

You need to strengthen the driving forces and weaken the restraining forces. This will take you to your desired change state as a result.

*note you can get a exam question where you would need to id both driving and restraining forces, say where they are successful and talk about them.

Question 36

What is lewins three step model?

Answer 36

The model represents a very simple and practical model for understanding the change process. It contains three parts:

1. Unfreeze
2. Change.

Refreeze.

Question 37

Explain the three steps of lewins 3 step model?

Answer 37

Unfreeze – take apart the existing method. Stop people doing what they are doing wrong. You are pointing out everything that is wrong. You are pointing out the obvious. It also means that if there was a stage before, it would be learning about the business so you can unfreeze and communicate it.

Change – This is bringing in the new rules and standards.

Refreeze – make sure that the change is permanent. For e.g. measure the changes, so for e.g. measure the plane quality etc.

Question 38

what does lewins 3 step model take no account of?

Answer 38

This model takes no account whatsoever of the emotional change. Takes no consideration for the fact that people resist or don’t like etc. Its less relevant to social, cultural change than something like a brand change or something.

Question 39

e.g. of 3 step model

Answer 39

In 1980s became complacent, were losing a lot of clients etc. thought they were the best. They were arrogant. So they went around and said “this is how many people will lose their jobs if we keep going this way”. Its straightforward facts that made them change (the unfreeze section). They then had the change. And Refreeze where they had performance indicators. (recap for this e.g. as missed last 2 points).

Question 40

who famously used lewins 3 step model to turn their busines around

Answer 40

continental airlines

Question 41

What is the ‘champion of change’ model?

Answer 41

This isn’t a singular theory but more of a collection of ideas and an approach to management change.

Contends that change can be effectively managed if the whole process is undertaken by a single change agent,

or a ‘champion of change’.

Question 42

what is the idea behind the ‘champion of change’ model?

Answer 42

For this the idea is you bring in someone external to bring about a change. Works better if the person is getting paid and is brought in solely for that reason. As it means that they are then very driven. To do this you need to be a good communicator, and understand the process and politics in this.

Question 43

good example of champion of change?

Answer 43

Fitbit is also another good e.g. they brought in someone in 2017 to improve fitbits. He (the guy brought in – geoff devine) wants to restore the product by bringing in health data to watch.

Question 44

How does the champion of change model work?

Answer 44

1. The change process is initiated by senior management - high involvement for a short period of time.
2. A champion of change is appointed.
3. He or she becomes highly involved, and remains highly involved until the end.
4. The champion invites mid-management to become involved in implementing the change with their subordinates.
5. The mid-managers remain involved in the change process in order to communicate the change to the ‘ordinary’ employees.
6. The subordinates begin to implement the change.
7. Once the subordinates have fully implemented the change, the champion’s role declines.

Question 45

How is the link formed between the shop floor and management in the champion of change model?

Answer 45

Information channel. Need to make sure they are on board to form the communication. Once this happens the champion on change is no longer needed.

Question 46

What is gemini’s 4R model?

Answer 46

1. Reframing – create desire/vision/targets

(note, includes a measurement system)

2. Restructuring – (to new model)
3. Revitalising – making sure you fit to the enviro. Making sure you are in line to the competition. good fit to environment
4. Renewal – rewards/learning/development. making sure people have adequate training for e.g.

Question 47

explain the Gemini 4R in for the e.g. of royal mail when it was privatised

Answer 47

1. Reframe:

They were going from national to commercial. So the org was being profit making when it wasn’t before. One of the things they did was issue shares, and allowed employees to do this. One of the targets they set was profits, which they had to pay people to do as they struggled to set this target.

2. Restructuring:

A lot of this was about automation. They need to automate current operations through investment, so investment required. Needed to think carefully about what to invest in as the number of people posting letters was falling.

3. Revitalizing:

Need to study the competition, and understand them

Technology

4. Renewal:

This is the development, training, making sure people are rewarded and individual learning is taking place.

This is where you could talk about how they allowed employees to buy shares.

Question 48

how do individuals react when it comes to change?

Answer 48

They are often resistent

Question 49

Three ways an individual can change?

Answer 49

1. Physiological – changed pattern of work. this is upsetting as people aren’t expected it or they don’t want it. It interferes with peoples days.
2. Circumstantial – new team or group. new systems.
3. Psychological – Changed relationships. you will experience stress, psychological things etc.

Question 50

why individuals dont want to change

Answer 50

1. Cultural – practices embedded. the way of working is ingrained and you cant just alter it. They systems, and the ways of working is embedded and is very resistant to change.
2. Personnel – individual habit and security. lack of confidence. Don’t want to do due to thinking you will fail.
3. Psychological contract – One of the major reasons for resistance can be the emotional turmoil that a change may cause, especially if the past experiences with the changes have not been positive.

Question 51

4 steps to introduce change

Answer 51

1. Pace – allow time if possible
2. Manner – people need informing, convincing, and problems to be tackled (and listened to/taken seriously)
3. Communication (two way), “selling” change, development (learning), involvement.
4. Scope – transformational change may be motivating? but this is unusual and doesnt tend to happen. people dont tend to like to know how things are going on.

Question 52

Two great examples of things failing to change?

Answer 52

1. Kodak -“Kodak’s unwillingness to change its large and highly efficient ability to make-and-sell film in the face of developing digital technologies lost it the chance to adopt an anticipate-and-lead design that could have secured the it a leading position in digital image processing” - Forbes

2. Nokia - Nokia’s culture of status has led to an atmosphere of shared fear which influenced how employees were interacting with each other. The human factor was added to economic and structural factors and together they have generated a state of “temporal myopia” that hindered Nokia’s ability to innovate. Employees stated that top managers and directors were no longer abiding by Nokia’s core values of Respect, Challenge, Achievement and Renewal. This study points out the paramount importance of shared emotions among employees and their powerful impact on company’s competitiveness. SO fear of change and therefore were left behind