L4 Leading Change Flashcards
How is leadership different to management - name the different approaches/objectives for each? 4
Leadership:
Sets direction, develops vision and strategies to achieve the vision
Aligns people, communicates vision and strategy to all those involved
Motivates and inspires people to overcome major barriers to achieving the vision
Produces change – sometimes dramatic – creates disorder
Management:
Plans. Budgets, establishes detailed steps and timetables to achieve results, allocates resources
Organises, staffs, sets up structures, delegates, implements, develops policies and procedures
Controls, solves problems, creates monitoring systems, measures results against plans
Delivers key results expected by stakeholders, creates predictability and order
Kotter 1990
Why Change?
Evolve or Die: the need to maintain a competitive advantage
Internal Sites of Change (Senior ,2002) 6
Corporate and organisational culture Structure or location Leadership Systems Processes Technologies Strategy Human resources
Give 3 examples when change has been necessary and 2 examples when change has failed?
Good:
BA
Lego
Bad:
Dame Cressida Dick Replace as Chief Police Commissioner
Detail the BA change example:
In 1981, British Airways appointed a new chairperson, John King. Early on, it was noticed that the company was extremely inefficient and a lot of valuable resources were being wasted.
To help the organisation become more profitable, the chairperson decided to restructure the entire business. He decided that the most efficient way to do this was through a change management plan.
The organisation soon began to reduce its workforce. However, before this was completed, the chairman - through his change management leadership - provided the business with reasons for restructuring British Airways to help prepare them for the upcoming change.
His plan saw him axe 22,000 jobs - including half of the board - replace older planes with modern jets and eliminated unprofitable routes.
Details of the successful changes implemented at LEGO:
From 1932 until 1998, Lego had never posted a loss. By 2003, it was an entirely different story. Sales were down by 30% year-on-year and the brand was $800 million in debt. What didn’t help their situation was that Lego hadn’t added anything of value to its portfolio for a decade.
So, what happened between Lego’s CEO, Jørgen Vig Knudstorp, admitting that the brand is running out of cash and he wouldn’t survive, and when it overtook Ferrari as the world’s most powerful brand in 2015?
Much like Netflix, Lego eventually realised that its lifespan of physical products wasn’t going to have an infinite interest. After a period of expansion, this beloved toy company was near bankruptcy in 2004. With this realistic yet disastrous outcome on the horizon, Lego decided it was time to start restructuring.
To begin, the business implemented digital transformation. Instead of putting their sole focus on physical toy products, Lego is increasingly concentrating on bridging the physical and virtual augmented reality (AR) experiences.
By finding new sources of revenue, LEGO has managed to transform its brand and keep up with the requirements of its target audience today.
Why is Leading Change quite complex?
What authors ?
Lots of Terms are used interchangeably, for example:
Planned Emergent Evolutionary Revolutionary Developmental Transitional Transformational
(Senior and Swailes, 2010)
Two types of approaches to a need for Change:
Proactive and Reactive
3 types of Leading Change Approaches:
Developmental
Transitional
Transformational
What is Developmental Change?
Improving of existing situation
What is transitional Change?
Implementation of a known new state; management of the interim transition state over a controlled period
What is transformational change?
Emergence of a new state, unknown until it takes shape, out of the remains of the chaotic death fo the old state; time period not easily controlled
Simply describe the difference between Leadership and Management (2 lines)
Management produces orderly results which keep things working efficiently whereas leadership creates useful change.
Describe the Lewin (1951) Change Process Model
Unfreezing - preparing people, understanding the need for change
Changing - implementing the change
Freezing - Providing support to assure the change becomes permanent
What does the coping model involve and what does it help achieve?
Kubler-Ross (1969) suggest the coping cycle model which helps managers and leaders track the potntial emotional impact of change on the people involved.
What is an example of Gradual Change and Punctuated change? 2
Grad: Organisational Learning, change in consumer trends
Punc: Economic Crisis, Pandemic
Emergent Change Model
On-going adaptations and alterations (Weick, 2000)
As Weick (2000) suggests, planned change efforts often get the credit in decision makers’ eyes for successesin delivering new strategies for survival, but they rarely change the organisation’s underlying nature and problems usually recur.
Why does change fail? (Kotter, 1995) 4
Not establishing a great enough sense of urgency
Not creating a powerful enough coalition
Lacking a vision
Under communicating by a factor of ten
Not removing obstacles to the new vision
Not systematically planning for and creating short term wins
Declaring victory too soon
Not anchoring changes in the corporation’s culture
5 key elements in change management? (Hayes, 2010)
- Recognise the need for change (external and internal pressures) and start the process
- Diagnose – the current state (accurately) and develop a realistic vision of the desired future state
- Plan and prepare for change – nuts and bolts technical plan AND preparing people for change
- Implement change, but adapt and refine in response to what you find through monitoring and feedback (ongoing evaluation of what’s working)
- Sustain the change – reinforce and reward etc.
What feelings are associated with Change according to (Conner, 1995)
Lack of trust change is unnecessary change is not feasible economic threats fear personal failure loss of status
Three natural stages of transition (Bridge, 1980) and their description
Phase 1: Ending.
When we acknowledge that things have to go
When we recognise something is lost
Endings are often accompanied by a sense of loss and subsequent resistance
Phase 2: Managing the Neutral Zone
Get people involved in planning for the future
Acknowledge the difficulties people are facing
Affirmation and praise of colleagues and peers
Information and communication is key
Phase 3: New Beginnings
Success depends on attention to previous stages
People need to know their roles and responsibilities in the new system
Where issues are ignored, people mourn for a long time, hark back to good old days, continue to believe new arrangements won’t work
Barriers to change
The system Mindsets Lack of resources Organisational culture Contracts and agreements
Eight Reasons for Resisting Change (Schermerhorn, Hunt, & Osborn, 2005):
Eight Reasons for Resisting Change (Schermerhorn, Hunt, & Osborn, 2005):
Fear of the unknown Lack of good information Fear of loss of security No reasons to change Fear of loss of power Lack of resources Bad timing Habit
Forces for change:
Competition
Customer demand for new products/services
Costs
New tech
New people/stakeholder demands
‘Directive’ Intervention Strategies ( Hayes, 2007) 4
Urgent requirement for change
Desired end state clearly specified from the start
Little resistance anticipated
Change managers have access to all the information they need to diagnose the need for change, develop a change plan and moitor its implementation
Others ahve high trust in change manager
Change managers do not have to rely on the commitment and effort of others to implement the change plan
‘Collaborative’ Intervention Strategies ( Hayes, 2007)
Non-urgent requirement for change
Problem/opportunities recognised but what needs to be done to resolve problem or exploit opportunity not clear from the start
Great resistance anticipated
Change managers need information from other stakeholders
Others have low trust in change managers
Successful implementation of the change plan is highly dependent on the commitment and effort of others
What activities contribute to effective change management?
(Cummings and Worley, 2005)
Motivating change Developing political support Creating a vision Managing the transition Sustaining Momentum
What is the percentage any change project realising planned financial and strategic objectives
(Clegg & Walsh, 2004; Kramer, Dougherty, & Pierce, 2004)
The probability of any change project realising planned financial and strategic objectives has been found to be 25-50% (Clegg & Walsh, 2004; Kramer, Dougherty, & Pierce, 2004)
