Unit 15 - Change Management

Question 1

Describe the 8 steps of Kotters (U CV COW BE)

Answer 1

Create urgency, 
Form a powerful coalition, 
Create a vision for change,
Communicate the vision, 
Remove obstacles, 
Create short term wins, 
Build on the change, 
Embed the changes

Question 2

1. How do you create urgency

Answer 2

Convince and persuade stakeholders. Give compelling reasons for change

Question 3

2. How do you form a powerful coalition

Answer 3

bring in influential people from different functional areas and at different levels

Question 4

3. How do you create a vision

Answer 4

it should be precise and easy to understand. A strategic plan should should accompany the visions

Question 5

4. How do you communicate the vision

Answer 5

Communicate the vision relentlessly through daily actvities

Question 6

5. How do you remove obstacles

Answer 6

Identify and remove barriers to change.
Appoint change leaders/champions
Reward them financially
Persuade people

Question 7

6. How do you create short term wins

Answer 7

Set Short term targets that are SMART to gain support and motivate people

Question 8

7. How do you build on the change

Answer 8

Identify areas for improvement.
Appoint new change champions
Set new targets

Question 9

8. How do you embed the change

Answer 9

Make it a necessity for the organistaion

The change needs to be incoperated into the core value of the business to make it permanent

Question 10

What are the three hard elements in McKinsey’s 7-S model

Answer 10

Strategy
Structure
Systems

Question 11

Define Strategy (McKinsey)

Answer 11

The long term plan of a business to achieve a competitive advantage

Question 12

Define Structure (McKinsey)

Answer 12

The way a business is organised with chains of command showing who is reporting to who

Question 13

Define Systems (McKinsey)

Answer 13

The daily activities/tasks and procedures used to get the job done

Question 14

What are the four soft element in McKinsey’s 7-S model

Answer 14

Skills
Staff
Style
Shared values

Question 15

Define Skills (McKinsey)

Answer 15

The capabilities and competences of staff

Question 16

Define Staff (McKinsey)

Answer 16

The type and number of staff needed to achieve a planned strategy

Question 17

Define Style (McKinsey)

Answer 17

The management style that exits in a business

Question 18

Define Shared Values (McKinsey)

Answer 18

The foundation of a business

It’s visions and values guide how employees behave and how the business is run

Question 19

What are the three steps of Lewin’s theory

Answer 19

Unfreeze
Change
Refreeze

Question 20

Describe the Unfreeze stage

Answer 20

The preparation stage for change
(can be done by:
• Challenging core values of a business
• Convincing stakeholders that things need to change
- Can be done by providing physical evidence.)

Question 21

Describe the Change stage (Lewin)

Answer 21

Can only take place if stakeholders are convinced that they can profit from them
(can take a long time, communication is key!)

Question 22

Describe the refreeze stage

Answer 22

The final stage, change is internalised and incoperated into the core values of an organisation

Question 23

List 3 External drivers of Change

Answer 23

• Development in technology
• Market changes
• Changes in legislation
• Changes in the workforce
• Changes in the economy

Question 24

List 3 Internal drivers of change

Answer 24

• Budgetary
• Mission, aims and objectives
• New methods and channels of distribution
• Restructering

Question 25

Advantages of McKinsey's 7-S model

Answer 25

* Effective method to diagnose and understand a business * Provides guidance in organisational change * All parts are integral and must be addressed in a unified manner

Question 26

Disadvantages of McKinsey's 7-S model

Answer 26

* Differences are ignored * The model is complex * High failure rate

Question 27

Advantages of Kotter's 8 Steps | Memorise 2/3

Answer 27

* Easy step-by-step model * Focus is on preparing and accepting change, not the actual change * Early stages create a sense of urgency

Question 28

Disadvantages of Kotter's 8 Steps | Memorise 2/3

Answer 28

* Relies on the people leading the change being good motivators and communicators * Time consuming * Steps can’t be skipped

Question 29

Advantages of Lewin's Theory

Answer 29

* Easy to use because it's simple * Provides basic steps to bring about the change * It starts by tackling those who are resistant to the change instead of ignoring them

Question 30

Disadvantages of Lewin's Theory

Answer 30

* Starting the process by tackling the resistors can be time consuming * It's vague, doesn't tell what a business needs to do each stage * It's always top from bottom (managers imposing change on workers) even if it is a change that should be driven by the workers

Question 31

Kotter's 8 steps can be grouped into 3 groups | • urgency, coalition, vision, comunnication (• obstacles, short term wins) (• build on change, embed the change)

Answer 31

* Create conditions for change * Introducing new practices * Maintaining the momentum

Question 32

Which two theories link with each other and what steps

Answer 32

Lewin and Kotter • Unfreeze and Creating conditions for change • Change and Introducing new practices • Refreeze and Maintaining the momentum

Question 33

What falls under Technological changes and is it internal or external (have a general grasp of the definitions, need to know what the answer means)

Answer 33

It's external • Automation - machines replacing people • Computerised systems - used for stock control (Just in time) • Promotion - development in social media • E-Commerce - Click(online) or Click and brick(online and store) businesses need new machinery and equipment

Question 34

What falls under Changes in the market and is it internal or external (have a general grasp of the definitions, need to know what the answer means)

Answer 34

It's external • Trends and tastes - Changes very easily • Ethics and the environment - Changes the way businesses work and the materials they use in order to be seen to be doing what’s right • Competition - A competitor may be doing something and you need to change to keep up

Question 35

What falls under Changes in legislation, internal or external

Answer 35

``` It's external • Employee rights - Minimum wage - Living wage - Maternity/Paternity entitlements - Zero-hour contracts • Health and safety - Health and safety at work • Environmental ```

Question 36

What falls under Changes in the workforce, internal or external

Answer 36

It's external • Ageing workforce • Flexible working • Change in skills required

Question 37

What falls under Changes in the economy, internal or external

Answer 37

It's external • Inflation - rise in prices • Unemploymment - people who don;t have work but want to work • Interest rates • Exchange rates • Taxation - the amount that the government requires individuals or businesses to pay • The economic cycle - it doesn't stay the same, goes up and down

Question 38

What are the four internal drivers

Answer 38

* Budgetary - increase/decrease in the money available to spend in a business * Mission, aims and objectives - A business can change their focus * New methods of distribution - Changing the way they operate * Restructering - Changes in the company structure

Question 39

Give me two examples of internal stakeholders

Answer 39

* Managers | * Employess

Question 40

Give me two examples of external stakeholders

Answer 40

* Shareholders | * Customers

Question 41

Give me 4 ways on how to plan and manage change | Plan of action, 16 marker

Answer 41

• Consult with key stakeholders - time is saved - changes can be managed more smoothly - higher rate of success • Set clear aims and objectives - should be reassuring and motivating - everyone knows what they are supposed to do • Effective leadership - This will give a higher chance of success because they know what to do. • Appoint a project champion - to take charge of communications, review progress • Evaluate stakeholder feedback - by holding a meeting, before finalising a plan

Question 42

What are the consequences of poor change management | 4

Answer 42

* Lack of employee engagement * Absenteeism * Lack of agreement * Demotivation * Failure to change * Loss in market share

Question 43

Give me four barriers to change | Another 16 Marker

Answer 43

* Lack of employee engagement due to poor leadership * Stakeholder intertia which refers to the unwilingless to do anything * Stakeholder fear of the unknown or having to learn new skills * Economic implications, this means loss of jobs, lower pay and this can cause a resistance.

Question 44

How can you overcome Lack of employee engagement

Answer 44

Improve communication through regular meetings to clarify reasons for change, impact and how to achieve it.

Question 45

How can you overcome Stakeholder inertia

Answer 45

Use appropriate leadership style to initiate change, create a vision, persuade them through benefits of change and the consequences if no change is reached.

Question 46

What is the difference between a proactive and a reactive approach

Answer 46

Proactive happens before the change has happened | Reactive happens after the change

Question 47

How can you overcome Stakeholder fear

Answer 47

Management needs to have a clear plan and communicate this to stakeholders.

Question 48

How can you overcome Economic implications

Answer 48

Management should reassure employees that it won't happen

Question 49

What are the possible impacts of change on businesses

Answer 49

* Research and development - it can be costly and time consuming. * Training - necessary if the staff need new skills, time consuming and costly * Recruitment and selection - costly and time consuming * Product life cycle - if the change involves developing a new product, the existing product mght get neglected. * Cost and profit implications - can affect a business's cash flow * New opportunities - may be available after the change * Different physical resource needs

Question 50

Who can be affected by change

Answer 50

* Owners * Managers * Employees * Customers * Local residents * Suppliers