Unit 15 - Change Management Flashcards
Describe the 8 steps of Kotters (U CV COW BE)
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
- How do you create urgency
Convince and persuade stakeholders. Give compelling reasons for change
- How do you form a powerful coalition
bring in influential people from different functional areas and at different levels
- How do you create a vision
it should be precise and easy to understand. A strategic plan should should accompany the visions
- How do you communicate the vision
Communicate the vision relentlessly through daily actvities
- How do you remove obstacles
Identify and remove barriers to change.
Appoint change leaders/champions
Reward them financially
Persuade people
- How do you create short term wins
Set Short term targets that are SMART to gain support and motivate people
- How do you build on the change
Identify areas for improvement.
Appoint new change champions
Set new targets
- How do you embed the change
Make it a necessity for the organistaion
The change needs to be incoperated into the core value of the business to make it permanent
What are the three hard elements in McKinsey’s 7-S model
Strategy
Structure
Systems
Define Strategy (McKinsey)
The long term plan of a business to achieve a competitive advantage
Define Structure (McKinsey)
The way a business is organised with chains of command showing who is reporting to who
Define Systems (McKinsey)
The daily activities/tasks and procedures used to get the job done
What are the four soft element in McKinsey’s 7-S model
Skills
Staff
Style
Shared values
Define Skills (McKinsey)
The capabilities and competences of staff
Define Staff (McKinsey)
The type and number of staff needed to achieve a planned strategy
Define Style (McKinsey)
The management style that exits in a business
Define Shared Values (McKinsey)
The foundation of a business
It’s visions and values guide how employees behave and how the business is run
What are the three steps of Lewin’s theory
Unfreeze
Change
Refreeze
Describe the Unfreeze stage
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.)
Describe the Change stage (Lewin)
Can only take place if stakeholders are convinced that they can profit from them
(can take a long time, communication is key!)
Describe the refreeze stage
The final stage, change is internalised and incoperated into the core values of an organisation
List 3 External drivers of Change
- Development in technology
- Market changes
- Changes in legislation
- Changes in the workforce
- Changes in the economy
List 3 Internal drivers of change
- Budgetary
- Mission, aims and objectives
- New methods and channels of distribution
- Restructering
Advantages of McKinsey’s 7-S model
- 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
Disadvantages of McKinsey’s 7-S model
- Differences are ignored
- The model is complex
- High failure rate
Advantages of Kotter’s 8 Steps
Memorise 2/3
- Easy step-by-step model
- Focus is on preparing and accepting change, not the actual change
- Early stages create a sense of urgency
Disadvantages of Kotter’s 8 Steps
Memorise 2/3
- Relies on the people leading the change being good motivators and communicators
- Time consuming
- Steps can’t be skipped
Advantages of Lewin’s Theory
- 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
Disadvantages of Lewin’s Theory
- 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
Kotter’s 8 steps can be grouped into 3 groups
• urgency, coalition, vision, comunnication
(• obstacles, short term wins)
(• build on change, embed the change)
- Create conditions for change
- Introducing new practices
- Maintaining the momentum
Which two theories link with each other and what steps
Lewin and Kotter
• Unfreeze and Creating conditions for change
• Change and Introducing new practices
• Refreeze and Maintaining the momentum
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)
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
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)
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
What falls under Changes in legislation, internal or external
It's external
• Employee rights
- Minimum wage
- Living wage
- Maternity/Paternity entitlements
- Zero-hour contracts
• Health and safety
- Health and safety at work
• EnvironmentalWhat falls under Changes in the workforce, internal or external
It’s external
• Ageing workforce
• Flexible working
• Change in skills required
What falls under Changes in the economy, internal or external
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
What are the four internal drivers
- 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
Give me two examples of internal stakeholders
- Managers
* Employess
Give me two examples of external stakeholders
- Shareholders
* Customers
Give me 4 ways on how to plan and manage change
Plan of action, 16 marker
• 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
What are the consequences of poor change management
4
- Lack of employee engagement
- Absenteeism
- Lack of agreement
- Demotivation
- Failure to change
- Loss in market share
Give me four barriers to change
Another 16 Marker
- 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.
How can you overcome Lack of employee engagement
Improve communication through regular meetings to clarify reasons for change, impact and how to achieve it.
How can you overcome Stakeholder inertia
Use appropriate leadership style to initiate change, create a vision, persuade them through benefits of change and the consequences if no change is reached.
What is the difference between a proactive and a reactive approach
Proactive happens before the change has happened
Reactive happens after the change
How can you overcome Stakeholder fear
Management needs to have a clear plan and communicate this to stakeholders.
How can you overcome Economic implications
Management should reassure employees that it won’t happen
What are the possible impacts of change on businesses
- 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
Who can be affected by change
- Owners
- Managers
- Employees
- Customers
- Local residents
- Suppliers
