Steps in Successful Organizational Change
Lewin’s Change Model Refreezing Movement Unfreezing 2-3
Three Distinct Organizational Change Phases Mobilization Phase Movement Phase Sustain Phase Make the Case for Build Momentum the Change for Change Initiative Initiative Institutionalize Change Initiative Preserve and Build the Continue to Build Organizational Organizational Capacity for Capacity for Change Change
Kotter’s 8 Steps Establishing a Sense of Urgency Mobilization Forming a Powerful Guiding Coalition (Unfreeze) Creating a Vision Communicating a Vision Movement Empowering Others to Act on the Vision (Change) Planning for and Creating Short-Term Wins Sustain Consolidating Improvements and Producing Still More Change (Refreeze) Institutionalizing New Approaches
Reasons for Individual Resistance to Change Direct Costs Saving Face Fear of the Unknown Forces for Change Breaking Routines Incongruent Systems Incongruent Team Dynamics Source: Lewin, K. 1947. Frontiers in group dynamics. Human Relations 1 (5): 41.
Resistance to and Costs of Change Resistance to Change Costs of Change • • Anger Change in reward structure • • Active or passive aggression Power shifts • • Withdrawal Requirement for new competencies • Fear of loss • Need for new relationships • Challenge to identity • Require time and energy
Raising Dissatisfaction Dissatisfaction — Emotional energy about performance or opportunity gaps – Communicate NEED for change and COSTS of not changing – Performance / opportunity gap analysis (internal and external) Comparative data Contextual landscape analysis Benchmarking Employee attitudes – Sharpen awareness of gap analysis – Involve key people
P: Some Key Process Choices Build Build Metrics and Training Credibility Coalition Measurement Build Communication Pace and Organizational Plan Involvement Capability
Pace of Change Directive Persuasion • • Urgency or crisis Not a crisis • • High dissatisfaction High need for commitment to engage in change • Low resistance • Change is not clear • High level of support • Change is complex • Change agent has relevant • information Change agent needs support of key constituents • Changes are clear Source: Kanter, R. 1983. The Change Masters. New York: Touchstone.
Six Types of Change Levers – Enabling – These levers raise awareness for targets • Credibility (e.g., invite external consultant to extoll change) • Communication (e.g. initiate town hall meeting) • Training (e.g. provide external training experience) – Substantive – These levers facilitate adoption by targets • Technical (e.g., align the reward system to with change initiative) • Political (e.g., privately confront a resister) • Cultural (e.g., tell a success story)
Designing Interventions • To discuss criteria for effective interventions • To discuss issues, considerations, constraints, ingredients, and processes associated with intervention design • To give an overview of the various interventions used in the book Cummings & Worley, 9e (c) 2008 9-12 South-Western/Cengage Learning
Definition of Interventions An intervention is a set of sequenced and planned actions or events intended to help the organization increase its effectiveness. Interventions purposely disrupt the status quo. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Characteristics of Effective Interventions • Is it relevant to the needs of the organization? – Valid information – Free and Informed Choice – Internal Commitment • Is it based on causal knowledge of intended outcomes? • Does it transfer competence to manage change to organization members ?
• What are the Change Interventions you have experienced or know about?
Intervention Overview • Human Process Interventions • Technostructural Interventions • Human Resources Management Interventions • Strategic Interventions
Human Process Interventions • Process Consultation and Team Building • Conflict Resolution • Organization Confrontation Meeting • Intergroup Relationships • Large-group Interventions
Technostructural Interventions • Structural Design • Downsizing • Reengineering • Parallel Structures • High Involvement Organizations • Total Quality Management • Work Design
Human Resources Management Interventions • Performance Management System • Reward Systems • Coaching and Mentoring • Career Planning and Development • Training, MDP and LDP • Managing Work Force Diversity • Fun @ Work • Employee Wellness Programs
Strategic Interventions • Transformational Change – Integrated Strategic Change – Organization Design – Culture Change • Transitional Change – Mergers and Acquisitions – Alliances and Networks
Strategic Interventions • Transorganizational Change – Self-designing Organizations – Organization Learning and Knowledge Management – Built to Change Organizations
The Design of Effective Interventions • Contingencies Related to the Change Situation • Readiness for Change • Capability to Change • Cultural Context • Capabilities of the Change Agent
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