Change Management Insights: Chapter 10

Chapter 10 focuses on change management within organizations, emphasizing the necessity for change to ensure survival and adaptation to both internal and external pressures. It outlines the process of organizational diagnosis, the types of planned change programs, and the characteristics of successful change initiatives. The chapter also discusses Lewin's Change Management Model, detailing the stages of unfreezing, changing, and refreezing, along with the importance of effective communication and support throughout the change process.

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Change Management Insights: Chapter 10

Uploaded by

Mohamed Ashraf

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Available Formats

Download as PDF, TXT or read online on Scribd

PMG 671

Leadership& Organizational
Behavior

Prepared by

Dr. Walid El Leithy

Chapter 10
Chapter 10

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Chapter
Agenda
10
To understand what change management is about.
- To understand that all organizations need to change in order to survive and last longer.
- To understand that change is difficult.
- To understand that all companies need to conduct a certain change(s) at a specific
point of time(s) in their lives cycle.
- To clarify the importance of organizational diagnosis
- To understand the reasons that might make some diagnosis process fail

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Chapter
Agenda
10
- To understand what is the basic concepts of organizational diagnosis
- To learn about the types of planned change programs
- To learn about the main characteristics of organizational change programs
- What are the Main Characteristics of successful Changed Programs

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Chapter
Change Management
10
when the rate of change outside exceeds the rate of change
inside, an end is
in sight “
Jack Welsh

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Chapter
Change Management
10
It is not the strongest of the species that survives, nor the most
intelligent, but the one most responsive to change. —Charles
Darwin
.

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Chapter
What is Change Management?
10
It is not about personal change.
It is not about creating new organizations.
We focus here on what is happening inside existing organizations
and in their environment.

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Chapter
What is Change Management?
10
Change Management is something very organized, conducted
intentionally by group of people whose leader enjoys certain
authorities that enable him to look at the whole organization’s
policies and procedures, in a systematic way, for the purpose of
both diagnosing and recognizing any part (s) that need change,
then justify the reasons for such change to others and finally put a
clear plan for change that includes and involves many people
inside the organization.

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Chapter
Why do Organizations need to change?
10
Both the internal (low productivity, conflicts, strikes,
sabotage, and high absenteeism and turnover) and external
environment (new comers with new products, old
competition launching new products or reducing prices,
new technology, ect.) of organizations change constantly.
All organizations turn from stage to another in their life
cycle.
Thus in order to survive and last longer, organizations must
adapt to new changes occurred either internally or
externally.
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Chapter
Organizational change in daily news
10
Mergers.
Acquisitions.
New labor laws.
New governmental regulations.
New structures.
New products.
New markets.
Reported loss by some organizations.
Selling part of some organizations.
Laying offs.
New management [Link]
New CEO and so on.
Chapter
Organizational Change is difficult
10
According to John Kotter (1996), only 30% of change programs
succeed.
-According to Mc Minsey (2008), through surveying 3199
executives, they figure out that only 1 change program in three
succeeds.
-According to [Link] Rooij (1996) average life expectancy for a
company is 13 years.
-According to Strangler and Ablesman (2012), the average time at
which companies stay on Fortune 500 list is 40 years.
-Finally, according to recent studies, average life for companies in
1935 was 90 years yet it dramatically went [Link]
in 2010 to 14
years only.
Chapter
Does this mean that only companies that
10 face difficulty need to change?
Change is a continuous process that all companies must apply at
different times of their lives in order to survive, reach higher
ranks, gain more profits and better market positions, thus last
longer.
Thus, companies should not seek change only at difficult times.

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Chapter
Understanding Lewin’s Change
10 Management Model

If you have a large cube of ice but realize that what you want is a
cone of ice, what do you do? First you must melt the ice to make it
amenable to change (unfreeze). Then you must mold the iced
water into the shape you want (change). Finally, you must solidify
the new shape (refreeze).

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Chapter
Unfreezing
10
Before you can cook a meal that has been frozen, you need to
defrost or thaw it out. The same can be said of change. Before a
change can be implemented, it must go through the initial step
of unfreezing. Because many people will naturally resist change,
the goal during the unfreezing stage is to create an awareness of
how the status quo, or current level of acceptability, is hindering
the organization in some way.
Old behaviors, ways of thinking, processes, people and
organizational structures must all be carefully examined to show
employees how necessary a change is for the organization to
create or maintain a competitive advantage in the marketplace.
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Chapter
Changing
10
Now that the people are 'unfrozen' they can begin to move. Lewin
recognized that change is a process where the organization must
transition or move into this new state of being. This changing step,
also referred to as 'transitioning' or 'moving,' is marked by the
implementation of the change. This is when the change becomes
real. It's also, consequently, the time that most people struggle
with the new reality.

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Chapter
Changing
10
It is a time marked with uncertainty and fear, making it the
hardest step to overcome. During the changing step people
begin to learn the new behaviors, processes and ways of
thinking. The more prepared they are for this step, the easier it
is to complete. For this reason, education, communication,
support and time are critical for employees as they become
familiar with the change.

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Chapter
Refreezing
10
Lewin called the final stage of his change model freezing, but
many refer to it as refreezing to symbolize the act of reinforcing,
stabilizing and solidifying the new state after the change. The
changes made to organizational processes, goals, structure,
offerings or people are accepted and refrozen as the new norm or
status quo.
Lewin found the refreezing step to be especially important to
ensure that people do not revert back to their old ways of thinking
or doing prior to the implementation of the change.

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Chapter
Importance of Organizational Diagnosis
10
Organizational diagnosis is a step that should be taken prior to any change plans
It enables us to uncover the real problem instead of its symptoms only
Accordingly, an accurate organizational diagnosis enables us to choose the right solution
(s) as well as right direction

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Chapter
Why do Organizational Change Programs
10 Fail?
Spending little time investigating and deeply analyzing ,
accordingly, they often diagnose symptoms of their problems
rather than the problems themselves
-The tendency of many firms to imitate the change programs of
their competitors or other visible firms without doing a careful
diagnosis of their own specific needs
-Any planned change program also requires a careful assessment
of individual and organization capacity for change
-Change plans must include all organization ( Organization- wide
change
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Chapter
What is Organizational Diagnosis?
10
On-going process:
Organizational diagnosis is based on the Strategic management concepts and is a on-
going process which is in existence through out the life of organization.
Shaping broad plans:
First, it is an on-going process in which broad plans are firstly formulated than
implementing and finally controlled.

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Chapter
What is Organizational Diagnosis?
10
Strategic goals:
Strategic goals are those which are set by top management. The broad plans are made
in achieving the goals.
Internal and external environment:
Internal and external environment generally set the goals. Simply external
environment forced internal environment to set the goals and guide them that how to
achieve the goals?

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Chapter
What are the Types of Planned Change
10 Programs?
Discontinuous change: This type of change mainly occurs as a result of a huge and major
problem that forces top management of an organization to take certain revolutionary
and immediate decisions regarding part of their organization in order to contain and
face such problem.

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Chapter
What are the Types of Planned Change
10 Programs?
Continuous change: This type of change does not happen all of a sudden or as a reaction
of a certain major and huge circumstances, on the contrary, it happens over time and
tends to more radical change that includes more major shifts involving many different
levels of organizations and many different aspect of business.

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Chapter
What are the main Organizational Change
10 Programs?
According to The Harvard Business Essentials Series (2003), generally, change programs
fall into one of the following categories:

Structural change: These programs aim at reshuffling the existing structure of an

organization in a way that serves its current challenges. During structural change, top
management, might also be supported by external consultants, attempts to reconfigure
different parts (departments, business units, subsidiaries) of an organization to achieve
greater overall performance. Mergers, acquisitions, consolidations, and divestiture of
operating units are all examples of attempts at structural change.

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Chapter
What are the main Organizational Change
10 Programs?
Cost cutting: Programs such as these focus on the elimination of
nonessential activities or on other methods for squeezing costs
out of operations. Such programs may appear more in time of
slow growth and low sales figures in a form of discontinuous
programs to immediately contain and control such problems, thus
the decision taken are very fast and might be painful. Yet, it is
important to all organizations to look at cost cutting as a
continuous and incremental activity rather than as a reaction of
new circumstances or financial problems.

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Chapter
What are the main Organizational Change
10 Programs?

Process change: These programs focus on altering how things

get done. The nature of such types of programs is continuous
and covers all aspects and processes found in an organization.
For example revisiting the current work flow process as a result
of increasing number of customers’ complaints is one the
process change programs that aims at increasing both
customer satisfaction and loyalty. Thus, such process change
typically aims to make processes faster, more effective, more
reliable, and/or less costly.

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Chapter
What are the main Organizational Change
10 Programs?
Cultural change: These programs focus on the “human” side of
the organization, such as a company’s general approach to doing
business or the relationship between its management and
employees.
.

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Chapter
What are the main Organizational Change
10 Programs?
Other programs may include:

Mission & Strategy change : In theory, all changes in an

organization are aligned to the organization's mission and strategy.
In reality, changes may be difficult to map to strategy or may even
contradict it.

People change : Hiring, turnover, roles & responsibilities, training

and other individual changes. People changes may seem minor
but taken as a whole they represent a critical focus for change
management. For example, training is critical to [Link]
the acceptance of
change
Chapter
What are the main Organizational Change
10 Programs?
Policies & Legal Agreements change :A change as minor as a new
rule or policy can have a big impact on an organization. New rules
(or changes to legal agreements) aren't always popular with
employees and customers — implementation and acceptance can
be a change management challenge.
Technology change: Changes to technology infrastructure,
systems, automations and tools. Some firms focus on technology
change — letting it drive other change within the organization. It's
common for change management to be highly focused on
technology changes.

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Chapter
What are the main Organizational Change
10 Programs?
Products, Marketing and Customer Relationships
change :Changes to products, marketing and sales are a
critical focus for many organizations. For example, new
product development is often key to strategy execution.

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Chapter
What are the Main Characteristics of
10 Planned Changed Programs?
According to Cummings and Worley (1997), effective
planned change efforts are often characterized by some
common characteristics- from the management side of
an organization – mostly through communication and
management of the change process as follows:
- Motivating change by creating a readiness for the
change among employees and attempting to overcome
resistance to change.
- Creating a shared vision of the desired future state of
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the organization.
Chapter
What are the Main Characteristics of
10 Planned Changed Programs?
Developing political support for the needed change.
- Managing the transition from the current state to the
desired future state.
- Sustaining momentum for change so that it will be
carried for completion.