Change Management

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PROF. DR. OLAF PASSENHEIM

CHANGE MANAGEMENT

Prof. Dr. Olaf Passenheim

Change Management

Change Management © 2010 Prof. Dr. Olaf Passenheim & Ventus Publishing ApS ISBN 978-87-7681-705-3

To Till Jakob and Jan Malte

Contents
1. 1.1 1.2 1.3 2. 2.1 2.2 2.3 2.4 2.5 3. 3.1 3.2 3.2.1 3.2.2 3.2.3 3.2.4 4. 4.1 Change Management Introduction Reasons for Change Origins of Change Management Concepts of Change Management Lewin´s Change Theory Chin & Benne´s “Effecting Changes in Human System” Bullock and Batten’s Phases of Planned Change Beckhard and Harris change formula 7-S Model The Change Process Initiating a Top-Down Change Initiating a Bottom-Up Change Responsibility for managing change Change management process Dealing with the change Scope Change Management Projects External and internal influences 7 7 7 9 12 12 13 14 16 16 18 18 20 21 22 26 29 31 31

4.2 4.2.1 4.2.2 4.2.3 4.3.4 4.2.5 4.3 4.4 4.4 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 5.

Change strategies and approaches Directive strategies Expert strategies Negotiating strategies Educative strategies Participative strategies Examples of failed change management projects Pitfalls in a change management project Bringing Change to Success Building a Business Case Determining Organizational Readiness Reaching more people – better communication Involvement of the Stakeholders Review the Change Conclusion – The 4C-Toolbox of Change Management

34 34 34 34 35 35 36 39 45 45 46 46 48 49 50

List of Figures
Figure 1: Modern Change Management - Bottom-Up meets Top-Down Figure 2: Finding the right Strategy Figure 3: Change Management Process Figure 4: Unfreezing - Moving - Refreezing Figure 5: Dealing with the Change Figure 6: Change Management Strategies Figure 7: The 4C-Toolbox 11 19 23 24 28 36 50

To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly. [HENRI BERGSON]

1. Change Management
1.1 Introduction
Barack Obama started his election campaign with a plan to renew America’s promise with the words “Change we can believe in”. His Presidential campaign was marked by changes. He wanted to change a nation and its way of acting. Throughout the campaign, Obama’s changes were aimed towards bringing a rapid end to the war in Iraq, decreasing energy dependence, and providing universal health care. In his victory speech Obama said “change has come to America”. Up to now, not all his plans and ideas have proven successful and only the future will reveal their full potential. The U.S. election was a change of the governmental position which was decided by the nation. In an admittedly smaller world, every person in his or her life as well as every manager of an organisation is faced with changes or the requirement to make changes every day. Let’s concentrate on the business world and have a look at what changes mean? Change is an alteration of a company’s strategy, organization or culture as a result of changes in its environment, structure, technology or people. A manager’s job would be very straightforward and simple (not to say boring) if changes were not occurring in these areas. Good managers have a competence to manage change in the company’s environment. These changes can be alterations in structure (design of jobs, span of control, authority relationships or coordinating mechanisms), in technology (equipment, work processes or work methods) as well as in people (behaviours, perceptions, expectations or attitudes).

1.2 Reasons for Change
A complex structure like an organization is driven by external and internal factors in regard to the need for change. There are a number of external forces that create the explicit need for change:     Market situation or market place Technology Government laws and regulations Economics

The global marketplace has created a huge need for change because of internationalization and the more dynamic situation. Some of this could not have occurred without the various and...
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