Change Management

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CHANGE MANAGEMENT NOTES

BLOCK 2 MODULES

The Change Management Process
The execution of transformation can be approached in a number of ways depending on the circumstances. The concepts and ideas are drawn from a wide variety of literature that seeks to inform on how change can be executed.

Kotter‘s eight-stage process model of creating a major change:

1. ESTABLISHING A SENSE OF URGENCY

➢ Examine the market and competitive realities
➢ Identifying and discussing cases, potential crisis or major opportunities.

2. CREATING THE GUIDING COALITION
➢ Putting together a group with enough power to lead change. ➢ Getting a group to work together like a team.

3. DEVELOPING A VISION AND STRATEGY
➢ Creating a vision to help direct the change effort.
➢ Developing strategies for achieving that vision.
4. COMMUNICATING THE CHANGE VISION
➢ Using every vehicle possible to constantly communicate the new vision and strategies ➢ Having the guiding coalition role model the behavior expected of employees.

5. EMPOWERING BROAD BASED – ACTION
➢ Getting rid of obstacles
➢ Changing systems or structures that under- mine the change Vision. ➢ Encouraging risk taking and non-traditional ideas, activities and actions.

6. GENERATING SHORT TERM WINS
➢ Planning for visible improvements in performance or “wins”. ➢ Creating those wins
➢ Visibly recognizing and rewarding people who make the wins

7. CONSOLIDATING GAINS AND PRODUCING MORE CHANGE
➢ Using increased credibility to change all systems and policies that fit together and do not fit the transition vision
➢ Hiring, promoting and developing people who can implement the change vision ➢ Reinvigorating the process with new projects themes and change agents

8 ANCHORING NEW APPROACHES IN THE CULTURE
➢ Creating better performance through customer and productivity oriented behavior, more and better leadership and more effective management
➢ Articulating the connections between new behaviors and organizational success ➢ Developing means to ensure leadership development and succession

The following sequential steps can also be applicable in managing change. 1. Analyse the Organisation and its Need for Transformation/Strategic Change

This process requires managers to fully understand:
• The organisation’s operations,
• How the organisation functions in its environment,
• Strengths and weaknesses of the organisation, and
• How the organisation will be affected by the proposed changes in order to craft an effective implementation plan (Nadler and Tushman, 1989). • Main activity relates to deciphering the external environment. This enables change strategists to make sense of the key environmental trends and assess their likely impact on the organisation’s strategic posture. This involves environmental scanning, that is the active searching for information in the turbulent environments and interpretation of the emerging patterns in order to align the organisation with the anticipated environment. • Revolutionary changes are increasingly forcing organisations to restructure, reposition and redefine their boundaries. Organisations are shifting abruptly and discontinuously, thereby altering the viability of existing relationships and creating potential for new ones. • World-wide transformation is driven by the pace of globalisation of markets and competition, deregulation, privatisation and accentuated customer needs and demands. • Managers need to evaluate the strategic posture of organisations in view of the dynamic changes in the external environment. The organisation will be required to deploy resources in order to create a new configuration that seeks to exploit the emerging opportunities.

1. Create a Shared Vision and Common Direction
• Articulating what the...
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