组织变革OrganisationalChange.ppt

ChangeandChangingDr Ian TowersBerlinNovember 20111 Ian Towers 2011lWhy we need to change?lMust?lTo Be?lWant to change.2 Ian Towers 2011Outline1.Thoughts about change2.Change Management3.Change Management Tools4.Conclusion3 Ian Towers 2011CONTENTWHATtochange?PROCESSHOWtochange?CONTEXTWHYchange?FourQuestionsTIMINGWHENtochange?4 Ian Towers 20115 Ian Towers 2011Whychange?What do you think?What are reasons for starting an organisational change?6 Ian Towers 2011WhyChange?lChange is a risky activity many organizational changes fail or do not realize their intended outcomes.This raises the question:why is change so prevalent?lPressure to change comes from:lExternal,environmental pressureslInternal,organizational pressuresWhyChange?ExternalPressures-Fashion-Mandated-Geopolitical-Marketdecline-Hyper-competition-Reputation&credibilityInternalPressures-Growth-Integration&collaboration-Identity-Newbroom-Power&political7 Ian Towers 2011EnvironmentalPressuresPressureExamplesDescriptionFashionpressuresBoeing Co.Managers imitate practices associated with successful organizations Mandated pressuresChevron TexacoAn organization changes through formally or informally mandated requirements.Geopolitical pressures3MMacroeconomic changes(or crises)place pressure on organizations to change the way they operate.WhyChange?ExternalPressures-Fashion-Mandated-Geopolitical-Marketdecline-Hyper-competition-Reputation&credibilityInternalPressures-Growth-Integration&collaboration-Identity-Newbroom-Power&political8 Ian Towers 2011EnvironmentalPressuresPressureExamplesDescriptionMarket decline pressuresAOL Time WarnerWhen current markets begin to decline there is pressure to find newer,more viable markets.Hyper-competition pressuresDellThe highly intensified rate of business including shortened product life cycles and rapid responses by competitors produces pressure for change at the organizational level.Reputation and credibility pressuresNews InternationalIn light of recent scandals,the pressure to maintain a good reputation and high level of credibility has increased.WhyChange?ExternalPressures-Fashion-Mandated-Geopolitical-Marketdecline-Hyper-competition-Reputation&credibilityInternalPressures-Growth-Integration&collaboration-Identity-Newbroom-Power&political9 Ian Towers 2011InternalPressuresPressureExamplesDescriptionGrowth pressuresMicrosoftExisting systems and processes in an organization may no longer be applicable when the size of the organization increases.Integration and collaboration pressuresEDSIntegration and creating economies of scale can lead to pressure for change in organizations.Identity pressuresForteHotelA common organizational identity and the unified commitment of staff in different areas/departments of an organization can be difficult to manage and may encourage change.WhyChange?ExternalPressures-Fashion-Mandated-Geopolitical-Marketdecline-Hyper-competition-Reputation&credibilityInternalPressures-Growth-Integration&collaboration-Identity-Newbroom-Power&political10 Ian Towers 2011InternalPressuresPressureExamplesDescriptionNew broom pressuresBank of AmericaChange at the senior management level particularly of CEO-can often be a catalyst for significant changes in an organization.Power and political pressuresMorgan StanleyPower relationships and politicking can change internal processes and decision making.WhyChange?ExternalPressures-Fashion-Mandated-Geopolitical-Marketdecline-Hyper-competition-Reputation&credibilityInternalPressures-Growth-Integration&collaboration-Identity-Newbroom-Power&political11 Ian Towers 2011Whattochange?lStructurelTechnologieslStrategieslWork methodslMarketlCompany goalslCulturelAnd,and,and.What do you think?What can we change in an organisation?12 Ian Towers 2011Howtochange?Organisation DevelopmentStrategic RedesignBusiness ProcessReengineeringLearning OrganisationTQMCulture ApproachHRM7-S FrameworkTheories X,Y and ZWhat do you think?How many approaches to change do you know?13 Ian Towers 2011Example:BusinessProcessReengineeringBPR is“the fundamental rethinking and radical redesign of organisational processes,to achieve dramatic improvements in critical,contemporary measures of performance,such as cost,quality,service and speed”14 Ian Towers 2011Example:BusinessProcessReengineeringlDevelop a vision for your business and objectives for all the necessary processeslIdentify the processes that must be changedlAnalyse and evaluate these processeslIdentify key IT componentslDevelop and implement the new processes15 Ian Towers 2011Example:BusinessProcessReengineeringlBPR assumes that ineffective und inefficient processes are the factors which limit organisational performance.lNot always truelBPR begins the process of improvement with a clean sheetlCompletely ignores the status quolA step-by-step approach,with incremental change(like Kaizen)can be a better approach lBPR is a product of US cultural approaches16 Ian Towers 2011The larger systemChangeDriversandChangeLevelsTeam/GroupSelf17 Ian Towers 2011TypesofChange SpeedContinuousEpisodicPlannedEmergentScaleIncrementalRadicalIncrementalRadicalContinuous adaptations(eg Kaizen)Continuous realignment of the system(eg TQM,Culture Change)Periodic adjustments(eg OD)Revolutionary change(eg BPR)Outcomes of change are largely unexpected and unintended18 Ian Towers 2011Change,Levels,TimeEconomic problemsLevelGroupIndividualOuter/Inner ContextOrganisationNew StructureIndependentLike silosNew lawsMore workStress in the core unitsLess moneyTimeSmaller19 Ian Towers 2011The larger systemChangeDriversandChangeLevelsOrganisationTeam/GroupSelf20 Ian Towers 2011UnintendedOutcomesNew position created:Chief Operating Officer.What do you think happened?What were the unintended outcomes?21 Ian Towers 2011KeyChangeChallengesDownsizingNewTechnologiesMergers&AcquisitionsEmployee retention.Goal synthesis.Cost savings.Avoiding“hard landings”.Choice of technologyCultural adjustment.Minimizing political behavior and loss of teamwork.Identifying political barriers.Balancing change and continuity.Survivor syndromeThe IT team.Due diligence.CommunicationCommunicationEmployee retentionDue diligenceTime frame.Contingency planning.Cultural adjustment.Contingency planningPower structure.Choice of restructuring techniqueCommunicationThis table outlines the key change challenges for three types of change.These issues need to be addressed when managing change:22 Ian Towers 2011ModelofChangeUnderstanding Change:The Change Context Report23 Ian Towers 2011Outline1.Thoughts about change2.Change Management3.Change Management Tools4.Conclusion24 Ian Towers 2011WhatisChangeManagement?lStrategy of planned and systematic change,through affecting:lOrganisational structurelOrganisational culturelIndividual/group behaviourlTaking into account interactions between:lIndividualslGroupslTechnologylEnvironmentletc25 Ian Towers 2011OrganizationDevelopmentlIt has been the fundamental basis of the change field for a number of years lChange is planned,incremental and participativelOutcomes are focused on the improved effectiveness of the organization lLong-term focus lBased upon action researchlEmphasis on changing the attitudes and behaviours of peoplelTop-down focus26 Ian Towers 2011ImplementationPhasesAnalysis ofIS-SituationDefinition ofdesired statePlan of actionImplementationEducationAnalysis of attitudesMonitoring27 Ian Towers 2011ThreePhaseModel Present sit.New World UnfreezeMoveRefreeze?Force field analysis28 Ian Towers 2011ForceFieldAnalysisChangeProContraStrenghten supporting forces advance the changeWeaken opposing forces work against all changes to the present stateNormal situation:Combination of both approaches29 Ian Towers 2011Example:OilcompanylThis concern has 3 main offices in Germany(Hamburg,Frankfurt,Berlin)lObjective:a single regional office transfer of 150 stafflManagement expects resistanceWhat to do?30 Ian Towers 2011Example:OilcompanylStrengthen supportiveforceslIncrease salarieslGenerous moving expenseslWeaken opposing forceslIndividual discussion with stafflListen to concerns and reservationslPropose solutions31 Ian Towers 2011Kotters8Steps1.Establish a sense of urgency Examine market and competitive realities Identify and disuss crises,potential crises and opportunities2.Form a powerful guiding coalition Assemble a group with enough power to lead the change effort Encourage the group to work as a teamI.Set the stageTools:1.Project plan32 Ian Towers 2011Kotters8Steps3.Develop the Change Vision and Strategy Create a vision to help direct the change effort Develop strategies for achieving that vision 4.Communicate the Vision Use every vehicle possible to communicate the new vision and strategies Teach new behaviors by the example of the guiding coalition I.Set the stageTools:1.Brainstorming etc2.Communication plan3.Stakeholder analysis33 Ian Towers 2011Kotters8Steps5.Empower Others to Act on the Vision Get rid of obstacles to change Change systems or structures that seriously undermine the vision Encourage risk-taking and non-traditional ideas,activities,and actions 6.Plan for and Create Short-Term Wins Plan for visible performance improvements Create those improvements Recognize and reward employees involved in the improvements II.Make it happen Tools:1.Stakeholder analysis2.“Culture”work3.Project plan34 Ian Towers 2011Kotters8Steps7.Consolidate Improvements and Produce Still More Change Use increased credibility to change systems,structures,and policies that dont fit the vision Hire,promote,and develop employees who can implement the vision Reinvigorate the process with new projects,themes,and change agents 8.Institutionalize New Approaches Articulate the connections between the new behaviours and organizational success Develop the means to ensure leadership development and succession II.Make it happen Tools:1.Reinforce new culture2.HR activities35 Ian Towers 2011NorfolkSouthern:CaseStudyWhenKatieFrazierfirstjoinedNorfolkSouthernsAtlantaterminal,shefeltitwasrunningwellbutstillfeltmorecouldbedonetoimproveoperations.Shewasalsoconcernedaboutsafetyissues.Shewasstrugglingwithhowtohelpthecompanytakeitssafetyandoperationsstandardsfromjust“goodenough”toahigherlevel.Thisiswhatshedid:36 Ian Towers 2011Katiestartedbytryingtocreateasenseofurgencyaroundawillingnesstoraisesafetyandoperationalstandards.Throughevaluationoftheseproblems,notonlybyKatiebutalsobythebroaderleadershipteam,peoplebegantofeelthaturgencywasmorethanjustthelatestfad.ThatprocessofraisingtheurgencylevelinsidetheAtlantaterminalofNorfolkSoutherntookabout2monthsfromstarttofinish.Step1:Establishasenseofurgency37 Ian Towers 2011Aftersufficienturgencywasraised,aguidingcoalitionformedmadeupofafewconductors,engineers&supervisors.Katiesfearwasthatthegroupwastoohomogenoussheactuallywantedtoincludeafewofthecompanysmoreskepticalemployeestogettheirfeedbackandhelpstrengthenthegroupsdecisionmaking.TheGuidingCoalitionbeganmeetingregularlyandcalledthemselves“TheIcebergGroup.”Thisgroupstartedoutsmall,buteventuallygrewtohaveabout9people,changingovertime,fromdifferentpartsoftheorganization,meetingregularlytoseehowtoimplementtherestofthe8Steps.Step2:Formapowerfulguidingcoalition38 Ian Towers 2011Thevisionthatthegroupcreatedwasdesignedtochangeeveryonesmentalityandattitudeaboutsafety.Injuriescouldnotbetreatedasanacceptableriskatarailroadtheyhadtobereducedinordertogettherailroadsefficiencyupandcostsdown.Step3:DeveloptheChangeVisionandStrategy39 Ian Towers 2011Communicatingthisvisionwasaconstantbattle,sincemostofarailroadsemployeesareonthemoveatanygiventime.Furthermore,mostofthecrewmembersdidnothaveaccesstomoderncommunicationslikee-mail.Asaresult,thevisionwascommunicatedthroughavehiclecalled“jobbriefings,”wherethedaysweather&trackconditionswerediscussedforcrewsabouttogooutontothetracks.Thesebriefingshappen3timesaday,atthebeginningofeveryshift.TheIcebergGroupstartedcommunicatingthechangevisionatjobbriefings,aroundtheclock,fortwoweeksstraight.Overtime,everycrewmemberwastouchedbythevisionmultipletimes,rightattheirpointofhighestawarenessbeforegoingouttoworkonthetrains.Step4:Communicatethevision40 Ian Towers 2011ThelargestbarrierKatiefeltsheneededtoovercomewererelatedtotheconceptofraisingthebaronsafetystandardshowcanyoumakepeoplereallycareaboutthehighestpossiblesafetystandards,whencurrentstandardsarealreadyhigh?Thewaytodoit,shesaid,wastomakeitpersonalgettotheheartandnotjustthemind.Theyforcedpeopletothinkabouttheirfamiliesandhowtheywouldfeelaboutaninjurytotheirlovedones.Overtime,themessagebegantosinkinandpeoplestartedtochangetheirbehavior.Thiscreatedahighlevelofengagementwiththecrew.Step5:EmpowerOtherstoActontheVision41 Ian Towers 2011TheIcebergGroupsetagoalforashorttermwinsixmonthsinjuryfreeandcommunicateditbroadly.SincetheinceptionoftheIcebergGroupswork,withtheexceptionofasmallmusclepull,theAtlantaterminalhasgonealmost9monthsinjuryfree.Otheroutcomesresultedaswell,forexample,becausetheterminalbecamesoproficient,theyveneverhadtoreducethenumberofshiftsrunning,evenasothercompanieshavecutback.Withinjuriesdownabout97%overlastyear,theAtlantaterminalhashadfewermisseddaysofwork,fewerinjury-relatedcostsandmoreproductiveworkers,enablingittogainacriticaladvantageoverthecompetition.Step6:PlanforandCreateShort-TermWins42 Ian Towers 2011Evenwiththissuccess,theAtlantaterminalisntcontenttoletup.Astheycontinuetomovethroughthe8Stepprocess,theyhopetomakethechangepermanentbyanchoringthesenewchangesintotheculture.TheIcebergGroupcontinuestomeet,lookingforotherwaysinwhichtheycanhelpthecompanyimproveitsoperations,andhopefully,spreadtheIcebergphilosophytootherdivisionsofthecompanyStep7:ConsolidateImprovementsStep8:InstitutionalizeNewApproaches43 Ian Towers 2011OtherN-StepModelslTen Commandements(Kanter,Stein and Jick 1992)lTen Keys(Pendlebury,Grouard,and Meston 1998)l12 Action Steps(Nadler 1998)lTransformation Trajectory(Taffinfer 1998)lNine-Phase Change Process Model(Anderson&Anderson 2001)lStep-by-Step Change Model(Kirkpatrick 2001)l12 Step Framework(Mento,Jones and Dirndorfer 2002)lRANDs Six Steps(Light 2005)lIntegrated Model(Leppitt 2006)44 Ian Towers 2011N-StepModelIssueslThe sequences of steps lThe number of stepslThe timing of stepslThe resourcing of stepslThe involvement in each steplManaging multiple stepslRevisiting different stepsl“Are all steps needed for particular changes?”lCyclical or linear45 Ian Towers 2011TypicalPhasesofReactiontoChangeShockThat cant be true!“DenialThats not true!“DepressionWho cares.“AcceptanceYou know,it is true.!“IntegrationIt will work“TimePerformanceAngerTheyre idiots!“46 Ian Towers 2011ViewsofResistance1.Resistance signifies that not everyone is on board with the change program.Managerial skills can be acquired to overcome this.2.Resistance is expected and represents different interests within the organization.It should be overcome but this is not always possible.3.Resistance is short-lived and change will occur regardless of attempts to stop it.4.Resistance is to be expected and managers need to show others that the resistance does not promote effecti