Change Management and People Performance

1. Change Management and People Performance By Professor Simon Burtonshaw-Gunn – licensed under the Creative Commons Attribution – Non-Commercial – Share Alike License http://creativecommons.org/licenses/by-nc-sa/2.5/

2. School of the Built Environment MSc Construction Management People Management in the Built Environment Presentation 1: Change Management Professor Simon Burtonshaw-Gunn

3. Presentation content . . . • Presentation 1: Change Management • Rate of Change • Change options and strategies • Change on the Organisation • Planning Organisational Change • Change and the individual

4. “It is not the strongest of the species that survives, nor the most intelligent, . . . but the one most responsive to change.” Charles Darwin, ‘On the Origin of Species’ Published on 22 November 1859

5. However . . . "There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things." From ‘The Prince’ first published in 1532.

6. People, not organisations, change • Nothing is new about the new to adapt to change • The issue today is the speed of change compared to the past • Successful organisations recognise the need to keep changing • Successful organisations invest in equipping people to deal with change • Coping with change is a key skill

7. Change Management Strategic drift and trigger for change From Dr Tim Hannagan ‘Management Concepts and Practices’. 2005, Pearson Education

8. Change Management Organisation Size/ Growth rate Phase 1 Age of organisation Rate of Change

9. Change Triggers • Significant change occurs when: • A new organisation / departmental structure is introduced • People are replaced, promoted or moved on to other roles or new people come in • New technology is introduced • Tasks must be undertaken in a different way or new tasks arise

10. Going for the Going for the Transformation or Transformation or “ “ Quick Fix Quick Fix ” ” Radical Change Radical Change Magnitude of Magnitude of change change Incremental or Incremental or “ “ Tinkering Tinkering ” ” Evolutionary Evolutionary Change Change Time Time Change Management Change Options From ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants.’ S. A. Burtonshaw-Gunn, 2008

11. Change Management Hard to do (invisible) Change Culture Level of Discomfort Change Behaviour Organization design Change Structure Easy to do (visible) Job design Change Roles Process design Change Tasks Change Pyramid From ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants.’ S. A. Burtonshaw-Gunn, 2008

12. Change Management Consideration of Approach . . . • The degree of the opposition expected; • The power base of the change initiator; • The need for information, communication and commitment when planning and carrying out the change. • The nature of the current organization’s culture and its likely response to change.

13. Change Management Strategies for Change From ‘Change Management and Organizational Performance’ S. A. Burtonshaw-Gunn and M. G. Salameh, ICAFI University Press, 2007.

14. Change Management • Directive strategy: • ‘management’s right to introduce change’ • Here the management can use its authority to impose the changes required and will be able to carry them out speedily. However, the disadvantage of this approach is that it is likely to increase resistance or even undermine the change implementation process.

15. Change Management • Expert strategy: • ‘manage change as problem solving’ • This approach is usually applied when a ‘technical’ problem requires solving, such as the introduction of a new IT system and as such is better suited to smaller technical or operational change than the requirement for wider cultural change.

16. Change Management • Negotiating Strategy: • ‘bargaining about change’ • This approach involves a willingness to negotiate with individuals and teams affected by the change and to accept that adjustments and concessions may have to be made. Opting for this approach does not remove the management’s responsibility for the direction and initiation of change, but acknowledges that those affected have the right to have some input in the changes proposed, or that they have some power to resist it if they are not supportive.

17. Change Management • Educative strategy: • ‘winning hearts and minds’ • This approach involves changing people’s values and beliefs so that they support the change and are committed to a shared set of organizational values. ‘Winning hearts and minds’ is a complex process that involves a mixture of activities such as communication, persuasion, education, training and selection. The advantage of such an approach is that people will be positively committed to the change.

18. Change Management • Participative strategy: • ‘get all involved in making the change’ • This strategy has a number of advantages: changes are more likely to be widely acceptable over the others; it promotes the active involvement of people and is likely to increase their commitment to and enthusiasm for the change process. Additionally there will be opportunities for both managers and employees to learn from the experiences and skills of this wide participation.

19. Change Management Major organizational components impacted by a change management programme Source: Kelvin Hard, (1992) “Developing the Right Organization”, in ‘Strategies For Human Resource Management’. Armstrong, M (Ed) Kogan Page Limited.

20. Change Management Process Speed; Consultation; Communication; Planning; Transition Management Involvement; Leadership; Power; Politics Context of change Context of change Content Benefits and disadvantages; does it seem a good idea; can it be done Individual Fear of failure; fear of the unknown; need for order and control; avoid discomfort of change; commitment to the present Vectors of Change Management

21. Assess Assess . . . to define . . . to define purpose and nature purpose and nature of change of change Renew Renew Plan Plan Four Four - - phase phase . . . . to . . . . to . . . . an integrated . . . . an integrated assess assess technological, structural and technological, structural and Change Life Change Life achievement achievement behavioural plan for change behavioural plan for change Cycle Cycle and learning and learning Implement Implement Resistance to Resistance to . . . to build an . . . to build an change change understanding and understanding and commitment to commitment to change and change and Planned Planned establishes new approach for approach for Reinforcing the Reinforcing the ways of working Overcome Overcome change change resistance to resistance to resistance resistance change change Considering addressing any resistance to Considering addressing any resistance to change plays an important part of the change plays an important part of the Managing the Managing the planning process and needs to be undertaken planning process and needs to be undertaken change change before embarking on the implementation before embarking on the implementation phase. phase. Change Management Planning Organizational Change From ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants.’S. A. Burtonshaw-Gunn, 2008

22. Change Management Large-scale Change Management aligned to Phases of a Programme From ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants.’ S. A. Burtonshaw-Gunn, 2008

23. Change Management Change Curve From ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants.’ S. A. Burtonshaw-Gunn, 2008 based on work on Bereavement by Elizabeth Kubler-Ross from publication “On Death and Dying

24. Change Management Whilst there are a number of models to assist individuals in the change process it should be noted that reactions to change can be categorised as one of four groups. These categories range from those individuals who openly resist the change and may even try to prevent it; to those who merely go along with the change but may not be committed to being part of its success. The four categories of resistance are described as follows:

25. Change Management Protesters who openly make their objections known to the organization and colleagues however once issues are identified they can be considered and managed. Zombies have no strong opinion and are happy to go along with any proposed changes without offering any constructive comment. Saboteurs like to show that the old ways were fine and openly finds fault with any new systems or process change and seek opportunities to make the change fail. Survivors accept the change and make best use of any new situation for their own advantage.

26. Change Management External environment Commitment Denial Future Past Resistance Exploration Internal self

27. Change Management External environment Commitment Denial “It won’t happen”; “They’ve tried this before” “We should have done this ages ago, I’ve always said that” Future Past “I’m going to carry on doing things the way I always have” “Its worked over here – I might try one or two of the ideas” Resistance Exploration Internal self

28. External environment Commitment Denial Future Past Resistance Exploration Internal self Change Management So how do you move people along the curve through the stages of change???

29. Change Management Refreezing Unfreezing Changing • Breakdown of old way of doing things • Cause dissatisfaction with the status quo • Integrate new behaviours • Internalise what has been learned • Provide new patterns of behaviour • Communicate vision From Kurt Lewin

30. High High Danger, Danger, Handle carefully Handle carefully Check feasibility Check feasibility Expected Expected level of level of resistance resistance to change to change Accelerate the process Accelerate the process Implement Implement Low Low High High Low Low Level of adaptability to change Level of adaptability to change Change Management Matrix of Emotional Issues From ‘The ten keys to Successful Change Management’, Pendlebury et al, 1998

31. Change Management Forces in the INDIVIDUAL : Forces in the INDIVIDUAL : Forces in the SITUATION : Forces in the SITUATION : Self Esteem Self Esteem Security of Business Security of Business Knowledge and Skills Knowledge and Skills Attitudes towards Risk Attitudes towards Risk Motivation to Achieve Motivation to Achieve Stability of Environment Stability of Environment Tolerance of Uncertainty Tolerance of Uncertainty Perceived Security Perceived Security High or Low SECURITY: High or Low SECURITY: Moderate SECURITY : Moderate SECURITY : Likely to: Reject, Suppress, Distort Likely to: Reject, Suppress, Distort Likely to: Listen, Clarify Likely to: Listen, Clarify Explore, Develop, Integrate Explore, Develop, Integrate Security and Change From ‘The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants.’ S. A. Burtonshaw-Gunn, 2008

32. School of the Built Environment MSc Construction Management People Management in the Built Environment Presentation 1: Change Management Professor Simon Burtonshaw-Gunn