Managing Change

1. Managing Change John Davidson Chris Lee

2. �AND YOU ALL KNOW SECURITY IS MORTALS CHIEFEST ENEMY� Macbeth Act 3 Sc.

3. �EVERYONE THINKS OF CHANGING THE WORLD, BUT NO-ONE THINKS OF CHANGING THEMSELVES�Tolstoy, L.

4. �IT IS NOT THE STRONGEST OF THE SPECIES THAT SURVIVES, NOT THE MOST INTELLIGENT, BUT THE ONES MOST RESPONSIVE TO CHANGE�Darwin, C.

6. THREE ENVIRONMENTS 1. Internal Environment Staff, Resources, Facilities (Can Control) 2 Near Environment Customers, clients, contractors, suppliers, competitors (can influence) 3. Far External Environment S.T.E.E.P. Cannot Control or Influence)

7. T = TECHNOLOGICAL FACTORS IT lowers barriers of time and place IT creates industries Nature of service functions have changed Marginalisation occurs at organisational level Technologies do not change over night

8. E = ECONOMIC FACTORS Rate of Economic Growth Interest rates Inflation Energy prices Exchange rates Unemployment

9. E= ENVIRONMENTAL FACTORS Legislation Information Employees Share Holders Pressure Groups Customers

10. P = POLITICAL FACTOR Legislation � Health and Safety; Equal Opportunities Trading relationships Government major party Public service Taxation (individual, business, properties)

11. CHANGEINDICATION OF NEED Drop in Profits Escalation of Costs Loss of Market Share Failure to Meet Targets Innovation by Competition Serious Conflict Widespread Dissatisfaction High Turnover and Absenteeism Change in Environment

12. THE SCOPE OF CHANGE

13. Forcefield analysis (Assets for change) Driving Forces Equilibrium Restraining Forces (After Lewin 1951)

14. MECHANISMS FOR ASSISTING CHANGE Appoint a �Change Master� (MONO-MANIAC) Pilot Studies New Personnel Consultants Incentive Schemes

15. FACTORS LIKELY TO BE ASSOCIATED WITH RESISTANCE TO CHANGE Perceived threat to job Perceived threat to income level Perceived threat to skill level Perceived threat to relationships Lack of consultation or misunderstanding (rumours) Solidarity of work groups or parochial self interest Distrust of management of different assessment of the situation

16. ROSABETH MOSS KANTER Rosabeth Moss Kanter, in her book �The Change Masters � Corporate Entrepreneur at Work� cites ten reasons why people resist change: Loss of Control Excessive personal uncertainty Avoid surprises The difference effect Loss of face Concerns about competence Ripples More work Past resentment Real Threats

17. METHODS FOR DEALING WITH RESISTANCES TO CHANGE There can be two areas that overlap. They can be considered to be �people� and �organisations�:

18. PEOPLE APPROACH Education and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulative and co-option Explicit and implicit coercion

19. ORGANISATION AND PEOPLE Seek areas for agreement Explore the �knock-on� effect Support of key opinion leaders Identify resistances Show potential benefits Do not disguise your feelings

20. CHANGE STRATEGIES Thurley and Wirdenius (1973) looked at an alternative change strategy approach. This is: Directive; imposition of change by management Negotiating; recognises legitimacy of other bargaining groups Normative (hearts and minds); seeks overall attitudes / values about change. Often uses external change agent. Analytical; clear definition of problem, collect data, use experts Action Centred; start with general idea of problem. Try out solutions and modify in the light of effects. More involved than analytical

21. FACTORS AFFECTING THE CHOICE OF STRATEGY Why and when should you choose one strategy over another. The factors that affect your choice are: The pace of change The amount and kind of resistance anticipated The power base of the initiator The amount of information required The stakes involved