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Change Management

Change Management. Prof. Steve Phelan Lecture 20. Today. Continuous change at GE Cracking the code of change (2000) Unlocking the mystery of large scale change GE issues LMZ Chs 43-44 Seven practices of successful organizations (1998) The new agenda for OD (1997).

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Change Management

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  1. Change Management Prof. Steve Phelan Lecture 20

  2. Today • Continuous change at GE • Cracking the code of change (2000) • Unlocking the mystery of large scale change • GE issues • LMZ Chs 43-44 • Seven practices of successful organizations (1998) • The new agenda for OD (1997)

  3. Cracking the code of change • Two change styles (Theory E and O) • Theory E is shareholder value driven, top down, focused on structure and systems, relies on financial incentives • Theory O is commitment driven, bottom up, focused on culture and employee skills • Authors argue that management needs to do both by explicitly embracing the paradox

  4. Unlocking the mystery • New think • Shared ownership of vision – open dialog • Public information – we all work from the same picture • Volunteer mindset (‘what can I do?’) • Respect for whole individual • head, heart, hands, spirit – equally human • Wisdom • We have the knowledge and skills we need or know how to get them • System • I understand how we fit together • Process • We continually learn and change together

  5. GE Issues • Challenges of copying GE strategy/culture • What were the hardest things to copy? • Why? • What should be done? • Workout • Is violating “no meeting Wed” a big deal? • Internet strategy • How did it roll-out so fast?

  6. Pfeffer • The seven practices are: • Employment security • Selective hiring • Self managed teams • High compensation contingent on performance • Training • Reduction of status differences • Sharing information • Best way of unlocking Vaill’s latent energy?

  7. The New Agenda for OD • Loss of community • People pretend to care more about one another than they really do • Loss of employer-employee social contract • I must take care of myself • Employability • Is my employer giving me the skills to find another job if I have to? • Trust • Widening gap between have and have nots • Difference between what managers say and do • Lack of openness • Culture Clash • Need for negotiation and conflict resolution skills

  8. On mergers • Interesting list of change strategies • Importance of vision/superordinate goal • People need to understand the why behind the vision • Importance of employee communication • Relationships beyond the workplace • A few off-site meetings together early • Proximity was key • Getting on with it/rapid decision making • Walk the talk • Don’t forget the customer • Very similar to our merger simulation

  9. Managing discontinuities • List of emerging discontinuities • Globalization • Deregulation/privatization • Volatility (need for flexibility) • Convergence of technologies • Indeterminate industry boundaries • Standards • Disintermediation • Eco-sensitivity • What about terrorism, oil? Not even anticipated

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