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Leadership
& Team Management MGMT
623
VU
Lecture
41
LEADING
CHANGE
What
is Change?
Change
is the process of moving from
one state (current state) to
another (future state). It refers
to
actions
taken by organizational leaders to
achieve and maintain outstanding performance in a
dynamic
environment.
Facts
about Change:
o
Change
is inevitable
o
Change
is uncomfortable
o
Change
is disruptive
o
The
complexity of change has
increased
Dynamics
of Change:
People
.......
o
feel
awkward, self-conscious
o
think
first about what they have
to give up
o
feel
alone
o
can
only handle so much
o
are at
different levels of
readiness
o
revert
to the old as soon as the pressure is
off
Organizations
must learn faster & adapt to the
rapid changes in the
environment....
"Change
takes place, no matter what deters
it". (Plato,
428-347BC)
o
Organization's
long-term success: ability to
manage change
o
Types
of Organizational Change
Technology
Structure
Strategy
Machines
Principles
Corporate
Level
Chain
of command, unity of
Growth,
stability, turnaround,
command,
division of labor
System
process
Business
Level
Prospecting,
defending, and
Automation
Authority
Formal
and informal, line and
analyzing
People
staff,
centralize and
decentralize
Functional
Level
Skills
Marketing,
operation, finance
Organization
design
Performance
Departmentalization
Attitude
Job
design
Job
rotation, job
Behavior
simplification,
work teams
Culture
Forces
for change
External:
change
in the external (Macro
environment)
i.e.
new technologies, political,
economic,
o
financial
conditions, world market,
customer demands, changes in
competition.
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o
Internal:
change
in internal environment of the
organization (micro environment)
i.e. re-
engineering,
costs- revision of plan/objectives,
communications, employee turnover,
changes in
work
practices.
Change
Requires Leaders Who
Can....
o
Create
a realistic sense of urgency
for change
o
Create
a clear vision of the future
o
Remove
obstacles to change
o
Anchor
changes in the organization's
culture
o
Follow
through with plans
Change
Models
Lewin's
Model
Step-1
Unfreezing
o
Step-2
Moving
(Making Adjustment)
o
Step-3
Refreezing
o
A
Comprehensive Change
Model
Step-1
Recognize
the need for Change
o
Step-2
Identify
possible resistance to the change and
plan to
o
overcome
it
Step-3
Plan
the Change interventions
o
Step-4
Implement
the Change interventions
o
Step-5
Control
the Change
o
Lewin's
Change Management Model: Understanding
the Three Stages of
Change
Change
is a common thread that runs through
all businesses regardless of
size, industry and age.
Our
world
is changing fast and, as such,
organizations must change
quickly too. Organizations
that handle
change
well thrive, whilst those
that do not may struggle to
survive.
The
concept of "change management" is a
familiar one in most businesses
today. But, how
businesses
manage
change (and how successful
they are at it) varies
enormously depending on the nature of
the
business,
the change and the people
involved. And a key part of
this depends on how far
people within
it
understand the change process.
One
of the cornerstone models for
understanding organizational change
was developed by Kurt
Lewin
back
in the 1950s, and still holds true
today. His model is known as
Unfreeze Change
Refreeze,
refers
to the three-stage process of change he
describes. Lewin, a physicist as
well as social scientist,
explained
organizational change using the
analogy of changing the shape of a
block of ice.
Understanding
Lewin's Model If you have
a large cube of ice, but
realize that what you
want is a
cone
of ice, what do you do?
First you must melt
the ice to make it amenable
to change (unfreeze).
Then
you must mold the iced
water into the shape you
want (change). Finally, you
must solidify the
new
shape (refreeze).
By
looking at change as process
with distinct stages, you
can prepare yourself for
what is coming and
make
a plan to manage the
transition looking before
you leap, so to speak. All
too often, people go
into
change blindly, causing much
unnecessary turmoil and
chaos.
To
begin any successful change
process, you must first
start by understanding why the
change must
take
place. As Lewin put it,
"Motivation for change must
be generated before change
can occur. One
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must
be helped to re-examine many
cherished assumptions about
oneself and one's relations to
others."
This
is the unfreezing stage from
which change begins.
Unfreeze
This
first stage of change
involves preparing the organization to
accept that change is
necessary, which
involves
break down the existing
status quo before you
can build up a new way of
operating.
Key
to this is developing a compelling
message showing why the
existing way of doing things
cannot
continue.
This is easiest to frame
when you can point to
declining sales figures,
poor financial
results,
worrying
customer satisfaction surveys, or
suchlike: These show that
things have to change in a
way
that
everyone can understand.
To
prepare the organization successfully, you
need to start at its core
you need to challenge
the
beliefs,
values, attitudes, and behaviors that
currently define it. Using
the analogy of a building,
you
must
examine and be prepared to change the
existing foundations as they
might not support
add-on
storeys;
unless this is done, the whole
building may risk
collapse.
This
first part of the change
process is usually the most
difficult and stressful. When you
start cutting
down
the "way things are done",
you put everyone and
everything off balance. You may
evoke strong
reactions
in people, and that's exactly
what needs to done.
By
forcing the organization to re-examine
its core, you effectively
create a (controlled) crisis, which
in
turn
can build a strong motivation to
seek out a new equilibrium.
Without this motivation, you
won't
get
the buy-in and participation
necessary to effect any
meaningful change.
Change
After
the uncertainty created in the unfreeze
stage; the change stage is
where people begin to resolve
their
uncertainty and look for
new ways to do things. People start to
believe and act in ways
that
support
the
new
direction.
The
transition from unfreeze to change
does not happen overnight: People
take time to embrace the
new
direction
and participate proactively in the
change. A related change
model, the Change Curve,
focuses
on
the specific issue of personal
transitions in a changing environment and
is useful for
understanding
this
specific aspect in more
detail.
In
order to accept the change and
contribute to making the change
successful, people need
to
understand
how the changes will benefit
them. Not everyone will fall
in line just because the
change is
necessary
and will benefit the
company. This is a common assumption and
pitfall that should
be
avoided.
Time and communication are the
two keys to success for the
changes to occur. People
need
time
to understand the changes and they
also need to feel highly
connected to the organization
throughout
the transition period. When
you are managing change,
this can require a great
deal of time
and
effort and hands-on management is usually
the best approach.
Refreeze
When
the changes are taking shape
and people have embraced the new ways of
working, the
organization
is ready to refreeze. The outward
signs of the refreeze are a stable
organization chart,
consistent
job descriptions, and so on. The
refreeze stage also needs to
help people and the
organization
internalize
or institutionalize the changes. This
means making sure that the
changes are used all
the
time;
and that they are
incorporated into everyday
business. With a new sense
of stability, employees
feel
confident
and
comfortable
with
the
new
ways
of
working.
The
rationale for creating a new
sense of stability in our
every changing world is
often questioned.
Even
though change is a constant in
many organizations, this
refreezing stage is still
important. Without
it,
employees get caught in a transition trap where
they aren't sure how
things should be done, so
nothing
ever gets done to full
capacity. In the absence of a new
frozen state, it is very
difficult to tackle
the
next change initiative
effectively. How do you go
about convincing people that
something needs
changing
if you haven't allowed the
most recent changes to sink
in? Change will be perceived
as
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change
for change's sake, and the motivation
required to implement new
changes simply won't
be
there.
As
part of the Refreezing process,
make sure that you celebrate
the success of the change.
This helps
people
to find closure, thanks them for enduring
a painful time, and helps them believe
that future
change
will
be
successful.
Practical
Steps for Using the
Framework:
Unfreeze
Determine
what needs to change
o
Survey
the organization to understand the current
state
o
Understand
why change has to take
place.
Ensure
there is strong support from upper
management
Use
Stakeholder Analysis and Stakeholder
Management to identify and win the
support of
o
key
people within the
organization.
Frame
the issue as one of organization-wide
importance.
o
Create
the need for change
Create
a compelling message as to why
change has to occur
o
Use
your vision and strategy as supporting
evidence
o
Communicate
the vision in terms of the change
required
o
Emphasize
the "why".
o
Manage
and understand the doubts and concerns
Remain
open to employee concerns and address in
terms of the need to
change.
o
Change:
Communicate
often
o
Do so
throughout the planning and
implementation of the changes
o
Describe the
benefits
o
Explain
exactly the how the changes
will effect everyone
o
Prepare
everyone for what is
coming.
Dispel
rumors
o
Answer
questions openly and honestly
o
Deal
with problems immediately
o
Relate
the need for change back to
operational necessities.
Empower
action
o
Provide
plenty of options for
employee involvement
o
Have
line managers provide
daytoday direction.
Involve
people in the process
o
Generate short-term
successes to reinforce the
change
o
Negotiate
with external stakeholders as necessary
(such as employee
organizations).
Refreeze
Anchor
the changes into the
culture
o
Identity
what supports the
change
o
Identify
barriers to sustaining change.
Develop
ways to sustain the change
o
Ensure
leadership support
o
Create
a reward system
o
Establish feedback
systems
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o
Adapt
the organizational structure as
necessary.
Provide
support and training
o
Keep
everyone informed and
supported.
Celebrate
success!
Resistance
to Change:
Sources
of Resistance to Change
o
Facts:
Provable
statements that identify
reality.
o
Beliefs:
Subjective
opinions that cannot be
proven.
o
Values:
What
people believe are important
and worth pursuing or
doing.
Focuses
of Resistance to Change
o
Self:
The
reaction of individuals who
feel their self-interests are threatened
by change.
o
Others:
The
consideration given to how
others will be affected by
change.
o
Work
environment: Change in
the working environment threatens
individuals control of
the
environment
Managerial
Perspective:
Critical
factors in managing complex
change:
o
Trust
o
Vision
o
Skills
o
Resources
o
Incentives
o
Action
plan
o
Accountability
Example
Change Initiatives
o
New
e-mail system
o
New
ERP system
o
Introducing
a new senior manager
o
Total
Quality Management/Six Sigma
o
Postage
coming from a printer--not
using stamps
o
Change
in work hours
Starting
Out...3 Key
Questions
o
Where
are you; what is the current
state? Why change?
o
Where
do you want be?
o
How
are you planning to get
there?
Answering
these questions will provide the
basic scope a short document that
lays out the case
for
change,
the benefits to be gained and a basic
risk assessment that
addresses the major
unknowns.
The
Eight-Stage Model of Planned Organizational
Change
o
Establish a
sense of urgency.
o
Form a
powerful guiding
coalition.
o
Develop
a compelling vision and
strategy.
o
Communicate the
vision widely.
o
Empower
employees to act on the vision.
o
Generate short-term
wins.
o
Consolidate
gains, create greater change.
o
Institutionalize
changes in the organization
culture.
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Some
Barriers to Effective
Change
The
compelling case for
change
o
o
Failing
to "paint the right picture" of the
future state
o
Poor
employee involvement and
discussion
o
Failing
to build up the case for
change over time too
rushed
o
Failing
to share key data with
employees lack of transparency
Not
understanding what change is
o
o
Failing
to see change as a journey,
not a single event
o
Over-simplified
view of "getting the change
out the way"
Employee
involvement
o
o
Failing
to involve employees in feedback
sessions
o
Failing
to involve employee teams in
optimising solutions and developing
implementation
plans
that will work!
Ownership
confusion
o
o
Failing
to establish clearly who
is
responsible for what,
and who
is
making the decisions
Ineffective
implementation
o
o
Viewing
implementation as the "easy
part"!
o
Failing
to clarify who is coordinating
implementation
o
An
unclear transition plan of roles and
responsibilities
o
Poor
alignment of senior team around
leadership behaviours
o
Poor
communication confusion about
what is happening, and
when
Perpetuating
"the way we do things here"
too long
o
o
Failing
to see the impact of the wider
sector or economic environment
o
"Good
times" may have masked some
less than effective
management practice!
Leadership
during Change: Change
will simply not happen
without effective leadership in
the
organization.
To a large degree change is
really about;
o
Good
communication
o
Personal
desires
o
Alternative
culture and culture
change
o
Anxiety
and loss of control
o
Hidden
agendas
These
are all leadership
issues
What
are the leadership behaviours most
relevant to change
situations?
Communicates
a clear and consistent vision
(or plan) with
commitment
o
Champions
change able to engage
others and get them ready
(convince)
o
Treats
people with respect
o
Demonstrates
integrity and high ethical
standards
o
Sets
and sustains high personal standards of
delivery
o
Is
decisive, particularly when
confronted with challenging
issues
o
Able
to adapt and capitalise on new
opportunities
o
Builds
effective relationships
o
Builds
effective team performance
o
Openly
encourages and recognises the
contribution of others
o
Gives
constructive feedback on a regular
basis
o
Encourages
personal development and provides
appropriate opportunities
o
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8
Steps to Effective Change
Leadership
So
what should leaders do to
help make change more
effective?
1)
Recognise that you are a
role model
2)
Be visible, and listen to concerns -
encourage constructive debate and
feedback
3)
Even if you don't "buy-in"
fully to what is happening,
you still have a responsibility to
help
employees
through the process in a supportive,
positive and constructive
way
4)
Be consistent in what you say, and
never speculate if you
don't know or can't say,
then
say
so
5)
Be empathetic to concerns, and help
people understand what is actually
happening, not
what
they think is
happening
6)
Ensure that business keeps
running smoothly during the
change process
7)
Go out of your way to
involve people and explain
what is happening
8)
Focus on team working and
team development
needs
Key
Messages
o
Leader
Qualities of Holistic Thinking
and Holistic Action
o
Beware
of Attempts to Improve Performance
through Singular
Changes
o
Building
the Complementary Changes the Integrated
Systems of Mutually
Reinforcing
Elements
o
Be
Prepared for the Dangers of
Transitions and the Perils of the 'J'
Curve
Things
May Get Worse Before
They Get Better. Need
For Strong Leaders To
Survive Transition
Processes
Partial
Changes may be Politically and
Emotionally Easier to Contemplate,
but Encourage
o
Long
Term Declines
Beware
of Complementary Traps: Sticking
With the Old System that
Works
o
Learning
is Crucial, But it is Also a
Challenge Complements May Be:
o
Hard
to Understand
Hard
to Implement
Hard
to Imitate
Building
the Complements and the Capabilities that
Underpin them Takes Time and
Courage
o
Building
Complements Requires Customization
o
The
Virtual Cycle of Complementary
Change Needs to Stay In
Motion
o
Leading
Change is a Continuous
Process
The
Crucial Importance
of:
o
Duration
of Leader in Post
Careful
Management of Leader
Succession
Leading
Continuity and Change
The
Importance of Inter-Generational Leader
Effects
Imposing
the change: some issues to
consider
o
Compliance
versus Commitment
o
Short
term "speed" versus long term
satisfaction with the
change
o
"Powerless
leader"
The
goal of Fearless
Change: People
become so involved and interested in the
change process that
they
want
to change.
Remember!
Change
is not an event. It is a
process.
Note
Material
presented during this course
is taken from different
books, presentations and work done
by
great
peoples in this field to
make the material understandable for a
common person and purely
for
learning
purpose. Material/work used from
different sources is highly
acknowledged.
192
Table of Contents:
- INTRODUCTION, ORGANIZATION THE STAGE FOR LEADERSHIP:Challenges, Value creation
- FOCUSING ON PEOPLE: THE KEY TO SUCCESS:People in the Process, Developing and Sustaining A World-class Workforce
- LEADERSHIP:Characteristics of Successful Leader, Why Study Leadership?
- LEADERSHIP (CONTD.):Characteristics of Leaders Who Fail, Why Leaders Fail?
- MANAGERS VS LEADERS:Characteristics, Effective Leadership, Respect for Diversity
- FOLLOWER-SHIP:Importance of Followers, Follower-ship Style
- LEADERSHIP PROCESS:Strategies for Cultivating Exemplary Followers, Important Traits of Leaders
- LEADERSHIP PROCESS (CONTD.):Qualities of Leaders, Self-Confidence, Integrity
- LEADERSHIP THEORIES/ APPROACHES:Personal Characteristics of Leaders, Managerial Grid
- CONTINGENCY THEORIES OF LEADERSHIP:The Fiedler Model, Situational Leadership Theory, Path-Goal Theory
- TRANSACTIONAL, CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP:Visionary Leadership
- THE LEADER AS AN INDIVIDUAL:Personality, Situation, Heredity, Environment
- ATTITUDE-PERSONALITY:Job Satisfaction, Work Situation, Self - Monitoring
- BIG FIVE MODEL, MYERS BRIGGS TYPE INDICATOR (MBTI):Sub-Categories Defined, Information Gathering
- SITUATIONAL FACTORS:Social and psychological climate, Culture of the organization
- BECOMING A LEADER! WHAT DOES IT MEAN & HOW DO YOU GET IT?:Mission Statement, Leading oneself
- BECOMING A LEADER:Elements of Leadership, CONCEPT OF POWER,
- UNDERSTANDING POWER:Sources of Power, Responses to the Use of Power, Managing Political Behavior
- LEADERSHIP POWER & INFLUENCE:Positional Power, Being an Effective Leader
- LEADERSHIP AND EMPOWERMENT:Power sharing and Empowerment, Share Information
- MOTIVATION:Guidelines for Delegating, Human Resource Approach
- MOTIVATION AT WORK, MOTIVATION AND LEADERSHIP:What Factors Diminish Motivation in the Workplace
- LEADERSHIP COMMUNICATION:Communication & the Four Management Functions
- REVIEW-1:Organizational Performance, That is the Role of Management?, Leaders Vs Managers
- GROUP & TEAM CONCEPT:Groups versus Teams, Deciding When to Use a Team
- TEAM DYNAMICS:Stages of Group Development, Problem-Solving Teams, Benefits of Teams
- BUILDING THE TEAM:Leadership success requires, Strategies for Team Building
- A TEAM-BASED ORGANIZATION:Basic Steps, Span of Control, Categories of Decisions
- DECISION MAKING:Categories of Decisions, The Decision-Making Process
- TEAM DECISION MAKING:Team Problem Solving Techniques, Concept of QC
- EFFECTIVE TEAM COMMUNICATION:Team/Group Communications
- CONFLICT IN TEAM:Sources of Conflict, Scarcity of Resources, Dysfunctional Outcomes
- TRAINING/LEARNING OF TEAM:Training Methods, Phases of Learning Cycles
- LEARNING ORGANIZATION:A Litmus Test, Work Relations
- REWARDING & RECOGNIZING TEAMWORK:Compensating Teams, Individual or Team Rewards?
- MANAGING/LEADING VIRTUAL TEAMS:Communications in Virtual Organizations, Virtual Leadership
- EFFECTIVE TEAM MEETINGS:Better Meetings, Meeting Roles, Meeting Room Facilities
- LEADING TEAM:Team Leadership Structures, Leadership Demands and Duties, Leadership Direction
- REVIEW-II:Types of Teams, Characteristics of High Performance Teams, Sources of Conflict
- STRATEGIC LEADERSHIP:Strategic Management, Determining Strategic Direction, Developing Human Capital:
- LEADING CHANGE:Dynamics of Change, Change Models, Unfreeze
- CREATIVE LEADERSHIP:Awaken Your Senses, How Might These Definitions Be Integrated
- ETHICS IN LEADERSHIP:Character Traits Reflect Ethics, Manifests Honesty
- LOOKING AT THE FUTURE: WHAT COMES NEXT:Benefits of Teams, Ethical Leadership,
- TEAMWORK: LEARNING FROM NATURE:Social Behavior, Termites, Learning from Nature