Implementing Strategic Change

People & Change

Professor Paul Iles
[email protected]


Patterns of change

Downsizing.
Delayering.
Speeding Up.
Customerising.
Virtualising.
Globalisation.


People & Change
Assumptions about People and Change
*Change occurs
*People are important.
*People can change.
*Systems need to change to support people.
*Change is a process.
*Change can be positive if there are individual
benefits
*Change invokes a reaction.
*Good communication is an essential part of a
healthy change process.












































































1. At first, some people may feel awkward,
ill at ease, and self-conscious, while others
will welcome the change.
2. Some people initially may focus on
losses, while others may focus on the gains
and ignore the losses.
3. When people feel alone, they need
support.
4. The plan and strategy need to be clear so
people can see how this initiative fits with
other things going on.
5. People have different levels of readiness
for change.
6. People are concerned about resources
during the change.
7. When you take the focus off change,
people tend to revert to old behaviours.


1. CHANGE DYNAMICS

*At first, some people may feel awkward, ill at
ease, and self-conscious, while At first, some
people may feel awkward, ill at ease, and
self-conscious, while others will welcome the
change.
*Some people initially may focus on losses, while
others may focus on the gains and ignore the
losses.
* others will welcome the change.



Dynamics 2
The plan and strategy need to be clear so
people can see how this initiative fits with
other things going on.
People have different levels of readiness for
change.
People are concerned about resources
during the change.
When you take the focus off change, people
tend to revert to old behaviours.






Dynamics 3
People are concerned about
What the change is.
When the change will occur.
How the change will affect them.
How the change will be managed
What the impacts and benefits will be
Who will need to be involved

Reactions to Unplanned Change
Stress
Interpersonal conflict
Resistance
Fear
Narrowed attention
Values clash
Communications breakdown
Poor decisions
Loss of markets, profits


Positive outcomes of planned
change

High expectations
Optimism
Excitement
Involvement
Development personal and business
Roles People Play in Change

Spectators
Players
Walking dead
Cynics
ATTI TUDE +/-
ENERGY+/-

Managers roles in Change
Protector
Champion
Abdicator
Task Master
WI LLI NGNESS TO SUPPORT+/-

WI LLI NGNESS TO CHANGE+/-

Multiple Realities in Change
Organisation is a pattern of shared understandings that become
ingrained and accepted as reality.

This reality is experienced at different levels of the organisation:

I nstitutional Reality: things generally accepted throughout the firm
(e.g paradigm, success recipe, taken for granted assumptions).

Sub-System Reality (e.g. marketeers see client entertainment as an
investment, accountants see it as an overhead cost; engineers may see
it as unnecessary or inefficient).

I ndividual Reality: each persons construction of his/her world
(worldview or weltanschauung).
Multiple Realities 2
Individual/groups living in seemingly common
Institutional Reality are best understood as experiencing
multiple versions of this reality.
Factors that influence construction of Sub-System and
Individual Reality include:
Cultural and educational background.
Professional or work group affiliation.
Unique life history and personality.
Age, gender, racial identity, national and cultural identity.
Values.
Multiple Realities 3
Change is an attempt to change what is
experienced as reality.
Is not simply a matter of changing work
methods, policies, structures.
Involves changing consciousness and how
people experience themselves and their
environment; their worldviews.
Managers usually attempt to implement change
as though only Institutional Reality is involved.
Multiple Realities 4
A typical sequence managers engage in is to:
See a problem then ask other people to develop a
programme for dealing with it.
Develop a programme, which is then rolled out to
employees.
Let time pass; the programme is not fully or effectively
operationalised.
Regroup and try to analyse the resistance; inputs from
employees are ignored, or rationalised away.
Develop a plan to overcome the resistance; this may
involve intensive persuasion or coercion; or it may entail
belated participation.
Multiple Realities 5

In most change efforts, resistance is seen by the drivers of change as
deviant reality, i.e. that which diverges from their own. They often:
Assume a best state that others fail to accept.
Fail to see the situation as one in which alternate realities and
worldviews are operating, and that these all have some legitimacy.

2. For significant, lasting change, managers must deal with the multiple,
alternative realities and worldviews in a way that produces joining
around a new shared understanding (new reality).

3. This involves recognition that these realities and worldviews exist and
must be managed.
Managing Multiple Realities
One way to manage them is to engage in a joint analysis of
the following:

How is it that others see things differently from me?
How is it that we do not have a common picture or goal?
How is it that some people do not accept an apparently
desirable goal? What is their objection?
What is the value/usefulness of each of the existing
realities/worldviews?
How can we create a common reality/shared paradigm or
worldview?

Example: Multiple Realities

EMPLOYEE/MANAGER VI EWS
NEW MANAGER
Necessary to replace manager who leaves, dies,
was not suitable, failed to progress with role.
NEW EMPLOYEE
Will he/she make changes? Will he/she like me?
Will I fulfil expectations?
Example 2
NEW MANAGER
Necessary to replace or increase staff. Need for
special skills within organisation
NEW EMPLOYEE
Will he/she fit in?
Will he/she do better than us?
Will he/she earn more?
Will he/she be a creep and show us in
unfavourable light?


Example 3
MANAGER VIEW: NEW EQUIPMENT
Necessary to improve efficiency.
Save staff time to be redeployed

EMPLOYEE VIEW
Will I be able to cope?
Will I be given sufficient training?
Will I lose my job if it can be done better by a
machine?

Example 3
NEW OFFICE
Necessary to alter physical layout to cope with new
staff or equipment and to cut down on wasted time
or effort

Who will I work with?
Will I like them?
Will they be as pleasant to share an office with?
Is it less spacious or prestigious than my old office?

EXAMPLE 4
MANAGER VI EW: NEW RESPONSI BI LI TI ES
*Necessary to improve staff flexibility and achieve
objectives
*this means reshuffles occasionally
EMPLOYEE VI EW
*Will I be able to cope?
*Will the manager be pleased?
*Will my colleagues be OK?
*Will I earn more money?



Example 5
MANAGER: NEW METHODS
Necessary to cope with imposed changes and to meet
targets
EMPLOYEE VI EW
*Will my job be safe?
*Will I have to change offices or area? Leave my
colleagues?
* Will I become more or less valuable?
*Will my wages be affected?

Example of Change Discussion
Leader of change effort:
*We must do something about this problem.
*Here is the programme we want to implement.
EMPLOYEE VI EWS
We tried this at previous company, but it did not
work!
Our culture will not support this approach!
We do not have the skills to make this work
This is the first time Ive heard that the boss is
concerned about this issue

Change Discussion 2
Things are going well; why change them?
If its not broken, why fix it?
At last! Its about time that we are dealing with this problem
If we become more efficient, jobs will be lost!
I want to leave this group. Taking on this project will delay my move.
This change is the most useful thing we can do to improve our
efficiency.
The proposed system is not the right one. I have a better idea!
What about my bonus?

(adapted from Edwin C. Nevis 1994)


Activity 1
Change Stories
Activity 2
Role of Change Consultants:
1. Initially, provide feedback as to what you thought you
heard.
2. Indicate support by acknowledging similar dilemmas you
have experienced. (But do not tell your story).
3. Ask questions and make statements to enhance or push the
presenters awareness about the change problem:
How does the presenter sound/look while presenting the
case?
Is this an unusual occurrence, or a familiar pattern?
Help the presenter recapture his/her experience during
incidents being reported.
Share your current experience of the presenter
Activity 3
Discuss cases from your own experience of situations where you have
been involved in the introduction of change. These may be either:
past or present
successful or unsuccessful
from the viewpoint of changer or changed.
I n presenting such an example for discussion, some or all of
the following aspects are likely to be of interest:
Outline of the problem or situation
The change proposed
Means used of selling and implementing the change
Management style used
Effect on individuals involved
Reaction of those involved
Results

Resistance to Change Activity
Think of a recent or current situation in which
you have attempted to change something or
intervene to bring about change, and
encountered significant resistance from others.
How was the resistance manifested?
How did you know that there was resistance?
What did you feel? What was your attitude toward the
resisters?
How did you react? To what extent were you able to take
time to get out into the open all objections, fears, etc., of
the resisters?

Resistance to Change Activity 2
I f you now see the situation as an instance of
multiple realities or multi-directional
energies, re-assess the situation and think of
any positive aspects of the reactions of the
resisters.
Were they supporting anything positive as
defenders of the organisation?
would you do anything differently in dealing with
this kind of situation in the future?

Activity: 10 Item Culture
Questionnaire

Please complete the following statements about the
organisation in which you work.
All the statements begin in the same manner:
This organisation ________
E.g. This organisation pays their employees well
This organisation listens to what their employees have
to say.
1. This organisation
__________________________________________
2. This organisation
__________________________________________
Aim of Whole System Change

understand the need for change
analyse current reality and decide what
needs to change
generate ideas about how to change
implement and support change and make it
work

Problems of Cascading Change

Too slow
Message gets diluted and distorted as moves
down pyramid
Passive tell and sell low level of
commitment, active resistance
No opportunity for feedback

Whole System Change
What trends, developments and issues are
affecting your society, profession, industry,
organisation?
Defining your present state:
Where are you now?
*What are you proud of?
*What do you like?
*What do you wish to keep/continue?
*What makes you glad?
Whole System change 2
What are you sorry for?
*What do you dislike?
*What do you wish to stop/drop doing?
*What do you want less of?
*What makes you sad or mad?
Whole Systems Change 3

Map out your desired future state:
Where do you want to be?
*What do you want more of?
*What do you want to start doing?
How do you get there?
*Action Plan
*Action Steps

Strategies for Change
Education and Communication
Where there is a lack of information or inaccurate
information and analysis
Participation and Involvement
Where the initiators do not have all the information they
need to design the change, and where others have
considerable power to resist
Negotiation and Agreement
Where someone or some group will clearly lose out in a
change, and where that group has considerable power to
resist

Strategies for Change 2
Facilitation and Support
Where people are resisting because of adjustment
problems
Manipulation and Co-optation
Where other tactics will not work, or are too
expensive
Explicit and Implicit Coercion
Where speed is essential and the change initiators
possess considerable power

Change Strategy Choices
Fast vs Slower
Clearly Planned vs Not clearly planned at
beginning
Little involvement of others vs Lots of
involvement of others
Attempt to overcome any resistance vs
Attempt to minimise any resistance

Change Strategy Choices 2
KEY SITUATIONAL VARIABLES

Amount and type of resistance that is anticipated
Position of the initiators vis--vis the resistors (in terms of
power, trust, position etc)
The locus of relevant data for designing the change, and of
needed energy for implementing it.
The stakes involved (crisis, consequence or lack of
change)

Source: Kotter J P and Schlesinger L A Choosing Strategies
for Change, Harvard Business Review, March/April 1979.

Resistance to Change
Security of Employment
Also includes concern about level of pay, overtime and
bonus opportunities and
future prospects for the job, pay and promotion.
The Job or Task
The loss of old skills and need to learn new ones, a new
unfamiliar location, harder or more difficult work.
Relationships
Break up of the old work team and need to make new
links, personality clashes, changes in status, power or
influence.
Resistance to Change 2
Change Itself
Disagreement with new system, it wont work, lack of information,
unable to understand proposed change, expectation of upheaval
and problems, disagreement with method of introducing change.
Psychological
Unable to cope, inertia, feeling under attack, being rushed or
manipulated, feeling powerless, lack of respect and recognition of
opinions, concerns ignored or brushed aside, loss of autonomy, loss of
identity.
Others
Previous experience, lack of confidence in change agent, rumour,
custom and practice, politics, outside influences e.g. union officials.


Resistance to Change 3
Purpose of the change is not made clear.
Those affected by the change are not involved in
the planning.
Change is sold on personal reasons.
No account is taken of ways of
working/thinking/group relationships.
The change is not communicated effectively.
There is a fear of failure by individuals and
groups.
Resistance to change 4
The pacing and phasing of the change ignores
current work pressure/priorities.
The costs are perceived to outweigh the rewards.
There is high anxiety over job security.
Vested interest (individuals or groups) are
threatened.
The change manager is not trusted.
The status quo is satisfying and comfortable.
A lack of top level support.
Change is too frequent.

Resistance Tactics
Issue Avoidance ignoring the issue, hoping it will go
away by itself.
Counter Proposals avoiding the threat by channelling
resources in other directions.
Boycotting could be formalised as industrial action.
Sabotage major or trivial, deliberate damage.
Accidental Damage hampering the process
accidentally on purpose.
Go slows.
Misinformation putting rumours into the grapevine.
Resistance Tactics 2
Mindsets refusing to see past personal desired
outcomes or experience.
Deliberate mistakes to prove it wont work.
Open complying when the supervisor is there
but returning to the old ways when out of sight.
Passive resistance agreeing but not taking any
action.
Strong emotions displaying anger, outbursts of
temper or tears as a diversion tactic.


Change Consultancy
Main Stages of Consultancy
Entry, Contracting, Selling
Diagnosis, Data Collection
Feedback
Action, Implementation, Intervention
Evaluation, Learning,
Re-Contracting or Terminating
Key Interventions

Team Building and Team Development
Coaching & Mentoring
Large Group Interventions
Counselling
Conflict Resolution and mediation
Step Model of Change

unfreezing
moving
re-freezing

TYPES OF RELATIONSHIPS
(SCHEIN)
1. PURCHASE OF INFORMATION/EXPERTISE
Answer my problem/ how much?
Assume client:
Correct diagnosis
Correct identification of consultant capability
Correct communication of problem
consequences:
Commitment/ Ownership? Learning?




2.DOCTOR PATIENT
Find out whats wrong and recommend a cure
Assumes client:
-has correctly interpreted the symptoms and area
of ill- health
-will reveal relevant information
-will understand the diagnosis
-will take the prescription
-will stay healthy after the consultant leaves

3.PROCESS CONSULTATION

Work with me to understand my problem and
what to do about it
Assumes client:
-is hurting, but does not know source of pain
-unaware of help needed/ available
-benefits from participation
-ultimately only one who knows what will work
-gets enhanced learning, reduced dependence,
greater commitment