SpeakerSpeaker : Dr. Nay Zin Latt: Dr. Nay Zin Latt (Chairman)(Chairman) Business GroupBusiness Group

Hotel Group Hotel Group

VenueVenue : MHR School: MHR SchoolDateDate : 28: 28thth-March-2010-March-2010

“ “ THERE IS NOTHING THERE IS NOTHING PERMANENT EXCEPT PERMANENT EXCEPT

CHANGE”CHANGE”

ChangeChange

Bill Gates said Bill Gates said

““In three years, every product In three years, every product my company makes will be my company makes will be obsolete. The only question is obsolete. The only question is whether we’ll make them whether we’ll make them obsolete or somebody else obsolete or somebody else will.”will.”

Statistics About ChangeStatistics About Change

Only 15% achieved their objectives.Only 15% achieved their objectives.

20% failed to achieve all objectives but 20% failed to achieve all objectives but determined to be satisfactory.determined to be satisfactory.

65% have unsatisfactory results.65% have unsatisfactory results.

Most significant change fails to meet the Most significant change fails to meet the expectations and targets of management.expectations and targets of management.

Top management is frequently unreasonable in Top management is frequently unreasonable in its expectations .its expectations .

Change management is a Change management is a systematic approach to dealing with systematic approach to dealing with change, both from the perspective of an change, both from the perspective of an organization and on the individual level. organization and on the individual level.

What is “Change What is “Change Management ?”Management ?”

Change management has at least three Change management has at least three different aspects, including: “different aspects, including: “adapting to adapting to change, controlling change, and effecting change, controlling change, and effecting change”. change”.

A proactive approach to dealing with A proactive approach to dealing with change is at the core of all three aspects. change is at the core of all three aspects.

For an organization, change management For an organization, change management means defining and implementing procedures means defining and implementing procedures and or technologies to deal with changes in the and or technologies to deal with changes in the business environment and to profit from business environment and to profit from changing opportunities. changing opportunities.

About Change Management About Change Management ::

Approaches to Change Approaches to Change Management.Management. Forces For Change Forces For Change

• • Nature of the workforce Nature of the workforce

• • Technology Technology

• • Economic shocks Economic shocks

• • Competition Competition

• • Social Trends Social Trends

• • World Politics World Politics

Conditions That Conditions That Facilitate Organizational Facilitate Organizational Change Change

• • A dramatic crisis A dramatic crisis

• • Leadership turnover Leadership turnover

• • Stage of life-cycle Stage of life-cycle

• • Age of the organization Age of the organization

• • Size of organization Size of organization

• • Strength of current culture Strength of current culture

Change Management Formula: Change Management Formula:

Explanation: Explanation:

Need change = [DMREV] > XNeed change = [DMREV] > X

D = Dissatisfaction with the current situation D = Dissatisfaction with the current situation M = Motivation M = Motivation R = Realistic R = Realistic E = Est. increased efficiency E = Est. increased efficiency V = Est. increased revenue V = Est. increased revenue X = Est. resources to complete and support the X = Est. resources to complete and support the change change

10

The Strategic Planning Model

CommunityCommunity

Program and Budget Execution

•Implement programs, administrative strategies, and change management initiatives

Evaluation and Accountability•Assess resource utilization•Benchmarking – Best Practices•Monthly performance reviews•Employee Performance Reviews (PMAP)

Tactical Planning •Develop annual budget and performance targets•Develop tactical plans for programs and functional areas •Develop Individual Performance Plans (PMAP)

Strategic Planning

•Data collection and analysis•Solicit community inputs•Develop strategic plan - Set/modify organization’s

mission, vision, goals, and objectives

Environmental

Factors

Shared Ownership & Communicati

ons

13

Overcoming four critical categories of change Overcoming four critical categories of change obstacles obstacles

ProcessProcessFinanceFinance

PersonnelPersonnelProcurementProcurement

PeoplePeopleExecutivesExecutives

IT staffIT staffMission staffMission staff

PoliticsPoliticsElected OfficialsElected Officials

ExecutivesExecutivesUnionsUnions

PrioritiesPrioritiesPoliticalPoliticalAgencyAgency

OperationalOperational

Internal

External

Local

Cross- Functional

Stakeholder obstaclesStakeholder obstacles

Organizational obstaclesOrganizational obstacles

Resistance To Change Resistance To Change Individual resistance Individual resistance

• • Habit Habit

• • Security Security

• • Economic factors Economic factors

• • Fear of the unknown Fear of the unknown

• • Selective information processing Selective information processing

Organizational resistanceOrganizational resistance

• • Structural inertia Structural inertia

• • Limited focus of change Limited focus of change

• • Group inertia Group inertia

• • Threat to expertise Threat to expertise

• • Threat to established power Threat to established power relationships relationships

• • Threat to established resource Threat to established resource allocations allocations

Model of Employee Decision to Actively Resist Model of Employee Decision to Actively Resist an Organizational Change Effortan Organizational Change Effort

Management of COMPLEX CHANGEManagement of COMPLEX CHANGE

= = CHANGECHANGE

= = CONFUSIONCONFUSION

= ANXIETY

= GRADUAL CHANGE

= FRUSTRA- TION

= FALSE

STARTS

+ + + +

+ + + +

+ + + +

+

+

+

+

+

+

+

+

+

+

+

VISION SKILLS RESOURCESINCENTIVESACTION

PLAN

SKILLS INCENTIVESACTION

PLANRESOURCES

INCENTIVES RESOURCESVISION

VISION

VISION

VISION

SKILLS

SKILLS

SKILLS INCENTIVES

INCENTIVES

RESOURCES

RESOURCES

ACTIONPLAN

ACTIONPLAN

ACTIONPLAN

FORCE FIELD ANALYSISFORCE FIELD ANALYSIS

DRIVING FORCES RESTRAINING FORCES

State Desired Change State Desired Change HereHere

(EQUILIBRIUM OR CURRENT STATUS)

Forces resisting the changeForces resisting the change Forces favoring the changeForces favoring the change

Overcoming resistance to Overcoming resistance to change change

Education and communication Education and communication

Participation Participation

Facilitation and support Facilitation and support

Negotiation Negotiation

Manipulation and cooperationManipulation and cooperation

coercioncoercion

The Eight-Stage Process Of The Eight-Stage Process Of ChangeChange

• • Initiation Initiation : : vocalization of need to change

• • Motivation:Motivation: involving people in detailed consideration of the proposed change

• • Diagnosis Diagnosis ::searching for main cause of symptom • • Information collection Information collection ::about diagnosis and development of alternative approaches

• • Deliberation:Deliberation: evaluating alternatives

• • Action proposal : Action proposal :

• • Implementation Implementation ::translating proposed ideas into action

• • Stabilization :Stabilization :internalizing the change and making it a part of the organization’s life

Why Do People Resist?Why Do People Resist?

• Feel they will sufferFeel they will suffer• Organization does not Organization does not

communicate clearlycommunicate clearly• Perceive more work with Perceive more work with

few opportunitiesfew opportunities• Required to give up Required to give up

ingrained habitsingrained habits• Organization lacks Organization lacks

adequate rewardsadequate rewards• Organization lacks Organization lacks

sufficient resourcessufficient resources

• Solicit employee inputSolicit employee input• Script a clear, logical Script a clear, logical

messagemessage• Provide rewards and Provide rewards and

incentivesincentives• Identify new behaviors Identify new behaviors

to support the changeto support the change• Develop rewards aligned Develop rewards aligned

with the changewith the change• Prioritize work based on Prioritize work based on

available resourcesavailable resources

Why Do People Resist?Why Do People Resist?

• Loss of job securityLoss of job security

• Employees harbor. Employees harbor.

• unresolved resentmentsunresolved resentments

• Change has poor Change has poor introductionintroduction

• Organization has poor Organization has poor internal communicationinternal communication

• Communicate how employees Communicate how employees and the organization will benefit and the organization will benefit from renewed relevance.from renewed relevance.

• Allow employees to express Allow employees to express their grieftheir grief

• Acknowledge missteps; reaffirm Acknowledge missteps; reaffirm commitment and clarify commitment and clarify expectations & timelineexpectations & timeline

• Delegate communication tasks Delegate communication tasks to one person/teamto one person/team

Producing changeProducing change

• .. is 80 percent leadership- establishing direction, aligning, motivating, and inspiring people-

• And 20 percent management - planning, budgeting, organizing, and problem solving

Unfortunately, in most of the change efforts, these percentages

are reversed

7 R’s of Raising a Change7 R’s of Raising a Change

25

Assessing a Proposed ChangeAssessing a Proposed Change

Appropriate change management Appropriate change management strategies and methods will strategies and methods will require:require:

• • A highly flexible approach to result-based A highly flexible approach to result-based planning, planning, budgeting and management that can budgeting and management that can capture process results and costing, as demanded by capture process results and costing, as demanded by change management.change management.

• • Training for development agency personnel in Training for development agency personnel in process facilitation, negotiation and other specific process facilitation, negotiation and other specific change change management methods and skills.management methods and skills.

• • Capacity development in this field requires Capacity development in this field requires experts, local and international, who have not only experts, local and international, who have not only technical expertise but also technical expertise but also coaching, management coaching, management development development and mentoring skills, to facilitate and mentoring skills, to facilitate rather than direct.rather than direct.

A typology of changeA typology of change

Change interventions fall into three main Change interventions fall into three main typologies:typologies:

(1) .(1) . Top-down change Top-down change management is based management is based on the assumption that if managers plan things on the assumption that if managers plan things properly, change can be executed smoothly. The properly, change can be executed smoothly. The only obstacle comes from resistance of some only obstacle comes from resistance of some employees, hence focus is on changing the employees, hence focus is on changing the culture of an organization or the ‘way we do culture of an organization or the ‘way we do things around here’.things around here’.

(2).(2). Transformational change management Transformational change management relies on transformational leaders setting a relies on transformational leaders setting a personal example and challenging people to personal example and challenging people to think ‘think ‘outside the box’ and innovate, outside the box’ and innovate, while while providing a safe environment for doing so.providing a safe environment for doing so.

(3). (3). Strategic change management Strategic change management is is based on a certain recipe and are in based on a certain recipe and are in contrast contrast with the top-down modelswith the top-down models in that they aim to in that they aim to introduce a new behaviors at work,introduce a new behaviors at work, allowing allowing people to witness the benefit for the people to witness the benefit for the organization and, thus, based on the organization and, thus, based on the evidence, internalize the change in their evidence, internalize the change in their ‘ways of working’.‘ways of working’.

Terry Paulson, the author of “Terry Paulson, the author of “Paulson on Paulson on Change”Change”, quotes : , quotes :

"It's easiest to ride a horse in the direction it is "It's easiest to ride a horse in the direction it is going." going."

In other words, don't struggle against change; In other words, don't struggle against change; learn to use it to your advantage. learn to use it to your advantage.

Managing the environment of change Managing the environment of change subsumes two main areas:subsumes two main areas:

A.A. Creating the momentum Creating the momentum for change including for change including making the case, visioning, empowerment and making the case, visioning, empowerment and voicing activities; by definition, this is step for the voicing activities; by definition, this is step for the leadership to principally act upon. leadership to principally act upon.

B. Analysis of the change context including B. Analysis of the change context including diagnosing diagnosing issues of issues of who wins, who loses, social, cultural, who wins, who loses, social, cultural, legal legal and policy issues;and policy issues; data collection and analysis; data collection and analysis; and and operations research on problems.operations research on problems.

“ “ THERE IS NOTHING PERMANENT EXCEPT THERE IS NOTHING PERMANENT EXCEPT

CHANGE ”CHANGE ”

So, think on …So, think on …

“ “ If you don’t accept the If you don’t accept the change..change..

You’ll be changed”You’ll be changed”