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Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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Page 1: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Creating andManaging

Change

Chapter 18

Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Page 2: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Learning Objectives

LO 1 Discuss what it takes to be world classLO 2 Describe how to manage change

successfullyLO 3 List tactics for creating a successful future

18-2

Page 3: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Becoming World Class

Being world class requires applying the best and latest knowledge and ideas and having the ability to operate at the highest standards of any place anywhere

World-class companies create high-value products and earn superior profits over the long run

The result is an organization capable of competing successfully on a global basis

18-3

Page 4: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Sustainable, Great Features

Great companies Have strong core

values Are driven by goals Change continuously Focus on beating

themselves, not on beating the competition

18-4

Page 5: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

The Genius of the And

Genius of the and; organizational ambidexterity Ability to achieve

multiple objectives simultaneously.

Examples Purpose beyond profit

and pragmatic pursuit of profit

Relatively fixed core values and vigorous change and movement

Clear vision and direction and experimentation

18-5

Page 6: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Core Ideologies in Built-to-Last Companies

18-6Table 18.1

Page 7: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Organization Development

Organization development (OD) The system wide application of behavioral science

knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organizational effectiveness.

18-7

Page 8: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Organization Development

Strategic interventions, helping organizations

conduct mergers and acquisitions, change their strategies, and develop alliances

Technostructural interventions relating to organization

structure and design, employee involvement, and work design

18-8

Page 9: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Organization Development

Human resources management interventions Attracting good

people, setting goals, and appraising and rewarding performance

Human process interventions Conflict resolution,

team building, communication, and leadership.

18-9

Page 10: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Achieving Greatness

Strategy focused on customers,

continually fine-tuned based on marketplace changes, and clearly communicated to employees.

Execution good people, with

decision-making authority on the front lines, doing quality work and cutting costs.

18-10

Page 11: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Achieving Greatness

Culture one that motivates, empowers people to innovate,

rewards people appropriately, entails strong values, challenges people, and provides a satisfying work environment

18-11

Page 12: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Achieving Greatness

Structure making the organization easy to work in and easy

to work with, characterized by cooperation and the exchange of information and knowledge throughout the organization

18-12

Page 13: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

© 2006 by South-Western, a division of Thomson Learning. All rights reserved.

8-13

Ex. 8.1 Model of Change Sequence of Events

Environmental Forces

Internal Forces

ImplementChange

InitiateChange

Need forChange

Monitor global competition,customers, competitors,and other factors.

Consider plans, goals,company problems, andneeds.

Evaluate problems andopportunities, defineneeded changes intechnology, products,structure, and culture.

Facilitate search,creativity, ideachampions, skunkworks, and idea incubators.

Use force-fieldanalysis, tactics forovercomingresistance.

Page 14: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Managing Change

Shared leadership is crucial to the success of most change efforts—people must be not just supporters of change but also implementers

Change agents People who create change

18-14

Page 15: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Motivating People to Change

General reasons for resistance Inertia Timing Surprise Peer pressure

18-15

Page 16: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Motivating People to Change

Change-specific reasons for resistance Self-interest Misunderstanding Different assessments Management tactics

18-16

Page 17: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Reasons for Resistance to Change

18-17Figure 18.1

Page 18: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Motivating People to Change

18-18

Figure 18.2

Page 19: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

A General Model for Managing Resistance

Unfreezing Realizing that current practices are inappropriate

and that new behavior is necessary Performance gap

The difference between actual performance and desired performance.

18-19

Page 20: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

A General Model for Managing Resistance

Moving Instituting the change

Refreezing Strengthening the new behaviors that support the

change

18-20

Page 21: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Force-field Analysis

Force-field analysis An approach to implementing the unfreezing/

moving/refreezing model by identifying the forces that prevent people from changing and those that will drive people toward change

18-21

Page 22: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Specific Approaches to Enlist Cooperation

18-22

Education and communication

Participation and involvement

Facilitation and support

Negotiation and rewards

Manipulation and cooptation

Explicit and implicit coercion

Page 23: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Methods for Managing Resistance to Change

18-23Table 18.2

Page 24: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Methods for Managing Resistance to Change

18-24Table 18.2

Page 25: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Leading Change

18-25Figure 18.3

Page 26: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

13 tips

EDUCATE SYSTEM TEAMS EMPOWER PLAN RECOGNIZE TENSION TRAIN

© 2006 by South-Western, a division of Thomson Learning. All rights reserved.

8-26

Page 27: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

13 TIPS

RESEARCH EMOTIONS ANTICIPATE PROBLEMS INTELLECTUAL WHY IDEA CHAMPIONS LONG VIEW

© 2006 by South-Western, a division of Thomson Learning. All rights reserved.

8-27

Page 28: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Sources of Complacency

18-28Figure 18.4

Page 29: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Shaping the Future

Reactive change A response that occurs

under pressure; problem driven change.

Proactive change A response that is

initiated before a performance gap has occurred.

18-29

Page 30: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Creating the Future

Adapters Companies that take

the current industry structure and its evolution as givens, and choose where to compete

Shapers Companies that try to

change the structure of their industries, creating a future competitive landscape of their own design.

18-30

Page 31: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

What Should You and Your Firm Do?

Preserve old advantages or create new advantages?

Lock in old markets or create new markets? Take the path of greatest familiarity or the path

of greatest opportunity? Be only a benchmarker or a pathbreaker?

18-31

Page 32: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

What Should You and Your Firm Do?

Place priority on short-term financial returns or on making a real, long-term impact?

Do only what seems doable or what is difficult and worthwhile?

Change what is or create what isn’t? Look to the past or live for the future?

18-32

Page 33: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Adding Value, Personally

18-33Table 18.3

Page 34: Creating and Managing Change Chapter 18 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Level 5 Hierarchy

18-34Figure 18.7


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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved

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