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iiProposal Change Management
Table of Contents
Proposal ................................................................................................................... i
Change Management - Implementation of New Organizational Structure ................i
By: Student no. 100615190.........................................................................................i
Table of Contents ........................................................................................................ ii
Introduction................................................................................................................1
A Worthy Establishment: ............................................................................................ 1
Pitfalls of Growth: ....................................................................................................... 2
OPDs Challenge Change Management .................................................................... 3
The dilemma of change: ............................................................................................. 4
The critical role of OPDs leadership: ....................................................................... 5
Coaching: ............................................................................................................. 5
Rewarding: ........................................................................................................... 6
Communication: ................................................................................................... 6
Motivation:........................................................................................................... 7
Ensuring participation: ......................................................................................... 8
Team building: ..................................................................................................... 8
Implementation strategy: ........................................................................................... 9
Types of change & Implementation approach: ........................................................ 9
Stage One Governance: .................................................................................... 10
Level 1 Get the home work done: .................................................................... 10
Level 2 Bring the closer, closest: ..................................................................... 11
Stage Two: Changing Management roles .............................................................. 13
Level 1 Formalizing the first stage of change implementation: ....................... 13
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Level 2 Keeping a close eye: ......................................................................... 13
Level 3 Finalizing the home work: ................................................................... 13
Stage Three Bringing Structural Change to the Field level: ................................ 13
Level 1 Close Ranks ........................................................................................ 13
Level 2 Full throttle ahead: .............................................................................. 17
Stage Four Assessment: ..................................................................................... 18
Duration of Consultancy:.......................................................................................... 18
Deliverables: ............................................................................................................. 18
Follow up support:.................................................................................................... 19
Consultancy Plan ...................................................................................................... 20
Annex 1 .................................................................................................................. 22
Annex 2 .................................................................................................................. 23
References................................................................................................................24
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Introduction
Organization for Participatory Development (OPD) is a not for profit, civil society organization,
working for community development since 1990, with a vision of development of a cohesive and
well governed society. The three main areas of focus chosen by the intellectual group of
founding members, clearly shows their farsightedness. Education, Health and Poverty
Alleviation encompass almost all the problems of the community, with the strong support of
Research, Advocacy, and Networking & Linkages as cross cutting themes. The mission
statement of OPD while providing a focus is not restrictive to one segment of population or area
of intervention.
A Worthy Establishment:OPD has made a respectable and trustworthy name at
the local and national level. In Education sector, OPD
is known for its firm stand regarding Teachers
training and its endeavours to take the quality
education to the poorest areas by building upon the existing grass root presence of private
schools. In Health sector, OPD has made its mark in Sexual and Reproductive health by taking
up this aspect of community health at a time when it was an absolute taboo. Organizations efforts
have been acknowledged at the international level at respectable forums like Asia Pacific
Conference on Reproductive and Sexual Health (APCRSH) and International Conference on
AIDS for Asia and Pacific (ICAAP) for many times. Poverty Alleviation sector is being catered
by Microfinance and Enterprise Development interventions. OPD is one of the leading
organizations of the country in microfinance sector by virtue of its unique and innovative model;
it is one of the few organizations in the country working with individual lending model. OPDs
OPDs Mission
To raise the quality of
life of under-privileged
and non-privileged
segments of society.
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microfinance model has an inbuilt essence of Enterprise Development, but a separate program
has also been started at a small level by the organization itself, to play its role in facilitating the
people especially women to become skilled and self sufficient. Research culture is quite
prominent in the organization as all the interventions are based on researches and follow up
studies have also been conducted to evaluate the impact of organizational interventions. OPD
believes in the positive strength and necessity of Networking and for the same reason has been
the founder of different networks in all its thematic areas like Punjab AIDS Consortium (PAC),
Education forum, Punjab Microfinance Network (PMFN).
Experimentation and innovation are the most salient features of organizational history.
Development of an indigenous microfinance model, Credit Saving Scheme (CSS), venturing into
enterprise development by establishing Hunar Gah, responding to the literacy need of a far
flung area through Adult Literacy initiative are just a few examples of OPDs many brave
attempts for social development.
Pitfalls of Growth:The organization, which started as a small group of like-minded people is today staffed by more
than fifty people, working in different programs in different capacities in eleven offices,
including three district offices in Sheikhupura, Khushab and Gujrat. OPD is governed by a Board
of Directors (BoD) while operationally headed by the Chief Executive. OPD had a hierarchal
structure1, with multiple tiers between the top management and the foot soldiers (field staff),
which not only led to increasing communication gap but also efficiency and performance
compromises. This was happening in a time when the not-for-profit or NGO sector was
increasingly becoming professionalized following more in the footsteps of corporate sector.
1 Annex 1- Old Organ gram of OPD
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Numerous in-depth discussions took place within the organizational management to rectify the
situation and different measures were taken from time to time with quite short lived benefits. It
became clear with the passage of time that an organizational overhaul is needed. By the end of
2009, organizational management hired a consultant to undertake an in-depth organizational
review which concluded in the main recommendation for organizational restructuring. Thus a
new organizational structure was devised after the deliberations of four month with the sole
objective of improving the performance, efficiency and cost effectiveness of OPD2.
OPDs Challenge Change ManagementToday OPD is faced with the two pronged challenge; implementation of new organizational
structure and keep the organizational operations going without disruption. Mishandling of
situation can have drastic effects even on organizations very survival. The daunting task facing
OPD is of smooth transition while carefully managing the change.
In the current document, I (Consultant) have spelled out a detailed strategy to facilitate OPD in
achieving this difficult and delicate transition.
2 Annex 2 New Organ gram of OPD
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The dilemma of change:It is a universal truth that only constant in the universe is change. Change is the life blood of
universe as monotony creates stagnancy, which is death of creativity. Every entity, whether it is
organism or organization, has to change to be able to realize its full potential in the dynamic
surrounding environment. But at the same time it has been proven by social researchers that
human beings mostly are opposed to change, as it requires putting in lot of effort, de-learning old
things and re-learning new ones. For these very contradictory reasons, change is very essential
but can be very difficult for the organizations.
OPD, over the period of its existence has undergone cosmetic uplifts but it is the right time for
the organization to go through an overhaul. The top management has taken that decision but it
should be very carefully borne in mind that accumulated research body over the years have
accumulated evidence that two third of major organizational change plans failed or they ended
up in a situation that was worse than before. Gilley, Dixon & Gilley (2008) have pointed out that
these failures have caused the organizations to lose efficiency and efficacy resulting in
considerable financial loses also. But there was a very logical reason behind these failures, and
that was the incapability of the organizations to remain openly receptive to the new environments
and adapt accordingly. On the other hand the organizations who have remained flexible and
adapted according to the proposed plan, successfully implemented change which resulted in
improved organizational performance over a longer period of time. The ultimate deciding factor
between the success and failure is the organizational leadership.
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The critical role of OPDs leadership:
Before going into the details of implementation plan for the new organizational structure, I think
it of dire importance to stress the responsibility of OPDs leadership. The organization now is a
flat structure with fewer layers between the top and bottom. It is essential for the Board of
Directors (BoD) and the Chief Executive Officer (CEO) to adopt a proactive role. The most
important adjustment is for them to accept and adapt to their new roles, only then this new
organizational structure can translate into the beneficial operations and bring about a productive
output, in the shape of improved performance. OPDs leadership has to put all its weight behind
this change, they have to develop and communicate their keen understanding of the change, its
reasons and its benefits. I have suggested some formal activities in the implementation plan that
will facilitate this communication but it has to be backed by informal and frequent interaction
with the organizational team.
Reissner (2010), an academician and researcher has gathered evidence to prove that employees
self identities and self esteem are linked with the organization and any major change can have
positive or negative effects on them, that effect the organizational performance and viability. It is
up to the leadership to be a rock of support in the un-certainty of change that helps the employees
wade through these turbulent times. Following are some of the important roles highlighted by
Gilley, Dixon & Gilley (2008) for an effective leader that OPDs Chief Executive has to take on
proactively, for at least one year to get the new structure implemented and smoothly in place.
Coaching:Coaching includes establishing a mutually respectful relationship between the employer and
employee that is tolerant, accommodative, non apprehensive, personal as well as professional.
Through this relationship a leader is able to assure his employees of their capacity to face and
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conquer challenged. The most important thing in coaching is establishing two way
communication.
Rewarding:
Rewarding the performances not only increase job satisfactions but also increases organizational
identity and commitment. Organizational research has shown that by rewarding and encouraging
the right performance, organizations have achieved their desired goal of successful change
implementation. OPDs leadership should spell out clearly a reward policy, which should be
flexible to accommodate different phases of organizations new structure implementation. This
reward policy should not be limited to the structure implementation phase only but encompass a
holistic performance scenario in all programs and projects of the organization. Organization
leadership should make it a point to evaluate, revamp and improve the reward policy at regular
intervals. The following finding of Ulrich, Zenger, & Smallwood (1999) as presented by A.
Gilley, et al, 2008 summarizes essence of rewarding perfectly, Reward programs should be
designed to help an organization achieve specific change outcomes, such as creativity and
innovation, leadership, teamwork and cooperation, commitment and loyalty, long-term solutions,
and learning and applying new skills.
Communication:
The importance of communication cannot be overstressed as this is one of the basic driving
forces behind OPDs decision for restructuring i.e. bridging the communication gap. Clear and
concise communication is one of the most important things that facilitate the implementation of
change. OPD leadership at this crucial time has to communicate with the employees more than
just orders and edicts. They have to communicate the urgency, need and rationale for the change
in a way to motivate the employees to implement it while strengthening the organizational
identity. Taking a leaf out of Giley, Dixon, Gilley (2008) essay Characteristics of leadership
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effectiveness, following communication tips should be incorporated in OPDs top management
communication routine
1. Specify the nature of change
2. Explain why
3. Explain the scope of the change
4. Develop a graphic representation of the change initiative that employees can understand
5. Predict negative aspects of implementation
6. Explain the criteria for success and how it will be measured
7. Explain how people will be rewarded for success
8. Repeat, repeat, and repeat the purpose of change and actions planned
9. Use a diverse set of communication styles that are appropriate for employees
10. Make communication a two-way proposition
11. Be a model for the change initiative
The most important thing in communication is positive feedback, which not only encourages
the employees and develop ownership of the change process but also that absence of feedback
can have drastic effects on the organization as employees are making decisions in a vacuum and
any wrong decision at this vulnerable stage of the organization can lead to catastrophe.
Motivation:
All good leaders are great motivators and nothing can get an organization through the uncertainty
of change then a motivated and committed employees. If the above mentioned roles are adopted
be leadership, it will develop job satisfaction that can translated into organizational commitment
through top management motivation, which will turn employees into invaluable assets for OPD.
Motivation is a skill that involves organizing and developing a motivating environment,
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successful two way communication, minimizing gap between employer and employee,
responding to employees queries and encouraging new ideas, getting work plans and following
them up.
Ensuring participation:
Participation of employees is essential for the successful implementation of any change within
the organization. Research has shown that employees who are involved in the change process are
more committed to make it successful implementation. OPDs top management should show
demonstrate their trust in employees ability to do their jobs successfully by giving them
appropriate decision powers and appreciating their contributions.
Team building:
Organizational success is all about team work. Successful leaders build effective teams. OPDs
top management should give serious consideration to building effective team in new structure for
making it a success. Successful teams have diverse skill sets; they compliment, trust and
complete each other. Leader encourages team interaction in such a way that is productive and
creative. Balkundi & Harrison (2006) concludes, Further, it has been evidenced that social
networks have important effects on team performance and viability... Specifically, the results
of a meta-analysis indicate that teams with a dense configuration of connections within their
social network tended to attain their goals more frequently and remained intact as a group for a
longer period of time
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Implementation strategy:People dont simply accept or reject any change but pass, generally, through the four stages of
adopting any change i.e. consciousness of change, interest in it, experimenting the change and
then deciding whether to continue or reject the process. On the basis of individual differences of
change acceptability, people are generally categorized into five groups by the researchers i.e.
innovators, early adopters, early majority, late majority, and laggards. OPD top management
should bear in mind that implementation of new structure and its acceptance by the employees
will be a slow process and not all will be able to adapt according to the new structure.
Having said that it should be remembered employees self image and self worth is linked with
the organization, and their hopes and experiences of the change process within the organization
has deep effect on their self identity and self respect. Change is a time of uncertainty, which de-
stabilize the self identity of the employees as well as their organizational identity. Reissner
(2010) has pointed out in her research article that during the change process employees are
actively engaged in redefining their identities in the light as to how organizational change will
effect their personal, professional and future development.
Types of change & Implementation approach:
Waldersee and Griffiths (2004) has compiled two types of organizational change
Technical structural change
Behavioural-social change
Technical change constitutes any change that modifies actual practices of the job while social
change includes changing set behaviour patterns in the organization. Both of these are not
mutually exclusive as social change almost always accompanies any change that is brought into
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the organization. While structural change as viewed by Waldersee & Griffiths (2003) is that it
seek to optimize organizational performance through careful design of the organizational
structure. These changes include redesigning areas of responsibility and authority, decentralizing
profit centres, and reorganizing work flows (p.426).
As we are dealing with this change in OPDs case it involves both technical and socio-
behavioural aspect of change also. Deriving from the work done, internationally, on the
organizational change and change management, I think the best approach to follow during the
implementation of new organizational structure is a mix of Unilateral and Participative approach.
Unilateral is basically top down approach of doing things, it is best suited for major
organizational changes like restructuring. Participative approach, as the name suggests, makes
the change process participative by gaining employees opinions, participation, getting them in
the driving seat of change and essentially working on their attitude change that will ultimately
results in overall change in behaviour. Participative approach is best utilized in smaller changes
like change in job description or team configuration. My implementation plan starts with the
unilateral approach followed closely by the participative approach, as the main aim of the
organization is to become more efficient and productive but the process will be much easier with
the support of the employees.
The implementation of new structure is divided into three main stages and every stage consists of
multiple levels.
Stage One Governance:
Level 1 Get the home work done:
Before embarking on implementation of new structure, OPDs top management should have all
the foundation work done. Following essential documents will be developed by the consultant
for starting the implementation plan.
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A white paper will be developed explaining in simple and concise way the reasons and
need for the new structure, internal and external challenges facing OPD at present and
future prospects of the new structure.
A blue print of new structure, with all the designations matched with people in the
organization, a backup plan for hiring new people and possible redundancies in case of
non performance, will provide OPDs top management with strong footing for
negotiation and rethinking.
Summary of change: the document will give an outlay of new organizational structure,
highlighting the positive aspects especially employee benefits. The summary will clearly
spell out the reporting relationships.
CEO work plan: a stepwise guide, benchmarking different stages of implementation of
new organizational structure.
New Job Descriptions: Job descriptions of program heads will be revised and developed
according to the new structure. As the job descriptions of program teams will be
developed with the input of the program heads later on.
Revision of Standard Operating Procedures (SOPs): OPDs Operational manuals will be
revised and updated in the light of new structure.
Job satisfaction survey of the employees to serve as the baseline for the change process.
Level 2 Bring the closer, closest:
Development of the core team of program head will be the first crucial step of structural change
implementation. As all the existing core team members have been involved in the process of
devising the new structure, they have a quite good grasp of the organizational situation.
Following steps will be followed for first level implementation.
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Long weekend: OPDs top management and CEO along with the program heads will have a
three day retreat in any neutral place, preferably a resort to discuss and finalize fist
implementation step without distraction of daily routine.
First day of the retreat will include discussion session between the top management and core
team regarding organizational vision, mission, values and culture and its suitability or otherwise
with the new organizational structure. Anonymous opinions of all the participants will be
collected regarding the suitability of new structure for OPD in current external and internal
organizational situation. Importance of shared vision and goals and organizational commitment
will be explored in audio visual sessions followed by discussion on these themes. By the end of
the day all the core team members will be given copies of new organizational structure, Standard
Operating Procedures (SOPs) including job descriptions, with a job/position recommendation
from top management for each member of the core team. They will be asked to think through
this and come up with their opinions, suggestions and options.
Over the next two days, the core structure of the organization will be finalized in line with the
new organizational structures. People will be matched with positions and job descriptions,
questions will be answered, ambiguities will be clarified and work plan spanning over two
months will be finalized for the smooth handing and taking over of responsibilities to and from
new program heads.
Any team member not willing to take up responsibilities in the new structure will be asked to
complete the assigned task while an immediate hiring exercise will be started for replacement
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Stage Two: Changing Management roles
Level 1 Formalizing the first stage of change implementation:
OPDs CEO will issue formal circular immediately after retreat announcing the changed roles
and responsibilities of Program Heads. It will be clarified that program teams will continue
working in as per old structure.
Level 2 Keeping a close eye:
CEO will have close informal and formal contact with the core team members, supporting them
in their problems and difficulties and appreciating and encouraging their successes, in one to one,
as well as group meetings. He will ensure that the field operations should not be effected and
program heads think beyond their own department and job and work as a team to get this
implementation phase done successfully. The CEO has to play the proactive role of a catalyst to
gel the core team together so as to develop their commitment towards the change process and
allay their uncertainties and fears. He has to show his trust in their capabilities verbally as well as
non verbally.
Level 3 Finalizing the home work:Consultant in collaboration of the program heads will revisit and finalize the SOPs and present
them to the CEO and Board of Directors (BoD) for approval.
Consultant will also finalize the job descriptions of all the positions in the organizational
structure with the help of program heads.
Stage Three Bringing Structural Change to the Field level:
Level 1 Close Ranks
Program Heads job satisfaction survey will be conducted at the end of two months period. A
week long retreat will be undertaken in a neutral venue, with all OPD team including OPDs
Board of Directors. The members of BoD will be requested to participate for the first and last
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day of the retreat, though they can participate in the week long activities if they want. The
objective of the retreat is to announce the final stage of structural change and motivating the
employees for the new structure by emphasizing their organizational identity. The retreat will be
planned in collaboration of OPDs CEO and Program Heads, who will facilitate the retreat with
the help of the Consultant.
The retreat will start with the conduction of an anonymous employee motivation survey to serve
as the baseline.
Reinforcing the identity:
The retreat setting will be informal rather than workshop like and the day will open with a visit
of OPDs history and evolution in the form of story telling by the members of Board of
Directors and CEO (who is also the founder member of the organization). The will emphasize
organizations vision, values and mission by sharing their moments of pride, joys and
frustrations during eighteen years of organizational journey. Team will be divided into four
groups with a member of BoD leading each group. All employees will be asked to share their
Moment of Pride during their job and the underlying reason. Each group will identify one best
moment of pride and present it in the larger group afterwards, in written form that will be
displayed on the wall. All the participants, then, will be asked to write their one most prominent
feeling, thought, learning about the four stories and put them on the walls also. These stories and
thoughts will serve to reinforce organizational identity and pride throughout the retreat, as they
will be referred to and visited during the rest of the week.
The emotionally charged feeling of cohesiveness and well being will be enhanced during the
informal one to one communication between the team members and BoD members.
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Announcing the new structure:
On second day of retreat, the Chief Executive Officer of OPD will introduce and explain the new
organizational structure to the whole team. The following salient features will be stressed
The change process has started from the top
There will be no redundancies.
New employee benefit structure will be announced.
Employee empowerment perspective of new organizational structure.
Comparison of old and new structure
Benefits of new structure and comparison with some competitors.
Job retentions will be strictly performance based. A clear and quarterly - stepped bench
marking of performance will be announced as minimal performance standard.
The employees performances will be evaluated six monthly to judge satisfactory
performance.
Details of an email account will be shared with employees, where they can log in and
send anonymous complains, suggestions, recommendations, ideas, and criticism,
anything directly to the Chief Executive to his personal address.
Copies of OPDs summarized human resource manual, new Organizational structure and
job descriptions will be distributed among all the team members.
In a free for all session following the announcement, all the questions and concerns of the team
will be responded by the CEO and Program Heads.
Spelling the details:
Each Program Head will have separate working sessions with their teams, discussing their new
job descriptions and roles. For the field teams the jobs almost remain the same with a major
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change in role and working strategy. The team members are given more empowerment and
responsibility keeping in line with the objective driven strategy of performance.
The rest of the retreat will focus on testing out the new roles, second line leadership exercises,
exercises aimed to develop critical perspective and most importantly team building exercises
within and between program teams. Each program will work out a detailed work plan achieving
program goals while working with the new structure. Each program will have capacity building
trainings, as part of their work plans, to help any skills issue.
Taking stock of the situation:
A post retreat motivational survey will be conducted, anonymously and results will be compared
with the pre retreat survey to assess the temperature of the situation. This will also help to high
light any ambiguous areas that need to be reinforced and clarified for the employees.
The members of OPDs Board of Directors will join the team on the last day of the retreat. All
the employees will write down their fears and expectations of the new structure, individually
and as a specific program team. The fears and expectations will be grouped separately;
commonalities will be identified and grouped together. All the participants will then take each
fear individually and discuss and finalize a methodology to counter it. Similarly each expectation
will be worked down to a methodology for realizing it, and these methodologies will be included
in the goals, objectives and work plans, in an effort to convert threats into opportunities. A new
organizational motto will be devised by the team members that will be made part of
organizational logo and displayed on organizational stationary, direction boards and all publicity
material. A compiled copy of all these documentation produced will be handed over to CEO as a
blue print for progress comparison.
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Level 2 Full throttle ahead:
Immediately after the retreat, at the start of a new month, new organizational structure will be
implemented, to its last detail, on ground. CEO and Program Heads have to adopt a pro-active
approach, helping and facilitating team members over difficult patches, smoothing worried
brows and soothing frustrated minds, without compromising performance standards. Close, two
way and informal communication with the team members will help keep the cohesiveness and
morale of the team.
Regular Feedback:
Program heads will give progress review to their teams monthly in performance review
meetings, appreciating areas of improvement while focusing the weaker areas and offer
guidance, advice or training as the situation requires.
Monthly Boosters:
Regular monthly organizational meeting will be arranged headed by CEO to review the situation
against the blue print Gantt chart, finalized after the retreat. All the programs will nominate one
member of their team for Best Employee of the Month and give the reasons for nomination
also. Every member of the organization will vote anonymously to choose employee of the
month. The successful employee will be given a bonus.
These steps will enhance employees trust and confidence in the organization and strengthen
organizational commitment. Many years of research and evidence has proved that the single
recipe for a successful change management is enhancing organizational commitment and
identity, as it creates employees ownership of the organization and a motivation for its success
under all circumstances. The success of the organization is viewed as personal success and
reward by the employees.
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Stage Four Assessment:
A comprehensive survey will be conducted to cover the following aspects:
Employee motivation
Job satisfaction
Organizational identity
The results will be compiled in the final report of the consultant.
Duration of Consultancy:The duration of consultancy for implementation of OPDs new organizational structure will be
six months, with first three months of frequent onsite work.
Consultant will participate in monthly program meetings in the last three months to identify and
facilitate any problematic areas but will be available for any capacity building or other issue
when needed.
Deliverables:
Initial review report:
It will consist of the baseline situation of OPD, including baseline measures of employee
motivation, job satisfaction and organizational identity. It will also have a snap shot of
OPDs performance of last one year in different program areas.
First Quarterly progress report:
The report will be submitted after the organizational retreat and will include process and
progress of first two stages of structure implementation i.e. Governance and
Management. It will also have detailed report of organizational retreat and will be
accompanied by the finalized copies of the following:
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o Revised Standard Operating Procedures (SOPs) of OPD
o Revised job description of the new organizational structure
o Finalized work plans of different programs.
o Detailed report of Organizational retreat
Final report:
Final report will be submitted by the end of six months and will include a comparative
review of OPDs situation with the baselines conducted at the start of the consultancy
regarding:
Organizations performance
Employee motivation
Job satisfaction
Organizational identity
The report will also include comprehensive recommendations for future course of action
in the light of progress made regarding the process of structural change implementation.
Follow up support:Free of cost, trouble shooting support regarding any procedural, capacity building or training
issue will be provided by the consultant for six month, after the completion of consultancy.
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Consultancy Plan
Consultancy planImplementation of OPD's New Organizational Structure
Main Benchmarks Time Line in Months
1 2 3 4 5 6
Getting on the same page with OPD's Leadership (BoD and CEO)
Preparation of basic documents for starting the implementation
Initial review report
Consultative meetings with OPD's leadership
Management Retreat
Implementation of new management structure
Finalization of Standard Operating Proceduers (SOPs) and Job
descriptions
Week long Organizational retreat
First quarterly report
Implementation of new structure at the field level
Capacity building support
Final report
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Annex 1Organizational structure Old
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Annex 2
Organizational Structure New
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