management of change1

8/9/2019 Management of Change1

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Sterling Institute OfManagement Studies

Project Report On

Management of change


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Project FlowSection I Synopsis,Introduction

Section II Managing Change, Types of changes, What

companies would like to change, approaches to

organizational change, models of organizationalchange

Section III Resistance to change, how to overcome resistance,

communication strategy for change, Managerialimplications

Section IV Planning & implementing change

Section V Case in action, Conclusion & bibliography


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Introduction


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Management of change?

Process through which changes in

organization are managed in a most efficient

way

Management of Change usually involves the

introduction of new procedures, people or

ways of working.


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Section IIManaging Change

Types of Change

What companies would like to change?

Approaches to organizational change

Models to manage change


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Managing Change

It refers to the making of changes in aplanned and managed or systematic

fashion.

Aim

Effectively implement new methods and

systems in an ongoing organization


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Formula for change

D x V x F > R

D Dissatisfaction with how things are now

V Vision of what is possible

F First, concrete steps that can be taken towards the vision.

If the product of these three factors is greater than R =

Resistance, then change is possible. Because of the multiplication

of D, V and F, if any one is absent or low, then the product will

be low and therefore not capable of overcoming the resistance.


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Clear responsibility and priorities with extensive

communication and freedom to improvise.

Enhance learning about future possibilities by

experimenting with ideas.

Link current projects to the future withpredictable intervals

Role of Manager


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Types of changes

1. Strategic change

2. Cultural change

3. Structural change


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What companies would like to change?

1. Changes in people behaviour

2. Changes in Organizational Culture

3. Change in Task & Technology


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Management implicationsManagement has to take the following steps to implement the change

successfully.

1. Participation of employees

2. Planning for change

3. Protecting employees interest

4. Group dynamics

5. Cautions and slow introduction

6. Training and development

7. Career lannin and develo ment


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Models

To

Manage Change


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1. Unfreezing

2. Change

3. Refreezing

Lewins Change Manage model


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Change Management Process

A Structured Approach


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Section III

Resistance to change

How to overcome change

Communication strategy for change

Management implication


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Resistance to change

Reasons

1. Economic reasons

2. Personal reasons

3. Social reasons


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How to overcome resistance

Increasing the strength of pressure for

change.

Reducing the strength of the resisting

forces or removes them from scene.

Modify the direction of a force.


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Communication strategy

for change

A communications strategy should coincide withthe general stages of a planned change and the

relevant associated information requirements.

For the purposes of this analysis we choose to

use the Kurt Lewinian model incorporating

three general stages of change: unfreezing,

changing or moving, and refreezing.


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Communication during unfreezing

stage

1. Readying the organization for change

2. Challenging the status quo

3. Providing a rationale

4. Focusing on communication principles


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Communication during Changing

stage

1. Dealing with uncertainty

2. Focusing on specifics

3. Reporting the progress


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Communication during

Refreezing stage

1. Building understanding

2. Understanding personal implication for

change


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Managerial implications

1. Communication must come from top

2. Devise a communication system3. Monitor & evaluate system

4. Be open & honest all the times

5. Combine written & face to face communication

6. Be relevant


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Section IV

Planning & implementing change


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Implementation is the institutionalization and

internalisation of a change after it has been accepted by

an organization.The implementation process should start with planning.

The three important stages of implementation of change

process are:

Monitoring the change

Taking action in relation to the change

Making necessary adjustment in the program

accepted for implementation.


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The Model of Implementation of

Change in an Organization.

Involvement

in Process

Involveme

nt in Task

Corporate

Management

Consultant

Countertpart

Chief Implementor

Implementation

Team

Task Forces

Initiat- Motivat Diag Info- Delib- Action Implem- Stab-

tion tion nosis coll- eration prop. Entation ilisation

ection


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Sequential process of Implementation of

changeProcess

Strategies

Monitoring

Implementation Team

Minimum control

Review & feedback

Dissemination of information

Action

Adaptation

HRD

Resources

Linkages

Mana ement commitment


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Case in action


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Managing change in New Product

Development at Volvo

During the 1990s the car industry faced a number of tough

challenges. Not only did it need to put new products with

higher quality into the market, increasing competition across

the globe meant that cycle times also needed to be reduced.

Problem areas

Executives realized that the existing New Product

Development (NPD) system within the organization was

simply not going to generate the required increases in

productivity. But how could they change a system that was so

full of non-routine processes?


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In a typical scenario of product development of cars there

are thousands of people involved in several years of NPD

using standard, routine and non-routine processes.

Solution

1993 Volvo merged with Renault. Merger collapses at the

end of 1993 and Volvo decided to change its NPD works in

order to tackle competition.


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In 1994 company strategists started thinking about ways to

increase the product portfolio with first car to be launched in 1998.

The change program was initiated at the end of 1994 and was

based on the following three principles

Initial Phase Identification of change

Identification of levels that could build a base for the needed re-

engineering of the NPD organization in all stages of the process

A person that focused on the improvement of the engineering workmethods was needed

A top-down and bottom-up change management approach was

designed.

How did Change took place?


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Development stage Making changes

VCC decided to build a new system based upon the "state of the

art" concept of NPD- this included platforms modularization andcross-functional teamwork & by 1996 it was able to adopt

platform modularization.

A pilot team was put together that participated in workshops to

develop new ideas which were then tested in daily work. In 20

weeks, this team managed to shorten their development loop cycle

time from 17 to 9 weeks and had the manufacturing process

defined 15-20 weeks earlier than normal.

Launch took place in 1998 as predicted

P R f i h


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Post stage Refreezing changes

Between 1995 and 1999, VCC increased product development

output by 65 percent, measured in the number of parallel-

developed new cars, with only a seven percent increase inpersonnel.

With the new platform system, people work cross-functionally

together on a daily basis.

The company has also installed much IT software that facilitates

these cross-functional teams and the platform approach means

many cars are created at the same time.

Although this method of working is more complex on the surface,

it is ultimately a more efficient way of ensuring a competitive edge

in the car industry.


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What man does notalter

for the better, time alters

for the worse.

-Francis Bacon


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Thank You

management of change1

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