Change Management
Change Management
Change Management
1) CHANGE MANAGEMENT: Change management can be simply defined as Making change in a planned and managed fashion; whereas organizational change can be defined as Any alteration in people, structure or technology. Changes can of many types: Operational changes Strategic changes Cultural changes Political changes
There are many models for change management, but we will discuss three of them; i.e. The McKinsey 7S Model Kurt Lewin-Change Management Model Kotter's 8-Step Change Model
The McKinsey 7S Model: - The main objective of McKinsey is that all departments of an organization work in harmony. It was developed in early 1980 by Tom peters and Robert waterman, working as consultants in McKinsey & Company consulting firm, the basic motto of the model is that, if an organization wants to be successful it has to implement seven internal aspects of it. For example: To improve companys performance; To examine the effects of future changes in the company; To successful implementation of a strategy; etc.
The elements of the McKinsey 7S model can be applied to a team or a project. The seven elements are interdependent factors which are defined as either hard or soft elements: -
Hard Elements or Soft Elements: Strategy Structure Systems Shared Values Skills Style Staff
Hard elements: - They are easy to define or identify and are directly influenced by management. These can be strategy statements; organizational charts; information technology systems, etc. Soft elements: - whereas, soft elements are more difficult to describe, influenced by culture and are less tangible. But they are also as important as the hard elements, if the organization needs to be successful. Strategy: - As the name suggest that it is a plan of an organization in order to maintain and build competitive advantage over its competitors. Structure: - It is to how the organization is structured, i.e. horizontally, vertically, etc.; and what is the hierarchy in the organization. Systems: - The routine activities carried out by the staff members and procedures followed in order to get job done. Shared Values: - they were known as Superordinate Goals; during the development of the model. They were the core values of the company, which are called "superordinate goals" when the model was first developed, these are the core values of the company that are demonstrated in the work ethic and also in the corporate culture.
Style: - It is basically associated with the style of leadership being adopted, in the organization. Staff: - They are the backbone of an organization, they comprise of employees and their general capabilities. Skills: - The actual skills and competencies inherited by the employees working for that particular company. Here, in the 7S of McKinsey; Shared values are kept in the middle of the model to denote that these values are important for the development of other important elements. The company's structure, strategy, systems, style, staff and skills elements are derived from the need that, why the organization was created. Thus without the element of shared values, its almost impossible to develop other elements also, and if this element changes so will the other elements. The McKinsey 7S model is a model which can be implemented to almost any organizational issue. It is also considered as a classic model. Kurt Lewin-Change Management Model: - It is a three stage model given by Kurt Lewin. Kurt Lewin emigrated from Germany to USA in 1930. He is also known as Founder of Social Psychology. Due to this he changed his focus on groups, which led to research; focusing on the factors that influences people to change. The three stages of the model are: Unfreeze: - It is the first & important stage of this three stage model. It is to understand the changes in the world and getting ready for this change. It is the stage at which one has to understand that change is necessary, and to shift from the current comfort zone. It is to prepare for ourselves and others, before the change; i.e. to create a situation in which we want to change. Unfreezing or getting motivated for the change is about differentiating pros & cons. It is done on the basis of Force Field Analysis. Force Field Analysis is a different factor for and against making change, which is required to be aware off. Thus if factors for change are more than factors against for change, then change is implemented. Thus unfreezing stage is to motivate peoples, employees, department or whole organization for change. Change or Transition: - Change is not an event, it is a process. It is also known as Transition. It is an inner movement in a bid to a change. This stage occurs when the changes needed are made. The people become unfrozen and start moving towards the new change that has to be implemented. It is often considered as the hardest stage, as people are not sure and are often afraid of the change, they need time to understand and to work it out. It can be done successfully with giving support in the form of training, coaching and allowing mistakes committed by them. Another way is to use role models and allow them to develop solution on their own. Communication is also
important, as proper communication will give a clear picture of the changes desired and what will be the benefits of it. Freezing (or refreezing): - It is the last stage and Kurt Lewin refers it as Freezing. This stage is all about achieving stability after the implementation of changes. The changes are accepted and they become new policies, rules or norms. To become comfortable with this change it may take some time. Yet some think that, this stage is not possible, and due to this Kurt Lewin model is criticized. But today, changes happen in weeks or less. In 1947 Kurt Lewin wrote that; A change towards a higher level of group performance is frequently short-lived, after a "shot in the arm", group life soon returns to the previous level. This indicates that it does not suffice to define the objective of planned change in group performance as the reaching of a different level. Permanency of the new level, or permanency for a desired period, should be included in the objective.
He was concerned about reinforcing the change and ensuring that the desired change is maintained and accepted in future. By freezing he meant that the change must be permanent, many modern models like ADKAR model included reinforcement as another step in order to keep implemented change intact.
Kotter's 8-Step Change Model: - It is to implement change powerfully and successfully; Change is the only constant Heraclitus, Greek philosopher As said earlier, there are many theories for change management. Many of them originated with leadership and change management guru, John Kotter. A Harvard Business School professor and world-renowned change expert, he introduced his eight-step change process in his 1995 book, Leading Change. The eight steps are as follows: Step One: Create Urgency
The step of john kotter is to create urgency for need of change. It may act as initial motivation for its implementation. It can be done in a following way: Identifying potential threats, and forecasting the future. Examining the opportunities available and that can be exploited. Brainstorming sessions. Feedback from customers, dealers, stakeholders, etc. in order to justify ones stand.
In order to successful implementation, step one is considered as most important, for avoiding short-term losses. Step Two: Form a Powerful Coalition
The second step is to convince people that change is necessary. A strong leadership and support from key people within an organization is also necessary. For implementation of change a powerful coalition is required, which can be a team of influential people within an organization. Their power may come from various sources, i.e. job title, status, political importance. Once formed, the coalition needs to work effectively to build urgency and momentum for need of change. It can be done in following ways: Identifying true leaders in the organization. Emotional commitment from these people. Team building on change coalition. Thus following steps are to be implemented. Step Three: Create a Vision for Change
As the name suggest, it is to form a vision, i.e. where one want its organization to be in future. Hence by creating an overall vision that people can understand easily and remember. It can be done in following ways: -
Determining values required for change. Creating strategy for executing that vision. Thus, step three can be implemented in such way. Step Four: Communicate the Vision
Its all about communicating the vision to all the employees, departments or an organization as a whole, the fourth step is communicating the vision to all of them. Step Five: Remove Obstacles
After communicating vision to all in an organization, the fifth step to identify the barriers. Removing obstacles helps to allow people to implement the vision, and to help the change in an organization. It can be done in following ways: Identification of leaders who play important roles in making change in an organization. Taking an overview of the organizational structure, employees job descriptions, and different systems, in order to ensure that they are as required for implementation of change. Recognition of people who plays important role in implementing change. Recognition of people who are resisting change, and to see what they want. Thus, for successful implementation of change in an organization, immediate and effective actions are required to quickly remove the barriers. Step Six: Create Short-term Wins
The best motivation for anyone is the success achieved. Its the best motivator and no one motivate more than it. To motivate all employees or an organization as a whole for change process, give them a taste of winning in the early stage of change process. Thus, after some time, the results will be showed what employees want to see. Whereas, critics and adverse thinkers; can act as barriers in the change process. The vision should comprise of many short-term targets and not just one long-term target. Thus, achieving these short term target will motivate the employees or organization as a whole for the change process. It can be done in following ways: Implementation of projects without any criticism for change Expensive targets are to be chosen late, in order to explain investment in each project. Analyzing thoroughly the pros and cons of the targets set. Thus, if one does not succeed in early stage, it might damage the whole change process. Acknowledgement of the people helping in achieving the targets and also rewarding them.
Thus, this can help a lot in change process. Step Seven: Build on the Change
According to Kotter, many projects of change in many organizations have failed, because success is announced too early, as in reality a change requires quite some time. Small and Quick wins are only the first step towards what has to be done to achieve long-term change. For example; success cant be said if one product is launched successfully from a new system, it is when many products are launched from that system. Thus with each success, it provides opportunity for an organization to identify the improvements to be done. It can be done in following way: Scope of improvement should be analyzed after every success. Setting up of goals continuously, in order to achieve the ultimate gift. KAIZEN (continuous improvement) should be implemented. Thus it can also be done with the help of bringing new change agents in the organization for change process. Step Eight: Anchor the Changes in Corporate Culture
The last and the final step in which, if an organization wants to make change, it must become a part of core of an organization. As organization culture often shows that, what is the goal of that organization, so the vision of the organization must be seen in daily activities? Thus continuous efforts are to be made in order to ensure that, change is viewed in every aspect of that particular organization. The organizations leaders should also support change, if it is not there, then change would not be possible. It can be done in following ways: Conversation about progress is to be done regularly. Share success stories about change process with the employees or departments of organization. Keep in mind the change values and ideals, while hiring or recruiting or training the new staff. Contribution of important members of the original coalition should be recognized and appreciated by the staff members. Back-up plans to replace key members of coalition should be made, and it should be assured that their contribution is not lost or forgotten.
(AC:1.2)
I have chosen VODAFONE, INDIA and the model I proposed is KURT LEWINs CHANGE MANAGEMENT MODEL. As it consist of three stages namely; freezing; change; and unfreezing. I have chosen this model for change management because; according to Kurt Lewin; the change has to be made in phases, as Vodafone was acquiring small telecom firms, so it was having different workforce working in different pattern and there was resistance to change from the employees so it was important to implement a change management process. So in my views I will implement Kurt Lewins Change Management Model.
(AC:1.3) Strategic intervention is a method of implementing techniques of organizational development in order to achieve desired organizational changes. After analyzing the environment properly where change has to be implemented, different application techniques; i.e. role playing, survey feedback, team development, process consultation, MBO approach, The GRID Training, system four management, etc. can be applied. As the challenges for which change is required by Vodafone India, are different workforce, different technology, and resistance to change and to get it right selection of right tool. The two strategic intervention techniques for Vodafone India, as per my views are: Survey Feedback: - It is generally gathering of information through personal interviews and survey questionnaires. Which are analyzed and tabulated into understandable and readable form and shared with those who supplied the information? Then after this feedback is expected from them, which should be relevant, understandable, descriptive, controllable, comparative etc. Inter-Group Problem-Solving: - It means like having joint meetings, where each member is allowed to see themselves as a members of that family. And ask them to minimize their differences and maximize their goals achievement, in order to hold them together, as part of corporate existence.
Task 2 (AC:2.1,2.2) The generic background change that exists in modern economy is quite evident. It is evident that change is required in existing workplace practices in industry. As in todays global market, due to new global economy and global markets having workplace agreements which have now became outdated, costly, and it also became restrictive. But it is another fact, that many organizations are finding difficult in implementing change in existing work place practices, to break lines of boundary or limits and work practices and work rules, so that implementation of necessary human resources and work organization innovations. Change is the only thing which is constant, but change is also the only thing which is resisted by peoples or employees or human beings as a whole. Both management and labors since long time has favored some set of rules which are outlined for organizations work place. It has been assumed that the whole systems of workplace rules or practices have become rigid and now no longer serve either of them; i.e. the management or the labors. Since rules are invisible ropes, which binds the technical and the social components of that particular organization. Rules are made from past adjustment and are there to stabilize the present and future of an organization. Both management and labor benefited from having a set of rules in regulating organizational work. The main purposes of this generic background for change are: Exploring of benefits and problems occurring in work places of organization and rules from perspective of both the workers and managers. Examination of several points; i.e. properties or functions of the organization, thus based on these analyses in which organization work rules which make them critical and resistant to change. To discuss ways from which changes needed in workplace practices are facilitated. The drivers which are motivating to consider change are: Technology clutter: - After acquiring different mobile operators from various regions, the working process of respective operators is diverse and they use different standards to maintain their infrastructure. And above all the top management is absent, thus change was required to centralized and automate the service desk across all operations in the country. Resistance To Change: - As the local telecom operator are part of Vodafone India group, so it is difficult to hold on to old customers, as in old times they used to walk to the local service desk, whereas as implementation of common service desk platform, now they have to make a call to the call center, register a complaint and wait for the solution to be provided.
Selecting the right Tool: - The third challenge was to select a popular service management tool to roll out common central service desk plan all over the country. For which the Vodafone India IT team started an in depth analysis of different parameters to strike out options available. Thus after detailed analysis, which was based on market share, product alignment with Vodafone global IT, and the history of the product, Vodafone decided to choose BMC remedy IT management service suite.
(AC:2.3) Resource implication is the backup plan of an organization, if a plan of that organization fails. As Vodafone India has to compete with its competitors, namely Airtel, Uninor, BSNL, etc. on the basis of the resources available in the business environment. An Organization which has better resources will have competitive advantage over its competitors. Resources can of any type; i.e. financial, human, relationship between suppliers and distributors. Thus problem arising in getting resources can cause serious implications, resulting firm to lose its market share in the industry. As India is an emerging market, with a population of 1.2 billion. So there is lot of market left unexploited, hence in my views Vodafone will not need any Resource implication strategy.
Task 3 (AC:3.1) Key stakeholders of Vodafone India includes creditors, customers, directors, employees, government (and its various agencies like, customs, income tax, sales tax, etc.), owners (shareholders), suppliers, unions, and the people, who are their customers. The way in which the company can influence and manage can manage key stakeholders. It is a five stage process: Identify key stakeholders: - It is to manage and identify certain factors while leading and managing key stakeholders; i.e. hidden agendas, personal agendas, undisclosed objectives, etc. anticipating and managing stakeholders expectations is an important part in successful change implementation. Analyzing key stakeholders: - Certain reactions of the key stakeholders are to be noticed for the changes to be implemented. By preparing questionnaires, which asking what are their reactions for the change being implemented? Analyzing stakeholders in a change initiative: - It is to understand that, how change will impact them. Managing the different stakeholder categories: - Stakeholders are also divided into different categories in order to manage them properly. They are further divided into four categories; Managing resistors: - Its to manage resistors, who may resist change or may act as barriers. Managing followers: -Keep them close, as they plays important role in implementing change. Managing supporters: - They are also important as followers, as without their support, it is not possible to implement change. Managing the apathetic: - They should be communicated the commercial realities, vision should be shared with them, etc. in order to create their interest in their organization.
Thus, after dividing them into four sub categories, it will be easy to manage them. Preparing charts: - The last step of the process is about preparing final charts and analyzing the after effect of the change.
(AC:3.2) The strategy for change management with key stakeholders would be the same as discussed above in AC:1.1, as the main objective of the organization is to implement change while taking key stakeholders assurance with it. (AC:3.3)
Advantages and disadvantages of the system of managing key stakeholders while implementing change: Here all aspects of key stakeholders are kept in mind while structuring change management. Key stakeholders are divided into sub categories, in order to manage them quite efficiently. Instant change of mind of any stakeholder cant be predicted. Feedback provided cannot be true, as it can be different from what was expected.
(AC:3.4) Resistance is found everywhere while implementing change, firstly identify the most powerful resistance and then devote time and energy to weaken it. It can be done by showing them personal gains or avoiding losses. To show them what are the advantages of the change and what will be disadvantages if change is not implemented. Make them a part of decision making process, in order to achieve their trust. Thus with these kinds of techniques, the resistance could be reduced to its minimal amount.
Task 4 (AC:4.1) The model for change management which I want to implement in Vodafone India is the Kurt Lewins Change Management Model. It consist of three stages; Unfreezing stage, which involves educating employees, key stakeholders, etc. about the effectiveness of change and why change is needed; Change stage, in which people start moving to change, i.e. moving from old environment to new environment; Freezing stage, its the last stage where the change is fully functional and it is seen that the change implemented is permanent. (AC:4.2) After deciding the model, I would like to look out that what are the factors in which change is implemented, like for example; In Vodafone India, the change is needed in clustering all acquired mobile operator firms ,technology and grouping them into one single platform. So it can be done by communicating all employees, key stakeholders, etc. about change to be implemented and then the change management strategy should be executed. (AC:4.3) The problems faced by Vodafone India before implementing change management model were: Multiple desk platforms Unstructured service desk, resulting in inability to measure predictability. No data was there, to measure service levels according to the agreement. After implementing change management strategy: Single unified solution suite provided by BMC remedy, to manage companywide incident management. Increase in predictability and easy incident tracking. Service level of partners measured by data availability. After implementing change management tool in just 21 days, the change and problem management workflows are easily handled. Thus before implementing BMC remedy, the service desk was unstructured, but after that, predictability has become possible and decisions can be taken on the data available. With an unstructured approach to delivery service, it was impossible to deal with its partner. Now after implementation every argument is supported with data available, i.e. they can make their stand now. Thus it was only possible because of the successful implementation of the change management model.