CHANGE

MANAGEMENT
CHAPTER - 2
Change Management…?
Change management is a systematic approach to dealing with the transition or transformation of an
organization's goals, processes or technologies. The purpose of change management is to implement
strategies for effecting change, controlling change and helping people to adapt to change.

Organizational change is the movement of an organization from one state of affairs to another.
Meaning

● Change management is defined as the methods and manners in which a company describes and
implements change within both its internal and external processes. This includes preparing
and supporting employees, establishing the necessary steps for change, and monitoring pre-
and post-change activities to ensure successful implementation.

● Significant organizational change can be challenging. It often requires many levels of

cooperation and may involve different independent entities within an organization. Developing
a structured approach to change is critical to help ensure a beneficial transition while mitigating
disruption.
7R’s Change Management
7Rs of Change Management is a checklist of important points that need to be considered while raising a

change request. Answering the 7Rs provides insights allows you to assess and measure change risks:

1. The REASON behind the change?

2. RISKS involved in the requested change?

3. RESOURCES required to deliver the change?

4. Who RAISED the change request?

5. RETURN required from the change?

6. Who is RESPONSIBLE for creating, testing, and implementing the change?

7. RELATIONSHIP between suggested change and other changes?

VUCA
VUCA

VUCA is an acronym first used in 1987

and based on the leadership theories of
Warren Bennis and Burt Nanus, and
stands for Volatility, Uncertainty,
Complexity and Ambiguity. It was the
response of the US Army War College to
the collapse of the USSR in the early
1990s. Suddenly, there was no longer the
only enemy, resulting in new ways of
seeing and reacting.
Volatility & Uncertainty
Volatility refers to the speed of change in an industry, market or the world in general. It is

associated with fluctuations in demand, turbulence and short time to markets and it is well-

documented in the literature on industry dynamism. The more volatile the world is, the more and

faster things change.

Uncertainty refers to the extent to which unpredictable the future is. Part of uncertainty is

perceived and associated with people’s inability to understand what is going on. Uncertainty,

though, is also a more objective characteristic of an environment. Truly uncertain environments are

those that don’t allow any prediction, also not on a statistical basis. The more uncertain the world

is, the harder it is to predict.

Complexity & Ambiguity
Complexity - Complexity refers to the number of factors that we need to take into account, their variety and

the relationships between them. The more factors, the greater their variety and the more they are

interconnected, the more complex an environment is. Under high complexity, it is impossible to fully analyze

the environment and come to rational conclusions. The more complex the world is, the harder it is to analyze

Ambiguity - Ambiguity refers to a lack of clarity about how to interpret something. A situation is ambiguous,

for example, when information is incomplete, contradicting or too inaccurate to draw clear conclusions.

More generally it refers to fuzziness and vagueness in ideas and terminology. The more ambiguous the world

is, the harder it is to interpret.

 Types of Change Management

According to Henry Mintzberg there are four According to David Nadler and Micheal Tushman

types of Change Management organizational change can be 4 types

1. Incremental Change 1. Anticipatory Changes

2. Piecemeal Change 2. Reactive Changes

3. Transformational Change 3. Incremental Changes

4. Flux Change 4. Strategic changes

Steps in Change Management

Step 1: Identification of Need for Change

Step 2: Determination of Elements to be changed

Step 3: Planning of Change

Step 4: Force-Field Analysis

Step 5: Soliciting Workers’ Participation

Step 6: Implementation of Change

Step 7: Appraisal
Change Management Process
● Change management is the process of guiding organizational change to fruition(Fulfillment of

Plan or Project), from the earliest stages of conception and preparation, through

implementation and, finally, to resolution.

● Change Management processes have a set of starting conditions (point A) and a functional

endpoint (point B). The process in between is dynamic and unfolds in stages.
Change Management Process
Key steps in the change management process.

1. Prepare the Organization for Change

2. Craft a Vision and Plan for Change

3. Implement the Changes

4. Embed Changes Within Company Culture and Practices

5. Review Progress and Analyze Results

Kotter’s 8 Step-Change Management Model

John Kotter (1996), a Harvard Business School Professor and a renowned change expert, in his
book “Leading Change”, introduced 8 Step Model of Change
Nadler’s 12 Action Steps Model
The 12 Action Steps, proposed by David A. Nadler in 1988, help in the reorganization of a plant, unit, department or an
entire organization
Lewin’s change management model

This model is named after its originator, Kurt Lewin, who developed it in the 1950s. It’s divides the change process
into three steps:
● Unfreeze This is the preparation stage. Analyze how things work now, so you accurately understand what needs
to change to get the intended results. In this stage, you also make your case to employees and communicate what
to expect so everyone impacted is prepared.
● Change This is the implementation phase. Put the change into practice, and keep communicating and providing
support for all employees involved.
● Refreeze To avoid falling back into the old way of doing things, develop a strategy to check in and make sure the
change sticks. Review how the new processes work and measure how well you’ve reached your goals.
Lewin’s change management model
PDCA Model
In the 1950s, management consultant Dr William
Edwards Deming developed a method of identifying
why some products or processes don't work as hoped.
His approach has since become a popular strategy tool,
used by many different types of organizations. It allows
them to formulate theories about what needs to change,
and then test them in a "continuous feedback loop."
1. Plan.
First, identify and understand your problem or opportunity. Perhaps the standard of a finished product isn't high
enough, or an aspect of your marketing process should be getting better results.
Explore the information available in full. Generate and screen ideas, and develop a robust implementation plan. Be
sure to state your success criteria and make them as measurable as possible. You'll return to them later in the Check
stage.

2. Do.
Once you've identified a potential solution, test it safely with a small-scale pilot project. This will show whether
your proposed changes achieve the desired outcome – with minimal disruption to the rest of your operation if they
don't. For example, you could organize a trial within a department, in a limited geographical area, or with a
particular demographic. As you run the pilot project, gather data to show whether the change has worked or not.
You'll use this in the next stage.
3. Check.
Next, analyze your pilot project's results against the expectations that you defined in Step 1, to assess
whether your idea was a success.
If it wasn't, return to Step 1. If it was, advance to Step 4.
You may decide to try out more changes, and repeat the Do and Check phases. But if your original plan
definitely isn't working, you'll need to return to Step 1.

4. Act.
This is where you implement your solution. But remember that PDCA/PDSA is a loop, not a process with a
beginning and end. Your improved process or product becomes the new baseline, but you continue to look
for ways to make it even better.
Nudge Theory

The Nudge theory existed from the mid-1990s, but became famous after the 2008 book by Richard

Thaler and Cass Sunstein “Nudge: Improving Decisions about Health, Wealth and Happiness”,

Nudge theory relies on subtle, indirect suggestions that are backed up by evidence so that employees will

be nudged in the direction of change that the company desire. The “nudging” change is more effective

than strictly enforcing change.

Nudge Theory
Bridges Transition Theory
Transition Model was created by change consultant, William Bridges, and was published in his
1991 book "Managing Transitions." The main strength of the model is that it focuses on transition,
not change. The Bridges Transition Model is designed to help businesses effectively manage the
change process by mapping out the human response to change over three phases.
Factors Influencing Organizational Change

External Forces
1. Market Conditions
2. Technology
3. Social Changes
4. Political and Legal Changes
Internal Forces
5. Changes in the managerial personnel
6. Deficiency in existing organization
7. Nature of the work force
8. To avoid developing inertia (inactive, not flexible)
Resistance to change

Resistance to change is the unwillingness to adapt to altered circumstances. Employees may

realize they don't like or want a change and resist publicly, and that can be very disruptive.
Employees can also feel uncomfortable with the changes introduced and resist, sometimes
unknowingly, through their actions, their language, and conversations, they share in the
workplace.
Overcoming Resistance to Change

1. Education and communication

2. Participation and involvement

3. Facilitation and support

4. Negotiation and agreement

5. Manipulation and co-optation

6. Explicit and implicit coercion