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INTRODUCTION TO CHANGE MANAGEMENT Learning Objectives 1. Describe what is a change management 2. Discuss the important of change management 3. Describe a change management model 4. Knowing how change management works Definitions Change management is the continuous process of aligning an organization with its marketplace. Alignment is the continuous synchronization of four key management levels – strategy, operations, culture and reward The concept is grounded in the principle of continuous measurement and feedback on the people, process and system within the organization How Change Works As you see in figure 1; The inside circle represent the sequential execution of action The outside circle tracks the environment in the company that either stifles or encourage change The most critical is the zone of self-deception Figure 1 : The Change Management Model Sources : Irwin Publishing 1994, Lance A Berger How Change Begins The entire change process begins with change trigger Change trigger is actual or potential opportunities or threats that affect the company and destabilize if not deal with The change trigger can be : 1. The company’s market 2. Come in house 3. Change in the marketplace 4. Government policy 5. Company’s own making The Market Situation Business classification : 1. Grow 2. Earn 3. Harvest Each classification has a unique alignment pattern. The early detection and plan for rapid realignment (managing the zone of self deception) become is essential for successful change management Reassessment of Alignment Phase 3 in change model consist of : 1. Establishing the current business classification 2. Creating an ideal alignment model 3. Ensuring that the organization readiness in each dimension Change Decision Once the analysis of market and internal alignment is complete, organization must make one of 3 decisions : 1. Do nothing or make minor adjustments 2. Create a set of major vertical alignment adjustments 3. Create a major set of horizontal adjustments Phase 4 in change mode begins the zone of resolution Four types of change that emerge from change decisions : 1. Linear change 2. Geometric change 3. Quantum change 4. Metamorphosis The Change Plan Phase 5 is move to zone of action. The organization is now ready to restabilize itself against the change triggers. Culture mix Five profiles of change types : 1. Change agents 2. Change managers 3. Change facilitators 4. Change buffers 5. Change resistors Gatekeepers of Change Gatekeepers is equal to goal setting and measurement in driving change Gatekeepers is process involved in recruitment, promotion and termination Summary Pha se Description Impact Functions Agents Board/CEO/ Vision group Change agents 1 Change trigger Destabilize 2 Existing business situation Creation of CEO/Plannin Managers/change opportunities or g/business agents threat unit 3 Alignment to market Reassess President/CE O Change manager/facilitators 4 Change decisions Hold,modify CEO/All Functions Change manager/facilitators 5 Change plan Stabilize All manager/facilitators Staff/Custom er/Suppliers