Change Management

Change management is a collective term for all approaches to preparing and supporting individuals, teams and organizations in making organizational change

1. Presented by : Dr Arti Jaisinghani Dr Unnati Kalwani MBA HA 1 st sem IMS, Indore

2. “Progress is impossible without change, and those who cannot change their minds, cannot change anything” George Bernard Shaw

3. What is Change management? Change management is a collective term for all approaches to preparing and supporting individuals, teams and organizations in making organizational change  In a fast changing environment, organizations have to cope with new challenges every day - from changes in hiring decisions to changes in economic scenario, from changing compensation trends to managing mergers and acquisitions, from changes in leadership to expanding business in new markets Yet according to a  2013 Strategy&/ Katzenbach Center survey  of global senior executives on culture and change management, the success rate of major change initiatives is only 54 percent

4. Why change happens? External Forces of Change: An  external force  of change occurs from an outside influence on the organization. The main external forces of change: Globalization Workforce Diversity Ethical Behavior Technology Government regulations and policies Economical changes of the country Growing competition Changing market trends Mergers and Acquisitions

5. Internal causes : Poor financial perfomance Internal crisis(Strike, shut down) Change in employee expectations Structural changes Administrative changes

6. Some famous examples of effective change management NOKIA: THE JOURNEY OF NOKIA Because Apple beat Nokia to market with its iPhone, the latter company missed its opportunity to lead the smartphone revolution . Understanding this all too well — Nokia has reinvented itself time and again in its 150-plus-year history — the Finland-based company hired a new CEO to take the reins.

7. COCA COLA:  In the 1980s, Coke’s biggest rival, Pepsi, was aggressively targeting it. This caused Coca-Cola to re evaluate its offerings. Eventually, the company decided to concoct a new, sweeter soda. They called it simply New Coke. Unfortunately, the public didn’t take too kindly to the new beverage. But Coke’s executives didn’t let the mishap derail their success. Quickly, management decided to pull New Coke and replace it with the older, established formula. Lo and behold, Coca-Cola Classic was born, and Coke maintained its market dominance.

8. GE(General Electricals) When Jack Welch assumed the top position at  General Electric  in 1981, he inherited a company that had a market value of $12 billion — certainly a modest number, by today’s standards. By the time he left in 1998, GE was worth $280 billion. While leading GE, Welch was charged with the task of making the conglomerate better by any means necessary. With his gut telling him that his company was due for a complete overhaul, Welch decided to implement Six Sigma at GE in 1995

9. Amazon: Ever since  Amazon  went online in 1995, the e-commerce juggernaut has undergone a slew of changes When the Seattle-based company first launched its website, all it sold was books. Gradually, Jeff Bezos and his team expanded Amazon’s offerings to include things like CDs and DVDs . Bezos said he wanted his store to become the world’s largest, so he worked hard toward meeting that goal — whether that meant offering new products, launching Amazon Prime, launching Amazon Instant Video ... the list goes on and on.   Today, Amazon sells more than 200 million products to customers all over the world. 

10. What happens when things changes? T here are three major hurdles to overcome. C hange fatigue : the exhaustion that sets in when people feel pressured to make too many transitions at once Change initiatives : because companies lack the skills to ensure that change can be sustained over time.  T ransformation efforts : 44 percent of employees reported not understanding the changes they were expected to make, and 38 percent said they didn’t agree with the changes.

11. The employee perspective “Change is the new permanent, but no change is permanent” Kurt Lewin , a German-American psychologist, explained the process of change in three steps : Unfreeze  – When the existing ways need to be let go of Transition  – Adopting the change or the new way of doing things Refreeze  – Making the new way ‘business-as usual’ and a part of routine The basis of these stages is the behaviour of an individual in different situations and how he reacts to changes happening around. How this behaviour is channeled in a positive way depends on the way it is managed as changes which have a direct impact on employees require the maximum coping with and might even prove tough to handle.

12. reactions to change Denial : When a change is announced there may be some employees who feel that the change is not necessary. They may be reluctant to listen or deny any facts or information presented to support the change. Resistance : With any level of change, there may be employees who will resist the change. Resistance is very common and stems from a fear of the unknown. Not knowing how an event is going to turn out can be a frightening event for those who go through the change. Anger : When change occurs and the norm is uprooted, people can sometimes experience anger. Employees may then lash out and become uncooperative during this time. Indifference : Some employees just may not care, or the change may not have an impact on their routines or work. Be wary of this, as the change may be intended to have an impact, if the individual is indifferent about it the change then they may not understand or accept it. Acceptance : We hope that changes generally occur for the better and have a positive influence on those involved. Even with positive change, acceptance may not happen right away, however is should occur quicker as opposed to when the change is perceived to be negative.

13. So what do we do to manage change???

14. Why Is Managing Change Important?   Mckinsey research indicates a high failure rate of Change Programs as being around 70% (McKinsey, 2015). Contributing factors include: an unclear ‘future state vision ’ lack of leadership alignment passive or active resistance poor culture or behavioural norms ineffective engagement and communication underestimation of change impacts lack of coordination across functions a lack of change capability and maturity within organization

15. Types of changes

16. Elements of change management strategy

17. How to set up a change framework

18. Change management team Project or Change Manager(external or internal) Financial Analyst Business unit liasion Team members (HR executive, executive operations, logistics manager, marketing and sales executive) Reviewing officer (Director, Chairman, COO)

19. conclusion D evelop a change management team and create supportive alliances C ommunicate your plans, take your vision from idea to action, and overcome challenges along the way M easure your success, review lessons learned, and build a culture of constant improvement.

20. THANKYOU