Newsletter - 01.11.2024

ODCL, TEAM CBC 01.11.
2024
NEWSLETTER Edition 3|Volume 5|Part 1
Change Management - I
What is CHANGE MANAGEMENT?
Lewin defined change management as a process that includes creating a perception that change is required,
transforming toward favourable behaviour, and then maintaining that favourable behaviour to become a habit.
Hiatt and Creasy defined change management as the implementation of processes and instruments to manage
the human resources side of change from the current situation to the desired one to ensure the achievement
of the results expected through that change.
Dalcher defines change management as a holistic approach adopted to transform the organisation from a
particular situation to a desired one through a structured coordination process with the stakeholders.
On the other hand, change management can be defined as a systematic approach by which managers can
transform their organisations from one status to another by appointing different goals, internal processes, and
shared values.
Why is it needed?
Every organisation, at some point, changes to remain viable and scale. Whether onboarding new employees,
growing a department, or merging with another company, these changes can significantly impact your
business's trajectory, i.e., it can be for Internal Integration or External Adaptation.
WHAT IS ORGANIZATIONAL CHANGE MANAGEMENT?

Organizational change refers to how a company or business alters a major component of its organization, such
as its culture, the underlying technologies or infrastructure it uses to operate, or its internal processes.
Organizational change management is the process of guiding organizational change to a successful resolution,
and it typically includes three major phases:
preparation, implementation, and follow-through. Why do 70% of the changes fail?
CHANGES CAN BE:
Best Practices to Manage Change Effectively:

TYPES OF CHANGES:
✓ Establish Robust Governance - Create a change
advisory board (CAB)
✓ Consult frontline employees to understand their
challenges and secure buy-in. Select an
Appropriate Rollout Method - Linear Release,
Geometric Wave, Big Bang
✓ Tailor announcements to audience needs, with

updates from trusted leaders through multi-
channels
✓ Provide In-Flow Support- Aim for 70%

experiential learning
✓ Track and Adapt - Monitor change metrics and
KPIs to measure success in an agile way.
✓ Showcase Wins
✓ Gather Feedback Continuously - Collect end-user

feedback at critical points
✓ Foster a Change-Positive Culture
ODCL, TEAM CBC 01.11.2024
CHANGE MANAGEMENT MODELS
➢ Kurt Lewin’s 3-stage change model :
In 1947, social psychologist Kurt Lewin introduced a three-stage model for the change process: unfreeze,
change, and refreeze.
Kurt Lewin’s change model suggests that change is influenced by two main forces: driving forces, which push
employees toward change, and restraining forces, which create resistance and act as barriers to change.
Together, these forces shape the success or failure of change initiatives.
➢ McDonald’s 2017 Overhaul Using Lewin’s Change Model
Unfreeze:
McDonald’s identified the need for change due to shifting consumer preferences. Leadership
communicated this need to employees.
Change:
The company implemented an all-day breakfast, customisable
menu options, and upgraded in-store technology to improve
customer experience, addressing some resistance with
ongoing support and training.
Refreeze:
Once changes were in place, McDonald’s embedded them in
its policies and culture, recognising adaptable employees and
continually assessing effectiveness to align with consumer
trends.
➢ KOTTER’S 8 STEPS CHANGE MANAGEMENT MODEL:
The cloud data services and management organisation NetApp was on the verge of losing its business and
facing tough new competition. It applied Kotter’s 8-step change model to achieve three strategic goals:
▪ Grow its market share
▪ Implement global partnerships
▪ Drive organisation efficiencies
Applying these goals led NetApp to bundle its solutions into packages and create a new streamlined approach
to sales. After applying Kotter’s model, NetApp saw a 44% increase in revenue, a 55% increase in sales, and
a $14 billion growth in market capitalisation.
➢ ADKAR: Why is it beneficial?

The ADKAR model was developed by the change management firm ✓ It provides a practical – not a
Prosci and is considered one of their core methodologies. Five steps theoretical – approach
to manage individual resistance to change in this model are:
✓ It is an out-of-the-box
solution. Businesses shouldn’t
have to reinvent the wheel.
✓ It has been extensively field-

tested.
✓ It comes with lots of training

and support.
Example: The Microsoft 365 Customer Success organization uses the ADKAR Model primarily to influence
buy-in and diagnose common barriers to customer success and adoption.
➢ MCKINSEY’s 7s :
The 7 S’s of the McKinsey 7-S Model make it one of the more complex models, but that complexity may be
necessary when implementing complicated organization-wide changes. The model’s seven elements are not
designed to be addressed in a specific order but assessed by how they affect each other to identify
weaknesses. It is perfect when you know something is wrong within the organisation but are unsure how to
address the issue.
The first three — strategy, structure, and systems — are
considered the “hard” elements, meaning they are more
straightforward to identify and easily influenced by
management. The complex elements are such things as the
company’s plans to be more competitive (strategy),
organisational charts (structure), and routines/processes for
how work is to be done (systems).
Conversely, the remaining four “soft” elements are more
challenging to describe and are influenced by the company
culture. Your staff, their skill sets, the company’s overall
leadership style, and the values or culture of the company are
more fluid and subject to continuous change.
Look at how MCKINSEY’s 7S can be implemented: Know More!
➢ Deming Cycle (PDCA)

The Deming Cycle, originally developed by Dr.
Williams Edwards Deming, is also known as
the Plan-Do-Check-Act (PDCA) cycle. This
framework focuses on process improvement
and is divided into four phases:
The four phases help you identify the issues

that need addressing, tackle those problems
through change, and keep the pulse on the
implemented changes to see if further action
or adjustment is needed.
PDCA is called a cycle instead of a model because it is designed to work on a loop.
This change management framework works best on a small scale, testing changes on a single team or
department and tracking change management metrics and results before implementing changes company-
wide.
E.g. Toyota, a pioneer in lean manufacturing, has long been committed to continuous improvement. The
company uses the PDCA cycle to enhance its production processes, ensuring quality and efficiency at every
stage.
How do you know which strategy to use?

CHANGE READINESS ASSESSMENT: While managing a change you need two critical assessments. They are :
2. ASSESS THE ORGANISATION

1. ASSESS THE CHANGE
The second assessment is of the organisation. Every
This assessment examines the scope, organisation has unique characteristics that make change
depth and overall size of the change management either easy or challenging. Understanding these
and should address the following: organisational attributes lets you educate your team and
▪ Scope of the change (workgroup, sponsors about potential obstacles. This assessment covers:
department, division, enterprise ▪ Culture and value system
▪ Number of employees impacted ▪ Capacity for change (and how much change is already taking
▪ Type of change (process, place)
technology, organisation, job roles, ▪ Leadership styles and power distribution
merger, strategy) ▪ Residual effects of past changes
▪ Amount of change from where we ▪ Middle management's predisposition toward the change
are today ▪ Employee readiness for change
COMPARISONS:

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ODCL, TEAM CBC 01.11.

WHAT IS ORGANIZATIONAL CHANGE MANAGEMENT?

CHANGES CAN BE:

Best Practices to Manage Change Effectively:

✓ Tailor announcements to audience needs, with

✓ Provide In-Flow Support- Aim for 70%

✓ Gather Feedback Continuously - Collect end-user

➢ KOTTER’S 8 STEPS CHANGE MANAGEMENT MODEL:

➢ ADKAR: Why is it beneficial?

✓ It has been extensively field-

✓ It comes with lots of training

➢ Deming Cycle (PDCA)

The four phases help you identify the issues

PDCA is called a cycle instead of a model because it is designed to work on a loop.

How do you know which strategy to use?

2. ASSESS THE ORGANISATION

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