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Change Management: The Only Thing That Is Constant Is Change - Heraclitus

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Change management

The only thing that is constant is change


- Heraclitus
Change 101
• Change is inevitable and often difficult.
• Change can be positive.
• You can’t change people; only they can make the choice to change.
• There is no such things as over communication.
• Leaders don’t control change; AT BEST they guide, shape, and
influence it

• Change management involves the process that ensures a business


responds to the environment in which it operates
• There are forces driving change and forces restraining it
• Where there is an equilibrium between the two sets of forces there
will be no change
• In order for change to occur the driving force must exceed the
restraining force
Forces for change
Internal forces External forces
• Need to increase profits • Customer demand
and/or cash flow • New competition
• Inefficiency • Changes in costs
• Lack of competitiveness • Legislation
• HRM issues (e.g. high staff • Ethics & Social values
turnover)
• Technological change
• To change organizational
culture
Resistance to change
• A degree of resistance is normal since change is:
• Disruptive
• Stressful
• A degree of skepticism can be healthy especially where there are
weaknesses in the proposed changes
• However resistance will also impede the achievement of
organizational objectives
Four reasons why change is resisted
• Parochial self-interest
• Individuals are concerned with the implications for themselves
• Misunderstanding
• Communications problems
• Inadequate information
• Low tolerance of change
• Sense of insecurity
• Different assessment of the situation
• Disagreement over the need for change
• Disagreement over the advantages and disadvantages
Role of leadership in change: building the
vision
• Develop a clear vision
• Be clear about:
• What is involved
• What is the proposed change
• Why the organization must do it
• What will the major effects be
• How the process will be managed
Helping people to accept change
• Act decisively – demonstrate momentum
• Consider how they will be affected
• Involve them in the change
• Consult and inform frequently
• Be firm but flexible
• Monitor the change
Reasons why change can fail
• Employees do not understand the purpose or even the need for
change
• Lack of planning and preparation
• Poor communication
• Employees lack the necessary skills and/or there is insufficient
training and development offered
• Lack of necessary resources
• Inadequate/inappropriate rewards
Change Management Failure
• Complacency
• Lack of Leadership
• Unclear vision
• Under communicating
• Failing to create short-term wins
• Declaring victory too soon
• Neglecting to anchor changes firmly in the corporate culture
Diagnosing the Players and Leveraging a
Strategy
Financial incentives
• Simple proposition:

• People work for money


• If you want them to work…
• Harder…
• Better…
• Differently…

• …incentivize them appropriately (with money)


• … but is it that simple?

• Two schools of thought:


• 1. Financial incentives are an acceptable (and perhaps necessary) way
to elicit desired behavior
• 2. Financial incentives drive short term compliance at a high cost
Financial Incentives:
The Nuclear Option
• Once you invoke it, the dialogue is over
• No longer a partnership
• Equivalent to saying, “Do it because I say so!”
Using financial incentive
Financial incentive
Instead: Find your allies
Then: Loyal opponents
Then: Self-referents & Fence sitters
Then: The rest & Financial motivation
Research: Incentives

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