Change Management and Organisational Development

Week 3 – Approaches to strategy – Part 1

 a) Types of change
b) Revisiting change management
c) Technical versus human side debate
d) Management’s reaction to change
Learning e) What is strategic change?

Objectives f) Tools for strategic change

• Boston matrix
• SWOT
• PESTLE
• Porter’s five force analysis
 Group Activity 1

How successful are change initiatives?

• Think of cases of changes you have been involved in

and note down the instances that have been
successful / unsuccessful.
• Discuss these and see where similarities and
differences of experiences lie.
• What shaped them?
• Are there any patterns to actions and behaviours?
Types of Change

Scale of
Change Type Scope
Change

People Portfolio
Transformational
Process Program (scopes
Technology for projects) Operational
Policy Project
Physical Process Transactional
Infrastructure Improvement
 • Transformational •We will discus the ones in
Types of • Operational red today
Change • Transactional
• Strategic
• structural
• Cultural
• Individual
 • Transformational changes are
those you make to completely
reshape your business
Transformation strategy and processes, often
resulting in a shift in work
al Change culture.

(change what • These changes may be a

they do?) response to extreme or
unexpected market changes.

• Transformational change can

produce fear, doubt and
insecurity in staff, and needs
to be very well managed.
 • An operational change
is a change in the
structure of your
company.
Operational
Change • That could be a
reorganisation, layoffs,
(change how or just a team change
due to a strategic or
they do it?) mission statement
change.

• Operational changes
are some of the
roughest for your
employees because
they never quite know
what to expect.
 Transactional • Transactional changes
reform or eliminate a
Change single barrier within a
structure to free groups
(Elimination of to achieve the universal
bottlenecks but not: goal.

what we do? and

• Way more limited in
how we do it? i.e.- scope as compared to the
changes in any other two types of
changes.
significant manner)
• Example: How to change
the rewards system in the
R&D department to
enhance the viability of
new prototypes or
patents.
Case Study – Konnpke’s
Imbiss (1930 to date)
• Konnpke’s Imbiss is probable Berlin’s most famous snack bar. Set up in 1930 in
Prenzlauer Berg, a then working-class district. It has become famous for Berlin
speciality of Fried sausage served with ketchup and chillies sauce. The speciality
was called Currywurst.
• The business wanted to change its business model in 2010 as the customers had
changed and people were suggesting to the owner that it would be best to include
tourist and youth and change the place and add more products.
• Basically, the suggestion was to change all the 4P’s of marketing – product, price,
place, and promotions. The owner decided to change only the promotion methods
but persisted to stay at the same place, the price was changed a little, but product
was the same. She kept it small and preserved the culture of authenticity.

• It attracted tourist like anything as people wanted to see something original to

Berlin and not the standardised modern food. She became even more popular, so
she changed little but retained her business model to attract new segments of the
market.
Class Activity 2 – 10
minutes

• https://www.konnopke-imbiss.de/
en

• Please look at the website.

• Can you all tell what sort of

change did they go for?
Case Study
• The went for transactional
change.

• The owner believed sometimes

less is more

• She preserved the autentic recipe

and culture to attract its new
segments.
REVISITING CHANGE MANAGEMENT
 • Technical skills are the abilities and knowledge that you
need to perform specific tasks or functions related to your
project. For example, technical skills can include data
analysis, software development, budgeting, risk
management, quality assurance, and more.
TECHNICAL • Technical skills are important for Program Managers
because they help you understand the scope, requirements,
SIDE deliverables, and challenges of your project, and
communicate effectively with your technical team members
and stakeholders.
• Technical skills also help you monitor and control the
project progress, performance, and outcomes, and identify
and solve any technical issues or risks that may arise.
 • People skills are the interpersonal and communication skills
that you need to interact with others in a positive,
respectful, and productive way. For example, people skills
can include listening, empathy, collaboration, negotiation,
feedback, motivation, and more.
• People skills are important for Program Managers because
HUMAN they help you build trust, rapport, and influence with your
project team, sponsors, clients, and other stakeholders.
SIDE • People skills also help you manage the human side of
change, which involves understanding and addressing the
emotions, expectations, and resistance that people may have
when facing change.
• People skills also help you inspire and empower your team
to embrace and implement change.
Project Management and Change Management

On the technical side, PM represents the

application of knowledge, process, skills,
Project Management tools and techniques as well as coordination
of activities that will make the change
happen.
‘The change’ is usually done for improving
organizational performance and migration of
Current Future people, processes and technologies from a
Transition
state state current state to a future state.
On the people side, CM represents the way
people embrace the new knowledge,
process, skills, tools and techniques that will
make the change a reality and take the
Change Management organization to the next state.
 Integrating Project Management and Change Management
(initiation, planning, implementation, evaluation and
acceptance triggers or spans activities.)
PM Activities CM Activities (Involvement of employees)
Initiate project Define change
Scope project Assess readiness
Design change mgmt strategy(action steps)
Plan project
Build sponsorship (leadership into confidence)
Design solution
Develop solution Prepare change mgmt team
Implement solution Communicate change purpose
Equip managers/supervisors
Evaluate solution
Provide coaching
Final acceptance
Reinforce key messages via sponsors
Design and deliver education
Address resistance
Measure and evaluate
Reward
IS
CHANGIN
G PEOPLE
AN EASY
TASK
Change Management – Human Side

Change is a profoundly
Holbeche (2005) suggests
human process and
that low trust levels are
continuous change has
one of the greatest barriers
often had the effect of
to effective organisational
fracturing the trust
change.
(Holbeche, 2005) .
 The most critical factor leading to successful org. change
is the effective management of the human resource
system (Goulding, 1996; Imran 2016)

Emotions have a legitimate role in the implementation of

change (Eriksson, 2004; Bonn, 2014)

Change Management
– Human Side ‘Organisations don’t change, people do (Mckinsey, 2014;
Adenle, 2014)

Change is perceived as exhilarating when done by us and

disturbing when done to us (Kanter, 1983)
Individual level resistance

Shock or Denial: "I can't Bargaining"Just let me live to

believe it", "This can't be Anger "Why me? It's not fair!" see my children graduate."; "I'll
happening", "Not to me!", "Not "NO! I can't accept this!" do anything if you give me
again!" more time A few more years?"

Depression"I'm so sad, why Acceptance"It's going to be

bother with anything?"; OK."; "I can't fight it - I may as
"What's the point of trying?" well prepare for it."
Organistaional level of resistance
Organisations, like people, are often highly resistant to change, even when we know it’s
necessary. Some reasons
• Starting with an Incomplete or Poorly-Defined Strategy
• Following a Strategy that is Too Rigid and Inflexible
• Lack of Effective Communications
• Failing to Identify and Address Resistance
• Disconnect Between Strategy and Culture
• Setting Unrealistic Expectations
• Not Creating—and Celebrating—Short Term Wins
 Management reaction to change

Dr Andrew Day (2007)

Note down the main points from Day’s article: ‘Living
in uncertain times: Organisation dynamics in response
to uncertainty’.

(i) How, according to his research, do managers react

to uncertainty?

(ii) How should they be treated in a time of change?

Management reaction to change
Andrew Day article: some answers to questions!

Management reaction to uncertainty:

• Feelings of disorientation and loss of identity
• Tensions between groups: ‘Reformists’ v. ‘Traditionalists’
• Blurring of boundaries and fragmentation
• Painful emotions: hostility, anger and fear (activates
defences)
• Heightened political behaviour (Front stage v. Back stage)
• Manic activity and ‘firefighting’
• Heightened energy, creativity and personal development:
this is healthy dynamics as people struggle with the process
of finding new meaning in their organisation

Great managers respond and not react.

Management reaction to change

Andrew Day article: some answers cont:

- How managers should be treated in a time of change:
(i) Accept that anger and similar responses are natural
responses to complex change.
(ii) The leader/follower relationship needs to shift from
command and control to a more negotiated activity
relationship. Managers need to trust their workers.
(iii) Encourage and lead the development of plans that provide
a sense of direction. Help contain the group’s anxieties and
develop a sense of confidence.
(iv) Engage with people and talk to them about their hopes,
fears and doubts
 How to manage change
• Key factors
- Forced, imposed or inflexible change plans are less likely to
succeed.
- There is a need for clear ultimate goals, accountabilities and
responsibilities, where there has been opportunities to review, reflect
and modify the aims and plans.
• Key steps
- Have a strategy
- Plan
- Establish key accountabilities
- Manage the change project
 How to Manage Change

1. Encourage risk-taking and not

punishing people for making
mistakes
2. Provide autonomy for people to
self-organise.

Management reaction to
change
How to manage
change?
 What is strategy?
• The word strategy comes from Greek
‘STRETEGO” meaning “TO PLAN THE
DESTRUCTION OF ONE’S ENEMIES THROUGH
THE EFFECTIVE USE OF RESOURCES’.

• The concept remained the military ones but

during the 19th century it was applied to the
business world.

• Chandler (1960) argues thar the emergence

of strategy in civilian organisations resulted
from the awareness of opportunities and
needs- created by changing population,
income and technology.
 Mintzberg’s five
definitions of strategy
• Strategy as a plan – actions created ahead of
events.
• Strategy as a ploy – To maneuver the
opponent over time.
• Strategy as a position – positioning to get a
competitive advantage.
• Strategy as a perspective – somewhat
abstract concept that exists in people’s mind.
Types of Four types of strategic change:

strategic  Adaptation – can be accommodated with the existing

change culture and can occur incrementally.

 Reconstruction – rapid change but without

fundamentally changing the culture.

 Revolution – fundamental changes in both strategy

and culture.

 Evolution – cultural change is required but this can be

accomplished over time.
Some strategies • Strategies that can be used for
knowing the market
used at a) Boston matrix
Organisational b) PESTLE
level c) SWOT
d) Porter’s five forces
BOSTON MATRIX
PESTLE
 SWOT

trengths Weaknesses
1. What is our competitive advantage? 1. Where can we improve?
2. What resources do we have? 2. What products are underperforming?
3. What products are performing well? 3. Where are we lacking resources?

Opportunities Threats
1. What new technology can we use? 1. What regulations are changing?
2. Can we expand our operations? 2. What are competitors doing?
3. What new segments can we test? 3. How are consumer trends changing?
PORTER’S FIVE FORCES
 • On a flip chart draw the following for the Case study provided. You work
in two groups – 1st group focuses on 1- 4 and 2nd one focuses on 5-8.

ACTIVITY 2 Each group will present the work – 20 minutes. See week 2 slides.

1: The Business Model

2. The value prepositions
3: What areas identify as transformational change
4: Which areas fall into operational changes.
5: Which areas fall into transitional changes.
Activity 3 6: What is the current state
7: What is the transition state
8: What future state is desired.

Once the flip chart is done, everyone need to take the picture. Every week
we would do our work on the given case study based on that week’s lesson.
Kindly note this exercise would shift to week 4 if case study is still not
there.
Reference

• Book – Managing Change – Bernard

Burnes – 7th edition

• Chapter 8: Approaches to strategy

Thank you
Any Questions