Change Management

Change Management

1. Introduction

Organizations today are operating in an increasingly complex and ever-changing landscape. To be successful, they need to be able to adapt and change quickly in response to new challenges and opportunities.

This change management online course will help you to learn how to effectively manage change within your organization. You will learn about the different types of change that can occur, and the different approaches that can be taken to manage these changes. You will also learn about the importance of communication and stakeholder engagement when managing change.

As you will learn in this course, change management is the process of planning, implementing, and monitoring changes in an organization. It includes the tools and techniques used to manage the people side of change, including communications, training, and resistance management.

Furthermore, change management is an important process that helps organizations ensure that changes are made in a controlled and safe manner. By having a change management process in place, organizations can avoid the negative consequences that can come with unplanned or uncontrolled changes.

Some of the benefits of change management include:

• Ensuring that changes are made in a controlled and safe manner
• Avoiding the negative consequences that can come with unplanned or uncontrolled changes
• ?Helping organizations keep track of changes and their impact
• Helping organizations plan for and manage change
• Helping organizations communicate changes to stakeholders

Change management is a systematic process for handling changes to ensure that desired outcomes are met.

2. Reasons for Change

We will begin this course by examining the reasons why change is necessary. A complex structure like an organization is usually driven to change by both external and internal forces. We will take a look at these forces in this first chapter.

2.1 External Forces

The external environment of an organization is the set of?factors that exist outside of the organization?that has the potential to impact the organization. Even though external factors are beyond the control of the company, it must pay close attention to them as they can have a significant influence on the organization’s current operations, growth, and long-term sustainability.

Managers need to observe the external environment of an organization to identify opportunities and threats that may impact the organization. By understanding the external forces, managers can make better decisions about how to run the organization and where to allocate resources.

There are many external forces that can influence change within an organization. Some of these external forces include technological advances, changes in the economy, changes in societal norms, and political changes.

• Technological change?can be either an opportunity or a threat. For example, the advent of the internet has created new opportunities for businesses to reach a global market. However, it has also allowed for the rise of new competitors who can operate without the same overhead costs.
• Economic changes?can also present both opportunities and threats. For example, a recession can force businesses to downsize, but it can also create opportunities for businesses that are able to offer lower prices.
• Social change?can be an opportunity or a threat depending on the nature of the change. For example, an increase in social media use might present an opportunity for a business to reach a wider audience. However, a change in social norms might present a threat to a business that relies on a traditional customer base.
• Political change?can also present both opportunities and threats. For example, a change in government regulations might present an opportunity for a business to gain a competitive advantage. However, a change in government leadership might also lead to a change in the business environment that is unfavorable to the business.

External forces for change can be technological, economic, social, or political.

2.2 Internal Forces

The internal environment of an organization consists of the?factors within the organization?that can have an effect on the organization’s ability to achieve its objectives. The internal environment can provide the resources and support necessary for change to occur, or it can act as a barrier to change. The internal environment can also influence the rate at which change occurs within an organization.

The forces that make up the internal environment of an organization can be categorized into four main categories: culture, structure, systems, and people.

• Culture:?The culture of an organization refers to the shared values, beliefs, and norms that guide the behavior of the organization’s members. The culture of an organization can have a strong influence on the ability of the organization to change. A culture that is supportive of change and innovation is more likely to be successful in implementing change than a culture that is resistant to change.
• Structure:?The structure of an organization refers to the way that the organization is organized and the way that its work is divided among its different parts. The structure of an organization can have a significant impact on the ability of the organization to change. A well-structured organization is more likely to be able to implement change effectively than an organization that is poorly structured.
• Systems:?The systems of an organization refer to the methods and procedures that the organization uses to get its work done. The systems of an organization can have a significant impact on the ability of the organization to change. Organizations that have well-developed and well-integrated systems are more likely to be successful in implementing change than organizations that have poorly developed or poorly integrated systems.
• People:?The people who make up an organization are its most important asset. The people who work for an organization can have a significant impact on the ability of the organization to change. Organizations that have employees who are committed to the success of the organization and who are willing to change the way they work are more likely to be successful in implementing change than organizations that have employees who are resistant to change.

Internal forces for change include the company’s culture, structure, systems, and people.

2.3 Dealing with Change

Many people have difficulties dealing with change because humans are?creatures of habit. We like?routine and predictability?because it makes us feel safe. When something disrupts our routine, it can cause us a great deal of stress.

Change can be scary because it is often unknown. People may not know what to expect or how they will react to a new situation. This can be especially true when the change is forced upon them.

People may also resist change because they fear it will not be successful. They may have tried to make changes in the past that did not work out, so they are reluctant to try again.

There are many reasons why people have difficulties dealing with change. It can be scary, disruptive, and challenging.?This is the reason why a typical change management process evolves through different mental phases:

1. Pre-contemplation:?In this phase, individuals are not considering change and are unaware of the need to do so. They may be in denial about a problem or feel that they lack the ability to change.
2. Contemplation:?In this phase, individuals are aware of the need to change and are beginning to explore their options. They may still feel ambivalent about making a change, but they are starting to weigh the pros and cons.
3. Preparation:?In this phase, individuals are actively preparing to make a change. They may be gathering information, making plans, or practicing new behaviors
4. Action:?In this phase, individuals are taking concrete steps to implement a change. This may involve making a public commitment, making lifestyle changes, or seeking professional help.
5. Maintenance:?In this phase, individuals are working to maintain their new behavior. They may be monitoring their progress, setting goals, and dealing with lapses.
6. Termination: In this phase, individuals have fully adopted the new behavior and no longer need to think about it or make an effort to maintain it.
7. Relapse: In this phase, individuals have reverted back to their old behavior. This may be due to a trigger, stress, or other factors.
8. Recycling:?In this phase, individuals are once again considering change. They may be back at the contemplation stage or may have already taken action.

People find it hard to cope with change because they’re used to things staying the same. Change can be unsettling and cause anxiety. People may also shy away from change because they’re afraid of the unknown or feel like they’re losing power.

3. Change in Organizations

What is the best way to implement change within an organization? In a?top-down organization, change is initiated from the top and cascades down through the organization. In a?bottom-up organization, change is initiated from the bottom and moves up through the organization.

3.1 Top-down Management

Top-down management is a leadership style in which the leader makes decisions and then communicates them to the rest of the organization. The leader sets the vision and direction for the organization and then delegates tasks to subordinates.

The top-down management style is often used in hierarchical organizations, such as in the military or in large corporations. It can be an effective way to get things done quickly and efficiently. However, it can also lead to a lack of creativity and innovation.

In a top-down organization,?change management typically follows a hierarchical model, with decisions being made at the top of the organization and cascaded down through the different levels. This can be a very effective way of managing change, as it allows for a clear chain of command and a clear understanding of who is responsible for what. However, it can also be quite inflexible and can lead to a feeling of disconnection between employees and management.

The top-down management style can be helpful in the following situations:

• There is a clear chain of command:?In organizations with a clear hierarchy, such as the military or a large corporation, the top-down management style can be effective because there is a clear chain of command.
• Quick decisions need to be made:?In situations where quick decisions need to be made, such as during a crisis, the top-down management style can be effective.
• Compliance with rules and procedures is important:?In organizations where compliance with rules and procedures is important, such as in the healthcare industry, the top-down management style can be effective.

If you decide to use the top-down management style, there are a few things you can do to make it more effective:

• Be clear about your vision and direction:?When communicating your vision and direction to subordinates, be clear and concise. Subordinates should understand what you expect of them and what the goals of the organization are.
• Delegate tasks appropriately:?When delegating tasks, be sure to give subordinates the authority and resources they need to complete the task.
• Be available for questions and feedback:?Be available to answer questions and provide feedback. This will help subordinates feel more connected to you and the organization.
• Reward good performance:?When subordinates do a good job, be sure to give them recognition and rewards. This will motivate them to continue doing their best.

There are a few situations when you might want to avoid using the top-down management style:

• Creativity and innovation are valued:?If creativity and innovation are valued in your organization, the top-down management style can stifle creativity.
• There is no clear hierarchy:?In organizations where there is no clear hierarchy, such as in a start-up, the top-down management style can create a feeling of disconnection among employees.
• Subordinates are not motivated by rewards:?If subordinates are not motivated by rewards, the top-down management style can be ineffective.

The top-down management style can be effective in hierarchical organizations where quick decisions need to be made. However, it can lead to a lack of creativity and innovation. When using the top-down management style, be sure to be clear about your vision and direction, delegate tasks appropriately, and be available for questions and feedback.

3.2 Bottom-up Management

The concept of bottom-up management is one that is gaining popularity in today’s business world. This type of management style is based on the premise that employees are the ones who are closest to the work being done and, as such, are in the best position to make decisions about how that work should be done.

In a bottom-up management style, employees are given more autonomy to make decisions about their work. This can include decisions about what tasks need to be completed, how those tasks should be completed, and even when and where those tasks should be completed.

The goal of this type of management style is to empower employees to be more engaged in their work and to make decisions that will ultimately lead to a better overall product or service. When employees feel like they have a say in how their work is done, they are more likely to be motivated to do a good job.

In a bottom-up organization,?change management is a more decentralized and organic process. Change initiatives typically originate from employees or teams, who then work to gain support and buy-in from others in the organization. Change management in a bottom-up organization is more about supporting and enabling employees to drive change, rather than dictating or leading change from the top down.

There are a few key things that managers need to keep in mind when adopting a bottom-up management style:

• First, it is important to remember that this type of management style requires a lot of?trust. Managers need to trust that their employees will make the right decisions and that they will not take advantage of the autonomy they are given.
• Second, managers need to be clear about what they expect from their employees. Employees need to know what the?goals and objectives?are so that they can work towards those. Without clear goals, it can be difficult for employees to know what they should be working towards.
• Third, managers need to provide employees with the?resources?they need to be successful. This includes things like training, access to information, and the ability to make decisions. If employees feel like they do not have the resources they need to do their job, they will likely become frustrated and may not be as motivated to do a good job.
• Bottom-up management is a style of management where employees are encouraged to take initiative and be innovative in their work. This type of management often leads to a more engaged and productive workforce.

3.3 Comparison

As you have learned, in a top-down organization, change is initiated and managed from the top levels of management and then cascaded down through the organization. In a bottom-up organization, change is initiated and managed from the bottom levels of the organization and then cascaded up through the organization.

There are advantages and disadvantages to both approaches.?Top-down management?can be effective when the?change is relatively small?and the management team is in?agreement about the change.?This type of change can be effective when there is a clear and compelling case for change, and when managers are able to effectively communicate the need for change and rally employees behind the effort. However, top-down change can also be met with resistance from employees who may feel that they are being forced to change without being given a say in the matter. In addition, top-down change can be difficult to sustain over the long term if employees do not buy into the need for change or do not have the opportunity to help shape the change process. Top-down management might also run into difficulties if the change is large or complex. In these cases, it may be necessary to involve other stakeholders in the decision-making process.

In a?bottom-up organization, change management is often seen as more effective and efficient than top-down change management, as it allows for?quicker, more accurate, and more innovative?implementation of change initiatives. Because employees at lower levels are closer to the action, they are more likely to notice when something needs to be changed. They are also more likely to have ideas about how to change it. A disadvantage of a bottom-up organization is that it can be less efficient. Change might happen more slowly because it has to move up the hierarchy and involve a lot of stakeholders.

There are a few key things to keep in mind when implementing change management in a bottom-up organization. First, it is important to ensure that all employees are on board with the change initiative. This can be done through open communication and collaboration with all employees. Secondly, it is important to have a clear plan in place for how the change will be implemented. This plan should be designed with input from all employees, and should be communicated to all employees prior to implementation. Lastly, it is important to monitor the progress of the change initiative and make adjustments as needed. This includes regular check-ins with employees and soliciting feedback on the change initiative.

When done correctly, change management in a bottom-up organization can lead to more successful and efficient change initiatives. By involving all employees in the process, you can ensure that everyone is on board with the change and that the initiative is properly planned and executed.

4. Change Models

Change management models provide guidance for organizations on how to plan and implement changes. The different models presented in this chapter provide a clear and structured approach to change that can be easily followed and applied.

4.1 Lewin: Three-Stage Model

Lewin’s Three-Stage Model is a widely used tool for organizational change. The model was first proposed by Kurt Lewin in the early 1950s, and has since been used by organizations around the world to effect change.

The model is based on Lewin’s belief that change is a process that occurs in three distinct stages: unfreezing, changing, and refreezing.

• In the first stage,?unfreezing, Lewin believed that it was necessary to “unfreeze” an organization from its current state. This could be done by creating a sense of urgency or need for change, and by providing employees with the knowledge and skills necessary to make the change.
• In the second stage,?changing, employees would actually implement the change. This would involve learning new behaviors and ways of doing things, and making the necessary changes to organizational structures and processes.
• In the third stage,?refreezing, the change would be consolidated and made permanent. This would involve ensuring that employees continued to use the new behaviors and ways of doing things, and that the organizational structures and processes remained in place.

Lewin’s three-stage model is a helpful tool for understanding and managing change. However, it is important to note that not all changes need to go through all three stages. For example, if a change is small or relatively simple, it may only require the first two stages. Additionally, the stages are not always linear. It is possible for an individual or group to move back and forth between stages as needed.

Lewin’s theory of change uses the metaphor of melting and molding ice. To change a large cube of ice into a cone, you must first melt (unfreeze) the ice to make it amenable to change. Then you must?change?it into the desired shape. Finally, you must solidify the new shape by?refreezing?it.

There are several benefits to using Lewin’s Three-Stage Model. First, it provides a clear and concise framework for thinking about change. Second, it can help individuals and organizations to map out a plan for change. Third, it can help to create a shared understanding of the change process. Finally, it can help to ensure that all stakeholders are committed to the change process.

Since this change model is widely used, it will be discussed in more detail later in this course (in Chapter 5).

4.2 Kotter: 8-Step Change Model

Kotter’s 8-step change model is a framework for leading organizational change. The model was developed by Dr. John Kotter, a Harvard Business School professor and organizational change expert. Kotter’s model is widely used by organizations to implement change initiatives.

The 8 steps in Kotter’s model are:

1. Establish a sense of urgency:?The first step in Kotter’s model is to establish a sense of urgency. Change initiatives often fail because there is not a sense of urgency to implement them. Urgency can be created by highlighting the need for change, communicating the consequences of not changing, and providing a sense of hope that change is possible.
2. Create a guiding coalition:?The second step is to create a guiding coalition. The coalition should be made up of leaders from different areas of the organization who are committed to the change. The coalition provides direction and leadership for the change initiative.
3. Develop a vision and strategy:?The third step is to develop a vision and strategy. The vision should be inspiring and provide a direction for the change. The strategy should be designed to achieve the vision.
4. Communicate the change vision:?The fourth step is to communicate the change vision. The vision should be communicated to employees, customers, and other stakeholders. The communication should be clear, concise, and motivating.
5. Empower employees to act:?The fifth step is to empower employees to act. Employees should be given the authority and resources to implement the change. They should also be held accountable for results.
6. Generate short-term wins:?The sixth step is to generate short-term wins. Short-term wins provide a sense of progress and help to build momentum for the change. They also help to show employees that the change is possible.
7. Consolidate gains and produce more change:?The seventh step is to consolidate gains and produce more change. The gains made from the change should be consolidated and used to drive further change.
8. Institutionalize new approaches:?The eighth and final step is to institutionalize new approaches. The new approaches should be embedded in the organization’s culture. This step ensures that the change is sustainable.

Each of these steps is important in its own right, but when combined, they create a powerful framework for leading change.

One of the key benefits of Kotter’s 8-step change model is that it helps leaders to?focus on the most important aspects of leading change. By breaking down the process into 8 manageable steps, leaders can avoid getting bogged down in the details and instead focus on the big picture. Additionally, the model provides a clear roadmap for leaders to follow, which can help to increase the likelihood of success.

Another benefit of Kotter’s 8-step change model is that it takes a?holistic approach to change. Too often, organizations focus on isolated changes without considering the bigger picture. Kotter’s model helps leaders to consider the interrelated nature of changes and how they can work together to create lasting results.

Finally, the Kotter’s 8-step change model is?flexible?enough to be adapted to any organization. While the steps themselves are relatively fixed, the model can be customized to fit the specific needs of any organization. This makes it a valuable tool for any leader looking to implement change within their organization.

Overall, Kotter’s 8-step change model is a valuable tool for any leader looking to implement change within their organization. The model helps leaders to focus on the most important aspects of leading change, takes a holistic approach to change, and is flexible enough to be adapted to any organization.

4.3 McKinsey: 7-S Model

The McKinsey 7-S Model is a framework for organizational effectiveness that was developed by management consultants McKinsey & Company in the early 1980s. The framework is based on the premise that there are seven internal factors that need to be aligned in order for an organization to be successful and drive change.

The seven factors are structure, systems, strategy, shared values, style, staff, and skills.

• Structure

The structure of an organization refers to the way that it is organized and the way that its different parts are arranged. For example, the structure of a company might be centralized, meaning that all decisions are made by a small group of people at the top, or decentralized, meaning that decisions are made by people at all levels of the organization.

The structure of an organization can have a big impact on the way it functions and the way that its employees work. A well-designed structure can help an organization to be more efficient and effective, while a poorly designed structure can lead to problems such as duplication of effort, confusion, and delays.

• Strategy

The strategy of an organization is the overall plan that it has for achieving its goals. It includes the specific actions that the organization will take to achieve its goals, as well as the resources that it will use.

A well-crafted strategy can help an organization to focus its efforts and make the best use of its resources. A poorly crafted strategy, on the other hand, can cause an organization to waste time and money on activities that are not effective.

• Systems

Systems are the procedures and processes that an organization uses to get work done. They can be formal or informal, and they can be written down or just be understood by the people who use them.

Systems are important because they can help to ensure that work is done in a consistent and efficient manner. They can also help to prevent errors and to keep track of what is happening in an organization.

• Shared values

Shared values are the beliefs and principles that guide the behavior of the people in an organization. They can include things like a commitment to customer service, a focus on quality, or a belief in innovation.

Shared values are important because they help to create a common culture within an organization. They can also help to motivate employees and to guide decision-making.

• Style

Style refers to the way that an organization does things. It includes the way that decisions are made, the way that work is done, and the way that employees interact with each other.

Style is important because it can have a big impact on the way that an organization functions. A well-designed style can help to create a cohesive and effective organization, while a poorly designed style can lead to conflict, confusion, and inefficiency.

• Staff

Staff refers to the people who work in an organization. This includes both the employees who do the work and the managers who oversee the work.

The staff of an organization is important because they are the ones who actually carry out the work of the organization. A well-trained and motivated staff can help to make an organization more effective, while a poorly trained and motivated staff can lead to problems such as errors, waste, and low morale.

• Skills

Skills are the abilities and knowledge that employees need in order to do their jobs. They can be things like technical skills, interpersonal skills, or problem-solving skills.

Skills are important because they can help to make employees more effective at their jobs. A well-trained workforce can help to improve the quality of an organization’s products and services, while a poorly trained workforce can lead to problems such as errors, waste, and low morale.

The McKinsey 7-S Model is a framework for organizational effectiveness. All seven factors must be aligned and in harmony for an organization to be successful.

When one or more of the factors is out of alignment, it can create a ripple effect that disrupts the entire organization. For example, if a company’s strategy changes, but its organizational structure remains the same, it can lead to confusion and inefficiency.

The 7-S Model can be used to help organizations manage change. By taking a holistic view of the organization, the model can help identify areas of misalignment and potential areas of conflict. Once these areas have been identified, steps can be taken to realign the organization and avoid or resolve the conflict.

The 7-S Model is an effective tool to use when implementing organizational change, particularly when following this sequence:

Understanding the status quo: Where are we now?

Understanding the future state: Where do we want to go?

Creating a 7-S Model review on the status quo: What do the seven elements of the organization currently look like?

Creating a 7-S Model review on the future state: What would the seven elements look like if they were all aligned to suit the new direction?

Comparing the two models:?Which actions need to be completed to fill the gaps for each of the seven elements?

4.4 Prosci: ADKAR

The ADKAR Change Management Model is a tool that can be used to help organizations manage change effectively.?

The main focus of ADKAR is on helping individuals make positive changes in their behavior and attitudes in order to achieve organizational goals. The model was created by Prosci, a research and consulting firm specializing in change management.

The model is based on the premise that change is a process that begins with awareness, desire and knowledge, followed by the ability to adapt and then finally, the ability to sustain the change.

• Awareness:?The first step is to create awareness of the need for change and to help individuals understand what is changing and why it is important.
• Desire:?The second step is to help individuals develop a desire to change. This can be done by communicating the benefits of the change and helping individuals see how the change will improve their lives.
• Knowledge:?The third step is to help individuals gain the knowledge and skills they need to change. This can be done through training, coaching, and mentoring.
• Ability:?The fourth step is to help individuals build the ability to change. This can be done by providing support and resources, and by removing any obstacles that may prevent individuals from changing.
• Reinforcement:?The fifth and final step is to reinforce the change. This can be done by rewarding individuals for changing, and by making the change part of the organization’s culture

The model is designed to help organizations manage change in a way that is efficient and effective, while also?minimizing the negative impact?of change on employees. It helps to ensure that?all stakeholders are aware of the change and are involved in the process.

4.5 Gleicher: Change Formula

The?Change Formula?is a mathematical way of representing the change process, developed by David Gleicher and Kathie Dannemiller.

In order for change to happen, the costs of change must be lower than the dissatisfaction with the status quo, the desirability of the proposed change, and the practicality of the change.

There are three factors that must be present before meaningful change can take place, according to the equation.

• D = Dissatisfaction?with the status quo. Many people are not content with the way things are and feel that change is needed.
• V = Vision?of what is possible. It is a view of what could be, what we might achieve if we set our sights high and work hard.
• F = First steps?that can be taken to achieve the vision. These steps should be as concrete and acceptable as possible.

Change Formula:

(D × V × F) > R

If any of these factors are missing (D, V, or F), then the others are canceled out and you will not be able to overcome resistance (R). If the product (multiplication) of these three factors is greater than the resistance to change, then change becomes possible.

When planning for change, you need to ensure that all three factors are present before you begin. If you are having trouble during a change process, you can use the formula to figure out why you might be having problems.

The model’s factors can be scored through surveys and questioning methods, or even simpler, by estimating individual opinions and moods. However, keep in mind that measuring the factors of this model is very subjective.

In a short example, we measure all three factors on a scale from 0 (low) to 1 (high):

• Dissatisfaction: 0.9 (people are very dissatisfied with the statos quo)
• Vision: 0.2 (people do not share the vision for change)
• First Steps: 0.9 (first steps toward change are clear, concrete, and accepted)

If the resistance to change is stronger than the combined weight of the three factors (in our example the combined weight is?0.9 x 0.2 x 0.9 = 0.16), change will not be possible. While?dissatisfaction?is high and the?first steps?are clear, the lack of a clear?vision?seems to be hindering change in this example.

5. Change Process

The change management process is the sequence of steps that a manager?needs to follow to apply change management to a project.?Kurt Lewin proposed the?Unfreeze-Change-Refreeze Model?which we will discuss in more detail in this chapter.

5.1 Unfreeze

The Unfreezing Stage is the first stage of Lewin’s three-stage model of change. The model is a linear, sequential approach to change that starts with the recognition that something needs to change, followed by the actual change process, and ending with a period of stabilization or consolidation.

The?Unfreezing Stage?is when people recognize that the current way of doing things is no longer working and that a change is needed. It is a time of uncertainty and anxiety, as people are forced to let go of the familiar and move into the unknown. The key task of this stage is to reduce the resistance to change so that people are willing to move on to the next stage.

There are three main methods that can be used to achieve this: unfreezing by force, unfreezing by negotiation, and unfreezing by education:

• Unfreezing by force?is when change is imposed on people from the outside, such as when a company downsizes or relocates. This method is often met with resistance, as people feel that they have no control over the situation.
• Unfreezing by negotiation?is when people are given the opportunity to negotiate the terms of the change. This can be done through collective bargaining or other methods of negotiation. This method is more likely to be successful, as people feel that they have some control over the situation.
• Unfreezing by education?is when people are given the information and knowledge they need to understand why the change is necessary. This method is most likely to be successful in the long term, as it helps people to internalize the need for change and buy into the new way of doing things.

Once the resistance to change has been reduced, people can then move on to the next stage of Lewin’s model, which is the actual change process.

5.2 Change

The second stage of Lewin’s 3-Stage Model is ‘change’. This is when people start to change their behavior in order to adapt to the new situation. Change can be difficult, but it is necessary in order to reach the third stage of the model, which is consolidation.

There are three main types of change that can occur during this stage:

• Structural change, which involves changes to the way things are done in an organization. This could include changes to the way work is organized, changes to the way decisions are made, or changes to the way resources are used.
• Process change, which involves changes to the way work is done. This could include changes to the way information is processed, changes to the way products are made, or changes to the way services are delivered.
• Behavioral change, which involves changes to the way people behave. This could include changes to the way people communicate, changes to the way people work together, or changes to the way people make decisions.

The key to successful change is to ensure that all three types of change are addressed. Otherwise, the changes will not be sustainable and the organization will eventually revert back to its old ways of doing things.

The second stage is often the most difficult because it requires people to let go of old ways of doing things and adopt new ways. People may experience some uncertainty and anxiety as they try to adjust to the new situation. There may also be some resistance to change from others who are not ready to make the same changes.

5.3 Refreeze

The third stage of Lewin’s Three-Stage Model is known as refreezing. This stage occurs after the changes have been made and is when the new behaviors and attitudes become the norm. This stage is important because it ensures that the changes made during the second stage, known as unfreezing, are permanent.

There are three main steps to refreezing:

1. Consolidation:?This is when the changes made during unfreezing are consolidated or made permanent. This can be done through different means such as training, education, and reinforcement.
2. Generalization:?This is when the new behaviors and attitudes are generalized to other situations. This helps to ensure that the changes are not just limited to the original context in which they were made.
3. Institutionalization:?This is when the changes become institutionalized, meaning that they are accepted and incorporated into the organization’s culture. This is the final step in making sure that the changes are permanent.

There are several factors that can influence the success of refreezing.

• The first is the level of commitment from those who are involved in the change process. If those who are supposed to be changing their behavior are not committed to the process, then it is likely that the changes will not be permanent.
• The second factor is the level of support from the organization. If the organization is not supportive of the changes, then it will be difficult to make them permanent.
• The third factor is the degree of change that is taking place. If the changes are too drastic or too numerous, then it will be difficult to make them all permanent.
• The fourth factor is the level of resistance to change. If there is a lot of resistance to the changes, then it will be difficult to make them permanent.
• The fifth factor is the level of resources that are available. If there are not enough resources to support the changes, then it will be difficult to make them permanent.
• The sixth and final factor is the level of motivation. If those who are supposed to be changing their behavior are not motivated to do so, then it is likely that the changes will not be permanent.

These are just a few of the many factors that can influence the success of refreezing. It is important to keep all of these factors in mind when attempting to make changes in an organization. If some of these factors are not taken into account, then it is likely that the changes will not be permanent.

6. Skills and Strategies

Organizations today require managers to have a broad set of skills and strategies to manage the changes they face. In this chapter, we will discuss the most essential change skills and change strategies that managers need to master.

6.1 Change Skills

Change management skills are critical for any organization undergoing a transformation. Whether it’s a small company implementing a new software system or a large corporation relocating its manufacturing operations, change management ensures that the objectives of the transformation are met and that employees are able to adapt to the new environment.

There are four key change management skills that every organization should develop:

• Communication

Communication is essential to change management. When an organization is undergoing a transformation, it’s important to keep employees informed about the changes taking place and what they can expect. Change can be disruptive, and employees may feel anxious or uncertain about the future. Effective communication can help to reassure employees and keep them informed about the progress of the transformation.

• Collaboration

Collaboration is another important change management skill. Transformations can be complex, and it’s often necessary to bring together different teams and departments to work on the project. Collaboration ensures that everyone is working towards the same objectives and that the different teams are able to share information and resources.

• Problem solving

Problem solving is a vital change management skill. There are always going to be challenges during a transformation, and it’s important to have a team that is able to quickly identify and solve problems. A good problem-solving team will be able to keep the transformation on track and ensure that any obstacles are overcome.

• Flexibility

Flexibility is the final change management skill. Change can be unpredictable, and it’s important to be flexible in order to adapt to any unexpected challenges. A flexible team will be able to quickly adjust to changes and ensure that the transformation stays on track.

Developing these change management skills is essential for any organization undergoing a transformation. By communication, collaborating, problem solving, and being flexible, organizations can ensure that the objectives of the transformation are met and that employees are able to adapt to the new environment.

6.2 Change Strategies

It is not uncommon for organizations to go through changes. These changes can be big or small, but they all require some form of change management strategy to ensure that the transition is smooth and that productivity is not hindered.

Change management strategies can vary depending on the type and scope of the change, but there are some common approaches that can be used to manage change effectively.

• Directive Strategies

Directive change management strategies are those that are top-down and have a clear chain of command. This type of strategy is often used when changes are happening quickly and there is not a lot of time for employees to adjust. It is also used when the change is not controversial and everyone is expected to comply. Directive strategies often involve setting new rules and expectations, and employees are typically given little room for input.

• Expert Strategies

Expert strategies are similar to directive strategies in that they are also top-down. However, unlike directive strategies, expert strategies rely on the expertise of those who are implementing the change. This type of strategy is often used when the change is technical in nature and requires a high level of knowledge and skill. It is also used when the change is controversial and there is resistance from employees.

• Negotiating Strategies

Negotiating strategies are those that involve some level of negotiation between those who are implementing the change and those who are affected by the change. This type of strategy is often used when the change is controversial and there is resistance from employees. It is also used when the goals of the change are not clear or when different employees have different opinions about the change.

• Educative Strategies

Educative strategies are those that involve educating employees about the change that is taking place. This type of strategy is often used when the change is not controversial and employees are receptive to the change. It is also used when the goals of the change are clear and employees need to understand how the change will impact them.

• Participative Strategies

Participative strategies are those that involve employees in the change process. This type of strategy is often used when the change is not controversial and employees are receptive to the change. It is also used when the goals of the change are clear and employees need to understand how the change will impact them.

• Supportive Strategies

Supportive strategies are those that involve providing support to employees during the change process. This type of strategy is often used when the change is controversial and there is resistance from employees. It is also used when the goals of the change are clear and employees need to understand how the change will impact them.

Change is never easy, but by following a few simple change management strategies, organizations can make the transition smoother and more successful. No matter which strategy you choose, always remember that effective communication, providing employees with the resources they need, and addressing resistance are all key elements of successful change management.

7. Success Factors

There are a number of reasons why some change projects fail while others succeed. In this chapter, we will take a look at the most common failure and success factors. Keeping these in mind will enhance your chances of successfully completing change projects within your organization.

7.1 Failure Factors

Despite the fact that change is a common occurrence, it is also one of the most difficult things for organizations to successfully achieve. A number of studies have found that the success rate of organizational change initiatives is quite low, with some estimates suggesting that as many as 70% of change initiatives fail to achieve their desired outcomes.

So, what causes so many change initiatives to fail? There is no single answer to this question, as there are a variety of factors that can contribute to the failure of a change initiative. However, some of the most common reasons for change failure include the following:

• Lack of clarity about the desired outcomes

One of the most important factors in the success of any change initiative is clarity about what the initiative is trying to achieve. Without a clear understanding of the desired outcomes, it is difficult to develop an effective change plan and to measure the success of the initiative.

• Lack of commitment from leaders

In order for a change initiative to be successful, it is important that senior leaders are committed to the initiative and are willing to provide the resources and support necessary to make it happen. Without this commitment, it is difficult to engage and motivate employees, which can ultimately lead to the initiative failing.

• Lack of communication

Another common reason for change failure is a lack of communication about the initiative. Employees need to be kept informed about the purpose of the initiative and the expected outcomes. They also need to understand how the change will impact them personally and what is expected of them during the transition. Without this information, employees may resist the change, which can lead to the initiative failing.

• Lack of engagement from employees

Employee engagement is critical to the success of any change initiative. Employees who are engaged in the initiative are more likely to be committed to its success and to be willing to change their behaviors to support the initiative. Without employee engagement, it is difficult to implement the changes necessary for the initiative to be successful.

• Lack of support from managers

Managers play a key role in the success of any change initiative. They need to be supportive of the initiative and provide the necessary resources and guidance to their teams. They also need to be able to effectively communicate the changes to their teams and help them to understand and embrace the new direction. Without this support, it is difficult for employees to successfully make the transition.

• Lack of resources

Another common reason for change failure is a lack of resources. Change initiatives often require additional resources in order to be successful. If these resources are not available, it can make it difficult to implement the changes necessary for the initiative to be successful.

Change initiatives are complex and challenging undertakings. There are a variety of factors that can contribute to the success or failure of a change initiative. By understanding these factors and taking steps to address them, organizations can increase the chances of their change initiatives being successful.

7.2 Success Factors

There is no one-size-fits-all answer to the question of what makes for successful change management. However, there are certain factors that are commonly cited as being important for ensuring the successful implementation of change. These include:

• Clear and effective communication

Change can be a difficult and confusing process for employees, so it is important that they are kept well informed throughout. Change management teams should ensure that all employees understand the reasons for the change, what will be involved, and how it will impact them.

• A strong and committed leadership team

Change is often driven from the top down, so it is crucial that senior leaders are fully committed to the process. They need to provide clear direction and support to change management teams and employees throughout.

• A well-planned and structured approach

Change management can be a complex process, so it is important to have a clear plan in place. This should outline the steps that need to be taken, who will be responsible for each task, and what the timelines are.

• Flexibility and openness to feedback

The change process can be unpredictable, so it is important to be flexible and open to feedback. Change management teams should be willing to adjust their plans based on feedback from employees and other stakeholders.

• A focus on employee engagement

Change can be disruptive and stressful for employees, so it is important to focus on engagement. This means ensuring that employees feel involved in the process and are given the opportunity to provide input. It also means communicating with employees regularly and addressing any concerns they may have.

• A commitment to continuous improvement

Change is an ongoing process, so it is important to commit to continuous improvement. This means constantly evaluating the change process and making adjustments as needed. It also means setting goals and measuring progress to ensure that the changes are having the desired effect.

7.3 Examples

• Failure Example: Kodak

Kodak has a long history of taking risks and managing change with new innovations. George Eastman, the company’s founder, realized this when he switched Kodak’s main business from dry-plates to film, and from black and white to color, even though doing so meant giving up some profitable product lines in the short term.

Kodak engineer Steve Sasson invented the digital camera in the company’s R&D labs in the 1970s; however, the company failed to capitalize on this invention and lost its leading position in the photography industry. Kodak’s leadership was resistant to the digital camera because they were afraid it would take away from their existing business. Sasson later told the New York Times that when he presented the idea, management’s reaction was essentially, “That’s cute, but don’t tell anyone about it.”

The company was once the king of film and photography, but as digital cameras and smartphones became more popular, Kodak failed to adapt. The company did not invest in digital technology and instead continued to produce film cameras and film. This was a mistake that cost the company dearly. As the market for film cameras declined, Kodak was forced to lay off workers and close factories. The company filed for bankruptcy in 2012 and has struggled to recover ever since.

There are a number of reasons why change failed at Kodak.

• Firstly, the company was slow to change and failed to invest in digital technology. This was a big mistake as the market for film cameras declined.
• Secondly, Kodak was unwilling to let go of its old business model and failed to embrace the new digital age. They also did not want to cannibalize their existing business as they saw digital cameras as a threat rather than an opportunity. This meant that the company was left behind as its competitors invested in new technology and innovative products. This ultimately led to Kodak’s downfall as other companies, such as Sony and Canon, embraced digital and left Kodak behind.
• Finally, Kodak’s management was resistant to change and failed to listen to the needs of its customers.?This led to a decline in sales and a loss of market share.

Kodak is a cautionary tale of what can happen when a company fails to change with the times. The company’s refusal to invest in new technology and its resistance to change led to its downfall. Kodak is a reminder that companies must be willing to adapt to the ever-changing world in order to survive.

• Success Example: Apple

Apple has a long history of adapting to changes in the marketplace. In the early days of the personal computer revolution, Apple was a pioneer in creating user-friendly products that made it easy for people to get started with using computers. When the internet became a major force in the 1990s, Apple was again at the forefront of creating products that made it easy for people to access the internet and use it to its full potential. More recently, Apple has been a leader in the development of mobile devices such as the iPhone, iPad, and iWatch, which have revolutionized the way people use technology in their everyday lives.

One of the biggest changes that Apple has made in recent years is its move from a hardware company to a software and services company. This shift was first started under the leadership of Jobs, who saw the potential in iTunes, the App Store, and other software offerings, and it has continued under the current leadership.

Apple has always been a company that is willing to take risks and innovate in order to create new products and services that meet the changing needs of its customers. This willingness to change and adapt has been a major factor in Apple’s success over the years, and it is likely that this will continue to be the case in the future

8. Conclusion

?As you have seen throughout this course, there are many reasons why change management is important. Perhaps the most important reason is that change is inevitable.?In today’s ever-changing world, organizations must be able to adapt to new market conditions, new technologies, and new customer demands.

Another reason why change management is important is that it helps to ensure that changes are made in a deliberate and thoughtful way. Too often, changes are made haphazardly, without considering the potential impacts on people, processes, and technology. Change management helps to ensure that changes are implemented in a way that minimizes disruptions and maximizes success.

Finally, change management is important because it helps to build a culture of continuous improvement. Organizations that embrace change and view it as an opportunity to improve their operations are more likely to be successful in the long run. Change management can help to foster a culture of continuous improvement by establishing processes and tools for tracking, measuring, and responding to changes.

We hope that this online course provided you with a good overview of successfully managing organizational change. You are now ready?to develop a change management plan, implement change within an organization, manage resistance to change, and evaluate the success of change initiatives.