Today, teams and organizations face rapid change like never before. Globalization has increased the markets and opportunities for more growth and revenue. However, increasingly diverse markets have a wide variety of needs and expectations that must be understood if they are to become strong customers and collaborators. Concurrently, scrutiny of stakeholders has increased as some executives have been convicted of illegal actions in their companies, and the compensation of executives seems to be increasing while wages of others seems to be decreasing or leveling off. Thus, the ability to manage change, while continuing to meet the needs of stakeholders, is a very important skill required by today's leaders and managers.
1.1 Determine the organisation's position in the sector and market within which it operates
Kainaf has been established for the last 13 years and currently is only one of a number coating consultancies operating in the marine sector. Kainaf is unique in that it employs people from across the marine coatings industry, from naval architects to paint chemist. The main services it currently offers are:
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Yacht coating project management;
Insurance guarantee inspections;
All focussed on the marine and protective coatings market sector, with marine being the dominant sector. The company has 7 full time employees and these are supported by 2 retained associates and the board comprising 5 non-executive directors with a background in shipbuilding, coatings and financial and quality control. In addition further support is provided from its shareholder base of 19 shareholders (in total including some directors and employees). The support varies from actual project work, to market intelligence and sales leads.
Feedback from clients and prospective employees indicates that Kainaf enjoys a very high reputation in the international market place, This is further reinforced by enquiries from about 7 companies in the last two years who have indicated an interest in the acqusistion of the company and by a number of smaller coating consultant companies making contact to see if Kainaf would be interested in acquiring them (2 to date) or to assist in their start up. Kainaf also has a number of enquiries pending for agency agreements in different countries (Turkey, Greece, Singapore, Malaysia). Against the background of the current global recession, Kainaf has benefited because it is a relatively small company addressing a market with an estimated value of some $300-350 million per annum, thus, even within the current recession Kainaf has been able to continue to grow its business and market share, with the finacial year 2010/11 looking to be the best ever in the company's history. This is perhaps the first signs of the benefits of the longer term approach of investment for growth.
1.2 Identify an opportunity for change, in support of the organisation's objectives
Organisational change is a response to new goals or strategies, themselves arising as a response to changes in the environment. This will give the direction to change, but that general direction needs to be made specific through three stages.
ï¬ Re-specification of objectives to provide the basis for planning. This will involve setting timescales within which the changes are required to be completed, such that the new goals and strategies may be fulfilled.
ï¬ Careful analysis of the current position and identification of the factors/elements which are no longer appropriate in meeting the objectives. This may be in terms of activities, methods of decision-making or in the behaviours of staff.
ï¬ Specification of the new position: the outcomes of change in relation to those aspects of the current position which are no longer appropriate. This will involve drawing up detailed plans for revised operational activities and management structures, and establishing exact requirements in terms of behaviours.
1.3 Discuss a model or method to identify a change process and the communication of that change process
There are many theories about how to "do" change. Many originate with leadership and change management guru, John Kotter. A professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process would be discussed below:
Step 1: Create Urgency
For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help to spark the initial motivation to get things moving.
Always on Time
Marked to Standard
This isn't simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about what's happening in the marketplace and with one's competition. If many people start talking about the change one proposes, the urgency can build and feed on itself.
Step 2: Form a Powerful Coalition
Convince people that change is necessary. This often takes strong leadership and visible support from key people within one's organization. Managing change isn't enough - one has to lead it.
One can find effective change leaders throughout one's organization - they don't necessarily follow the traditional company hierarchy. To lead change, one needs to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance.
Once formed, one's "change coalition" needs to work as a team, continuing to build urgency and momentum around the need for change.
Step 3: Create a Vision for Change
When one first starts thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember.
A clear vision can help everyone understand why one is asking them to do something. When people see for themselves what one is trying to achieve, then the directives they're given tend to make more sense.
Step 4: Communicate the Vision
What someone does with one's vision after someone creates it will determine one's success. Message will probably have strong competition from other day-to-day communications within the company, so someone needs to communicate it frequently and powerfully, and embed it within everything that one does.
Don't just call special meetings to communicate the vision. Instead, talk about it every chance one gets. Use the vision daily to make decisions and solve problems. When keeping it fresh on everyone's minds, they'll remember it and respond to it.
It's also important to "walk the talk." What someone does is far more important - and believable - than what one says. Demonstrate the kind of behavior that someone wants from others.
Step 5: Empowers others to act on the vision
If someone follows these steps and reaches this point in the change process, one has been talking about his/her vision and building buy-in from all levels of the organization. Hopefully, staff wants to get busy and achieve the benefits that someone has been promoting.
But is anyone resisting the change? And are there processes or structures that are getting in its way? Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people someone needs to execute one's vision, and it can help the change move forward.
Step 6: Create Quick Wins
Nothing motivates more than success. Give one's company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), someone will want to have results that staffs can see. Without this, critics and negative thinkers might hurt the progress.
Create short-term targets - not just one long-term goal. Someone wants each smaller target to be achievable, with little room for failure. One's change team may have to work very hard to come up with these targets, but each "win" that one produces can further motivate the entire staff.
Step 7: Build on the Change
Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change.
Launching one new product using a new system is great. But if one can launch 10 products, that means the new system is working. To reach that 10th success, one needs to keep looking for improvements.
Each success provides an opportunity to build on what went right and identify what someone can improve.
Step 8: Institutionalize the Changes
Finally, to make any change stick, it should become part of the core of one's organization. Corporate culture often determines what gets done, so the values behind one's vision must show in day-to-day work.
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Make continuous efforts to ensure that the change is seen in every aspect of his/her organization. This will help give that change a solid place in one's organization's culture.
It's also important that company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If someone loses the support of these people, one might end up back where one started.
2.1 Evaluate the impact of the change process on individuals in the organisation
When an organization is experiencing organizational change, such as: re-structuring, downsizing, or merging, it will cause employees the feelings of anxiety, stress, and insecurity, and resulting impact on individuals' productivity, satisfaction, and commitment toward the organization (Ashford, et. al., 1989). Through individuals' commitment over the organization, manager can determine the impact of the change process on the individual in the organization.
Employee commitment has been an important factor to determine the success of an organization. In the current section we are going to see the influence of organizational change on employee's commitment.
Many authors and researchers have concentrated on reactions closely associated with the change itself, such as participants openness to change (Wanberg & Banas, 2000), willingness for change (Armenakis et al, 1993), confrontation to change (Kotter & Schlesinger, 1979), or pessimism toward change (Wanous, Reichers, & Austin, 2000). On the other hand few researchers have focused on broader workplace outcomes, such as organizational commitment and absenteeism (Hui & Lee, 2000). But, Hercovitch & Meyer (2002) investigated individual's support for a single change initiative as a function of both commitment to change and organizational commitment. Judge et al. (1999) argues that if it is known how a change initiative is managed and the consequences of the change initiative can impact organizational commitment as they cause employees to re-evaluate their personal association with the organization. Thus, knowing that organizational change may indicate alterations in the rapport between the employee and the organization (Caldwell et al., 2004), it is important for management to understand how change initiatives may strengthen or weaken employee's commitment to the organization. Coetsee (1999) argues that commitment is one of the important factors involved in employee's support for change initiatives.
2.2 Assess the impact of the change on organisational stakeholders
StakeholderÂ may refer to: Stakeholder (corporate), a person, group, organization, or system who affects or can be affected by an organization's actions
(a) Consumer stakeholder, a person or group with an interest in a particular category of product or service
(b) Project stakeholder, a person, group or organization with an interest in a project
(c) Stakeholder theory, a theory that identifies and models the groups which are stakeholders of a corporation or project
(d) Stakeholder analysis, the process of identifying those affected by a project or event
(e) Stakeholder (law), a third party who temporarily holds money or property while its owner is still being determined.
Stakeholders in a business organization include
government (its agencies),
unions and the community from which the business draws its resources.
Through stakeholder analysis the impact of the change can be assessed as stakeholder analysis is the process of identifying the individuals or groups that are likely to affect or be affected by a proposed action, and sorting them according to their impact on the action and the impact the action will have on them.
2.3 Analyse the impact of the change on achievement of organisational objectives
Impact of organisational change can be analysed through evaluating and reviewing orgnisational change on organizational objectives. Organisational change is brought in achieving organizational objectives hence the impact needs to be assessed. The manager needs to ask whether organizational change is contributing to achieving organizational objective or not?
3.1 Demonstrate how individuals in the organisation will be supported during the change process
It is essential that staff understand the basis of change where it may require a change in behaviour and that they accept the need for change. They also need to understand what is required from them. The individuals can be supported through consultation and training during change process.
The drivers for change need to be discussed with staff and agreement reached on both the need for change and general direction of that should take place. This will provide the commitment on which second process is based.
When individuals are required to change their patterns of behaviour, training must be a priority. Training has been defined as the process by which unknown is explain the unaware. Training should also inspire confidence, as confidence leads to satisfaction and productivity. There are a wide variety of different types programme available to develop new attitudes and behaviours, using role play techniques, group techniques, group exercises, and individual mentoring.
3.2 Construct a plan to implement and monitor the change process
Manager can adopt following steps to implement and monitor the change process:
Check on record and progress
Evaluate the change
Improve on any weak areas
Involve all personal affected
Be willing to compromise on detail
Ensure strategies are adoptable
Select people to champion change
Provide support and training
Monitor and review
3.3 Analyse the outcome of the change process against the change plan and organisational objectives
The final and most important stage of the change planning process is to determine which measures you will use to monitor and evaluate the project outcomes (i.e. were the objectives met?). For example, if the aim was to increase productivity, your measures might include the collation of figures relating to outputs, levels of variation and errors in order to check that they have increased or decreased favourably.
The timeframe over which the measures will be taken should also be determined at the outset, especially when in a turn-around situation where instant results are required. It is essential that you take measures before the commencement of a change or improvement project so that there is sufficient data to compare post-project results to.
How you measure the objectives will depend on the change project, examples of which follow:
Organisational performance - FinanceÂ
Organisations often embark on change programmes to improve the financial performance of the organisation in order to increase shareholder value. Here, financial measures are used:Â
Return on Investment (ROI)
Organisational performance - HRÂ
Organisational performance is heavily dependent on, and influenced by, the level of engagement of its staff. Measuring the effectiveness of the HR function can often reveal issues that impact directly on the bottom line. Here, engagement and employee satisfaction measures are used:
rate of staff turnover and associated recruitment costs
average length of service
number of disciplinary and grievance cases
results of employee surveys
The analysis of the information gleaned from the measures would not only reveal the current level of engagement, but would also help set targets, objectives and budgets for succession planning, training and development initiatives and recruitment.
It should be common practice for organisations to regularly examine their systems of efficiency around the creation of outputs and change or amend them accordingly. Productivity measures centre on:Â
the time, costs and resources needed to design, develop, create and deliver a product or service.
the quantity of outputs, or number of customers served, etc..
the amount of variation in the quality of the products or services, i.e. the number of errors or defects
For the business enterprises, it is important manager needs to know the essence of change process. But only knowing the change process wouldn't make the differences in the success but rather proper management needs to be applied in change process in achieving organizational goals and objective. In order to be successful in managing change process managers must know the obstacles in the organizational change process to avoid organizational disaster that is not at all desirable.