Change is a continuum and is defined by the quality and quantity of required change. It is only recognizable in mass form. Change is a continuous process within both our economic and social boundaries.
According to Carnall (2007), Change is a process to move from known to the unknown. Change is defined as a shift from an existing situation to a new situation/equilibrium. Change is a complicated process. Significant organizational change occurs not only when an organization changes its overall strategy for success or adds or removes some major section, and/or wants to change the nature of business.
1.2 Organizational Change management
Organizational change management (OCM) is an actually a framework that manage the effectiveness of new processes in business, changes in structure of organization or changes in culture within an enterprise.Â
Strategic Change Management
2.1 What is Strategic Change?Â
The word Strategy is derived from the Greek wood "strategos", meaning: stratos (army) and ago (ancient Greek for leading). Strategic changeÂ refers to the change in the organizational structure, vision, mission, the objectives and the strategy adapted to achieve those objectives and goals.
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In business language strategic change is a change where we made strategies to manage the change. A strategy is a long-term plan to achieve specific desired objectives or goals. Strategic change managementÂ plays an important role in the development process of a company. Strategies are focused on the future and actually bring about sustained change, and typically require detailed planning and analysis.
Strategic change is slightly problematic when it involves people. The Strategic change that where we achieve continuous improvement, specific and intentional change is known as episodic change.
2.2 Definition of Strategic Change ManagementÂ
Strategic change managementÂ is the process of specifying anÂ organization's objectives, its plans and develop policies to achieve the required objectives and goals and allocating resources to
Implement these changes and plans.
Strategic management is a continuous process that controls and evaluates the industries and the business. This process assess the competitors and sets goals and strategies and then reassesses each strategy as per required. It also determines how the process has been implemented and whether it got success or needs any type of replacement in the strategies.
2.3 Types of Strategic Change ManagementÂ
There are two types of strategic change management
Internal Strategic Change Management
The situation in which company introduces new changes in the internal system of the company is called internal strategic change management such as changing the production system, labour force and the machineries.
External Strategic Change Management
The situation in which company introduces new changes in the external system of the company is called external strategic change management such as marketing policies and product-line.
2.4 Laws of Strategic Change Management
Following are three laws of change management
Figure 1: Laws of Strategic Change Management
Find out Resistance (First Law):
Find out the real resistance which overcomes the natural inertia in the organization.
Overcoming Resistance (Second Law):
The rate of force required to change the resisting behaviour depends on the rate of resistance that means greater the inertia or resistance to change, the greater the required forces for change.
Treat resisters Third Law:
To treat the resistors, change agents should choose the same way that resisters will treat change agents.
Modals of Change Management
3.1 Kotter's 8-Step Change Model
John Kotter is a professor on business management at Harvard Business School and is also a world-renowned change expert. He introduced his eight-steps of change process, in 1995, in his book "Leading Change."
Figure 2: Kotter's 8-Step Change Model
Step 1: Establish a sense of Urgency
If there is a need of change in organization, a sense of urgency must be developed around the need for change. This is not only a matter of showing stakeholders the statistics about poor sales or to talk about increased competition between organizations and many other reasons. Open an honest and convincing dialogue with others about what is going on in the market and between competitors. If many people start talking about the required change it means the urgency can feed and build by itself.
Step 2: Form a Powerful Coalition
Always on Time
Marked to Standard
Convince stakeholders that change is necessary and managing change is not enough; the main point is this "one have to lead it". To lead change in organization, one should bring together a coalition or make a team of influential people who has great power, have variety of sources in which include job title, expertise, political importance and status. "Change coalition" needs a team work.
Step 3: Create a Vision for Change
When someone starts to think about change, there will definitely be a lot of great ideas and solutions float in his mind. Stream line all the concepts to an overall vision that others can grasp easily. A clear vision for the change/ plan can help everyone to understand its requirement.
Step 4: Communicate the Vision
The success will be determined by the vision for change created by team. Use the vision on daily basis especially to make decisions and solve problems and keep it fresh in everyone's minds. It is very important to "walk the talk. Change maker should demonstrate the kind of behaviour that they want from others.
Step 5: Empower others
After achieving all the steps, the staffs want to achieve the benefits so they get busy that have been promoted. Put the structure for change in a place and continually check it to find out the barriers to change. Find out the resistance removing obstacles, it can help the change move forward.
Step 6: plans for and Create Short-term Wins
Success is very important motivator. Try to make many short-term targets - not only one long-term goal. So within a short period of time some results must be shown that staff can see. Otherwise critics and negative thinkers might hurt the progress.
Step 7: consolidate improvement
Real change always runs deep. Most of the change projects generally fail because they declare the victory too early. It must keep in mind that quick wins are the start of the required change. Each success in the project provides a chance to build on, to find out the mistakes, and to identify what can be improved.
Step 8: institutionalize changes
Corporate culture is the core of your organization. Continuous effort is very important this will help to give the required change a solid place in organization. Existing staff and new leaders are the actual support if you lose the support of these influential people, you might have to start from the beginning.
3.2 LEWIN'S CHANGE MANAGEMENT MODEL
Kurt Lewin, (physicist & social scientist) developed a cornerstone model to understand the organizational change in the 1950s. Unfreeze - Change - Refreeze. He explains all the three stages of change in an organization by using the process of changing the shape of ice block.
Figure 3: Lewin's Model
The first stage is to prepare organization for change as it is necessary for the progress of organization. This process involves building up the new style of operating to break down the existing situation.
First of all develop a message that shows the reason why the existing situation or process of doing things cannot be continued for example decreasing sales figures, weak financial results, and customer dissatisfaction. Then everyone will understand that change is essential for the progress of organization.
To prepare the organization successfully there is a need to challenge values, beliefs and behaviours. When you start to cut down the beliefs, behaviours and attitudes you make everyone and everything disturb. This may cause strong reactions in people, and it is exactly what needs to be done. By force re-examination of the core of the organization will lead to (controlled) crises which as a result become a strong motivator to seek out a balanced situation.
In the change stage, the people begin to think how to resolve the uncertainty and look for new strategies to do something new and better. Usually People believe and act in such ways that give them the new direction but it is time consuming process. The change from unfreeze to change does not happen suddenly. People always take time to accept the new direction and to participate in the change. People must understand that how the changes in organization will benefit them. Time and communication are two main keys to achieve success for change. People want time to understand the changes. Throughout the period of change, people should be connected to the organization.
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The organization is seems to be ready to refreeze if the changes are occurring and people accept the new changed plans of working. The common obvious signs of the refreeze stage are a consistent organization chart, permanent job descriptions. This stage is required to help people to accept the change. This stage also needs to institutionalize and internalize or the changes in the organization. This must be sure that the changes are used in organization all the time and those they are incorporated on everyday basis. Without refreeze stage, employees get caught in a confusing state where they cannot understand that how things should be done in organization, so nothing done in full capacity as per demand. If a new frozen state will not be present there, it will become very difficult to handle the next change initiative effectively. Before celebrating the success in an organization make sure that whether you celebrate the actual success of the change or your success is the part of success.
Reaction to Change
4.1 Types of Reaction to Change
There are four types of reaction to organizational change.
These change recipients may agree that the change will be of great benefit to the organization, or they may wants to receive some personal gain from the strategy or change in organization. Enthusiasts always use different opportunities to broadcast acceptance for the required change and also try to convince others of its pros and cons. They also idealize the new behaviours and will volunteer for team membership.
Followers range from generally compliant group to those who are wishing to be least resistors. It also include initial reticent to adapt. But eventually they accept the inevitability of the change in organization. These types of change recipients will always do what is required in the change strategy.
Objectors are those who show their resistance to strategic change plan whenever they got opportunity. They may disrupt the meetings, not attend the training programs, take leave without informing authorities and refuse to follow the instructions. Objectors will continue to do the same things and use previous processes when others are using the new avenues of doing things.
Underground Change recipients' workers have solid motivations for not creating problem of resistance. They may fears or direct punishment, such as fines or termination, or personal costs, such as ridicule or loss of authority and status.
Resistance to Change
Resistance to change in strategy takes a number of forms. It occurs when people refuse to cooperate with the change process. It is very important for the change manager to anticipate, and planÂ strategiesÂ for dealing with resistance. It is essential to understand the reasons of resistance. Because by understanding the reasons one can plan better strategies to manage the resistance.
5.1 Causes of Resistance
It is not essential that all strategic changes met with resistance. But where resistance occurs following may be one of the reasons of resistance
According to the Conceptual Framework 'iceberg' model, most common factor for resistance is unawareness of people about the rationale for change.
The second one is switching in specific behaviour.
According to The Uncertainty principle, when people face ambiguous or vague situations, they cannot understand the expectations. As a result, they will resist moving in those situations.
The lack of job security may create a sense of fear that leads to resistance.
Another major reason is the loss on a personal level, objectively there may be little threat.
During the processes Some of the important things people feel are in danger (friends and contacts
money,Â freedom, satisfaction, pride, authority, status, good working conditions)
Negative attitude towards the organization.
5.2 Tips to Overcome Resistance for Change
It is very important part of strategic change management. Reduction of resistance is one of the main roles of the change manager. Meanwhile, to increase the enthusiasm and level of commitment for the change is also included in the process.
Following are tips to mange resistance for change that will help out in accepting the change.
Better working conditions
Better personal contacts
Provide the opportunity for input
Choose the most powerful and problematic restraining force and try to devote energy and time to weaken them.
Show the resisters what is for them in the plan. Appeal to the resistors either in terms of personal benefits such as salary bonus, status, recognition and so on. Or loss avoided for example job outplacement prevention or financial loss.
Direct customers or suppliers to explain to change resisters face to face and tell how the current situation disadvantages them.
Try to involve resisters in teams that allow them to make some decisions in the change process, whether it is small.
Defuse political authority or power should be played amongst other employees and managers by conducting meetings on broader basis where open discussion on goals and tactics are being held and introduction of the processes are discussed openly.
Try to see the things through the eyes of the resister. Always listen to others openly and honestly and understand what they are trying to say. Try to examine your own basic assumptions and beliefs.
Stakeholder's Involvement in Change
Involvement of many stakeholders in a strategic change process does not need a number of resources but also required a new approach to leadership. This approach must identify the process facilitation rather than process control.
6.1 Steps of Involvement of Stakeholders
This matrix is based on the design of Peter Senge (Fifth Discipline Fieldbook). This design shows different steps of involvement and participation in change processes.
It means that the decisions that are going to be taken about the change process are based on the high managerial level. Employees and Stakeholders have the choice to accept the plan or to leave the change system. Implementation of the whole chance process leads to frustration and refusal of co-operation.
It means that the change is advocated in such a way that plans is designed to invite the stakeholders to join the change plan. The limitation of this step usually faced because the management always wants to hear "yes", while the staff always wants to hear that they is no risk regarding their jobs. So, most of staff will give a compliant by saying yes, which is not a healthy sign for commitment.
Testing is an approach based on the vision for inspection by the stakeholders. This top-down approach always asks for their comments. The management try to find out the stakeholder's support for the change process and for proposals. Testing can also be done on limited scale. It is better to expand testing but it should include the whole system.
Consultation to the stakeholders about the change is very important to strengthen the vision of change. It is the most preferred mechanism that recognises that it cannot possibly have all the answers. Now a day, a number of tools have been developed that allow the stakeholders to participate in the planning of a change process. This process requires commitment and wants time at the top-level to amendment in the decisions of process.
This procedure has the greatest level or degree of ownership. It means developing a vision by joining all the stakeholders from the beginning.
Strategic Change Management Interventions
The evaluation and selection of the most appropriate intervention is very important to support the implementation of plan. Actually, continuous improvement in the strategy is the main goal. In fact, there is no one accurate formula because every organization and its environmental are different.Â
This therapy is based on the seven steps intervention technique, which a person can affect by a change.
Figure 4: Rational-Emotive-Therapy
THE RESISTANCE FORMULA
In 1992 Beckhard develop an intervention technique, he defined a formula to check out whether the management actions are effective towards implementation of change in organization. The main focus point in the formula is project team.
Beckhard's resistance formula.
Successful change= A x B x D
A represents the Degree of dissatisfaction with the present situation
B shows the Desire for the new situation
D is equals to Practicability of the change effort
R is the Resistance (cost of change)
Formation and Implementation of Strategic Change Management Plan
Strategy formation and implementation is a process that is never-ending and on-going process that require continuous reformation and reassessment. This procedure is partially planned and partially unplanned while Strategy is always planned and emergent, dynamic, and interactive.
8.1 Formation of Strategic Change Management Plan
Strategic plan formation is a combination of these three main processes:
Performing three analysis; situation analysis, self-evaluation and competitor analysis including both internal and external; as well as both micro-environmental and macro-environmental.
Desired objectives are set by Concurrent with this assessment, all the objectives need to be parallel; some of the objectives are in the long-term while the others on the short-term. This process involves crafting vision statements i.e. mission statements, long term view of possible future, overall corporate objectives and the role of itself in the society, both financial and strategic.
At last these objectives suggest a strategic change plan in the light of the situation analysis. The change plan provides the details that how an organization can achieve their objectives.
8.2 Implementation of Strategic Change Management Plan
Implementation of strategyÂ involves:
First allocate the sufficient resources i.e. financial, personnel, time, and computer system support.
Try to establish a chain of commands or some alternative structures.
Assign the responsibility of specific processes to individuals or groups in an organization.
Management of the process by including comparing to benchmarks, monitoring results, and evaluating the efficiency and efficacy of the change process, controlling the variances and making required adjustments to the process.
Implementation of specific programs involves requisite resources, acquiring the training, process testing, integration with legacy processes and documentation.
Development and implementation of modal for change by Using Lewin's Model
1. Figure out and highlight what needs to change.
Understand the current state of organization.
Point out why change has to take place.
2. Make sure there is strong support from upper management.
Win the support of key people by using stakeholder analysisÂ and stakeholder management.
Make the change as of great importance for the organization.
3. Then create the need for change.
Tell others why change has to occur.
Try to Use the vision or plan and strategy for change as supporting evidence.
Communicate to others about the vision.
4. Control and understand the doubts and concerns.
Always be open to the concerned employee and stakeholder and address them in reference of the required change.
1. Communicate with others.
Communicate with others throughout the process of implementation of the strategy or changes.
Brief them about the benefits.
Tell how the changes will affect everyone.
Tell everyone for what is supposed to come next.
2. Dispel rumours.
Answer all the questions of employee openly and honestly.
Try to Deal with problems fast.
Always relate the need for change to the operational demands.
3. Empower the action.
Lots of opportunity must be provided for employee involvement.
Managers must be there to provide direction on daily basis.
4. Involvement of people in the process.
Work on short-term wins to reinforce the change.
If required Negotiate with external stakeholders for example employee organizations.
1. Introduce the changes in the culture.
Point out the supporters of the change.
Identify the barriers that sustain change.
2. Develop ways to maintain the change.
Be sure that leadership support is present.
A reward system must be developed.
Feedback systems must establish.
Change the structure of the organization as required.
3. Provide training and support.
Support and inform everyone.