odcm imp.pptx

Management of change
• Today’s organizations exist in a dynamic & ever-
changing environment;
• Organizations, like individuals are creatures of
habit;
• Survival depends upon the ability to adapt to new
demands & opportunities

Organization change
• Series of planned & systematic alterations or
modifications introduced into various components
of an on-going organization system so as to reach
it to a desired state;
• A process of intervention designed to improve
organization effectiveness & help it adapt to the
changing environment, remain competitive &
sustain itself;

Organization change
• The process of continually renewing an organizations’
direction, structure, & capabilities to serve the ever-
changing needs of external and internal customers;
• Based on idea that change is inevitable :
• Organization must adapt to this inevitable
change.
• Organization must position itself for change
adaptation.

Organization change
• Changes in organization may be :
• Organization design & structure : Restructuring;
• Organization systems & processes : Re-engineering;
• Organization policy & practice;
• Organization products & services;
• Organization development;
• Mergers & Acquisition.

Forces of change
• External pressures : environmental forces
• Internal needs : internal forces

Environment forces of change
• Competitors;
• Resource availability;
• Consumer expectations & demands;
• Stakeholders reactions;
• Technological changes;
• Government regulations;
• Socio-economic factors.

Internal forces of change
• Human resource considerations;
• Communication & coordination;
• Leadership issues;
• Financial, marketing, production considerations;
• Policy matters;
• Technology obsolescence;
• Failure to achieve targeted goals;
• Mal-adaptation, stagnation, & disequilibrium;
• Mergers & acquisitions.

Forces of change : a summary
• People
• Process & technology;
• Resource availability;
• Cost effective value creation;
• Competition;
• Natural environmental concerns.

Change outcome
Effective change ensures net benefits
• Psychological;
• social;
• Economic.

Change involves
Successful change management
• requires a systematic approach with …
• the support & commitment of the top management
to ensure the following :
• Unlearning the past practices;
• Learning new;
• Altering attitudes, values, behaviors;
• Managing uncertainty, complexity, & flux.

Many times, in order to survive
we have to start a change process.
Why is change needed?
We sometimes need to get rid of old memories, habits
and other past traditions.
Once & only freed from past burdens,
can we take advantage of the present

What to change?
 It is critical for any entity, individual or organization to clearly know
what to change in it to sustain existence & performance;
 In the absence of what to change, the desire or need to change will
be futile & frustrating;
 Organizations need to take up a thorough diagnosis of its systems &
process to identify the specifics of change;
 A change initiator need to have necessary knowledge, confidence &
conviction about the nature of change that is required so as to guide
the change to its logical conclusion; navigate through
 How does an organization get to know as to what is to be changed?
By the use of Organization Models.

Change Diagnostic Models
1. Diagnosis by image : Perspective of employees on entire
organization in context of environment … what image or
metaphor?
2. Component analysis : Analysis of various components of the
organization wrt fitment with the environment;
1. The PESTEL framework (Political, Economic, Social, Technological,
Environmental, Legal);
2. Scenario analysis : What if … most likely, optimistic, pessimistic
possibilities … key drivers of business … Brainstorming & FGDs;
3. Gap analysis : Three Qs : Where are we now? Where do we want
to go? How can we get there?

Component analysis :
4. The Strategic inventory : Strategy is the heart of change
Elements of strategy Testing quality of strategy
Arenas : what business will we be in?
(product, market segment, geography, core
technology, value creation stage)
Does strategy fit with the environment?
(giving profit potential & aligned with CSFs)
Vehicles : How will we get there? (internal
development, JV, Licensing / Franchise,
M&A)
Does strategy exploit key resources?
(give heads start & economical)
Differentiators : How win the market?
(image, customization, price, styling,
quality)
Will envisaged differentiator be
sustainable? (competitor catching up or
constant innovation)
Staging : Speed of expansion? Sequence of
initiatives?
Are strategy elements internally
consistent?
Lowest cost through scale advantage?
(lowest cost thru scope/ replication; Premium
prices thru service/product features)
Resource availability to pursue strategy?
Is the strategy implementable?

5. The structural analysis : Six dilemmas (Bolman & Deal, 2003)
I. Differentiation Vs Integration;
II. Gap Vs. Overlap in task allocation;
III. Underuse Vs. Overload of tasks;
IV. Lack of clarity (vague JS) Vs. Lack of creativity (rigid JS);
V. Excessive autonomy Vs. Excessive Interdependence;
VI. Too loose Vs. too tight.

6. The boundary-less organization : Ashkenas e.al. (1995)
I. To deal with VUCA environment, extreme competition, & shifting
paradigm for organizational success, organizations need to change
structurally;
II. Such organizations need to be equipped with following qualities
• Speed or agility : to bring products to market;
• Flexibility : use of ad hoc teams & malleable JDs;
• Integration : greater collaboration between specialists;
• Innovation : encouragement of creativity;
III. To achieve above capabilities, organizations need to reduce four types
of boundaries :
• Vertical boundaries : reduce hierarchies;
• Horizontal boundaries : reduce functional areas silos;
• External boundaries : reduce gap with customers & suppliers;
• Geographic boundaries : reduce gap between countries.

Diagnosing readiness for change
1. The stakeholder analysis :
I. Identify stakeholders (with both formal & informal connect);
II. Assess their capacity to influence change : impede or support
(high, medium, low);
III. Check track record of past responses;
IV. Assess their interest (high, medium, low);
V. Identify positions that each would take when change happens &
work out ways to deal with them;
2. The force field analysis :
I. Identify forces driving for or opposing/restraining changes;
II. Identify problems & strength that each of these forces can pose;
III. Align them together in a force-field analysis diagram;

Transformation process
• Internally
by endless renewal of corporations’ capabilities;
• Externally
by continual migration to markets where corporations’
capabilities (old or new) can sustain it;
• Criterion of success
sustained effectiveness in performance (financial & non -
financial) over time.

Analyze the CASE
Differentiating between Leader
and Manager

The new manager
• Ashima had just been appointed team leader in the content team. She
had previously been an employee in the same branch and had replaced
Animesh, her former boss who has resigned.
• One Friday afternoon at 5:15 Ashima was returning to her office from a
meeting when she met two of her content team members, Meeta and
Manish, on the stairs, dressed for going home.
• “Where are you guys off to?” asked Ashima.
• “Just nipping off early to avoid the traffic,” Maneesh replied.
• “You shouldn't be doing that,” said Ashima. “We've got another half an
of an hour to go yet. Now, come on, get back to your work.”
• “Come off it, Ashima,” said Meeta. “You know you always used to do it
yourself when you were in our shoes. Let's go. Have a good weekend!”
• Ashima barred their way.
• “Just a minute,” she said. “Times have changed now. I'm the boss, not
Animesh, and unless you guys get back upstairs and work till 5:45, I'll
make sure you get docked for it.”
• Meeta and Maneesh went back upstairs without a word, but Ashima
didn't get much co-operation from any of her team members that
afternoon, and hasn't since.

Types of change
• Reactive change or conventional
• Proactive change or farsighted

Types of change
Reactive change or conventional
When the change is introduced as a reaction to some
untoward incidence in the functioning of the organization
Proactive change or conventional
When the change is initiated in advance to take care of
sustainable performance & functioning of the
organization

Types of change
Reactive / Conventional
• Re-engineering processes
• Rule follower
• Operational efficiency
• Mostly catching-up
• Competitor driven
• Engineer management
Proactive / Farsighted
• Re-generating processes
• Makes rules
• Innovation
• Leads
• Foresight
• Architect

Four Change Ways
Incremental /
Continuous
Discontinuous /
Radical
Anticipatory TUNING REDIRECTING
Reactive ADAPTING OVERHAULING

Types of change
Organizational
Change
• Focused on hard variable of
the organization;
• Changes are made in the non-
animate aspects of the
organization to make it more
agile, competitive, customer
friendly & enabled to
organization performance &
growth;
• Changes are made in
structure, policies, practices,
products, services, geography
of operation etc.
Organizational
Development
• Focused on soft variables of
the organization;
• Changes are made in the
people side of the organization
to impact interpersonal process
& make them more conducive
to organization performance &
growth;
• Changes are made in
leadership, team working,
employee engagement,
empowerment etc.

Change Management
Change
• Planned Change: Change activities that are intentional &
goal oriented
• First order change: Linear & continuous change
• Second order change: Change that is multidimensional,
multilevel, discontinuous & radical.
• Change Agents: Persons who act as catalysts and assume
the responsibility for managing change activities.
What are change options:
• Structure
• Technology
• Physical setting
• People

Dr. Irfan A. Rizvi
Leading
change

Dr. Irfan A. Rizvi
Leadership & change
 Leader’s essential task is to question the convention;
 Leader has to influence, impact & change :
 People;
 Products;
 Process;
 Profits.
 Changing requires deciding :
 What to change;
 Why to change;
 How to change : planning, strategizing & communicating change;
 Identifying & managing forces facilitating change;
 Identifying & managing forces resistances to change;
 Qualities of : envisioning, analyzing, communicating, flexibility,
assertiveness, persistence, conflict management etc.

Leadership & Management Kotter (1990)
Management
Activities
Leadership
Activities
“Produces order
and consistency”
• Planning & Budgeting
• Organizing & Staffing
• Controlling & Problem Solving
“Produces change
and movement”
• Establishing direction
• Aligning people
• Motivating / Inspiring
Major activities of management & leadership
are played out differently; BUT, both are essential
for an organization to prosper.

Organizational Complexity
Intensity
of
Change
High
Overhauling
Low Tuning
Low High
Change thru
normal
management
process
Change
through
Delegation,
Transition
Management
Executive-Led
Integrated Change
Agenda
Modes of Change Management

Leadership & Management Kotter (1990)
32

The New Challenges
• New technology;
• Global competition;
• More demanding and professional customers & suppliers;
• Changed conditions;
• New values amongst employees;
• Employees with considerable know-how;
• Reduced loyalty to one’s own organisation.
33

Traditional Organisation
• Stability;
• Hierarchy;
• Work from nine to five;
• Commanded & controlled by
leader;
• Production oriented with
routine tasks;
• Follow the rules;
• Focus on the job to be done;
• Reward according to seniority
and education;
• The management decides;
• Permanent jobs with
homogeneous manpower.
35
 Change, Dynamics, Flexibility;
 Team, network;
 Do job at any time-anywhere;
 Employee involvement,
empowerment, engagement;
 Customer & employee orientation;
 Learning;
 Focus on results;
 Performance related pay;
 Employee participation in decisions;
 Job rotation with heterogeneous
manpower.
New Organisation

1. What is the scope of the change?
2. How many people will be impacted?
3. Who is being impacted?
4. Are people being impacted the same or are they experiencing the
change differently?
5. What is being changed (processes, systems, job roles, etc.)?
6. What is the timeframe for the change?
Change characteristics

Everyone does not get impacted the same way by a change;
A single change, such as the deployment of a web-based expense reporting program,
will impact different groups uniquely:
1. Employees who do not have expenses to report will not be impacted at all;
2. Staff who travel once a quarter may be only slightly impacted;
3. Associates who are on the road all the time will be more impacted, although
filing expenses is only a portion of their day-to-day work;
4. Those in accounting who manage expense reporting will be heavily
impacted, as their jobs will be completely altered.
Outlining the impacted groups & how they will be impacted
enables specific and customized plans
later in the change management process.
Differential impact of change

Change
Capability
Change
Willingness
Low
High
High
Neither Capable
Nor Willing
RESISTORS
Capable but
May or
May Not Willing
CRITICS
Not Capable
But Willing
FENCE SITTERS
Both
Capable
& Willing
NAVIGATORS

What does this change mean to me?
What's in it for me?
Why should I get on board?
Why are we doing this?
Questions that plague people undergoing change

Awareness of the need for change
Desire to participate and support the change
Knowledge on how to change
Ability to implement required skills and behaviors
Reinforcement to sustain the change
Building blocks of sustained change

Forces resisting change
The change can be resisted by
• Individual factors
All factors or reasons within the people in the
organization that may be coming in the way of
the change;
• Organizational factors
All factors or reasons within the organization
systems as a whole that may be impeding
change

Resistance to change :
Individual factors
• Logical & rational objections
• Psychological or emotional reasons;
• Social or group interests.

Individual factors
Logical & rational objections
• Adjustment time
• Extra effort to learn
• Undesirable changed conditions
• Economic costs
• Technical feasibility

Individual factors
Psychological & emotional reasons
• Fear of unknown
• Low tolerance of ambiguity or change
• Lack of trust
• Need for security
• Desire to maintain status quo.

Individual factors
Social and group interests
• Political coalitions
• Opposing group values
• Parochial or narrow outlook
• Vested interests
• Desire to retain existing friendship

Resistance to change : Individual factors
1. Habit : altered task
People are creatures of habit – any change that
breaks the habit pattern is resisted;
2. Insecurity : altered task & reporting relationship
• fear of forced movement from area of expertise;
• fear that new learning may be difficult to acquire;
• Fear of the losing familiar and constant pattern;
• Fear of unknown : disruption of familiar;
• Anxiety due to new job, new boss, new relationship.

… Resistance to change : Individual factors
3. Lack of awareness : closed mind
• Lack of information on change;
• Mental blocks to change;
• Faulty perceptions;
• Narrow focus : not being able to see the big picture/canvass;
4. Economic factors : loss of financial position
• Threat to steady income & other benefits;
5. Social factors : loss of status
• Fear that change may alter social position, & dent their image;
• Loss of image may lead to lowering of prestige;
• Fear of ostracism.

Organizational factors
• Narrow focus of change;
• Over-control of employee behavior;
• Threatened expertise;
• Threatened power structure;
• Disparity in resource allocation

Resistance to change : Organizational factors
1. Over-determination :
attempt to exercise too much control causing structural inertia
• Introduction of too many new process;
• Erecting too many safeguards as control measures;
Leading to
• Loss of autonomy to people &
• No scope for initiative;
e.g., strict employment system, narrow job descriptions, exhaustive
performance evaluations, & reward systems`

2. Narrow focus of change :
structural & other changes with the lack of consideration for
interdependencies amongst organizations’ other components & sub-
systems
2. Disproportionate changes in inter-dependent entities;
3. Disruption of compatibilities in sequential relations;
4. Leading to
5. Loss of compatibility & coordination amongst jobs;
6. Loss of compatibility between people & jobs;
7. Change in structure without reciprocal change in people & jobs.

3. Group inertia :
refusal to introduce complementary change in group
behavior despite individual readiness to change
Leading to
• Disruption of group norms, &
• Group relationships.

4. Threatened expertise:
change leading and necessitating movement of certain
people from one role to the other
Leading to
mismatch between roles people hold and expertise they
possess.

6. Resource allocation:
changes made in a manner that may
Leading to
a threat to future resource allocation.

Resistance to change
1. The purpose of the change is not made clear. When the targets lack a
full understanding of why the sponsors are implementing the change,
anxiety and suspicion usually fill the information vacuum.
2. The targets do not see a need for the change. Even if the targets fully
understand the rationale for the change, they may differ with the
sponsor’s perspective and not agree that a change is needed.
3. The targets are not involved in the planning. It is human nature for
people to support what they helped create. If targets do not believe
they have a sufficient degree of input onto the planning of the change,
resistance is usually increased.

4. There is poor communication regarding the change. Even if the change
affects only one other person, communication can be easily distorted.
5. The “cost” is too high, or the reward inadequate. For targets to be
motivated toward the change, a reward for accomplishment must be
provided in the form of something they truly value, and it must compensate
for any physical, intellectual or emotional price they perceive they will pay.
6. The “compatibility” of the change is perceived to be low. “Compatibility”
relates to how close the targets view the change aligning with the existing
organizational values or their own personal beliefs. Resistance may be at its
highest when the change concerns issues which targets hold as
fundamental or consider to be sacred.

7. Key people in the organization are not seen as really advocating the change.
If employees perceive their boss or other politically important individuals /
groups as not genuinely supportive of the change, their acceptance is difficult
to secure.
8. The targets perceive a negative impact on their social relations. If targets
view the change as adversely affecting the way they relate to people
significant to them, acceptance is reduced.
9. When the targets believe there will not be adequate organizational support
for the change. If the change requires organizational resources that targets
think are inaccessible (money, time commitments by certain managers, new
equipment / facilities, specialized training, etc.), they tend to become
disenchanted with the idea and withdraw.

10. Employees believe the change will have a negative impact on their
operating budgets. Due to poor planning or unexpected drop in revenues,
operating budgets can be overburdened with the cost of planning,
purchasing and implementing the organizational change.
11. Change is introduced too quickly or too slowly. When planning how fast a
change is introduced, it is necessary to think in terms of optimal timing. The
most appropriate speed of change may not correspond to the maximum
speed possible.
12. The habit patterns of targets are ignored. The sponsor or change agent
who lacks knowledge and sensitivity concerning the target’s behavior
patterns tends to promote distrust and alienation.

13. Key job characteristics are changed. Employees will be more resistant to
the change if they perceive that it generates a decrease in: their autonomy,
the level of challenge the job offers, the type of feedback they receive or
the degree of importance the organization places on the job
14. The targets have been exposed to a long history of meaningless and / or
poorly executed changes. If the targets perceive that the organization is
involved in another of its many useless and ill planned events designed
primarily to keep management from being bored, their enthusiasm will be
greatly diminished for the change.
15. There is a fear of failure. Change involves learning and learning usually
involves mistakes. When people are not given the freedom to make
mistakes while learning, they become afraid and easily discouraged.

16. There is a tendency to seek security in the past. If the change produces
frustration or anxiety, targets may long for an earlier time when life wasn’t
so complicated.
17. The targets lack confidence in their capacity to implement the change.
Targets must perceive they already possess the skill and knowledge
required for implementing the change or that the necessary training will be
provided by the organization.
18. There is a lack of respect and trust in the sponsor. When targets view the
sponsor as someone they dislike or mistrust, a lack of acceptance and
enthusiasm for the change will quickly become evident.

19. There is a lack of respect and trust in the change agent. When targets view
the change agent as someone they dislike or mistrust, a lack of acceptance
and enthusiasm for the change will quickly become evident.
20. Excessive pressure is involved. When targets are already busy and under
stress, the additional pressure brought on by the change may become too
much for them to assimilate.
21. Vested interests are involved. A major source of resistance is when the
change represents a threat to the target’s economic or prestige interests.

22. There is a perceived incompatibility between organizational objectives of
the change and personal goals of the targets. Resistance is increased if
targets believe the change will block or significantly restrict the
achievement of their own personal ambitions.
23. The status quo cannot be reestablished if the change proves unacceptable.
The easier it is to reverse the change and the fewer permanent
consequences that result from having tried the change, the more likely it is
that targets will not resist implementation.

1. Employees who are highly invested in the current way of doing
work;
2. People who created the current way of doing work that will be
changed;
3. Employees who expect more work as a result of the change;
4. Those who advocated a particular alternative, say Option B,
when Option A was ultimately selected;
5. People who have been very successful and rewarded in the
current way of doing work.
Top five reasons for change resistors

1. Lack of awareness of why the change was being made;
2. Impact on current job role;
3. Organization’s past performance with change;
4. Lack of visible support & commitment from managers;
5. Fear of job loss.
Top five reasons for change resistance

Managing Resistance to change
1. Education & communication
• If people understand the needs for change and what is
involved they are more likely to co-operate;
• Open communication;
• Training programs to increase awareness & cope with it;
2. Participation & involvement
• To encourage people to feel ownership of the change;
• Collaborative designs of changes;
3. Facilitation & support
• Listening to the real concerns of people affected;
• Emotional support & attentiveness;
• Specific problem related training.

Managing Resistance to change
4. Negotiation & agreement
• Agreement and compromise if necessary;
• Labor contract;
• Mutual goal setting sessions;
5. Manipulation & co-optation
• “Buying off” leaders of resistance;
• Appointment of a member of dissenting to the change team;
6. Coercion
• Threats of punishment or dismissal for non-compliance;
• Threats where necessary but is a high risk strategy.

Kubler-Ross model
Elizabeth Kubler-Ross's book, "On Death and Dying."
1. Denial stage : "This can't be real"
"This is not happening to me. There must be a mistake."
2. Anger stage : "Why me?"
"How dare they do this to me?"
3. Bargaining stage : "If I do this, you'll do that"
"Just let me keep some of my old privileges and I will
buy in."
4. Depression stage : "Defeated"
"I can't bear to face going through this."
5. Acceptance stage : "This is going to happen"
"I'm ready, I don't want to struggle anymore."

Overcoming Resistance to change
Gleicher’s Equation
D x V x P > R
D : dissatisfaction with the current state
V : an endearing & exciting vision of future
P : process of change
R : resistance for change

Change strategies
The fundamental focus of strategy for change
involves
• Increase the impetus of forces or factors driving
or facilitating change;
• Decreasing the impact of forces or factors
restraining or resisting, or blocking change;
• Inducing transformational leadership amongst
key business heads;

Change strategies
Hickman & Silva : Creating excellence
• Vision
move from present to future;
• Insight
search into the heart of the problem;
• Focus
concentration of goals & objectives;
• Patience
resilience to continue despite strain on resources;
• Culture
sense of pride, confidence, & elation;
• Strategy
clear set of activities & accountability to execute the plan.

Change strategies
Peters & Waterman : In search of excellence
• Have a bias for action;
• Be in proximity of & close to customers;
• Believe in autonomy & entrepreneurship;
• Have great respect for people;
• Be consciousness of, & adhere to organizational values;
• Stay with the business that is you really know, & are
good at;
• Have a simple structure, systems, & process;
• Simultaneously practice loose (freedom) & tight
(maintaining core values) properties.

Change strategies
Fortune magazine criteria
Fortune 500 group
• Quality of management;
• Quality of products or services;
• Innovativeness;
• Long-term investment value;
• Financial soundness;
• Ability to attract, develop, & retain talent;
• Community & environmental responsibility;
• Use of corporate assets.

Change strategies
Fortune magazine criteria
Fortune 50 group
• Emphasis on delegation;
• Positive communication;
• Long range & global planning;
• Restructuring.

Blue-print for organization success
• Anticipating success : seeing tomorrow, today;
• Attracting talented high performing work-force;
• Developing high performance;
• Engineering systems that promote high performance;
• Sustaining high performance organization;
• Changing for business success & continuity;
• Strategy for continual reinvigoration of performance.

Models for organizational change
• Model 1 : Kurt Lewin’s model
• Model 2 : Action Research model
• Model 3 : Integrated Process model
• Model 4 : Bullock & Batten model
• Model 5 : Strategic Transformation model
• Model 6 : 4-Phase model
• Model 7 : ADKAR
• Model 8 : Kotter’s 7-Stage model

Models for organizational change : Model 1
Kurt Lewin’s 4-phase model
• Phase 1 : Diagnosis
• Awareness, recognition & articulation of problems
• Phase 2 : Unfreezing
• Creating need for change & benefits thereof
• Planning for change
• Phase 3 : Movement
• Implementing, monitoring, measuring change management
plan
• Phase 4 : Refreezing
• Integrating & institutionalizing change for permanency

Action Research model
1. Problem identification & formulation
2. Data collection
3. Data analysis
4. Reformulation of the problem
5. Generation of action plan
6. Action implementation
7. Action monitoring & evaluation
8. Continued action implementation

Integrated process model
Old
organization
system
New
organization
system
unfreeze
Changing
organization
system
transform refreeze
SYSTEM
STABILITY
TRANSITION MANAGEMENT

Models of change : Model 4
Bullock & Batten (1985) : 4 phase model
• Phase 1 : Exploration
• Phase 2 : Planning
• Phase 3 : Action
• Phase 4 : Integration

… Bullock & Batten transformation model 4
• Phase 1 : Exploration
Activities
• becoming aware for the need for change,
• explore & decide what needs to be changed;
• identify resources required to bring about the change;
• searching for outside assistance,
• establishing consultant contracts

• Phase 2 : Planning
Activities
• collecting information to ensure correct ‘diagnosis’ of needs;
• define the problems that would be solved by change;
• identify goals & objectives of change;
• Identify specific activities required to bring about the change;
• get ‘decision makers’ & stakeholders agreement / support;
• Identify support required to enable change to occur.

• Phase 3 : Action
Activities
• implementation of changes;
• ensure explicit support to change;
• getting ‘buy in’ from all employees affected;
• monitoring & evaluation of changes / activities implementation;
• communication & acting upon the results / feedback;
• adjustments & refinements made during the course.

• Phase 4 : Integration
Activities to stabilize & embed change
• support & reinforcement of the changes made;
• communication of results & outcomes of change throughout the
organization;
• continuous development of employee competencies through
various modes;
• continued monitoring & evaluation of changes.

Strategic Transformation model : Model 5
Two dimensions of transformation process :
• Strategy
• Integration

… transformation model 5
Step 1 :
Developing transformation strategy
Involves answering following about business
• What : basic definition of business
• Where : where are we going to compete
• How : how are we going to compete
Through developing
• Participation strategy
• Operating strategy

Participation strategy comprises
• What of business
• basic definition of business;
• The nature of our business;
• Where of business
• where in the industry we will participate or compete;
• Where our capabilities have value & are directly connected
with business opportunities;
• Strategy formulation depends upon
• Aspirations of the organization;
• Extent of understanding of the competition, technology, &
the marketplace

Operating strategy comprises
• How are we going to compete in the market place
Drawing detailed plans for :
• product;
• Market;
• Functional areas;
• Geographic.
• Strategy formulation depends upon how the
organization proposes to create value for itself.

Step 2 :
Adjust participation strategy with operational
strategy
• using past experience & learning fit participation strategy
with operational strategy till a feasible whole is created;
• create a fully integrated organization by building a top
team of critical mass of power wielders & opinion leaders
in the organization who would
• exercise leadership & personify the behavior that is expected from
the whole organization;
• ensure credibility of the top teams’ pronouncements;
• bring along the rest of the organization.

4 phase transformation model : Model 6
• Phase 1 : Order
• Phase 2 : Foundation
• Phase 3 : Change
• Phase 4 : Institutionalization

Phase 1 : Order
1. Identifying critical challenges
• Critical management challenges;
• Main features of the problem
2. Developing vision
• Desired future state & objectives
3. Creating superstructure
• Creating the top management team
• Build consensus on the grand strategy for the change
• Removing uncertainty of critical mass & ensure for them
secured future in the new scheme.

Phase 2 : Foundation
1. Immediate operating improvements thru
• Business performance : financial results
• Collaboration : momentum for change
2. Broad change process
• Making a start : educating people
• Diagnosing the problem
3. Integrated group strategy
• Overall participation strategy
• Operating strategy : strategic framework

Phase 3 : Change (requires toughness)
1. Strategic changes
• Critical area changes
• Changes across organization
• Changes in all functional areas
2. Organizational changes
• Work habits
• Systems & procedures
• Organization culture (shared patterns of thought, beliefs, feelings, &
values resulting from shared experience & common understanding)
3. People changes
• The way people relate with each other
• Benefit for all & not a few

Phase 4 : Institutionalization
1. Embedding the way
2. Evolving the strategy
3. Developing the organization

• Awareness of the need to change
• Desire to participate and support the change
• Knowledge of how to change (& what the change looks like)
• Ability to implement the change on a day-to-day basis
• Reinforcement to keep the change in place
ADKAR model of change : Model 7

The ADKAR Model at home
Changing unwanted behavior in children follows the ADKAR model well. Consider the five
goals of ADKAR as it relates to this example:
Awareness of the need for change
Children first need to know that what they are doing is wrong. This awareness often comes when an
upset parent tells the child he is doing something wrong.
Desire to change
Simply knowing it is wrong, however, will not stop most children. Their natural inclination is to test
the boundaries & push the limits. Consequences, either positive or negative, are usually required.
These consequences impact the child's desire to change. However, the process cannot stop here.
Knowledge of how to change
Given proper motivation to change, children need a role model to understand what the proper
behavior looks like. They need examples so they can obtain the knowledge of what the correct
behavior is.
Ability to change
Few children can change immediately; it is an ongoing process requiring them to develop new skills
and habits. They need time to develop the ability to act in a new way.
Reinforcement of the change
Finally, children need reinforcement to maintain good behavior. This may be in the form of positive
encouragement or other types of rewards.

ADKAR assessment for a personal change
Briefly describe the personal change you are trying to implement .
Awareness.
List the reasons you believe the change is necessary. Review these reasons & rate the degree to which
the person you are trying to change is aware of the reasons or need to change (1 5 where 1 is no
awareness and 5 is total awareness).
Desire.
List the factors or consequences (good and bad) that create a desire for this change. Consider these
motivating factors, including the person’s conviction in these factors and the associated consequences.
Rate his/her desire to change on a 1 - 5 scale.
Knowledge.
List the skills and knowledge needed to support the change, including if the person has a clear picture
of what the change looks like. Rate this person’s knowledge or level of training in these areas on a 1 to
5 scale.
Ability.
Considering the skills and knowledge identified in the previous question, evaluate the person’s ability
to perform these skills or act on this knowledge. Rate this person’s ability to implement the new skills,
knowledge and behaviors to support the change on a 1 - 5 scale.
Reinforcement.
List the reinforcements that will help to retain the change. Are incentives in place to reinforce the
change and make it stick? Rate the reinforcements as helping support the change on a 1 to 5 scale.

8 stage change process model : Model 8
1. Establishing a sense of urgency;
2. Creating a guiding coalition;
3. Developing vision & strategy;
4. Communicating the change vision;
5. Empowering broad-based action;
6. Generating short-term wins;
7. Consolidating gains & producing more change;
8. Anchoring new approaches in the culture.

Rules for change agents
Shepard’s Rules of Thumb for Change Agents (1975)
1. Stay alive
 Avoid self sacrifice
 Be fully alive at work
2. Start where the system is
3. Never work up-hill
 Don’t build hills as you go;
 Work in the most promising area;
 Build resources;
 Don’t over organize;
 Don’t argue if you can’t win;
 Play God a little;
4. Innovation requires a good idea, initiative, & few good friends;
5. Load experiments for success;
6. Light many fires;
7. Keep an optimistic bias.

1. Communicator:
Communicate with direct reports about the change
2. Advocate:
Demonstrate support for the change
3. Coach:
Coach employees through the change process
4. Liaison:
Engage with and provide support to the project team
5. Resistance manager:
Identify and manage resistance
Role of Managers/Supervisors during change

12 critical factors for effective change
Jodn D. Adams, Successful Change : Paying Attention to Intangibles (2003)
1. Understanding & acceptance of the need for change;
2. Belief that the change is both desirable & possible;
3. Sufficient passionate commitment for changing behavioral habits &
mental models (paradigms);
4. Specific deliverable/goal & some success in first few steps;
5. Structure & mechanisms that require repetitions of the new
pattern;
6. Feeling supported & safe (removal of fear of unknown);
7. Versatility & flexibility of mental models & thinking;
8. Patience & perseverance;
9. Clear accountability;
10. Explicit “boundary management” – managing all stakeholders;
11. Critical mass commitment & alignment;
12. Rewarding new behavior, & withdrawing rewards for old behaviors.

Six steps to effective change
1. Mobilize commitment to change by joint diagnosis;
2. Develop a shared vision of how to organize & manage
for competitiveness;
3. Foster consensus for the new vision, competence to
enact it, & cohesion to move it along;
4. Spread re-vitalization to all departments without
pushing it from the top;
5. Institutionalize revitalization through formal policies,
structure, systems, processes, & practice;
6. Monitor & adjust strategies & actions in response to
problems encountered in re-vitalization process.

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