Change Management

1. W I N G A N TA R I K S A
J A K A R TA 1 2 D E C E M B E R 2 0 1 8
MANAGING CHANGE & TRANSITION

2. 01
Reasons for change02
Origin of the field03
Change models and process
Change Management is a common buzz word in today’s
businesses. With constantly evolving business goals
and strategies, change is inevitable and managing change is
essential.
The case and discussion presented during the
session might not appear in these slides due to
time constrain and sensitivity of the cases
04
Dealing with change
Content

3. Change Management Concepts
Reflection questions
§ When was the last time there was significant change that impacted the
workforce?
§ Was it successful?
§ What blocks or obstacles did you encounter?
§ Has the change become permanent?
§ What is the next change?
What is
change
management?
Getting it right
– what will it
mean?
Why is it
important?

4. The Story
• Once upon a time there was a
Finnish device manufacturer
that revolutionized the world as
we know it.
• But the Nokia we all knew and
loved has lost the tremendous
power which propelled it to be
one of the top players in the
mobile phone industry.

5. FEAR OF CHANGE
Psychologists will tell you whether you are in fight-or-flight mode.
After all, the typical human response to change is anxiety.
When the human body experiences fear, the brain releases potent
chemicals into the bloodstream to help us either defeat the threat or
turn tail and run for the bushes.

6. “Between stimulus and response there is a space. In that space is our power to choose our response. In our
response lies our growth and our freedom.” -Victor Frankl
REACT VS RESPOND TO CHANGE
• When people react, it seems to be
defensive. We are uncomfortable
with what is being said or done,
and we react.
• In our reactions, our emotions
take a central role.
• There is a downside to reacting.
We let emotions without reason
drive us forward. We lose control.
Reacting is sporadic and
emotional.
• Responding, though, is more
thoughtful. Responses contain
reasoning, guided less by emotion
and more by logic.
• Responding may be passive in nature,
as we are going second in a series.
• The upside of a solid response is an
engaging conversation, all positive
and all civil. We learn. We grow. We
listen. We respond. We act
forthrightly and from within.

7. How prepared are
you for the change
ahead?
§ Our emotions influence often blind
our view of change and what we
need to do about it.
§ Those emotions will not disappear on
their own. The more we understand
them, the better the chances of
addressing them and progressing
beyond them.
§ Before we understand the five types
of change resistance, it’s time to find
out how emotionally prepared you
feel about the change you’re facing.

8. Strongly Disagree Strongly Agree
1. I stand to lose very little from the
proposed change.
2. I see a bright future for myself if I make the
proposed change.
3. I have the skills and/or resources to adapt
to the proposed change.
4. I am likely to succeed when it comes to
implementing the proposed change.
5. I am ready to publicly communicate my
commitment to the proposed change.
6. I see how the proposed change aligns with
my past work.
7. I have the time to adapt to the proposed
change.
8. I am empowered to adapt to the proposed
change.
9. I can easily let go of my old behaviors.
10. I will feel more empowered if I adopt the
proposed change.
1 53 42
Rank the following statements on a scale of 1 to 5,
where 1 means you strongly disagree and 5 means you strongly agree

9. Add up the scores for your answers.
Now let’s see where you stand?

10. THE CYNIC
THE OBSERVER
THE OPTIMIST
THE
ACCELERATOR
(score of 20 to 29)
The change is definitely
bringing up some fears.
You see some hope in the
future, but not necessarily
in this future. While you
may not fight change
proactively, you will
happily share your
negative thoughts with
others.
(score of 30 to 39)
You’re a bit curious, willing to
let your guard down in order
to consider the possibilities.
While you aren’t convinced,
you’re willing to learn more.
You will form your opinion
only once you’re convinced
either way. To increase your
change resilience, try learning
as much as you can about
both the risks and rewards of
change.
(score of 40 to 49)
You demonstrate healthy
change resilience. You aren’t
blind to the possible
downsides, but your belief in
the promise and possibility
of change more than
compensates for that. Deep
down, you want change to
work. You bring a positive
attitude to the conversation.
There are still some issues to
iron out, of course, such as
learning new skills and
gathering resources. To
adapt, direct your attention
to the tools and techniques
necessary for proficiency in
the new ways.
(score of 50)
You are enthusiastic and
unstoppable. You are the
change you want to see in
the world. You
demonstrate an
abundance of change
resilience and serve as
inspiration and
encouragement to your
peers. You belong in a
mentoring position,
helping others embrace
change faster.
E M OT I ONAL E NG AG E M E NT TO C HANG E
THE FIGHTER
READINESSTOCHANGE
(score of 10 to 19)
Your change resilience is
essentially nonexistent.
You fear change with a
capital F . Your thinking
is deeply rooted in the
past. It’s time to
challenge the “glory
days” narrative in your
head.
ResistantReluctantNeedHelpReadytoLearnReadytoGo
Angry Scared Curious Optimistic Excited

11. FOMO - the fear of
missing out
§ when it comes to exciting new changes in
our world, a little bit of FOMO can actually
drive us to overcome our fears and
embrace change.
§ Every change brings with it a new
promise, a promise we will most definitely
miss if we do not adapt in a timely
manner. You could miss out on a life
experience or an opportunity to make an
impact on the world. Is your fear worth
missing out on something so important?

12. The World Is Always
Changing. Are You?

13. Change Yourself Before
Changing The World

15. Change Management is a term for
all approaches to preparing and
supporting individuals, teams, and
organizations in making
organizational change

16. Change is an alteration of a
company’s strategy, organization or
culture as a result of changes in its
environment, structure, technology
or people.
The way businesses manage change
and how successful they are at it,
depends largely on the nature of
business, the change and the people
involved.

17. Dealing with Change
§ Change management generally is difficult but no undoable. With a
world closing in every day, not only international blue-chip companies
are forced to critically reassess and, if necessary, change their
business model, but also their organizational structure or their
corporate culture.
§ As humans we are not very good at changing. We see changes as a
negative thing that something creates instability and insecurity.

18. Reasons for Change
External Forces
• There are a number of external forces that create the explicit need for change.
The external environment are those factors that occur outside of the company
that cause change inside organizations and are, for the most part, beyond the
control of the company.
• External forces of change are often classified under three broad categories:
Market &
Technology
Law &
Regulation
Economics

19. Reasons for Change
Internal Forces
• The internal environment of an organization refers to events, factors,
people, systems, structures, and conditions inside the organization that
are generally under the control of the company
• Parallel to the external reasons there are three different internal forces
for change:
Corporate
Strategy
Technology
&
Equipment
Workforce
& Attitudes

20. Lewin: Three-Stage Model
Kurt Lewin’s three-stage model is the most famous model of change. His model
has come to be known as the Unfreeze-Change-Refreeze Model. He noted
that the majority of people tend to prefer and operate within certain zones of
safety.
Lewin recognized three stages of change:
1. Unfreeze: Most people make an active effort to resist change. In order to
overcome this tendency, a period of thawing or unfreezing must be
initiated through motivation.
2. Change (also titled Transition or Move): Once change is initiated, the
company moves into a transition period, which may last for some time.
Adequate leadership and reassurance is necessary for the process to be
successful.
3. Refreeze: After change has been accepted and successfully implemented,
the company becomes stable again, and staff refreezes as they operate
under the new guidelines.

21. 02BUILD A GUIDING COALITION
06GENERATE SHORT-TERM WINS
03
FORM A STRATEGIC VISION AND
INITIATIVES
07SUSTAIN ACCELERATION
01CREATE SENSE OF URGENCY
04 ENLIST A VOLUNTEER ARMY
05
ENABLE ACTION BY REMOVING
BARRIERS
08INSTITUTE CHANGE
The 8-step Process for Leading Change
Nearly 40 years of research by leadership and change guru dr. John Kotter have shown
that more than 70% of all major transformation efforts fail. Why? Because organizations
do not take a consistent, holistic approach to changing themselves, nor do they engage
their workforces effectively.

22. GLEICHER: Change Formula
Change Formula:
(D × V × F) > R
If any of these factors D, V and F are missing then the others are
cancelled out and you will not be able to overcome resistance (R). And
if the multiplication of these three factors is greater than R – the
resistance to change – then change becomes possible.
Dissatis-
faction X XVision First
Steps
Resistance to
Change( ) >

23. Change vs. Transition
One of the most important concepts to understand about the change
process is that change and transition are not synonymous.
Change is situational whereas transition is psychological.
What this means is that change is a physical manipulation that occurs on
the organizational level. On the other hand, transition is a psychological
process that occurs on the personal level. Change occurs externally, while
transition is internal.
Failing to understand the difference between change and transition is a
major contributor to change management failure.

24. Transition
Although transition may be hard for the individual, often the hardest part
is to make a start. Even when a person is unfrozen and ready for change,
that first step can be very scary. People become comfortable in temporary
situations where they are not accountable for the hazards of normal work
and where talking about change may be substituted for real action.
• Challenge: Inspire them to achieve remarkable things
• First steps: Make it easy to get going
• Involvement: Give them an important role
• Open space: People talking about what concerns them
• Shit-and-sync: Change a bit – then pause

25. Reactions to Proposed Change Initiatives
Source: Rogers, 2003
FREQUENCYOFINDIVIDUALS
Early Adopters Fast Followers Late Majority Reluctant
Resister
T I M E T O A D O P T A P R O P O S E D C H A N G E

27. Change Management Value Proposition
• A successful change management will leads the organization towards
the goal.
• Importantly, your people are at the heart of this change, making it
long-lasting and leaving your organization profitable and secure

28. Risks to a Successful Change
Language is
jargon
Leaders do not
learn how to lead
change
Compromising
staff personal
values
Change plan not
integrated into
decision-making
Change fatigue
Leaders not
committed
New ways of
working not
understood
Declare victory too
soon
Slow decision-
making damages
momentum
Poor governance
Change skills not
identified
Trade union issues
Talent not
managed; under-
capacity causes
delays
Political fighting
Poor measures.
Cannot tell what is
working
Leaders fail to
engage; line-
managers are
involved too late
Unrealized
benefits
Vision
Plan Implement Sustain
Define the
future
Failing to address people issues causes
programs to “leak” benefits
Project
delay/overrun/
cancellation
Reduced staff
productivity
Staff attrition/
reduced
capacity
Failure to learn
and improve
Lost brand
credibility in
market
There are several impact that could happen when the change management fail to address issue:

29. Business Engagement — The Importance Of
Engagement And Communications
Research suggests commonly repeated failings when organizations try to
implement change
Engagement management and communications failings commonly featured in the research
on failed implementation of change
Not establishing a
great enough sense of
urgency
Lack of a vision
Not creating a
powerful enough
guiding coalition
Under-communicating
the vision by a factor
of 10
Not removing
obstacles to the vision Declaring victory too
soon
Not systematically
planning for and
creating short-term
wins
Not anchoring changes
in company culture
1 2 3 4
5 6 7 8

30. 1
2
3
“Engage the top and
lead the change”
“Cascade down and
break barriers”
“Mobilize the base and
create ownership”
Make the case for change
Provide leadership
Develop plan and ensure consequence
management
Create cross-functional teams
Ensure performance-driven approach
Cascade down and motivate
Roll out change program at the
base
Measure change
Embrace learning and knowledge
sharing
Source: Strategy&
Change Approach

31. Newsletter Large & External Reinforcing Disseminate general, non-sensitive
messages
Poster Large & External Reinforcing Advertise to build awareness
Correspondence Small & External Specific Use formal mechanism
Press Release Large & External General Advertise, build awareness and
promote questioning
Web-Based
Presentation
Large and external
or internal
Educational requiring
a demonstration
Coordinate people from several
locations and/or time zones
Conference Call Large & External Educational Demonstrate initiatives and
promote questioning
Hot Line Large & External Informative Provide specific information and
an opportunity for questions
Brown Bag
Lunch
Small &
Internal/External
Educational requiring
a demonstration
Allow for Q&A and face-to-face
communications
Your Audience
Size Is…
The Message You
Want to Deliver Is…
And You Need to …
Methods To Deliver Change Messages

32. Question to be
Considered
§ what if the business that your
organization doing is no longer
relevant in the next two years?
§ what if the company that you are
working will no longer exist next
year?
§ what if the job that you are doing
is no longer needed this year?
§ what would you do.......
Relevance is the only job security that exists in
today's uncertain business world.

33. A key currency in a commercial world of rapid change is the CREATIVE
IDEA that can be TRANSLATED INTO NEW PRODUCTS AND INTO
NEW WAYS OF WORKING with the emergence and development of
new forms and types of business organization.

34. Creativity and Innovation to Change
“Change is ongoing in organizations as new ways of working replace,
reshape and overlap traditional structures. Change, creativity and
innovation represent key processes to organizations operating in the
21st. Century.” (Andriopoulos and Dawson. “Managing Change, Creativity and
Innovation”)
CRITICAL
THINKING
CREATIVITY INNOVATION
DESIRED
CHANGE+ + =
Inventiveness
New Ideas
New Concepts
Generating and
Selecting Ideas
Turn Creativity
Into Products,
Process, and
Services

35. SUMMARY
§ UNDERSTAND YOURSELF prior to
facilitating change initiatives & STAY
RELEVANT
§ The most important points in
managing change is PEOPLE,
because they form the organization.
§ CREATIVITY AND INNOVATION are
the key drivers to organizational
success. Change is inevitable result
of this creative and innovative
process

36. C O N N E C T
W I T H S O C I A L M E D I A
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37. T H E E N D

38. Appendix

39. Change Management Process
During each decision period, the change agent must select one of EIGHTEEN CHANGE
LEVERS. Specifically, there are three change levers for each of the six categories of
change levers discussed earlier; these levers are listed in below.
The effectiveness of the change levers depends on three factors:
(1) the overall urgency of the change situation,
(2) the perceived credibility of the change agent, and
(3) the stage of change in which the organization is operating.
In general, the higher the perceived urgency of the change situation, the easier it is to
bring about change and, therefore, more change levers are effective. Similarly, the higher
the perceived credibility of the change agent, the more change levers are at his or her
disposal. And finally, the more advanced the organization is in adopting the change, the
more change levers that can be effective.

40. The Change Champion's Field Guide, Strategies and Tools for
Leading Change in Your Organization
Louis Carter, Roland L. Sullivan, Marshall Goldsmith, Dave Ulrich, Norm Smallwood
L E V E R A N D
C A T E G O R Y
L E V E R D E S C R I P T I O N A N D C O S T
01. Walk the talk
(Credibility)
When the change agent’s actions are aligned with the change initiative, effective change is
much more likely. If properly executed, pulling this lever can increase the change agent’s
credibility as well as positively influence co-workers of the change agent. Cost: 2 weeks.
02. Gain CEO’s public
support (Credibility)
When the change agent lacks formal authority, obtaining public support from the CEO can be
essential. If properly executed, pulling this lever can increase change agent credibility as well
as positively influence change targets in the awareness state. Cost: 2 weeks.
03. Gain consultant’s
support (Credibility)
Bringing in outside experts can enhance the change initiative. If properly executed, pulling this
lever can increase change agent credibility as well as positively influence change targets in the
awareness and interest states to adopt the sustainability initiative. Cost: 2 weeks.
04. Conduct private
interviews
(Communication)
By conducting private interviews, important information is learned about the change targets’
views about the change, their personal network and the relative merits of the change vision
can be discussed. If properly executed, pulling this lever can positively influence four
individuals to adopt the sustainability initiative. Cost: 1 week.
05. Issue e-mail
notice
(Communication)
E-mail messages to the entire organization helps convey the change vision and progress
toward it. If properly executed, pulling this lever can positively influence employees in the
awareness state to adopt the sustainability initiative. Cost: 1 week.
06. Hold town hall
meetings
(Communication)
Town hall meetings can communicate the change vision and provide two-way dialogue on its
relative merits. Attendance at these meetings is usually voluntary. If properly executed, pulling
this lever can positively influence employees in the awareness and interest states. Cost: 2
weeks.

41. The Change Champion's Field Guide, Strategies and Tools for
Leading Change in Your Organization
Louis Carter, Roland L. Sullivan, Marshall Goldsmith, Dave Ulrich, Norm Smallwood
07. Provide in-house
skill-building (Training)
Some associates want to adopt a change, but they just do not know how. By providing in-house
training, you expand trainees’ capacity to adopt the change. If properly executed, pulling this lever
can positively influence three individuals to adopt the sustainability initiative. Cost: 4 weeks.
08. Provide external
skill-building (Training)
Sometimes associates want to adopt a change, but they just do not know how. By providing
external training, you expand trainees’ capacity to adopt the change. If properly executed, pulling
this lever can positively influence three individuals to adopt the sustainability initiative. Cost: 6
weeks.
09. Conduct pilot
project (Training)
Pilot projects are quick and relatively inexpensive ways of learning by doing. If properly executed,
pulling this lever can positively influence an entire department to adopt the sustainability initiative.
Cost: 6 weeks.
10. Post progress
reports (Cultural)
Posting of progress reports is a common means of using visible cultural artifacts and symbols to
redirect invisible cultural norms. If properly executed, pulling this lever can positively influence
adoption of the initiative for those in the interest state. Cost: 1 week.
11. Tell a success story
(Cultural)
Organizational storytelling is a relatively slow but effective way to challenge and redirect the norms
and values of the organizational culture. If properly executed, pulling this lever can positively
influence two listeners as well as their friends to adopt the initiative. Cost: 1 week.
12. Clarify
organizational values
(Cultural)
Organizational values are often unconscious guides to organizational behavior. By making these
values more explicit, better alignment can be created. If properly executed, pulling this lever can
directly influence task force members and indirectly influence everyone else. Cost: 8 weeks.
13. Build coalition of
support (Political)
Negotiations to create political alliances can be crucial for obtaining commitment to a change
initiative. If properly executed, pulling this lever can positively influence adoption of the
sustainability initiative for the three coalition members as well as their friends. Cost: 4 weeks.
14. Recognize an
adopter (Political)
Political power accrues to those who are recognized within organizations, and this sends a signal to
others as to where the power is flowing. If properly executed, pulling this lever can positively
influence adoption of the initiative for the advocates’ friends and co-workers. Cost: 3 weeks.

42. The Change Champion's Field Guide, Strategies and Tools for
Leading Change in Your Organization
Louis Carter, Roland L. Sullivan, Marshall Goldsmith, Dave Ulrich, Norm Smallwood
14. Recognize an
adopter (Political)
Political power accrues to those who are recognized within organizations, and this sends a
signal to others as to where the power is flowing. If properly executed, pulling this lever can
positively influence adoption of the initiative for the advocates’ friends and co-workers. Cost: 3
weeks.
15. Privately confront
resister (Political)
Organizational goals and deadlines provide targets to aim for by its members. Organizational
attention and focus are precious resources. If properly executed, pulling this lever can
positively influence adoption of the sustainability initiative for the entire organization. Cost: 4
weeks.
16. Announce goals
and deadlines
(Technical)
Organizational goals and deadlines provide targets to aim for by its members. Organizational
attention and focus are precious resources. If properly executed, pulling this lever can
positively influence adoption of the sustainability initiative for the entire organization. Cost: 4
weeks.
17. Revise reward
systems (Technical)
The reward system refers to the formal control system for recognizing and incentivizing
desired behaviors, while discouraging unwanted behaviors. If properly executed, pulling this
lever can positively influence adoption of the initiative for the entire organization. Cost: 12
weeks.
18. Restructure
organization
(Technical)
Organizational structure refers to the formal lines of communication and authority within an
organization. If properly executed, pulling this lever can improve information flow such that
support is built for the sustainability initiative by the entire organization. Cost: 16 weeks.

43. REFERENCES
Books
§ Lior Arussy, 2018, Next Is Now: 5 Steps for Embracing Change—Building a Business that Thrives Into the
Future. Simon & Schuster
§ Patrick Dawson Constantine Andriopoulos, 2017, Managing Change, Creativity & Innovation 3rd
Edition. SAGE Publication
§ Louis L Carter, 2013, The Change Champion's Field Guide: Strategies and Tools for Leading Change in
Your Organization. Wiley
§ John Kotter, 1998, Leading Change: An Action Plan from the World's Foremost Expert on Business
Leadership. Harvard Business Review Press
Articles
§ http://inc-asean.com/the-inc-life/the-3-main-types-of-procrastinators-according-to-
psychology/?utm_source=inc&utm_medium=redir&utm_campaign=incredirhttps://peterstark.com/l
eading-change-you-disagree-with/
§ https://www.forbes.com/sites/jacquelynsmith/2013/09/05/17-ways-to-be-indispensable-at-
work/#2b8f8d94274d
§ https://www.linkedin.com/pulse/10-tips-dealing-change-positively-your-workplace-ban-weston
§ https://www.skillsyouneed.com/ps/personal-change-management.html
§ https://www.forbes.com/sites/dedehenley/2018/01/04/to-lead-change-you-need-to-be-the-
change/#d21732439814

44. IMAGES
• https://www.istockphoto.com/photo/
• https://graphicriver.net/