Management

of
Change
Prof Bharat Nadkarni

Management of Change

What is Business?

Management of Change

Nothing can be changed

by changing the face...
but everything can be changed
by facing the change...

Survival Rate for Corporates

Age in Years

Percentage surviving

38

10

21

15

14

20

10

25

50

75

100

0.50

Innovate or Perish
1.

Incremental Vs Radical change

2.

Strategic type of change

3.

Technological change

4.

New Product and Services

5.

Learning organisation

A .. D .. R .. L ..I
Approach or Planning
Deployment or Implementation
Result
Learning
Improvement

Creativity & Innovation

It is based on four key words:
1. Fundamental
Why do we do what we do? And Why do we do it the way
we do?
Why the old rules and assumptions exist?
2. Radical
Disregard all existing structures and procedures, and
inventing completely new ways of accomplishing work.
3. Dramatic
Not about making marginal improvements.
4. Processes
a. Dysfunctional
b. Importance
c. Feasibility

Creativity & Innovation

Systematic redesign of Processes

1.

Eliminate

2.

Simplify

3.

Integrate

4.

Automate

Management of Change

Organisational Effectiveness
Productivity

Profits

Efficiency

Quality

Accidents

Growth

Absentism

Turnover

Job Satisfaction

Motivation

Morale

Control

Conflict/Cohesion

Readiness

Stability

Goal Consensus

Internalisation of
Org. Goals

Role & Norm

Congruence

Managerial
Interpersonal Skills

Managerial Task
Skills

Information Mgmt
& Communications

Flexibility/Adaptati
on

Trg & Dev

Emphasis

Planning & Goal

Setting

Management of Change

Who are the Stakeholders of Business ?

Shareholders and Promoters

Customers

Employees

Suppliers and Partners (incl Contractors, Agents etc)

Government

Society

Management of Change

Most Admired Business

Balancing and Exceeding the Expectations of all its
Stakeholders.
Effectiveness of Business
Achievement of Objectives.
Efficiency in Business
Achievement of Results with the least amount of
Resources.

Management of Change

Innovation
The NDB Concept

Managing Change
Jack Welsh Theory

Organizational Renewal & Revitalisation

Continuous Process brought by internal incumbents.

Management of Change
Emerging Waves
Factor

Yesterday

Today

Economy
Characteristic
Market
Players
Kind of Players
Price Level
Consumer
Technology
Quality
Delivery
Pricing
Needs
Response
Relation
Approach
Style

Protected
Monopolistic
Sellers
Few
National
High
No choice

Open
Competitive
Buyers
Several
Global
Dropping
Multiple Choice

Low

High
Average
Weeks/Months/Years
High
Limited
Sluggish
Curt
Mass
Arrogant

High
Off the shelf
Cut-throat
Enhanced
Quick
Respect
Personalised
Understanding

Management of Change

Changing Characteristics of Corporates

Old
Goal Oriented
Price focused
Product quality
Product driven
Shareholder focused
Finance oriented
Efficient, Stable
Hierarchical
Machine based
Functional
Rigid, Committed
Local/regional/National

New
Vision oriented
Value focused
Total quality
Customer driven
Stake holder focused
Speed oriented
Innovative, entrepreneurial
Flat, empowered
Information based
Cross functional
Flexible, learning
Global

Management of Change
Test Your Memory
When did you last see, or hear about these?
Typewriter / Stencils / Cyclostyling
Telex / teleprinter / telegram
Fountain pen / ink / blotting paper
Pagers
Slide rule
VCR
On the way out: Fax / Film roll / conventional
telephone
9 to 5

Management of Change

The Rise & Decline of..

All species (and organizations) go through a common lifecycle of Introduction growth maturity decline
and eventual death.
Transformation & change management is about:
Hastening the growth phase
Prolonging life by arresting the decline phase
Adapting to emerging opportunities & threats

Management of Change

Intriguing Ineptitude
An oft-repeated clich: The only thing constant in life is
change
Yet, we are hopelessly clumsy at managing change.
Most attempts at change not only fail to lead to
improvements, but also result in organizational trauma.

Management of Change

Lessons From Dr. Christian Barnard

The recipient of the first heart transplant died within a
fortnight of his operation.
Cause of death: physiological shock
The patients body rejected the healthy transplanted
heart.
Lesson learnt: First, suppress the bodys immune system
to prepare it to accept an alien organ.

Management of Change
The Typical Change Process
A key person has a brilliant idea
Overcome by the brilliance of his own idea, he is in a
tearing hurry to implement it.
He is totally insensitive to the immune system of his
organization.
He follows through unilaterally. Result:
Surprise
Anger
Rejection

Management of Change

Remember !!
The brilliance of an idea is not enough
Change strikes fear in the subconscious minds of those
affected by it.
Therefore, it must be communicated & sold wellin order
to be understood.
The time invested in this preparatory phase of
communicating the need for, and advantages of, change
is vital for the success of any change effort.

Management of Change
The Successful Approach: I4
Inform
Highlight the dangers lurking round the corner
Establish the need for change
Inspire
Highlight the benefits from change
Implement
Involve people
Allow experiments & tolerate failures
Institutionalize
Celebrate successes

Management of Change

What You Can Do

Accept change yourself

Communicate, communicate & communicate.
Listen. Understand and remove fears
Involve people in planning & implementation
Develop strategy for overcoming resistance
Help people learn new skills
Challenge complacency
Share information about competition / threats
Set high standards of performance

Organizational Change : Prof Bharat Nadkarni

A 7-step Roadmap

Creating a shared need: Why do it?

Visioning: What will it look like when done?
Leading change: Who will be responsible?
Mobilizing commitment: Who else to involve?
Modifying systems / structures: How will it be
institutionalized?
Monitoring progress: How will it be measured?
Making it last: How will it get started and last?

KURT LEWIN : FIELD FORCE

THEORY :
1] increase the driving forces : generally seen
that restraining forces also increase
simultaneously thereby returning to the
equilibrium state

2] decrease the restraining forces : a change is

less resisted when those affected by it
participate in the change

Involves 3 steps

KURT LEWIN : FIELD FORCE THEORY

A] unfreezing : creates motivation for
change, if people feel uncomfortable with the
present situation, they may see the need for
change
B] change : assimilation of new information,
exposure to new concepts, development of a
different perspective
C] freezing : stabilises the change. Change
to be effective has to be congruent with a
persons self concept and values.

TQM : MURA
Innovations & Discrepancies in the system
Happens sometimes
Happens at some places
Happens to some people

Thank You

Competency Clusters
Business
Knowledge
Customer
Focus
Communicatio
n
Result
Focus

Innovati
Proactiviton
Leadership
Collaboratio
n
Adaptability
Conceptual Thinking (Futuristic,
DM, PS)

Management Games
1. Decision Making 2 situations
2. Coin game
3. Pattern Process making game
4. Negotiation game
5. Situation Role play Henri Gogaj game
6. Village game
7. Taxi Taxi driver game
8. Mumbai Pune Expressway game
9. Team Role play game
10. Coffee shop game
11. Maths score
12. Case study
a. New Year Booking b. Termination c. Leave sanction

Org. Dev. & Change : Prof Bharat Nadkarni

Leading & Managing Change for Effective change Mgmt

1. Motivating change
a. Creating readiness for change
b. Overcoming resistance to change
2.

Creating a vision
a. Describing the core ideology
b. Constructing the envisioned future

3.

Developing political support

a. Assessing change agent power
b. Identifying key stakeholders
c. Influencing stakeholders

Org. Dev. & Change : Prof Bharat Nadkarni

Leading & Managing Change for Effective change Mgmt

5. Managing the transition
a. Activity planning
b. Commitment planning
c. Management structures
6.

Sustaining momentum
a. Providing resources for change
b. Building a support system for change agents
c. Developing new competencies and skills
d. Reinforcing new behaviours
e. Staying the course