Organizational Change Management Ganesh Botcha Ajoy Chatterjee 21

Organizational Change Management Ganesh Botcha, Ajoy Chatterjee 21 Sep ’ 15, Monday

Agenda – Organizational Change Management # Topic Speaker Minutes 1 Basic Reasons for Org Changes Ganesh B 2 2 Typical Org Changes Ganesh B 3 3 What happens during an Org Change Ganesh B 2 4 Kotter’s 8 Steps Model for OCM Ganesh B 5 5 Steps 1 thru 6 Ganesh B 10 6 Steps 7 thru 8 Ajoy C 5 7 Benefits of OCM Ajoy C 5 8 Change Fatigue Ajoy C 15 9 Reframing OCM Ajoy C 3 Ajoy C, Ganesh B 10 10 References 11 Q&A

Change is the key The rate at which our world is changing is increasing but our ability to keep up with it is not. . Dr. John Kotter

Basic Needs/Reasons for an Organizational Change Reduce Operational Costs Improve Efficiency and Effectiveness Increase Revenues and Profits Increase Speed of Delivery

Typical Changes in an Organization. . Org Structure Changes Process Current Changes State Technology Changes Web. Desktop Future State Business Globalization Change Client Server Mainfra mes Regulatory Changes Many Other Changes - New Business Strategies, etc. , Mobile Wireless

What happens during an Org Change? Performance Dip Lengthy Duration for Change Adoption

Why Performance Dips? Active Resistanc e Passive Resistanc e Neutral Acceptan ce Enthusias tic Support

Organizational Change Management in a Nutshell Courtesy: Gavin Wedell

Solution - Kotter’s 8 Steps for OCM/Transformation Organizational change management (OCM) is a solution framework for managing the effect on people due to implementing a new business process, technology or org structure in an enterprise. It addresses the people side of change management. Phase – III Implement and Sustain the Change 8 7 6 4 3 2 1 Generate Short-Term Wins Enable Action by Removing Barriers Enlist a Volunteer Army Form a Strategic Vision and Initiatives Build a Guiding Coalition Create a Sense of Urgency PPOR TUNI TY Phase - I Create a Climate for Change 5 Sustain Acceleration BIG O Phase – II Engage and Enable the Organization Institute Change

Step 1 - Create a Sense of Urgency (Phase I : Create a Climate for Change) • If you see even glimmer of a Big Opportunity, it's important to engage and mobilize around it as quickly as possible to be ahead of competitors. • Companies with engaged employees have 5 times more Shareholder Returns. • Leadership must describe the opportunity (What are the stakes if we succeed, Consequences if we do not act up on it quickly, etc. , ) such that it will appeal to the employees’ heads and hearts and they sign up for the change instantly. . • 71% workforce is actively disengaged. This costs USA

Step 2 - Build a Guiding Coalition (Phase I : Create a Climate for Change) Establish a guiding coalition with group of Leaders, Managers, SMEs that bring expertise, energy, and perspective to institute the change and most importantly to sustain that change. Avoid resisters from this coalition. 81% Real collaboration is about stepping outside of traditional institutional structures to focus on results. In fact, there is an 81% correlation between collaboration and innovation.

Step 3 - Form a Strategic Vision and Initiatives (Phase I : Create a Climate for Change) Shape a vision to help steer the change effort and develop strategic initiatives to achieve that vision. Business Week attributes 30% higher return on several key measures for the companies with well-crafted mission statements describing why the business exists and its optimal desired future state.

Step 4 - Enlist a Volunteer Army (Phase II : Engage and Enable the Organization) Large-scale changes can occur only when significant number of employees work for a common opportunity and driven in the same direction. Raise a large force of volunteers from various levels of organization who are ready and willing to drive the change. Organizations with a high number of actively engaged employees have an average of 147% higher Earnings Per Share (EPS) than the norm.

Step 5 - Enable Action by Removing Barriers (Phase II : Engage and Enable the Organization) Remove barriers of hierarchies, processes that pose threat to achievement of vision and provide necessary freedom to employees to work across boundaries and create real impact. 44% of leaders agree that their own management strategies are too bureaucratic and are a nuisance. “Innovation is less about generating brandnew ideas and more about knocking down barriers to making those ideas a reality. ” - John Kotter

Step 6 - Generate Short-Term Wins (Phase II : Engage and Enable the Organization) Consistently produce, track, evaluate and celebrate volumes of small and large accomplishments – and correlate them to results. Wins are the molecules of results. They must be collected, categorized, and communicated — early and often — to track progress and energize your volunteers to drive change.

Step 7 - Sustain Acceleration (Phase III : Implement and Sustain themust Change) Change leaders adapt quickly in order to maintain their speed. Whether it's a new way of finding talent or removing misaligned processes, they must determine what can be done — every day — to stay the course towards the vision. • Identify and resolve issues with org structure, culture that may impede upon the change execution. • Ensure that policies, procedures and systems align with the change vision. • Hire, promote, develop and reward employees to implement change vision. • Reinvigorate the process with new projects, themes and volunteers. Agile firms see a 37% increase in revenue when they employ leaders who strategically adapt to any situation.

Step 8 - Institute Change (Phase III : Implement and Sustain the Change) To ensure new behaviors are repeated over the long-term, it is important that you define and communicate the connections between these behaviors and the organization's success. Big Opportunity Volunteer Army Results

Organizational Change Fatigue • • • A passive resistance from the organization toward change Can be individual or team in nature Studies show, 70% of organizational changes fail in their purpose due to change fatigue Changes executed in a wrong way, or too many changes at the same time lead to fatigue Exhausts the employees Employees don’t see a value for themselves How to overcome fatigue: • Reiterate again and again, what not changing would impact to the future of the organization • Device ways to show them the value of changing • Make people love the change as people will embrace it only if they love it

Reframing Organizational Change

Benefits of implementing OCM Successful implementation of OCM will decrease the Performance Dip and shortens the duration of Change Adoption.

References The 8 -Step Process for Leading Change § Transition Process § http: //www. forbes. com/sites#/sites/victorlipman/2013/09/04/new-study-explores-whychange-management-fails-and-how-to-perhaps-succeed/ Perspective on Leading Strategic Change § http: //www. businessballs. com/ Forbes Study - Why Change Management Fails - And How To (Perhaps) Succeed § http: //www. kotterinternational. com/the-8 -step-process-for-leading-change/ http: //orgreadiness. com/ Kotter, J. P. , & Schlesinger, L. A. (1979). Choosing strategies for change. Harvard Business Review 106 -114. Bridges, W. (1991). Managing transitions: making the most of change. Reading, MA: Wesley Publishing Company. Dent, E. & Goldberg, S. (1999, March). Challenging "resistance to change. " Journal of Applied Behavioral Science 25 -41. Kegan, R. & Lahey, L. (200 1, Nov). The real reason people won't change. Harvard Business Review 85 -92.

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