Importance of Organizational Change in Dynamic Environments
Organizations are facing constant change due to external pressures and must adapt to survive. Failure to change can lead to talent loss and resource scarcity. Embracing change is vital for maintaining competitive advantage and effectively managing unexpected events.
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Presentation Transcript
Dr. Ihssan Bouhtiauy, PhD, FCACB, FACB, MBA Moncton, June 14th, 2015
It is not the strongest or the most intelligent who will survive but those who can best adapt to change Charles Darwin
Change Important enemy? Essential in our life: Communication (computers, cell phones, internet, etc.) Production Security Micro-waves Change can be imposed on
Change Is there a good change and a bad change? There is a good way of bringing change and a less certain way of bringing change.
Need to change to stay the same Need to change to keep balance Need to change because it is destiny Change is part of life
Introduction Change is an event increasingly present in organizations Organizations change to respond to an external environment that is turbulent and demanding Change has become a necessity for an organization to survive
Examples University teaching: Lecture courses Presentations with overheads PowerPoint Videoconference Internet
Causes of change Until early 80 s: Internal pressure to change Low job satisfaction Low productivity Workforce composition From late 80 s: External pressure to change Demographic characteristics Technological advancements Shareholder, customer and market change Social and political pressures
Importance of organizational change Change is constant in a dynamic environment Competitive advantage do not last Managing diversity Managers must quickly and properly react to unexpected events
What if an organization refuse to change? Downward path Talented employees may leave for growing organizations Resources become difficult to find
Types of change Planned change vs unplanned change Organization-wide vs change primary to one part of the organization Incremental (slow, gradual) vs transformational (radical)
Target of change Organizational structure Human resources Methods Social factors
Organizational structure Role Policies Procedures Physical setting
Human resources Knowledge Attitudes Ability Motivation Behavior
Methods Processes Work flow Job description Technology
Social factors Culture Communication Interpersonal interactions Leadership
Reactions to change Victims Feel threatened Panic Become fatalistic Complain about everything Become pessimistic and cynical
Reactions to change Survivors Believe they are at the mercy of circumstances Believe they can survive the change if they simply become competitive with other employees Respond with anticipation to what is coming Convince themselves that clinging is necessary for self protection
Reactions to change Navigators Take a proactive approach Gather pertinent information Manage the stress of change Believe in being the cause rather than a victim
How to navigate Be positive and calm (able to see a potential benefit) Stay focused (align your goals with the organization s priorities) Remain flexible (let go the old way and adopt the new one) Be organized (take time to organize what you need to do) Be proactive (participate in the process)
Planning the change Good planning is essential to a successful planned change: Good planning allows to: Define the problem Identify individuals involved in the change Propose solutions Identify obstacles Take measures to address resistance Implement the change Evaluate changes
Obstacles Financial constraints Weak support from senior management Lack of pressure from the environment Deep-rooted traditions Lack of credibility from the change promoter Unsuccessful previous experiences Lack of staff training Negative reactions from opinion leaders
Resistance Generally, 20% of employees support change, 60% are neutral and 20% are against A lot of energy is required to convince 80% of employees on the relevance of change Resistance is present at all hierarchical levels
Resistance Change prompts opposition when the consequences are negatively perceived Individuals who are privileged in status quo will be the most resistant to change
How resistance manifests itself Confrontation Negotiation Recovery Diversion Fighting back Withdrawal
Common sources of resistance Fear of the unknown Fear of failure Loss of control, loss of status (job security) Loss of confidence Work overload
Strategies to reduce resistance Education and communication Participation Support Negotiation and agreement Manipulation Explicit and implicit coercion
Recipients standpoint on change Active supporter Passive supporter Ambivalent Passive opponent Active opponent Indifferent
Change management Change management is not like any other management task. Managers tend to tackle change by little pieces an then put everything together. This method is doomed to failure, because global vision is necessary in change management.
Change management The majority of companies are engaged in different projects: total quality, quality circle, responsibility transfer, etc. The key to change is not to treat one mobile element at a time but to find a balance between them. The difficulty is to know how to modify one element while considering the whole set of elements.
Change management Some managers think they know how to manage change but in reality, they limit themselves to decision making and to prepare change Organizations are usually competent in elaborating action plans Change management starts when decisions taken are implemented
Difficulties in the transition phase Increased fatigue State of confusion Feeling useless Decline in efficiency
Trust during times of change During times of change, trust is based on predictability and capacity Predictability: People want to know what to expect People want to be able to anticipate Capacity: Define what each one can contribute Create a greater inter-dependence
Evaluation Selection of a management strategy to carry on the evaluation Selection of indicators Perform the evaluation Selection of follow up to give
Programs based on action Not linked to specific results Too extensive and numerous Effect is noticeable only in long term Effect evaluation is unrealistic Need specialists and consultants Not empirical so the process is unorthodox
Programs based on results Companies introduce innovation only when needed Empirical tests show what works and what doesn t Frequent encouragements brings dynamics in the process Lessons learned from past initiatives facilitate a continuous learning
Some advice to succeed with programs based on results Ask each unit to define and meet a small number of ambitious and short-term objectives Monitor regularly progress and reformulate the strategy if necessary Institutionalize solutions that work and eliminate those that doesn t Create the context and identify critical challenges
Conditions to ensure success Take into account any reluctance Produce scenarios of beneficial change Make though full interventions Solicit a commitment towards objectivity and rationality Train managers to implement change
Mistakes to avoid Not stimulate enough the felling of urgency Not create a participant core Lack of vision Minimize communication efforts Not addressing obstacles Not having short-term milestones Declare victory too early Not anchor change into the organization s culture
Step 1: Understanding the problem Identify the problem, not its consequences Determine the relevance and the urgencyof the change Determine if change is compatible sith the organization s mission and vision Collectdata
Step 2: Determine what needs to change Identify the solution Determine the objectives thatare measurable in short and long term Identify required resources
Step 3: Get previous approval Determine if anticipated results justify the change Evaluateprojectcost
Step 4: Form a committee Identifycommittee members (multidisciplinary) Clarify committee s termsof reference and role/responsibilityof members
Step 5: Get project approval Identifywith more details projectcost Determine length of project Determine required resources
Step 6: Implement change and manage transition Identify resistance /irritants Classify resistance/irritants by priority and reduce them Manage trasition Identify individuals who need assistance and provide help
Step 7: Evaluate and stabilize Determine if resultsare in line with expectation. If not, make necessarycorrections. Determine if other improvements/adjustmentsare required Publicize the inofrmation concerning project success
Step 8: Follow up Ensure thatchenge is implemented and that the new wayof doing things is THE wayof doing things. Countertendancies to go back to the old way Continuouslythink about improvement
