Change Management SuSe 2015

© 2013-2015 Martin Sattler

1

Martin Sattler, Lehrbeauftragter, Int. Project Engineering, Hochschule Reutlingen, Alteburgstraße 150, 72762 Reutlingen,

www.reutlingen-university.de, [email protected]

International Project Engineering (IP):

Change Management SuSe 2015

Martin Sattler, 13.03.2015 – 27.06.2015


2

Topics of change management

Part 1: The meaning of change, change management and transitionPart 1: The meaning of change, change management and transitionPart 1: The meaning of change, change management and transitionPart 1: The meaning of change, change management and transition

Part 2: Emotions, resistance and conflicts during the process of change

Part 3: Phase models of change (1947 – 1997) and organisational behaviour

Part 4: Dos and Don‘ts of change management

Part 5: Company culture and vision

Part 6: Leadership, leading in change and communication

Part 7: Project management and risk management (recap)

Part 8: Limitations of change management and controlling tools

AND: Case study (topic to be selected)

PIC: http://www.blackbaudknowhow.com/altru/change-is-hard.htm

[subject to change and improvement]


3

Part 1: The meaning of change, change

management and transition

PIC: http://www.blackbaudknowhow.com/altru/change-is-hard.htm


4

Part 1: The meaning of change, change

management and transition• Food for thought: Some philosophy …

• Picture gallery: The dimensions of change

• Group exercise: Warming up for change

• Definition of change vs. evolution

• Types of changes and examples for changes in business/in organisations

• What is a change project?

• What is the aim of change?

• Three levels of sustainable change (Dr. Alexandra Schichtel)

• Who is affected by change? (the stakeholder model)

• Hard and soft factors of change, change strategies, types of company change

• What is change management? (two aspects of defintion)

• Managing transitions (William Bridges)


5

Philosophy: The omnipresence of change

• In our modern world of internet, SKYPE, facebook, global communication, twitter,

what‘s app and globalised trade:

Nothing is as constant as Nothing is as constant as Nothing is as constant as Nothing is as constant as changechangechangechange....

The only constant is The only constant is The only constant is The only constant is changechangechangechange....

Steve Jobs? William (Bill) Gates? Marc Zuckerberg? Steve Jobs? William (Bill) Gates? Marc Zuckerberg? Steve Jobs? William (Bill) Gates? Marc Zuckerberg? Steve Jobs? William (Bill) Gates? Marc Zuckerberg? UliUliUliUli HoeneßHoeneßHoeneßHoeneß? Angela Merkel? ? Angela Merkel? ? Angela Merkel? ? Angela Merkel?

HeraclitusHeraclitusHeraclitusHeraclitus of Ephesus ( c. 535 – c. 475 BCE)


6

Picture gallery: The dimensions of change

(1/6)

http://www.news.at/a/goodbye-mr-president-george-w-

bush-tv-ansprache-230809

http://cdn1.spiegel.de/images/image-422724-panoV9free-nuvy.jpg


7

The dimensions of change (2/6)

http://commons.wikimedia.org/wiki/File:Fukushima_I_

NPP_1975_medium_crop_rotated_labeled.jpg

http://commons.wikimedia.org/wiki/File:Fukushima_I_by_Digital_Globe_B.jpg


8


pic: http://www.zeit.de/online/2007/08/daimler-chrysler-reaktionen-amerika

pic: http://www.sueddeutsche.de/wirtschaft/daimler-und-chrysler-endgueltiger-abschied-1.464415


9


pic: http://www.autobild.de/bilder/historische-kutsche-26573.html

pic: http://www.mercedes-fans.de/picture/picture=35192


10


pic: http://www.liquidleds.com.au/press-room/


11


acc. Charles Handy, The age of unreason, 1989

pic: http://www.simplyscience.ch/actualites-ados/articles/comment-fait-on-une-prevision-meteorologique.html


12

Definition of change vs. evolution

Alterations

(in general)

EvolutionEvolutionEvolutionEvolution

(Alteration 1st order)

ChangeChangeChangeChange

(Alteration 2nd order)

continuous further development

“survival of the fittest” (C. Darwin)

longer period of time

optimizes within the existing framework (e.g. KVP)

efficiencyefficiencyefficiencyefficiency (“do things right”, Peter F. Drucker)

people have to increase effort to optimize

complete , fundamental, dramatic change

something new is being created

suddenly

breaking up with the old/replacing it

effectivityeffectivityeffectivityeffectivity (“do the right things”,

Peter F. Drucker)

change is very painful

change attacks the whole organization


13

Types of changes („megatrends“)

pic: http://www.haufe.de/image/sonja-

sackmann-173270-large-1.jpg

working environmentworking environmentworking environmentworking environment

new working structures and processes

complexity

intercultural competence

work-life

balance

acc. Sonja A. Sackmann (organisational psychologist) 2007


14

Types of changes: Changes in the business

context (organisational level)• financial and economic crises (e.g. significant decrease of turnover and profit)

• change in markets (e.g. decline of demand, new markets?)

• changes in technology or industrial engineering (e.g. IP-plane)

• merger & acquisitions or senior-junior-partnerships (e.g. MAHLE and BEHR)

• change of company culture (e.g. enhanced customer or service orientation)

• NPO or political party with decreasing number of members/voters (e.g. BTW 2013)

• extreme and rapid growth of your (SME-) company (e.g. globalisation)

• changing conditions for production (e.g. shifting of production sites)

• new types of collaboration or roles (e.g. from controlled to empowered)

• IT-projects such as SAP R/3 (e.g. ERP-, CRM-, HCM-, MIS- or BI-software)


15

Types of changes: Changes in the business

context (especially SMEs)• new boss (e.g. daughter/son of the founder/succession plan)

• change of ownership or management style

• change of workplace or colleagues (e.g. M & A with dismissal of employees)

• certification acc. DIN EN ISO 9001:2008 (quality management)

• introduction of a production system (e.g. with external consulting)

• introduction of a ERP-system (with external IT-partner, consulting and training)

• introduction of performance related pay (e.g. MBO and bonus system)

• restructuring of departments (e.g. from functional departments to process teams)

• Redesign of CD and CI

• new building, e.g. new office building


16

Failure of SAP projects … („stranding“)

Courtesy and © SAP AG 2007


17

What is a change project?

• a project which forces the whole organization to change thinking and culturechange thinking and culturechange thinking and culturechange thinking and culture and do

new, completely different things

• the mental change is also called a paradigm shiftparadigm shiftparadigm shiftparadigm shift (paradigm = pattern of thought)

• problem: previous experiences and achievements are obsolete and become useless

• examples:

• The earth is a round slice (“like a pizza”)

• creation of world: God or evolution*

• printing industry: letters replaced computer technology (e. g. Adobe Indesign)

• paradigms often blockblockblockblock people in their thinking (“this is not possible” or – often heard

in companies “we have done this for 30 years, so why should we change it?”)


18

Why change and change management?

to improve and to survive !Companies which have recently NOT survived:

• Quelle, Fürth (1927-19.10.2009, 3.385 employees in 2007/2008)

• Schlecker, Ehingen (1975-2012, 36.00036.00036.00036.000 employees in 2012)

• AGFA, Leverkusen (October 2005, 1.100 employees)

• Grundig, Nürnberg (1930-April 2003, 3.800 employees)

• why have those companies failed?

• which other companies have failed and why?

pic: http://www.wiwo.de/unternehmen/handel/drogeriemarktdrama-das-ende-von-schlecker-ist-besiegelt/6699644.html


19

3 levels of sustainable change

change = change = change = change =

communication communication communication communication

and and and and

involvementinvolvementinvolvementinvolvement

strategystrategystrategystrategy

cultureculturecultureculturestructurestructurestructurestructure

Acceptance and

keeping active

Change management

modelling of process

Controlling and vision

Efficiency

Results

according to Dr. Alexandra Schichtel, 2010


20

Who is affected by change? (stakeholders)

according Barbary O’Brien


21

A stakeholder model

Our organisationOur organisationOur organisationOur organisation

banks

partners

suppliers

employees

trade unions

state/community

competitors

customers

share holders

direct impactscience

environment

society legislation (e.g. EU)

economy

technology

indirect impact


22

The stakeholders’ roles in the change

process (1/3)StakeholderStakeholderStakeholderStakeholder groupgroupgroupgroup Role for the changeRole for the changeRole for the changeRole for the change

Owner or sponsor • starts the project (“engine of the change”)

• outlines strategic goals

• decides about external support (consultants)

• example for employees

• very important for communication strategy

Change team • controlling body for the change project

• reflects targets and events continuously

• acts a “multiplicator” (multiplier)

• operative support

• internal marketing

Top Management • also initiator and driver

• communication competence


• setting overall targets



23


process (2/3)

StakeholderStakeholderStakeholderStakeholder groupgroupgroupgroup Role for the changeRole for the changeRole for the changeRole for the change

Line manager/middle

management

• “multiplicator” for information and communication


Controlling department • monitoring the budget (!)

• coordination with other ongoing projects

Communication

department

• supports the top management to enhance communication

• consulting for CD and CI

Personnel department

(HR / HCM)

• co-shapes the change process

• supply of knowledge (who has the necessary knowledge and

skills? do we need new staff?)

• archive about the company’s history and former change projects


24


process (3/3)

StakeholderStakeholderStakeholderStakeholder groupgroupgroupgroup Role for the changeRole for the changeRole for the changeRole for the change

Employees • put change to real life

• knowledge and experience of internal processes or industry

sector

Indirect:

Customers • maybe trigger for the change process

• will measure the success of the change project

Suppliers • sources of innovation

• more reliable supplies

• will measure the success of the change project

?


25

Stakeholder management

• one or more stakeholder group(s) might feel threatened by change

• each group has to be handled individually after careful analysis

• how to obtain agreement to our target

• not all stakeholder groups can be considered, concentrate on the ones which are

relevant and rather critical

• if change targets are not (very) similar to the targets of the stakeholders:

• informationinformationinformationinformation

• communicationcommunicationcommunicationcommunication

• involvement/participation (e.g. using the expert knowledge of staff members)involvement/participation (e.g. using the expert knowledge of staff members)involvement/participation (e.g. using the expert knowledge of staff members)involvement/participation (e.g. using the expert knowledge of staff members)


26

Hard factors of change

Hard factors Hard factors Hard factors Hard factors = can be= can be= can be= can be observed and measuredobserved and measuredobserved and measuredobserved and measured

structures organisation chart and defined processes (e.g.

complaint management)

staff qualifications certificates, degrees, qualifications (e.g.

languages), IT knowledge (trainings)

technical systems production systems (machines and robots) and

IT systems (ERP, CRM, CAD, CNC, etc.)

figures key figures about turnover, earnings, profit,

productivity of plant, illness rate

facts “dead or alive”



27

Soft factors of change

SoftSoftSoftSoft factors factors factors factors = difficult to measure, sometimes= difficult to measure, sometimes= difficult to measure, sometimes= difficult to measure, sometimes not visiblenot visiblenot visiblenot visible

soft skills interdisciplinary competences and attributes of

personality, e.g. leadership competences and

communication skills

intangible assets value of a brand

company culture entity of values and habits that run

“automatically” within a company

sensitivities and informal

structures

difficult to sense and to use

readiness ability to change and willingness to change

chances and risks of a

change

very difficult to predict


28

Change strategies: motivation vs. pressure

(types of leadership)

StrategyStrategyStrategyStrategy Incremental changeIncremental changeIncremental changeIncremental change Transformational changeTransformational changeTransformational changeTransformational change

Collaborative Collaborative Collaborative Collaborative

consultative consultative consultative consultative

strategies

Participative evolution:Participative evolution:Participative evolution:Participative evolution:

fit, minor adjustments or

enough time

Charismatic transformation: Charismatic transformation: Charismatic transformation: Charismatic transformation:

unfit, little time for

participation but support for

radical change

Directive coercive Directive coercive Directive coercive Directive coercive

strategies

Forced evolution:Forced evolution:Forced evolution:Forced evolution:

fit, but key interest

groups oppose change

Dictatorial transformation: Dictatorial transformation: Dictatorial transformation: Dictatorial transformation:

unfit, no time for

participation, no support for

change, but radical change is

needed to survive


29

Types of company change: reactive vs.

proactive

TransformalTransformalTransformalTransformal largelargelargelarge----scale changescale changescale changescale change

Second order smallSecond order smallSecond order smallSecond order small----scale changescale changescale changescale change

reactive changereactive changereactive changereactive change proactive changeproactive changeproactive changeproactive change

Reactive change to contextual

shifts, may involve

accommodation and adaption

to the unexpected

Proactive change to further

development and refine

existing operations

Critical large-scale change

initiatives to unforeseen

market conditions that

threaten company survival

Major company reinvention

and renewal that is

proactive and foreseen


30

What is change management?

Different abbreviations, similar or same meaning:

OCMOCMOCMOCM = Organisational change management (e.g. SAP)

MOCMOCMOCMOC = Management of organisational change

”CHANGE”

= process for evaluation and controlling modifications

(organisation/structure/”hard factors”) andandandand enhance

commitment and involvement of the employees (human

beings/culture/”soft factors”)


31

Some facts about change management

• all organisations are changing all the time (“nothing is more constant than change”)

• compares to organization development (OD)organization development (OD)organization development (OD)organization development (OD) or company development

• employees can love (commitment) or hate (blockage) change (see our frog)

• emotionsemotionsemotionsemotions such as resistance and fear are just normal

• when employees resist, this might be for a good reason!

• change may not be manageable or hard to control (see limitations)

• leading change in an industry goes well beyond copying (best of breed)

• to understand change we had a look at the stakeholders and their interests

• tech: element of a process safety management system (incorrect replacement parts)


32

What is change management?

(combines two ways of thinking)• it reflects and controls the emotionsemotionsemotionsemotions of all people involved

• holistic approach (structure and culture, organisations and employees, techniques and

emotions)

• breaks down the change to a process organised in steps

• questions common patterns of thought and will finally replace them

• integrates the functional/technical solution and the social/mental/emotional layer in integrates the functional/technical solution and the social/mental/emotional layer in integrates the functional/technical solution and the social/mental/emotional layer in integrates the functional/technical solution and the social/mental/emotional layer in

one joint procedureone joint procedureone joint procedureone joint procedure

• change management combines two directions:

1. the classic variant of order and obedience (“mechanical/machinemachinemachinemachine”)

2. the systemic variant of conviction and participation and commitment (“social systemsocial systemsocial systemsocial system”)


33

Organisation as machine vs. social system

OrganisationOrganisationOrganisationOrganisation

as …as …as …as …

… machine… machine… machine… machine … social system… social system… social system… social system

function clear cause and effect, top down networking, self-

regulation, bottom-up

reality “the reality” can be observed there is no “one” reality

planning everything can be planned

logically

supports and has to be

adopted

resistance is a sign for bad planning is normal and inevitable

success technic and structures communication

(supported by technic

and structures)

focus on social

behaviour

only peripheral very important, high

value



34

Some more definitions

change change change change management management management management

noun noun noun noun (source: http://www.oxforddictionaries.com/definition/english/change(source: http://www.oxforddictionaries.com/definition/english/change(source: http://www.oxforddictionaries.com/definition/english/change(source: http://www.oxforddictionaries.com/definition/english/change----managementmanagementmanagementmanagement): ): ): ): 1 the

management of change and development within a business or similar organization. - 2 the controlled

identification and implementation of required changes within a computer system.

noun noun noun noun (source: http://(source: http://(source: http://(source: http://www.collinsdictionary.com/dictionary/english/changewww.collinsdictionary.com/dictionary/english/changewww.collinsdictionary.com/dictionary/english/changewww.collinsdictionary.com/dictionary/english/change----management)management)management)management)

(business) the area of business management that deals with methods of handling large-scale changes

within a company

Change Change Change Change managementmanagementmanagementmanagement (source(source(source(source: From Wikipedia, the free : From Wikipedia, the free : From Wikipedia, the free : From Wikipedia, the free encyclopediaencyclopediaencyclopediaencyclopedia)))) is an approach to transitioning

individuals, teams, and organizations to a desired future state. [1] In a project management context,

change management may refer to a project management process wherein changes to the scope of a

project are formally introduced and approved[2] or the definition of change management defined on this

page [

Which crucial aspect is missing?


35

The importance of change management


36

Managing transitions

(William Bridges, 1933-2013)

• US psychologist studying the emotions and the behaviour of people

in change situations

• book “Managing transitionsManaging transitionsManaging transitionsManaging transitions” 1991

• how can we manage transitions?

• how can we control emotions like fear and uncertainty of employees?

• it’s a psychological challenge

• outside aspects (= change) and internal/inside transformations (= transitionstransitionstransitionstransitions)

pic: http://www.thetopexecutivecoaches.com/wp-content/uploads/2012/09/4141_21.jpg


37

Comparison of change and transition (1/2)

Alterations

(in general)

Evolution

(Alteration 1st order)

Change

(Alteration 2nd order)

ChangeChangeChangeChange

(outside)

result

TransitionTransitionTransitionTransition

(inside)

process

W. Bridges adds

a further level:


38

Comparison of change and transition (2/2)

ChangeChangeChangeChange ---- outsideoutsideoutsideoutside Transition Transition Transition Transition ---- insideinsideinsideinside

change of the outside environment

(e.g. new boss, new IT application,

promotion)

transition refers to the inner, mental

and emotional alteration (old

replaced by new)

the result: things are different the process: how to help people to

adapt to the alteration

chain of action continuous process with many steps

is visible, tangible and precise takes part within the human being

(mainly not tangible)

has to be/can be accelerated natural given speed (organic process)


40

Phase 1 – Ending, losing,

letting go• say “Good Bye” to old thinking and values

• let it go because you can’t go back (and should not go back)

• feelings of losing, anxiety and insecurity, can lead to “freezing” behaviour (blockage)

• very personal issues and questions:

• what do I lose?

• who will be my new boss?

• which new assignments will I have?

• can I keep my job? (in fact, do not underestimate the number of people losing through

change)

• will I get new colleagues?

• do I have to move houses?

• are more changes coming up?


41

Measures for phase 1 –

Ending, losing, letting go• Understand change

• Plan change

• Identify those people losing – talk about it

• Accept subjective reality

• Be prepared for intensive and hefty reactions

• If possible and feasible, make an offer for compensation

• Inform thoroughly and honestly (Bridges: “Never lie, never hide anything”)

• End the past radically (no bridges to fall back)

• Appreciate the past (!)


42

Phase 2 – the neutral zone

• “no man’s (woman’s) land” between old an new

• the new is hidden in the fog

• chaos

• search for orientation

• a lot of creativity evolves

• organisation is focused on itself (pressure)


43

Measures for phase 2 –

the neutral zone• expectations of employees should be realistic and fair

• precise targets and also short-term targets

• communication (!)

• initiate learning facilities: workshops, trainings, etc.

• time for thinking and thoughts about the upcoming

• give orientation

• solve problems regarding the transition from old to new fast and without bureaucracy


44

Phase 3 – the new beginning

and the “4 P” • transition has strengthened the people who joined in and took part in the transition

• however, the new beginning is full of risks (see risk management)

• Mr. Bridges recommends the “4 P4 P4 P4 P”:

• PPPP urpose = people need to understand the purpose of the change and its benefits,

message of the top management has to be clear, real and specific

• PPPP icture = create a vision to make your purpose clear (emotional level)

• PPPP lan = individual or peer group events (e.g. farewell-party in the old office)

• PPPP art = consistency (especially the top management has to be consistent)

• plan and celebrate short-term success

• use symbolic management (e.g. Willy Brandt in Warsaw in 1970 or H. Kohl and F.

Mitterrand 1984 – gestures of reconciliation)

Change Management SuSe 2015

Documents

Transcript of Change Management SuSe 2015