CHANGE MANAGEMENT

&
Empowerment
Day 02 & 03
Dec 02, 03, 2010

MANAGE
 SESSION PLAN
• Human Resource Planning,
• Managing Empowered Organization,
• Creativity Management,
• Innovation Management,
• Talent Management,
• Time management in context of HRM,
 Session Overview
• Change Management
• Change Management Iceberg Model
• Models of Change
- Satir Change Model
- Lewin’s Change Model
• Interventions for Change
- Problem solving
- People Management
 Definition of Change

• Change is “the coping process of moving from

the present state to the desired state that
individuals, groups and organizations undertake
in response to dynamic internal and external
factors”.
 Change Management

• Change management is the effective

management of a business change such
that executive leaders, managers and front
line employees work in concert to
successfully implement the needed
process, technology or organizational
changes 
 Goals of change management

• minimize the impact on productivity

• avoid unnecessary turnover or loss of valued
employees
• eliminate any adverse impact on your customers
• achieve the desired business outcomes as soon
as possible  
 A Case in a box

• Refer to page 304,305

 OD and Change Management
• Organizations focus on the process and the
impact change has on the individuals concerned
from a psychological perspective.

• Any change intervention needs to be owned at

the top but implemented in an appropriate way
throughout the organization - depending on the
structure and existing culture of the organization
Change Management Iceberg
Model
 Change Management Iceberg
Model

• According to Kruger many change

managers only consider the top of the
iceberg:

• Cost
• Quality
• Time ("Issue Management").
 Change Management Iceberg
Model
Below the surface of the CM Iceberg:

• Opponents
• Promoters
• Hidden Opponents
• Potential Promoters 
 Change Management Iceberg
Model
Opponents

• Opponents have both a negative general

attitude towards C. 
• And a negative behavior towards this particular
personal C. T
• they need to be controlled by M.  of Perceptions
and Beliefs to change their minds as far as
possible.
 Change Management Iceberg
Model

• Promoters on the other hand have both a

positive generic attitude towards C.

• and are positive about this particular C. for them

personally. They take advantage of the C. and
will therefore support it.
 Change Management Iceberg
Model
•  Hidden Opponents have a negative generic
attitude towards C. 
• although they seem to be supporting the C. on a
superficial level ("Opportunists").
• Here M.  of Perceptions and Beliefs supported
by information (Issue M. ) is needed to change
their attitude.
 Change Management Iceberg
Model
• Potential Promoters have a generic positive
attitude towards C. 
• However for certain reasons they are not
convinced (yet) about this particular C. 
• Power and Politics M.  seems to be appropriate
in this case.
 
 MEC-CAMI OD Model
Change Management

Culture, Leadership &

structure

•Performance
diagnosis management
HR & process
processes Alignment
Clarity of
strategy and
mission
Knowledge
management
Organization
Processes

Customer
focus
Change Management

Interventions Planned

Organizational
diagnosis

Strategy Analysis
 OD Phases
• The phenomenon of change takes place in
series of steps.

• Phase 1 – Strategy analysis and

• Phase 2 - Organizational Diagnosis
• Phase 3 – Interventions planned
• Phase 4 – Managing Change
Change Process

Skills
Process of Change

Satir Model Problem Solving

Lewin’s Model People

Management
 The Satir Change Model
• developed by family therapist Virginia Satir

• helps people improve their lives by transforming

the way they see and express themselves

• Satir System is a five-stage change model

• describes the effects each stage has on

feelings, thinking, performance, and physiology
The Satir Change Model
 The Satir Change Model
• Late Status Quo
• The performance pattern is consistent. Stable
relationships give members a sense of belonging
and identity.
• Members know what to expect, how to react, and
how to behave.
• Implicit and explicit rules underlie behavior
• They don’t necessarily enjoy the amount of work
they had to do, but they know and understand
what is expected of them
 The Satir Change Model
• Stage 2: Resistance
• A foreign element threatens the stability of
familiar power structures.
• Most members resist by denying its validity,
avoiding the issue, or blaming someone for
causing the problem.
• Members in this stage need help opening up,
becoming aware, and overcoming the reaction to
deny, avoid or blame.
 The Satir Change Model
• Stage 3: Chaos
• Members may behave uncharacteristically as they
revert to childhood survival rules.
• Managers of groups experiencing chaos should plan
for group performance to plummet during this stage.
• Management needs special help avoiding any
attempt to short circuit this stage with magical
solutions.
• The chaos stage is vital to the transformation
process.
 The Satir Change Model
• Stage 4: Integration
• The members discover a transforming idea that
shows how the foreign element can benefit them.
• Awareness of new possibilities enables authorship
of new rules that build functional reactions,
expectations, and behaviors.
• Members in this stage need more support than
might be first thought.
• The members need reassurance and help finding
new methods for coping with difficulties.
 The Satir Change Model
• Stage 5: New Status Quo

• If the change is well conceived and assimilated,

the group and its environment are in better
accord and performance stabilizes at a higher
level than in the Late Status Quo.
• In this stage, the members continue to need to
feel safe so they can practice.
Postscript: Coping With Change
Stage Description How to Help

1 Late Status Quo Encourage people to seek improvement information and concepts from outside the group.

2 Resistance Help people to open up, become aware, and overcome the reaction to deny, avoid or blame.

3 Chaos Help build a safe environment that enables people to focus on their feelings, acknowledge their fear, and use
their support systems. Help management avoid any attempt to short circuit this stage with magical solutions.

4 Integration Offer reassurance and help finding new methods for coping with difficulties.

5 New Status Quo Help people feel safe so they can practice.
Lewin‘s Change Model

Skills
Process of Change

Satir Model Problem Solving

Lewin’s Model People

Management
 Lewin‘s Change Model

• One of the early fundamental models of planned

change was provided by Kurt Lewin.

• He conceived of change as a modification of

those forces keeping a system’s behavior stable.

• This model provides a general framework for

understanding organizational change.
Lewin‘s Change Model
 Lewin‘s Change Model

• Unfreeze
•  In this step employees are educated about the
external and internal factors that make change
imperative.
• People are content with the existing work
environment, organizational rules and
procedures and therefore are unwilling to
change
 Lewin‘s Change Model

CREATING MOTIVATION AND

STAGE 1 READINESS TO CHANGE THROUGH

DISCONFIRMATION

CREATION OF GUILT OR ANXIETY

PROVISION OF PSYCHOLOGICAL
SAFETY
 Lewin‘s Change Model

• Movement to Change
 
• After the resisting employees are convinced or
prepared for change, the actual change process
begins.

• This involves doing away with old practices and

adopting new methods.
 
 
 Lewin‘s Change Model

STAGE 2 HELPING THE CLIENT TO SEE, JUDGE AND FEEL THINGS

AND REACT DIFFERENTLY BASED ON A NEW POINT OF
VIEW OBTAINED THROUGH

IDENTIFYING WITH A NEW ROLE MODEL, MENTOR, ETC

SCANNING THE ENVIRONMENT FOR NEW RELEVENT

INFORMATION
 Lewin‘s Change Model

• Refreeze
•  After change has been implemented, it has to be
assimilated into the organizational processes.
• The third step involves reinforcing change so that
the organization does not revert to old state of
things.
• Therefore, repetition and constant reinforcement of
new work techniques is essential to sustain
change.
 Lewin‘s Change Model

STAGE 3 HELPING THE CLIENT TO INTEGRETE

THE NEW POINT OF VIEW INTO A
TOTAL PERSONALITY AND SELF
CONCEPT

SIGNIFICANT RELATIONSHIPS
 A case in a box
• Refer to page 323,324
 Skills

Problem
Solving
 Problem Solving

• Problem Solving is a logical process and a

learned skill. It is unlikely that a team will be
able to do high-quality problem solving after only
training.

• Like any complex skill, effective problem solving

requires extensive practice
The Problem-solving process
 Recognize and focus on the
problem
• In many cases, people often start improvement
activities without first understanding why the
problem in question is being addressed.

• Problem areas become much clearer when the

actual circumstances are compared to the
business objective, the process requirements, or
the customer expectations. The bottom line is
that problem areas must be “discovered”.
 Recognize and focus on the
problem
• You need to be aware that a problem or
opportunity exists before you can solve it or take
advantage of it.

• It is from the information gathered in analyzing

the environment that you will learn that a
problem or opportunity exists.
 Techniques and tools for this
stage
• Stakeholder Analysis

• Force-Field Analysis
 Stakeholder Analysis

• Stakeholder Analysis (Mason and Mitroff, 1981)

looks at how groups of people might affect the
outcomes of a proposal by the way they react.
 Stakeholder Analysis

• Who are the sources of reaction or discontent to what is

going on?
• Who have relevant positional responsibility?
• Who do others regard as ‘important’ actors’?
• Who participate in activities?
• Who shape or influence opinions about the issues
involved?
• Who fall in demographic groups affected by the problem?
• Who have clear roles in the situation (e.g. customer,
friend, adviser)?
• Who are in areas adjacent to the situation?
 Stakeholder Analysis
• Using a matrix , stakeholders can be plotted and
categorized both by the chance of their affecting
the situation, and by the scale of impact they
would have if they did.

• Should any quadrant in the matrix appear

empty, check that you have really included
everyone, or plot the scale of the stakeholders
influence (high or low) against whether they
would support or oppose your project
 Stakeholder Analysis
Impact Unlikely Impact Likely

Impact, if it occurred, Would be Chairman of the Board My manager

high Chief accountant Key customer

Impact, if it occurred, Would be

Reprographics Department My secretary
low
 Stakeholder Analysis

• Listing any assumptions that stakeholders are

making could prove helpful

• e.g. using assumption surfacing, carefully

assess the list, especially in relation to the
stakeholder for whom they have been derived.
 Force-Field Analysis

• developed by Kurt Lewin (1890-1947),

• characterizes the conflicting forces in a situation.

• The recommended approach to this method is to

outline the points involved in problematic situations
at the problem exploration stage, followed by
recognizing factors likely to help or hinder at the
action planning and implementation stages
 Force-Field Analysis
• Members of the group identify and list the driving and
restraining forces (perhaps using a suitable brainstorming or
brain writing technique) openly discussing their
understanding of them.
• The group leader is representative of the current position as
a horizontal line across the middle of the page. The leader
will draw all the driving forces as arrows that either pull or
push the line upwards, and all the restraining forces as
arrows that pull or push the line downwards (see below).
• Where driving and restraining are paired use arrow
thickness to signify strength of impact of a force and arrow
length to show how complicated it would be to adapt. It is
normally best for the team to reach agreement on these
details.
Force-Field Analysis
 Force-Field Analysis

• The diagram should then be used to find as

many possible combinations of moving the
centre line in the desired direction. Try to:
– Find ways to strengthen or add positive forces
– Find ways to weaken or remove negative
forces
– Recognize that the negative forces are too
strong and abandon the idea
 Step 2:Define the problem
• makes sure the efforts will be directed towards
solving the real problem rather than merely
eliminating the symptoms.
• establishes the objectives of the problem solving
process and determines what will constitute
evidence for the problem to be solved.
• The outcome is a set of decision criteria for
evaluating various options.
 Techniques and tools for this
stage
• Fishbone Diagram
 Fishbone Diagram

• developed by Professor Kaoru Ishikawa

• helps to structure the process of identifying

possible causes of a problem.

• shows the relative importance and inter-

relationships between different parts of a
problem.
Fishbone/Ishikawa Diagram
 Step 3:Generate Alternatives
• involves cataloging the known options (a rational
act) and generating additional options (a rational
and intuitive act)

• to ensure that you reach the selection stage of

Problem Solving Process with enough potential
solutions.
 Generate Alternatives

• not a haphazard activity, but a logical,

thoughtful, careful search for specific actions
that will alleviate the cause.

• nurture your logic and also reinforce creative

talents in search of solutions.
 Techniques and tools for this
stage
• Analogies

• Morphological Analysis

• Brainstorming
 Analogies

• analogy - is when you say that something

is like something else (in some respects
but not in others)
• Analogies are a key feature of many
approaches to creativity. For instance,
they were central to the earlier forms of
Synectics and they are an important
element in various types of Excursion. The
term bionics has been used to describe
the systematic use of biological and
botanical analogies to solve novel
engineering problems.
• Often analogies are used very informally: 'This problem makes me think of X
(analogy) - that suggests to me that maybe we could try Y (idea drawn from analogy
X)'. But the underlying logic will be along these lines:
• Identify what it is you want ideas for, and try to find a core verb phrase that captures
the essential functional nature of what you are looking for - e.g.: 'How to make X'.
'How to prevent Y', 'How to speed up Z', 'How to become better at A'.
• For each verb phrase generate a list of items (people, situations, objects, processes,
actions, places, etc.) that is 'like' it in some way - e.g. analogies to 'making X' (having
a baby, making a pudding, the Genesis creation story, a robot car factory, ...etc.).
• Pick one of these analogies that seem interesting - preferably where the verb phrase and analogy are from different
domains - e.g. a biological analogy for a mechanical problem.
• Describe the analogue, including active aspects (such as how it works, what it does, what effects it has, how it is used) as
well as passive aspects (size, position, etc.).
• Use this description to suggest ideas relevant to your problem. Does the analogue have features you can use directly? Do
the differences suggest other ways of looking at your problem?
 Morphological Analysis

• term morphology comes from classical Greek

(morphe) and means the study of shape or form.

• It is concerned with structure and arrangement of

parts of an object, and how these "conform" to
create a whole.
 Steps of the process
• First step. The problem to be solved must be very
concisely formulated.

• Second step. All of the parameters that might be

of importance for the solution of the given problem
must be localized and analyzed.

• Third step. The morphological box or

multidimensional matrix, which contains all of the
potential solutions of the given problem, is
constructed.
 Steps of the process
• Fourth step. All the solutions contained in the
morphological box are closely scrutinized and
evaluated with respect to the purposes that are
to be achieved.

• Fifth step. The optimally suitable solutions

are ... selected and are practically applied,
provided the necessary means are available.
 Brainstorming
•  Define your problem
• Write out the problem concisely.
• Respond with as many ideas or suggestions as possible.
• Record every response. Often, the most creative or outrageous
suggestions are the most useful and interesting.
• Give yourselves a time limit.
• No criticizing of ideas.
• Once your time is up, select the five ideas that you like best. Make
sure everyone involved in the brainstorming session is in agreement.
• Write down about five criteria for judging which ideas best solve your
problem.
• Prioritize, analyze, or use the list to generate discussion or problem
solving.
• The idea with the highest score will best solve the problem.
 Step 4 : Evaluate and Choose
• Decision making - based on a systematic
evaluation of the alternatives against the criteria
established earlier.
• The better the job done in generating
alternatives and determining their possible
outcomes, the greater the chance that an
effective choice will be made.
• The choice process is mostly rational, but very
skilled decision makers rely on intuition as well,
especially for complex problems
 Techniques and tools for this
stage

• Evaluation Matrix
 Evaluation Matrix

• great tool for evaluating and prioritizing among

from 2 to 20 choices
 Evaluation Matrix
  Criterion A Criterion B Criterion C Criterion D

Option 1        

Option 2        

Option 3        

Option 4        

Option 5        

Option 6
 Step 5:presenting and selling
recommendations
• When you and your team reach a solution, they
will have achieved several important milestones.

• These achievements must not go unnoticed, and

it is the presentation to the management and
client that will recognize the accomplishment.

• Everything you have done to this point leads to

this critical, final step.
 Techniques and tools for this
stage
• Consequence and Sequel (C&S)

• ROI Analysis  
 Consequence and Sequel
(C&S)
• If your thinking is going to result in action of any sort
(decisions, choices, plans, initiatives etc.) then that
action is going to take place in the future. So you
have to look at the consequences of that action.
• Will it work out?
• What are the benefits?
• What are the problems and dangers (risks)?
• What are the costs?
• In doing a C & S you should keep in mind ‘position’.
Something you do may put you in a better ‘position’
to do something else.
 ROI Analysis  
• . The inherent benefits of an ROI analysis go well
beyond the numerical result, and include:
• Shortening the Purchase Process
• Building Consensus within Your Company
• Standardizing the Purchase Process
• Focusing on the Business Issues
• Gaining Senior Management Support
• Establishing an Historical Record
• Sleeping at Night
 Step 6:Implementation
• Implementation requires persistent attention

• This means accounting for details and

anticipating and overcoming obstacles

• Set specific goals and reasonable deadlines,

and gain the support of others for your solution
 Techniques and tools for this
stage

• Implementation Checklists
 Step 7:Assessing the
implementation and control
• Evaluating results is the final, and overlooked,
stage in the Problem Solving Process.

• The purpose of the evaluation is to determine the

extent to which the actions you took have solved
the problem.

• It is important at this stage to be able to recognize

deficiencies in your own solutions if necessary.
 Techniques and tools for this
stage
• Comparisons against Others

• Monitor Weak Signals

• Opportunity Searches
People Management

Skills
Process of Change

Satir Model Problem Solving

Lewin’s Model People

Management
 4 Cs

•  Communication- Listening and SPIN

questioning

• Conversational control and appreciative enquiry

• Concerns

• Credibility and competency

Demonstrating our listening
 Spin Questioning

• developed by Neil Rackham

• It is intended for large product or service sales

• is a questioning technique and is an acronym for

Situation,Problem,Implication,Need-payoff
Questions.
 Spin Questioning

• Situation Questions – to gather background

information and understand the context of the
sale.

• Problem Questions – to explore the customer’s

dissatisfactions and concerns.
 Spin Questioning
• Implication Questions – that develop and link
apparently isolated problems by examining their
‘knock-on’ effect on the areas of the customer’s
business.

• Need-payoff Questions – that invite the

customer to consider the benefits of solving his or
her problems and, having done so, to express an
Explicit Need for a solution
 Conversation Control
• The essence is to control is your ability to
manage your own conversation.

• It is likely that if other people see you behaving

in a reasonable fashion and exercising control
over what you say, then they will respond in a
positive way.
 The Concept of Probing
• Probing is the means by which you gather
information to achieve that understanding.

•  The ability to ask questions that logically and

efficiently to uncover important information
about a customer's needs

•  Your goal in probing is to build a clear,

complete, mutual understanding of a client's
needs.
 Paraphrasing

• Paraphrasing is reshaping what has been said to

make it more comprehensible.

• Paraphrasing can be a useful tool for insuring

that successful communication has taken place.
 Appreciative Enquiry
• based on the assumption that organizations
change in the way they inquire 

• organization which inquires into problems or

difficult situations will keep finding more of the
same

• an organization which tries to appreciate what is

best in itself will find/discover more and more of
what is good.
 Appreciative Enquiry

• a particular way of asking questions and

envisioning the future that fosters positive
relationships and builds on the basic
goodness in a person, a situation, or an
organization.

• In so doing, it enhances a system's capacity

for collaboration and change. 
 Appreciative Enquiry

• Discover: The identification of organizational

processes that work well.
• Dream: The envisioning of processes that would
work well in the future.
• Design: Planning and prioritizing processes that
would work well.
• Destiny (or Deliver): The implementation
(execution) of the proposed design
 Concerns

• Identifying the needs and motives

 The Iceberg Principle

• The tip of the iceberg - represents people’s

behavior.

• What lies under the waterline are the reasons for

that behaviour.

• It is easy to observe behaviour and accept it at

face value.
The Iceberg Principle
 Credibility and Competency

• Credibility is the objective and subjective

components of the believability of a source or
message.

• Traditionally, credibility is composed of two

primary dimensions: trustworthiness and
expertise, which have both objective and
subjective components.
 Factors influencing perceived
credibility are
Confidence

• People who seem in control and confident in

what they say and do are more believable than
people who appear to be hesitant and uncertain.
 Factors influencing perceived
credibility
Initial impact

• People are never more sensitive than when they

first meet.

• The behaviour involved in initial impact are

observable and can be controlled and improved.
 Factors influencing perceived
credibility
Honesty
• A lack of honesty may take some time to be
discovered or it could be discovered the moment
a few words have been uttered
 Factors influencing perceived
credibility
• Delivering as promised
• This is a factor influencing credibility which is not
easily demonstrable early in the relationship.
• Continued credibility rests on being able to
deliver on an on-going basis.
 Competency

• fundamental knowledge, ability, or expertise in a

specific subject area or skill set.

• Companies with specific strengths in the

marketplace, such as data storage or the
development of accounting applications, can be
said to have a core competency in that area.
 Factors which affect perceived
competence
• Knowledge
• Knowledge is defined in this context as the
amount which we know (technically or
theoretically) about a subject.
 Factors which affect perceived
competence
• Track record
• If we have a record of providing valuable advice
in a particular industry and type of business, this
will build our competence
 Factors which affect perceived
competence
• Expertise
• Expertise is the ability to apply one’s knowledge
and track record to the particular situation and
produce credible and believable ideas, ways
forward and solutions.