Change Management

Change Management

Get Started
What would you do?
For ten years, New Brew Coffee was a privately run company. The long-standing culture was laid-back, informal, and nonhierarchical. Last year, New Brew went public and everything changed. New people were hired, new policies and procedures were put in place, and new goals were established. Veteran employees were having a tough time dealing withall the changes. When Debra, a new manager, asked all departments to submit detailed weekly reports, she encountered significant resistance. Debra couldn't understand why: Didn't they see that going public would require more efficient and transparent record keeping? How could Debra establish an effective record keeping system in a culture that resisted formal structures?
What would you do?
Toget everyone on the right track, Debra might have spoken with each of the departments to better understand how they currently keep records within their groups and share information with others in the company. She then might have explained the need for greater accountability and asked them for suggestions on how to improve existing practices. Next, Debra might have framed the new plan as anexperiment—one that would be modified over time in response to feedback. By asking for input and agreeing to modify the trial plan, Debra would have enlisted the help of the groups in improving record keeping and reaching her desired outcome.
In this topic, you'll learn how to deal constructively with change and position change as an opportunity for experimentation and growth.
Change can be exciting,but it can also be daunting. How can you ensure your business unit embraces change and prepares for successful transitions?
Topic Objectives
This topic helps you:
* Recognize the different types of change programs observed in organizations
* Prepare your unit or group to become change-ready
* Understand a systematic approach for creating and implementing change
* Recognize theimportance of communicating throughout all phases of a change effort
* Understand and address people's reactions to change
* Take care of yourself during a change program

The Dimensions of Change

Types of change
view media player
Key Idea
In order to respond to the challenges of new competitors, markets, and technologies, organizations must undergo continual change. Some changeprograms are strategic in nature, while others are more operational. Some are radical and take place only once; others are more incremental, purposefully paced to promote continuous improvement and stability.
Change programs can take many forms. Generally, these programs fall into the following categories:
* Structural change. These programs attempt to reconfigure the organization in order toachieve greater overall performance. Examples include mergers, acquisitions, consolidations, divestitures, promotions, layoffs, or the arrival of a new leader.
* Cost-cutting change. These programs focus on the elimination of nonessential activities or on other methods for squeezing costs out of operations—for example, headcount, expense, capital, or unit cost reductions; outsourcing; partnering;creating industry alliances; or negotiating long term vendor contracts.
* Process change. These programs concentrate on altering how things get done. Examples include reengineering a process or introducing a new technology.
* Cultural change. These programs focus on a company's operating values, norms of behavior, and the relationship between its management and employees. Shifting fromcommand-and-control to participative management or reorienting a company from an inwardly focused "product push" mentality to an outward-looking customer focus are examples of cultural change.
* Strategic purpose change. These initiatives attempt to reinvent an organization by changing its strategic intent, core purpose, or mission. Examples include shifting from selling individual products to...