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movement of an org away from its present state and toward some desired future state to increase its efficiency and effectiveness
must alter policies, structures, behaviours, and beliefs in order to move forward
implementing change is often met with resistance
cultural changes
strategic changes
tech changes
structural changes
Assess the need for change
recognize there is a problem
identify the source of problem
Decide on the change to make
decide what org’s ideal future state would be
identify obstacles to change
Implement the change
decide whether change will occur from top down or bottom up
introduce and manage change
Evaluate the change
compare prechange performance with postchange
use benchmarking
assessing the need for change calls for 2 activities
recognizing problem
identifying its source
performance gap: disparity between desired and actual performance signals there is a problem
new goals: may require changes
enviornmental, social, and governance (ESG) goals
diversity, equity, and inclusion (DEI) goals
top down change
implemented quickly
top managers identify the need for change, decide what to do, and then introduce changes throughout org
emphasis on making changes quickly and dealing with problems as they arise
bottom up change
more gradual
involves consultation with managers and employees at all levels of an org
reduces uncertainty and resistance to change
using measures
market share, profits, ability to meet goals, compare performance before and after
benchmarking: comparing performance on specific dimensions with the performance of other high performing orgs to determine success of change effort
A framework for understanding change
Stage 1: Unfreeze the status quo - create motivation for change
Stage 2: Change / move to a new state - implement new practices
Stage 3: Refreeze - solidify new practices as the norm
clearly communicate future state and seek input
increase the driving forces
remove some of the restraining forces
when resistant extremely high, use both driving and restraining forces for unfreezing
use formal power to withhold rewards (last resort)
create a sense of urgency
build a guiding coalition
form a strategic vision
enlist a volunteer army
enable action by removing barriers
generate short term wins
sustain acceleration
institute change
discovery
determining the “best of what is”
dreaming
visualizing “what might be”
design
developing “what should be”
destiny
implementing “what will be”
orgs respond best to fundamental change if they are on the “edge of chaos”
to achieve this state:
increase channels of comms
not dictate agendas
rotate people regularly
avoid overreliance on an incumbent management team
tolerate parallel developments
avoid excessive “fit”
try to reduce anxiety
innovative (adaptive) culture:
encourages positive attitudes and behaviours
fosters creativity and innovation
values and norms help org to grow and change
Conservative (inert) culture:
leads to values and norms that fail to motivate or inspire employees
leads to stagnation and often failure over time
inspires higher resistance to change