Strategic Management: Managing Change Notes

Emily Lawson and Colin Price (2003): Programs to improve corporate performance are difficult because success depends on persuading thousands of individuals to change how they work.
Mind-Set Transformation: CEOs must alter the mind-sets of employees. Transformation is only accepted if people are persuaded to think differently about their jobs.
Integrated Psychology: Linking major psychological discoveries together provides a stronger chance of effecting long-term changes compared to applying them piecemeal.

A Purpose to Believe In: Based on Leon Festinger’s 1957 theory of "cognitive dissonance." People strive to eliminate the mental distress caused by inconsistencies between their beliefs and actions. If people believe in the organizational purpose, they will change their behavior to align with it.
Reinforcement Systems: Based on B. F. Skinner’s conditioning and positive reinforcement. Structures (reporting, targets, and rewards) must be consistent with the new behavior. However, reinforcement loops must be supported by other conditions to ensure behavior endures.
The Skills Required for Change:
- David Kolb: Developed a four-phase adult-learning cycle involving reflection, experimentation, and integration.
- Chris Argyris: Information is assimilated more thoroughly when individuals describe to others how they will apply what they have learned.
Consistent Role Models: Based on Benjamin Spock's findings. Adults model behavior on "significant others" at every level of the organization. Change must be meaningful to key groups (e.g., sales reps in a canteen) for it to be deep and permanent.

Unfreeze: Helping people understand why things must be done differently. This stage is culturally sensitive.
Moving: The phase where people develop new insights, attitudes, and skills.
Freezing: Establishing newly developed skills and attitudes into a new routine.
Common Error: Most organizations focus only on the "moving" step and neglect the other two.

Effective change management requires balancing the force of change and the force of resistance.
Harder pushes for change often create harder resistance.
The methods used to overcome resistance are culturally dependent.

John Kotter (1995): Emphasizes that change is a process that goes through specific phases over time. Skipping steps creates an illusion of speed but results in failure.
The Recipe for Change:
1. Establish a sense of urgency.
2. Form a powerful guiding coalition.
3. Create a vision.
4. Communicate the vision.
5. Empower others to act on the vision.
6. Create short-term wins.
7. Consolidate improvements and sustain momentum.
8. Institutionalise the new approaches.

Stage 1: Loss: Accompanied by fear; thoughts are cautious, and behavior is paralyzed.
Stage 2: Doubt: Accompanied by resentment; thoughts are skeptical, and behavior is resistant.
Stage 3: Discomfort: Accompanied by anxiety; thoughts are confused, and behavior is unproductive.
Stage 4: Discovery: Accompanied by anticipation; thoughts are resourceful, and behavior is energized.
Stage 5: Understanding: Accompanied by confidence; thoughts are pragmatic, and behavior is productive.
Stage 6: Integration: Accompanied by satisfaction; thoughts are focused, and behavior is generous.

Individual Activity: What do I understand by change? Do I like change? How do I cope with change?
Plenary Activity: How can we (self or manager) overcome the challenges and resistance of change?