BEST PRACTICES IN CHANGE MANAGEMENT

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1 132 ABSTRACT BEST PRACTICES IN CHANGE MANAGEMENT J.SHEEBA ROSALINE* *Lecturer, Xavier Institute of Management and Entrepreneurship, Electronic city Phase II, Hosur Road, Bangalore Innovations are the not only the integral part of organizational development but also driving forces for a country s economic growth. For effective change management, innovations should be consistent and systematic. In the current scenario, companies are facing perplexing problems in managing change. Mastering change management is an art that has to be learnt and implemented with care. For change management to be effective it is essential to take steps to implement change in all the three levels of management namely strategic, tactical and functional. Competency based change management can be followed so as to reap the benefits of achieving the performance excellence. Risk taking behavior is an essential quality that forms an integral part while dealing with change and hence the change managers have to develop competencies to overcome the uncertainties in the organizations. Proactive approaches can be followed to ensure successful implementation of change in any organization. KEYWORDS: Best practices, Change, Competency, performance, Innovation, Proactive. INTRODUCTION Competence means a skill and the standard of performance while competency refers to behavior by which it was achieved. Competence is what people do and competency means how people do it. -Rowe, 1995 Innovation is often associated with changes that are positive. Innovations are the driving forces for a country s economic growth. Innovations in general can be in the form of a new technology or product that seek value addition and increases the strength of the organization. First of the all, the change managers need to identify the practices that are ineffective with respect to organizational performance. Then they have to go for the innovative best practices that aid in the achievement of strategic objectives of the organization. For effective change management, innovations should be consistent and systematic. There are five categories of adopters of innovations namely innovators, early adopters, early majority, late majority and laggards. The degree to which the individual is quick in adopting to new ideas is called innovativeness. The innovativeness of the adopters are Innovators-2.5 %,Early Adopters-13.5%,Early Majority-34%,Late Maority-34%,Late Majority-34% and Laggard- 16%.(Rogers, E. 1962).The Boston Consulting group and Mckinsey surveys showed that about 70 % of the sample innovation is one of the top three strategic corporate priority. With changing technologies it is required to change duties and responsibilities.

2 133 To remain competitive and survive in the global scenario, organizations may have to change their culture. Companies must proactively respond to the significant business changes in the business world. The yo-yo impact on organizational culture that involves expansion and contraction of company operations is one of the major changes that can take place in organizations. (Luthans, 1995). Restructuring, multitasking, outsourcing, short-term contracts are the various changes that are taking place in organization. Changes should be considered as opportunities and must be effectively utilized. Information technology, telework, part-time contracts, self employment, portfolio concept and adaptability are the influencing change oriented factors that affect managers. (Malone,2006). The dimensions of people and change are to be taken into account for the implementation of the change management process. Change can be successful when both the dimensions occur simultaneously. The more systematic, the management practices are the more effective is the change implementation. The change process consists of how well the resources are utilized and in what way for achieving performance excellence. By adopting the best practices in change management, employees get motivated and contribute towards the achievement of organizational objectives. Moreover the employee s commitment to support the change initiative is also high. The management practices should also involve activities that reinforce change. CORE VALUES-DETERMINANTS OF COMPETENCIES In the business lexicon, core values are defined as the principles that guide an organization s internal conduct as well as its relationship with the external world. Core values find place in the mission statement of the organization. The core values of an organization entail the strategies that are adopted to achieve the mission. Organizations strive for reaching the level of perfection through shared commitment towards the values which in turn help to build a culture. For an example, the core values of Google include- Focus on the user and all else will follow It s best to do one thing really, really well Democracy on the web works Core values form an integral part of any business. They provide an insight about what the company is all about. It helps in establishing the identity of the company. Any decision taken by the company depends on the core values which comprise of rules and regulations. In the planning process at the strategic level, establishing core values plays a vital role. The companies that have created core values have come up well in the business world. Customer service, excellence, integrity, quality of services are some of the core values of a company. Core values in a company are one of the components of a business vision and the others being the core purpose and goals. It is the unique characteristic of core value that they do not change with respect to changing environment. Core values are the foundation on which a company rests. Core values provide an insight into how to think and incorporate in the day-to-day business activities. Core values form an integral part in determining the success of a business. The

3 134 methodologies involved in decision-making and problem solving are the core values in a company. The quality of the business can be brought into focus before the customers using the core values. Creating core values is one of the key areas of strategic planning. The strategic level of approach is needed while considering core competencies. Core competencies are strength to the organizations that act as basis for value addition towards competency building. The continuous enhancement of both products and services are possible by utilizing core competencies (Prahlad & Hamel, 1990). HOW MANAGERS DEAL WITH RESISTANCE TO CHANGE? Resistance management can be either proactive or reactive. The former resistance management is the systematic way of determining the origin of resistance and plan for mitigating them. The latter is in response to the resistance and necessary steps are to be taken to overcome it. The first step in a resistance management plan is to identify change and then define strategies for managing change. The third step would be to review the management approach and finally communicate the resistance management plan to managers. Leaders mentoring, strategic planning, communication and building organizational relationships are considered to be the levers of change management process. Change has to be purposeful to reorganize a company. During the strategic change management process the novel vision is developed to achieve the objectives and more essentially it should be aligned in the right direction. People do not resist change and they resist being changed. Change cannot be enforced upon, change has to be gradual. Good leaders are good communicators. Good communication is vital in process of change to allay fears and promote right kind of enthusiasm. Employee involvement is the best weapon to counter adversities. Managing change is like managing two opposite forces viz. the desire for stability and desire for change like two crossbars each swinging in opposite direction (Moid, & Khwaja, 2008). There could be several reasons for why people resist change. It may be due to poor communication, fear of unknown; reward is inadequate, peer pressure, climate of mistrust, and personal conflicts. The change agent has to extend his support in identifying the right positive changes to the members of the organization. It is necessary that the change leaders must use the specific skills in leading the employees towards the deliberate changes. Managers handle resistance through various means like facilitation, education, involvement, negotiation and coercion. The major change in the organization lies in cultural change and focuses on the attitudes and behaviors of the employees. Change in organizations mean change in people. The change Kaleidoscope can help managers design a context sensitive approach to change within their organization. The outer ring relates to the organizational strategic changes. The middle ring represents the characteristic features of change. The inner ring between the establishes the relationship between the various alternatives that are available to change agents. (Balogun, 2001). Employee involvement should be available to improve the responsiveness and progress of the members of the organization which directly improves organization s effectiveness and productivity. Companies like BHEL, TATA Motors, SAIL and Ford have increased and intensified the value of worker s involvement through enriched forms of works. High involvement organization that are developed on the basis of factors such as job description, open information system, selection of highly motivated employers help in high level of

4 135 employee participation in an organization. This results in employee retention for a long time that directly contributes to organizational development and change. (HRM Review, 2011.) Whenever there is resistance to change it is a clear indication that there is an issue related to communication and the need of the hour is to clearly define the vision and the change management strategy. To achieve effectiveness in organizational change, the polarities are to be managed properly. A combination of real time strategic change management and polarity management can be much helpful in an organization to plan the needed changes and adapt them to the new emerging culture. This integrated approach can help in developing the ability to manage changes in future (Jacobs, 2010). SUCCESSFUL IMPLEMENTATION OF CHANGE Organizational change should not be done for the sake of change but be associated with the performance of organizations.successful implementation of change is possible when individuals work towards the achievement of the organizational goals. There are two aspects of managing change one is technical and the other one is cultural. The employees should fully get engaged in the change management process. The first and the foremost step in the successful implementation of change would be to define change. Then the people should be prepared for change, use the right levers for change and then communicate to the employees in the organization. The introduction of any new technology is much easier that to implement the planned changes in the organization. The people need to accept changes. Understanding the need for change, believing that change is desirable, commitment, perseverance, specific goals, clear accountability and rewarding the new behavior are some of the success factors for organizational change. (Adams, 2003). ADKAR model (Prosci, 1998) is a goal oriented change model that focuses on the activities for achieving the change management results. It lays emphasis on Awareness, Desire, Knowledge, Ability and Reinforcement. Managers can use the ADKAR Model in order to identify the gaps in change management process. It can also be used to diagnose employee resistance to change and support the employees as they undergo the change process. Finally the change management plan can be developed for the employees. ADKAR Model can not only help in identifying the reasons for gaps in implementing changes but also plan for a successful change. Kotter, J. P. (1996) suggested eight factors for a change to be successful. They are establishing a sense of urgency, creating a guiding coalition, developing a vision and strategy communicating the change vision, empowering employees, generating short term wins, consolidating gains and anchoring new approaches. Communication is a critical factor that can help in overcoming the resistance to employees. Successful change implementation depends on leaders. From an instance the leadership style (charismatic) of the manager can bring about desired changes among the attributes of the employees. It is mandatory that organizations identify and cope up with change. Dependence only on explicit knowledge prevent leaders from coping with change. Companies have to create new futures so that they can survive in the long run. They can no longer be extensions of past. They must be leaps of faith into tomorrow. Leaders should be pragmatic and not satisfied with analyzing situation using empirical data and deductive reasoning ; but also inductive through ideals and dreams.( Nonaka, & Takenchi, 2011).Managers face difficulty in communicating change in corporate identity without diluting brand equity. (Argenti, 2007).

5 136 Business acumen, interpersonal understanding, credibility, communication and ability to realign the policies and practices are the competencies that would have greater implications for human resource professionals in workforce reduction scenario. (Waraich, & Bhardwaj, 2010). TABLE 1. COMPETENCIES REQUIRED FOR CHANGE S. No. Area Competencies 1. Analytical Skills Cognitive Conceptual Skills 2. Functional /Technical Depth of knowledge Dissemination of expertise Breadth of Knowledge and Skills expertise acquisition motive 3. Personal Self control Self confidence Organizational commitment Flexibility Initiative Communication 4. Inter-personal Inter-personal relations Developing cooperative working relationship Service orientation Interpersonal understanding Negotiation

6 Problem solving Self awareness Contracting skills Sensing & diagnosing skills linking skills Source: BEST PRACTICES IN CHANGE MANAGEMENT STRATEGIC CHANGE MANAGEMENT There has been a shift towards strategic level in the field of Human resource management due to the changes that are taking place globally. The changes in the strategy has a greater influence on the functions of human resources like recruitment, training and development, performance management. It is necessary to add value when managing change strategically. In the changing business scenario, the human resource professionals should create innovative approaches to manage change. The plan of where you are now to where you want to be is a shift from one end of the polarity to another which can create resistance among the employees. Managing of polarities greatly influences decision-making in companies. Cultures prevailing in corporate are unique and innovation introduced in one organization may not work out for other conditions. Effective change management requires the skills to predict the need and deal it. Once the plans are formulated the next step would be to encourage the participation of the employees so that the feedback is received from the concerned change areas. Finding the right motivators of change can be a challenging task for a human resource professional. The ability to motivate others towards plianting to changes is highly recommendable. This can be achieved through anticipating difficulties in gaining acceptance, communicating with key people who are involved in the change process and considering the consequences of change. Persuasion is a talent that requires fitnesse, sensitivity and timing.( Fritz, Roger,2006).The first step towards strategic change management is to analyze the strategies. In this stage the analysis of the organization s external and internal environment comprising of the strength and weakness is carried out. This determines the effectiveness and efficiencies in achieving the organization s objectives. In the next level the choices for taking strategic directions are considered. This stage includes the fixing of strategic vision, creating values and fixing the objectives. In the third stage the methodology is adopted to shift the organization from current to the future position. The final step entails the implementation stage that also includes the feedback along with review measures to be undertaken. Eric Douglas has postulated three principles, the first insisting on to focus on first five percent, the second on defining the root cause of the problem and the third being finding a guide who can offer examples from other organizations. The six rings model that includes purpose, core values, vision, goals, objectives and actions has been emphasized for strategic

7 138 planning during change management. Besides assessing the reactions of the human resources, the technologies and resources are assessed to implement change. Change management takes place in an organization when the integrity is challenged due to technological changes. Communication plays a vital role in the change process. Once change occurs in an organization, the next stage is to communicate. In many cases the reason for failure of projects is poor communication. In areas of information technology there are two issues namely business effectiveness and transformation. In the absence of good communication network systems, the projects fail. This in not only restricted to IT but also to non-it areas. The best way to achieving success is to transmit the information clearly in a two way process (Krigsman, 2011).) Strategic motivators highly refer to the leadership qualities of the change agents who have an eye for the reinventing and reengineering activities in the organizations. It becomes necessary to communicate the company s vision among the employees while initiating changes so that they can adapt to the new culture. PROACTIVE CHANGE MANAGEMENT The reactive approach to solving the issues is a conventional approach to change management. In proactive approach of change management, solutions are created well in advance anticipating the problems. This is done by fixing objectives after predicting future and establishing a plan for the future issues. The interactive system of management can support the managers in building up the change management process. The managers get involved with the people even before any problem arises. Employees dislike change as it reflects uncertainty. The human resource professionals who act as change agents need the concepts and principles behind change management that would be very much helpful to taking decisions. But we have to accept the fact that predictions cannot be made at all times hence the reactive approach may find place under certain situations. There has always been the debate whether change management should be proactive or reactive. Proactive change management entails the attitude of anticipating and grabbing the opportunities by overcoming the threats. Among the two schools of thought of handling change namely crisis driven change and proactive change management, the latter is considered to be the best method as it creates competitive advantage to the organization. Proactive change management is the systematic approach to identifying the origin of change, critical gaps and addressing them before they occur in organizations. This method of change management involves excessive planning well ahead of the change process. The good example of proactive approach is resistance management plan. The first and the foremost step would be to define and then identify the resistance to change. Then work out the strategy for change, review the resistance approach and finally communicate it to the managers for implementation. Proactive change is a dynamic process that involves visionary practices. In case of the reactive change management, the role of the change managers is to manage resistance to employees and dealing with the effects of change. Change management is like a race against time to cope up with the changing global scenario. Hence it can be seen in organizations that managers hardly find time in going through the process of proactive change management.

8 139 COMPETENCY BASED CHANGE MANAGEMENT A competency describes a cluster or group of related knowledge, skills, abilities (KSAs) and other attributes associated with high performance in an occupational role. (Mirabile, 1997)Competency of a professional is determined through the level of knowledge, capacity to utilize skills, attitudes and values towards HR function. (Chandra & Kabra, 2000). The development of a competency model starts with identification of general competencies for a job role. Once the competencies are validated, addition of technical and local competencies provide a comprehensive competency model. Competency models play a major role in communication and they focus on superior performance. They provide a common platform for success and framework for thinking about excellence. They bolster dissemination of information and open communication (Kormanik et al.,2009). Effective communication skills, team development, coaching, quality, information and resource management are the competencies that are required by a leader for managing change.bcg approach towards change management can be followed in organizations.bcg has six dimensions such as creating an agenda for change, mobilizing the organization, converting change into business, managing for results, sustaining change and communicating strategically. Most of the team development activities take place with the initiation of change in organizations. The change must come from within organizations and people must be aware of the need for change. Managers who face changes have to think on a long term basis by following economic approach or organizational development approach. It is very difficult to find managers with the managerial competencies that are required for implementation of change in an organization. (Hellriegel & Slocum. 2005). But it has been observed that companies focus on business process and very rarely on leadership. Driving a lasting change has to take place from the top management. This includes entrepreneurial spirit, commitment to resources, methods to follow and right type of organization (Shermon, 2008).Change management differs from the routine human resource activities and therefore the hr professionals have to focus on the soft softer issues like job satisfaction, job progression, work autonomy apart from hard issues such as salary, service conditions would gain increasing prominence. (Krishnan, T.K.2010). CONCLUSION New technologies have lead to employment opportunities in emerging sectors and the required skills have undergone a change. For reaping the competitive advantage the companies have to evolve innovative practices in all the major areas of business. In order to sustain in the long run an organization should focus on enhancing its ability to adapt to the changing environment. Change should not be considered as an event but as an ongoing process that takes place in the business cycle. It is imperative that strategic approach has to be clubbed with the ethical approach during the change management process. Change not only involves the financial aspects but also the human side that covers the emotions and attributes of the employees. Values exist in working environment and organizational culture is a clear indicator of values. Organizations should identify the relationship between values and organizational changes so that they can face the changes that are taking place with respect to culture and values. Thus competency based change management should be value driven and there is a dire need to go for an eclectic mix of both proactive and reactive methods in managing change.

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