Change Management. Developed by NHS South East Coast in conjunction with the Department of Health

Transcription

1 Change Management Developed by NHS South East Coast in conjunction with the Department of Health

2 LEARNING OBJECTIVES Understand more about Change Management Be able to debate methodology

3 WHAT IS 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 organisational changes Organisational change management provides the knowledge and skills to implement a methodology and tools for managing change throughout an organisation.

4 WHY IS IT IMPORTANT? 82% of survey respondents identified change management as a priority for their company. 99% expect an increase need for management over the next three years But over a third has neither implemented a change management function nor plans to do so within the next three years. Almost half the companies surveyed (48%) have already established a change management function somewhere in their organization, and over a quarter of the rest expect to launch one within three years. Source: The Conference Board

5 CRITERIA MOST COMMONLY FACTORED SELECTING CHANGE OF STRATEGY Market demand (68%) Availability of budget (52%) Changes in leadership (41%) Employee satisfaction and turnover (37%)

6 COMMON CHANGE INITIATIVES Change in business process (89%) Organisational structure changes (76%) Behaviour new leaders (68%) Who do we have to involve - and how?..e?

7 FACTORS AND COMPETENCIES Critical factors in effecting change are: - Planning - Communicating - Active Participation Key competencies for implementing change are: - Effective communications - Building Trust - Achieving collaboration Implementation techniques - Communications - Employee Participation - Linking implementation to individual performance objectives and compensation

8 CHALLENGES, METRICS AND ACHIEVEMENT Top challenges for affecting change are: - People issues - Organisational resistance - Communication weaknesses Top metrics for measuring change: - surveys - scorecards The main areas contributing to achieving CM: - Alignment - Competency of leadership - Competency of organisation - Competitive pressure

9 WHAT IS CHANGE MANAGEMENT? THE THEORY Academics cannot agree on a single definition Origins in so many different disciplines: - Psychology, sociology, business studies, social science Boundaries have varied with studies Various degrees of rigour of the research Concept and tools vary considerably

10 WHAT ARE THE BENEFITS Managing expectations increase support for the change Defined targets ensure effort is focused Better decision making at key points, because of improved communication and knowledge Hopefully reduce anxiety and stress

11 THREE MAIN DEFINITIONS Planned and Emergent Change Episodic and Continuous Change Developmental, transitional and transformational

12 PLANNED AND EMERGENT CHANGE Planned change - Deliberate and conscious Emergent change - Activity or outcome unplanned, spontaneous - Internal through managerial actions - External, politics, economic, competitor activity Plan as much as you like all organisational level change is not fixed or linear in nature and contains some emergent element

13 EPISODIC AND CONTINUOUS CHANGE Episodic - Infrequent, discontinuous + intentional - Radical or second order -Replacement of a strategy or programme Continuous - Ongoing, evolving + cumulative - First order or incremental - Quality and project programmes Source: Weick and Quinn

14 DEVELOPMENTAL, TRANSITIONAL & TRANSFORMATIONAL AKERMAN Developmental - Can be planned or emergent - First order or incremental - Enhances or corrects existing aspects of an organisation Transitional - Episodic, planned, second order or radical - Origins in Lewin Unfreezing the existing organisation Moving to a new state Refreezing in new state Transformational - Radical or second order - Shift in structure, processes, culture + strategy - Then operates in developmental state

15 SYSTEMS THINKING Cummings and Dawson said: - Change is chaotic - Shifting goals and surprising events - Unexpected combinations Origins in 1920s in Biology and Engineering - We can break things down and know their outcome I.e. by studying their constituent parts and these properties A system is a set of elements connected together which form a whole and therefore have the properties of the whole can have activity within the system that affects the different elements Checkland - Systems are closed or open - Closed are autonomous or independent of surroundings - Open affected by their environment and exchange matter with them We tend to use system thinking within the NHS

16 CHANGE MODELS & FRAMEWORKS There are many don t use them all Need to choose which are deemed best for the particular organisation and culture Can help to allay fears for people Can help to explain behaviours

17 KOTTER 8 STEP CHANGE PROCESS John Kotter, Professor at Harvard Business School. Identified Eight Steps to Successful Change: 1. Create Urgency 2. Form a Powerful Coalition 3. Create a Vision for Change 4. Communicate the Vision 5. Remove Obstacles 6. Create Short-term Wins 7. Build on the Change 8. Anchor the Changes in Corporate Culture

18 BUSINESS PROCESS REENGINEERING (BPR) Business Process Reengineering - Hammer and Champy, is defined as: the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed. The main concepts: - Organisations organised around key processes rather than specialist functions. - Narrow specialists replaced by multi-skilled workers, working in self-managed teams. - Lose incremental techniques e.g.tqm, BPR involves total disassociation from current practices and radical rethinking. - The direction for the requisite radical rethinking comes unequivocally from top management.

19 BPR FIVE STEP PROCESS

20 HERZBERG S MOTIVATION & HYGIENE FACTORS Basic needs (hygiene needs) not met, cause to be dissatisfied. Meeting these needs does not satisfy, however it prevents dissatisfaction. Hygiene deliberately medical. Analogy of the need to do something that is necessary, but which contributes towards making the patient well (it only stops them getting sick). Also called maintenance needs. There is a separate set of needs which, when resolved, do make us satisfied. These are motivators. Also called Herzberg s two-factor theory. Herzberg asked people about the times when they had felt good about their work. He discovered that the key determinants of job satisfaction were achievement, recognition, work itself, responsibility and advancement. He also found that key dissatisfiers were company policy and administration. Supervision, Salary, Interpersonal relationships and working conditions.

21 HERZBERG S MOTIVATION & HYGIENE FACTORS Most obvious to him were separate groups with separate evaluation, and not a part of the same continuum. Thus if organisation resolved the dissatisfiers, they would not create satisfaction. I need to be paid on time each month so I can pay my bills. If I am not paid on time, I get really unhappy. But when I get paid on time I hardly notice. On the other hand, when my boss gives me a pat on the back I feel good. I don t expect this every day and don t especially miss not having the praise all of the time. Differentiate between hygiene needs and motivator needs. Ensure you address motivator needs when getting someone to do something. Attacking hygiene needs may be effective when trying to stop them doing something.

22 MASLOW S HIERARCHY OF NEEDS Psychologist Theory developed in 1940s/50s, still regarded as relevant today Thesis from studying monkeys translated into human motivation Originally 5 stages, an additional three stages were later added

23 MOTIVATIONAL NEEDS THEORY David McCelland ( ) - American Psychologist Asserts human motivation has three dominant needs: - Need for achievement - Need for power - Need for affiliation The need varies from individual to individual Culture plays a part Co-developed a Thematic apperception test to determine what needs motivate an individual and therefore which job roles they are suited to.

24 JOHARI WINDOW MODEL Understand self awareness in individuals and groups Developed by US psychologists Joseph Luft & Harry Ingram in the 1950s. Johari has 4 quadrants or areas: 1 3 open/free area hidden area blind area unknown area What is known by person himself and is also known by others open area 2. What is unknown by person, but known by others blind area 3. What the person knows about himself but which others do not know hidden area 4. What is unknown by the person and also unknown by others unknown area

25 EMOTIONAL INTELLIGENCE Intrapersonal - Inner intelligence: - Self Awareness - Emotional Management - Self Motivation Interpersonal - Outer intelligence: - Relationship Management - Emotional Coaching

26 CONTENT, CONTEXT & PROCESS Developed by Pettigrew and Whipp: - What or content of change - How or process -Organisational Context - internal or external Environmental HR resources Strategic and operational change Leading change Overall coherence: - Quality and coherence of policy - People leading - Managerial clinical relations co-operative inter-organisational networks - Clarity of goals - Change agenda - Supportive culture - Environmental pressure

27 SOFT SYSTEMS METHODOLOGY CHECKLAND & SCHOLES

28 PROCESS MODELLING Process flow or Process Map Influence Diagram

29 KUBLER ROSS CHANGE CURVE

30 THE BALANCED SCORECARD

31 MCKINSEY 7S PETERS AND WATERMAN

32 PASTELI Political Economic Social Technological Ecological Legislative Industry

33 THEORY OF CONSTRAINTS The Theory of Constraints (TOC) is an overall philosophy developed by Dr. Eliyahu M. Goldratt, usually applied to running and improving an organization. - "What to change?" - "How to cause the change?" Win-win conflict resolution Effective communication Team building skills Delegation Empowerment Increase Throughput Reduce Inventory Reduce Operating Expense

34 SWOT Strengths Weaknesses Opportunities Threats

35 TOTAL QUALITY MANAGEMENT PLAN: Design or revise business process components to improve results DO: Implement the plan and measure its performance CHECK: Assess the measurements and report the results to decision makers ACT: Decide on changes needed to improve the process

36 TOTAL QUALITY MANAGEMENT Focus on processes Identify and measure customer requirements Analyse variability Use cross functional teams to solve problems Management by fact Learning and continuous improvement Use of quality tools e.g. cause and effect, brainstorming, Pareto

37 FORCE FIELD ANALYSIS

38 METHODS OF ANALYSIS Quality circles Self managed teams Organisational development Action research Project management

39 SUMMARY Change needs to be understood to be managed Change cannot be managed in its entirety There are tools and methods available they help but are not the whole picture Resistance to change is a strong inhibitor Work with the easiest parts of change first Be positive about change Change is within all out capabilities Look for benefits of change