Change Management
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What is Change Management?
Organizational change can be described as the process of moving away from a current condition to realize some future state. Change management involves managing the process of achieving this future state. 1 (Nickols, 2004) Change can be viewed from two vantage points, that of the people making the changes and that of the people experiencing the changes. 2 In the top-down, or strategic viewpoint associated with management, the focus is on technical issues such as the investment required, the processes for implementing the change, how soon the change can be realized, and the outcome. In the bottom-up viewpoint of the employee, the focus is on what the change means to the individual, how they can cope with the change, and also how management can assist them through the transition. In this context, effective change management should be able to help individuals evolve from negative feelings such as fear and anxiety towards positive feelings about the changes being made. 3 Effective change management deals with diagnosing problems and determining an alternative that involves changing the organizational structure or processes. It also identifies and deals with the individual responses to change that can hinder the success of the project. To understand change management better, we need to understand the various models and strategies that managers may follow. Some of the models include the Leadership model, Improvisational Model, Theory E versus Theory O, and the ADKAR model.
Models of Change Management – Leadership Model
John Kotters leadership model is an extension of Lurt Lewins model that identifies three phases to the change process. These three phases are described as:
Unfreezing the status quo in preparation for the change
Implementing the change
Refreezing and reinforcing the new culture
The first phase involves preparing the people for change with the focus on getting them to let go of what is familiar. The second phase involves taking the steps that actually implement the change, while the last phase involves returning the organization to a stable state again based on the new culture.
In Kotters leadership model, the emphasis is on leadership and not just management of change since change involves people and their emotions. In each of these phases, he identifies important concepts that management needs to follow in order to lead the organization through the transition. In the first phase, the goal is to convince the employees that they need to abandon the old way of doing the work and to embrace the concept of change. This requires a lot of work in breaking down the barriers that hinder change. For most people the natural instinct is to resist change, and in this phase, it is managements job to convince the employees of the validity of the change based on a business need. They need to create a sense of urgency, and build a team of supporters that can act as a catalyst to develop a buy-in for the project. Management also needs to develop a clear direction for the future and effectively communicate this vision. During the second phase management needs to empower their employees to take the required actions to remove both organizational and individual obstacles. They need to establish short-term goals, and consolidate these victories in order to keep the momentum of change moving forward. These early wins provide incentive to the employees that the change is worthwhile and in their best interest. In the final phase, management needs to reinforce the concept that these changes are permanent by demonstrating how they contribute to the companys success. 4 (Rose, 2002)
Improvisational Model
The traditional change management models start with the idea that change is the result of a well thought out plan of action that identifies certain goals, how these objectives will be met, and the tools and techniques that will be employed to ensure that the plan is carried out as charted. But when examining how much change actually occurs, Orlikowski and Hofman found that in many instances, it is simply a reaction to unanticipated conditions. 5 (Orlikowski and Hofman, 1997) The premise of this model is that rather than planning for change, much change is improvised in response to unanticipated events. The model has two primary assumptions:
Change is not an event with a defined end point where the organization returns to a new equilibrium state. Rather, change is an ongoing, constant process.
Change is not anticipated
The authors identify three types of change:
Anticipated change is defined as planned actions, with directed, intended outcomes
Emergent change is a spontaneous response to some event where the outcome was not intended, nor anticipated
Opportunity-based change also is not anticipated, but the change is intentionally introduced because of an event
Theory E and Theory O Model
In this model, two different theories of what drives change are given. Under Theory E, the purpose of the change is economic, or the creation of value for the organization. The leadership is top-down, emphasis is on the organizational structure, processes and procedures, and the planning is programmed. Under Theory O, the purpose is to develop the human resources of the company and build long-term performance based on a high level of commitment. The leadership is more participative, the focus is on developing a corporate culture, and planning is emergent. 6 (Beer and Nohria, 2001)
The ADKAR Model
The emphasis of this model is that change occurs along two dimensions, the business need of the organization and the personal experiences of the employees undergoing the change. The model finds that management generally deals effectively with the business needs such as developing the scope and objectives for the change, designing the organizational structure and processes of change, implementing the new systems and processes, and analyzing the results of the implementation. But in order to be successful, management must also be able to address the apprehensions that employees have to change. They