Change managementFor software version changes, see Change control. Robert Marshak has since credited the big 6 account- ing and consulting firms with adopting the work of early organizational change pioneers, such as Daryl Conner Change management (CM) refers to any approach to transitioning individuals, teams, and organizations using and Don Harrison, thereby contributing to the legitimiza- tion of a whole change management industry when they methods intended to re-direct the use of resources, busi- ness process, budget allocations, or other modes of op- branded their reengineering services as change manage- ment in the 1980s.[7] eration that significantly reshape a company or organi- zation. Organizational change management (OCM) con- siders the full organization and what needs to change.[1] Organizational change management principles and prac- 1.3 1990s tices include CM as a tool for change focused solely on the individual. In his 1993 book, Managing at the Speed of Change, Daryl CM focuses on how people and teams are affected by Conner coined the term 'burning platform' based on the an organizational transition. It deals with many dif- 1988 North Sea Piper Alpha oil rig fire. He went on to ferent disciplines, from behavioral and social sciences found Conner Partners in 1994, focusing on the human to information technology and business solutions. In a performance and adoption techniques that would help en- project management context, CM may refer to the change sure technology innovations were absorbed and adopted [8] control process wherein changes to the scope of a project as best as possible. are formally introduced and approved.[2][3] 1.4 2000s 1 History Linda Ackerman Anderson states in Beyond Change 1.1 1960s Management that in the late 1980s and early 1990s, top leaders, growing dissatisfied with the failures of creating Many change management models and processes are and implementing changes in a top-down fashion, created based with their roots in grief studies. As consultants saw the role of the change leader to take responsibility for the a correlation between grieving from health-related issues human side of the change.[9] The first State of the Change and grieving among employees in an organization due to Management Industry report was published in the Consul- loss of jobs and departments, many early change models tants News in February 1995.[10] captured the full range of human emotions as employees mourned job-related transitions.[4] In his work on diffusion of innovations, Everett Rogers 1.5 2010s posited that change must be understood in the context of time, communication channels, and its impact on all af- In Australia, change management is now recognised as fected participants. Placing people at the core of change a formal vocation through the work of Christina Dean thinking was a fundamental contribution to developing with the Australian government in establishing national the concept of change management. He proposed the competency standards and academic programmes from descriptive Adopter groups of how people respond to diploma to masters level.[11] change: Innovators, Early Adopters, Early Majority, Late In response to continuing reports of the failure of large- Majority and Laggards.[5] scale top-down plan-driven change programmes,[12] inno- vative change practitioners have been reporting success with applying Lean and Agile principles to the field of 1.2 1980s change management.[13][14] McKinsey & Company consultant Julien Phillips pub- The Association of Change Management Professionals lished a change management model in 1982 in the journal (ACMP) announced a new certification to enhance the Human Resource Management, though it took a decade profession: Certified Change Management Professional, for his change management peers to catch up with him.[6] planned for 2016.[15] 1 1 Reasons for change Globalization and constant innovation of technology re- sult in a constantly evolving business environment. Phe- nomena such as social media and mobile adaptability have revolutionized business and the effect of this is an ever increasing need for change. culture.2 2 APPROACH 2 Approach Organizational change management employs a struc- tured approach to ensure that changes are implemented smoothly and successfully to achieve lasting benefits. With the business environment experiencing so much change. The Change Management Foundation is shaped like a Organizational change directly affects all departments and pyramid with project management managing technical employees. The effectiveness of change leadership setting the direction at the top. while the companies that Change Management Foundation and Model refuse to change get left behind. and therefore change man- agement. When these developments occur. a pioneer of change management. Yet. created by W.2 Change models • Prepare & Plan for Change Among the many methods of change management exist • Implement the Change several key models: • Sustain the Change John Kotter’s 8-Step Process for Leading Change Dr. which are resistant to radical • Empower Employees for Broad-Based Action change even as the current environment of the organiza- tion changes rapidly. The growth in technology also has a secondary effect of increasing the availability and therefore account- ability of knowledge. and routines of orga- • Communicate the Change Vision nizations often reflect a persistent and difficult-to-remove “imprint” of past periods. the ability to the 8-Step Process for Leading Change manage and adapt to organizational change is an essen- tial ability required in the workplace today.[17] This can result in dras- tic profit and/or market share losses. John P. John P. • Determine Need for Change 2. The entire company must learn how to handle aspects and people implementing change at the base and changes to the organization. modern organizational • Consolidate Gains and Produce More Change change is largely motivated by exterior innovations rather than internal factors. ma- jor and rapid organizational change is profoundly diffi.[18] It Deming. organizations must then learn to become com. Kotter. The Change management can have a strong positive or negative impact Management Model consists of four stages: on employee morale. Kotter. at the Harvard Business School. invented fortable with change as well. It consists of four stages: • Establish a Sense of Urgency • Create the Guiding Coalition • Plan – establish objectives and processes . • Anchor New Approaches in the Culture the organizations that adapt quickest create a competi- tive advantage for themselves. is a management method to improve business consists of eight stages: method for control and continuous improvement of pro- cesses and products. The Plan-Do-Check-Act Cycle. Emeritus. Easily accessible information has resulted in unprecedented scrutiny from stockholders and the media and pressure on management. the Konosuke Matsushita Professor Deming Cycle of Plan-Do-Check-Act of Leadership. • Develop a Vision and Strategy cult because the structure.Dr. Therefore.[16] • Generate Short-Term Wins Due to the growth of technology. 2. Edwards invented the 8-Step Process for Leading Change. and process of change should all be specified as part vations to adopt. dis-benefits and cultural issues • Winning the support of the employees with the per. organizational change manage- ment should begin with a systematic diagnosis of the cur- 2. communication ef- fectiveness.tent. • Sequence of steps and manages employee-training. resolve troubled change 2. It makes use of per- formance metrics.5 Factors of successful change manage- in of their organization’s employees on the change.of a change management plan. risks. integrates teams. and strategies audiences. Edwards Deming • Do – implement the plan. operational • Implementation and organizational changes efficiency. the critical aspect is a company’s ability to win the buy. The objectives. the .2. such as financial results. • Effective communication that informs various stake- suasiveness of the appropriate adjustments holders of the reasons for the change (why?). as well as deep social understanding about leadership styles and group dynamics. organizational change man- agement aligns groups’ expectations. and the perceived need for change in order to design appropriate strategies. Although there are many types of organizational changes.2. execute the process. goals. ment fectively managing organizational change is a four-step process:[20] Successful change management is more likely to occur if the following are included: • Recognizing the changes in the broader business en- vironment • Define measurable stakeholder aims and create a business case for their achievement (which should • Developing the necessary adjustments for their be continuously updated) company’s needs • Monitor assumptions. make the product Change management involves collaboration between all employ- • Check – study actual results and compare against the ees. As a visible track • Measurement system on transformation projects. sidered: Change management processes should include creative marketing to enable communication between changing • Levels.5 Factors of successful change management 3 The Plan-Do-Check-Act (PDCA) Cycle created by W. Ef. re- • Training their employees on the appropriate changes turn on investment. there are four major factors to be con. con- When determining which of the latest techniques or inno. and avoid change failures.3 Choosing which changes to implement rent situation in order to determine both the need for change and the capability to change. dependencies.4 Managing the change process projects. from entry-level to top-management expected results • Act – enact new standards[19] As a multi-disciplinary practice that has evolved as a re- sult of scholarly research. leadership commitment. costs. and human factors. from inter- • Leadership development organizational factors to marketplace volatility.) • Devise an effective education. ensuring em- ployee empowerment and flexibility. Alignment and inte- gration between strategic. organizational development (OD) depart. and you) as well as the details of the change (when? where? who is involved? how much will it cost? etc. training and/or skills upgrading scheme for the organization • Counter resistance from the employees of compa- nies and align them to overall strategic direction of the organization • Provide personal counseling (if required) to alleviate any change-related fears • Monitoring of the implementation and fine-tuning as required The University of New South Wales offers a Graduate Certificate in Change Management (GCCM) 3 Challenges As change management becomes more necessary in the business cycle of organizations. agement process is people’s natural tendency for inertia. • Business process reengineering • Change management (ITSM) Navigation • Employee engagement Managing change over time. managers almost exclusively focus on the structural and technical components of change. • Charles Sturt University offers a Graduate Certifi- 3. requires continuous adaptation. • Warwick University and Sheffield University in personal relations. and technical compo. social. because 'this is the way we have always done them'. Just as in Newton’s first law of motion.1 Universities fortable.[21] Furthermore. referred to as navigation. can be partic. in cases where Australian Graduate School of Management. through the ularly hard to overcome. People are resis- tant to change in organisations because it can be uncom. it is beginning to be Change management is faced with the fundamental diffi- taught as its own academic disciple at universities. It also re- quires a balance in bureaucratic organizations between • Organization studies top-down and bottom-up management. Integration • University of Twente in the Netherlands offers a multidisciplinary excellence programme to develop Traditionally. of- a company has seen declining fortunes. the change leadership capabilities of their top stu- ments overlooked the role of infrastructure and the pos.4 5 SEE ALSO benefits of successful implementation (what is in it 4 As an academic discipline for us.dedicated to the study of organizational change. The notion of doing things this way. 5 See also nents requires collaboration between people with differ- ent skill-sets. • The University of New South Wales. can be very humbling. for a manager or fers a Graduate Certificate in Change Management executive to view themselves as a key part of the problem (GCCM) to develop effective agents of change. sibility of carrying out change through technology. This issue can be exacerbated in countries where “saving face” plays a large role in inter. Now.1 Integration and navigation cate in Organisational Change. It requires managing • Human resource management projects over time against a changing context. • Organizational culture . dents. There culties of integration and navigation. the United Kingdom offer organizational change courses through their business programs.4. is a growing number of universities with research units One of the major factors which hinders the change man. L.lewis-tisdall. W. PM Hut. a change management project”.. why-is-change-management-necessary-in-contemporary-organisations/ [5] Rogers. 2015. 5 • Organizational structure [13] Anderson. Retrieved 12/21/11 from https://books. Australia: Uniforte Pty Ltd. [19] Vora. “Contemporary Challenges to the Philosophy and Practice of Organization Develop- ment”. Program Manager: Guidelines for Success”. Retrieved [3] Levin. Manu K. Mind Tools (18 February 2016).3930220125. The Lean Change Method: Man- aging Agile Organizational Transformation Using Kanban. ISBN 978-0. Retrieved 20 November 2015. Burke. [4] Welbourne. “Why Do People In Business [1] “Home”. • Transtheoretical model [16] Marquis. (2001). The Association of Change Management Professionals. Diffusion of Innova. D. “Project Management [18] Editorial Team. Retrieved 24 March 2016. Daryl (August 15. tiveness of organizational change management”. Rein- venting Organization Development: New Approaches to Change in Organizations. Capturing a Moving Target: Change Management. 2013. McK- insey and Associates. (1995). “Imprint- ing: Toward A Multilevel Theory”. [17] Skelsey. 5th Edition. Dictionary”. S. Retrieved 8 February ment Institute. consulting-business strategy-Malaysia-Singapore. [8] Conner. David L. Julien R. Tilcsik. & Anderson. Simon and Schuster. Christopher. “Kotter’s 8-Step Change Model”. Happy Melly Express. what Ive learned from tions. International Organizational Change Manage. (1983). Retrieved November 16. Jason (2014). Project Laneway. and Lean Startup Thinking. “Enhancing the effec. 22 (1–2): 183–99. [12] “Build a change platform. ISBN 978-0-7879- 8159-4. . “Change Management Needs a [20] http://www. [2] Filicetti. • Stakeholder management [14] Little. [21] “Of Newton and Ostriches or.com/books?id=WbpH7p5qQ88C&printsec= frontcover&dq=beyond+change+management&hl= en&sa=X&ei=kEfzTpewMYKpiQLGz5S8Dg&ved= 0CD0Q6AEwAA#v=onepage&q=beyond%20change% 20management&f=false [10] Whelehan. Christina (2009). 2007). Robert J. Consultants News. 2012). Hu- man Resource Management. trieved 2016-07-13. • Talent management [15] “ACMP’s Certified Change Management Professional • Training and development programme”. pp. doi:10. [7] Marshak. 2009. not a change program”. Change Management”. Project Man. Retrieved 2015-12-08. Salo Impera-Strategy 7432-5823-4. • Performance management Kotter. Lean Change Management: In- • Strategic change novative Practices For Managing Organizational Change. RIMER Managing Successful Change. John (August 20. “The Real Story of the Burning Platform”.1002/hrm. CreateSpace Indepen- dent Publishing Platform. Jeff (2013). Everett (16 August 2003).com/essays/ Change”. In Bradford. San Francisco: Jossey- Bass/Pfeiffer. Beyond Change Management: Advanced Strategies for Today’s Transformational Leaders. Warner. András (2013). SSRN 2198954 . Re- [6] Phillips. Dan (29 July 2013). [9] Anderson. (2005). Mind Tools.A. Retrieved August 10. google. 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