Master of Business Administration

Management of Change

Dr. Cynthia Ee
December 2017
CHANGE is the only CONSTANT

Heraclitus, a Greek philosopher (535BC-475BC)

2
 Organisational
• Difficult to change
Change is often culture

NOT Successful • If it’s not broken why fix

it?
or Significant • Limited knowledge on
change management
(or Sustainable)

3
What is Organisation Change?
B
“Business as Usual”
Strategic intent

Intervention
A
Internal External
- Employees - Customers
- Leadership - Competitors
STAKEHOLDERS - Corporate/ HQ - Govt
- Etc - NGO
- Etc

4
Non linear Nature of Change

Pg 11

Managing stakeholders

Individuals, groups or organisations—internal or

external—whom you want to influence the outcome of
their actions

5
Historical Perspective
Survey Feedback
Rensis Likert (1967)

Hawthorne studies
Elton Mayo and Fritz Roethlisberger, 1920s
Socio-psychological effect
Frederick Taylor
1856-1915
“Father of
Scientific
Management”
C3
6
Historical Perspective

Managerial/ Leadership Grid

People vs task orientation,
participative management
Robert Blake and Jane Mouton,
1960s

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Historical Perspective

McKinsey 7S
Organisation consulting
Internal alignment

8
 Most organisational change is
evolutionary vs revolutionary,
planned vs. unplanned,
Y2K
GST
continuous vs. discontinuous,
M&A transactional vs. transformational

Burke (2014), p.1, 20

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Orders of Change
Initial focus
First-order Subsystem/ process
E.g. supervisors/ line managers

Beyond initial focus

Second-order Subsystem/ process
E.g. employees

Organisational process
Third-order Multiple factors

p.123
10
Levels of Org Change

System/ Organisation

Group

Individual

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System/Org Level Change

Who are your target stakeholders?

• Orders of change (p.122-123): First, second, third
• Change phases: Lewin’s 3 phase (Unfreeze, movement,
refreeze)
• Change focus: Management process, practice, leadership etc

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Group Level Change

• Impacted vs “non-impacted” (e.g. restructuring: terminated vs.

staying)
• Team building
• Group responses, p.120-122

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Individual Level Phases of Change
"People don't resist change. They resist being changed!“
— Peter Senge

Endings New Beginnings

Resistance
Turmoil
Coping

Note: This content is

adapted from “Managing
Transitions: Making the
Most of Change” by
William Bridges

Neutral Zone

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So, Where Should We Start?

System/ System/ System/

Organisation Organisation Organisation

Group Group Group

Individual Individual Individual

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 • McKinsey 7S
Organisation
• Kotter
Change Models
• Lewin

• Burke-Litwin

p.137
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Org Change Theory

5W1H Why
Who
p.157 What Change Model
Where and Process
When
How

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4 Change Process Schools

Examples
1. Life Cycle: Organic growth Expansion/ foreign mkt

2. Teleological: Purposeful/ adaptive Change in vision

3. Dialectic: Conflict Foxconn
4. Evolutionary: Competitive survival
M&A

P. 173

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"The rate of change is not going to slow down
anytime soon. If anything, competition in most
industries will probably speed up even more in
the next few decades.“

John P. Kotter
Leading Change (1996)

p.3 & 4
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Kotter’s 8-Step Change Model

1. Sense of urgency
2. Guiding coalition • Brief description
• Importance of this step:
3. Vision and strategy • How does it help in
4. Communicate change process
• How can it be
5. Empower employees implemented?
6. Short-term wins
7. Produce more change
8. Culture
p.3 & 4
20
Lewin’s 3-Phase Change Model

1. Unfreeze/ Shake up
2. Movement/ Change
3. Refreeze/ Reinforce

p.124, 175
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Burke-Litwin
Causal Model

C10
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Most organisational change is
evolutionary vs revolutionary,
planned vs. unplanned,
continuous vs. discontinuous,
transactional vs. transformational
Over time (and even concurrently) organisations
need evolution and revolution. Revolutionary
change requires different tools and techniques.

Burke (2014), p.1, 20

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Burke-Litwin Causal Model

Transformational

Transactional

Transformational

p.221-223
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Environmental Scanning

A systematic approach
to analysing
the external
environment

Build the case

for change

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Environmental Scanning Examples
Social Technological Economic Environment/ Political/
Ecology Legal
• Population • Emerging • Labour costs • Design for • Government
growth technology • Cost of living the Envt. stability
• Health and • Technology • Recession • Environment • Govt
safety advancement • Inflation al awareness incentives
• Education • R&D • Distribution • Global • Tax policy
• Culture • Comm. of wealth warming • Regulations
• Lifestyle technology • Interest rate • Natural • Changes in
• Age • Automation • Exchange disasters political
distribution • Infrastructure rate • Pollution environment
• Gender levels • Levels of
• Religious • Weather corruption
beliefs patterns

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Example: CSER Landscape in China

Social Technological Economy Environmental Political

• Competitors Growing demands: • Changing laws

• Gen Y workforce: • Social media:
hike wages: • Environmental & policies:
managing growing
protection, green favor labor &
expectations, personal increasing
products
labor cost consumers
aspirations networks & • Sustainable design,
influence mfg & after-market • Increasing
• Decreasing • Branding
recycling and e-
serves as pressures &
migrant workers: • Chain effect of waste processes
economic • Transparency of scrutiny from
labor shortages in negative
differentiator metrics, ie; CO2 NGOs, media &
China feedback via
emissions consumers
web/ networks • Customer
• Growing labor • Suppliers conform
movement & expectations: to recycling, e-
stringent waste criteria &
awareness
reporting of
measures at
environmental
zero cost metrics

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Internal Environment Scan
What are the internal factors driving change in the
Foxconn case study?

11 factors driving
change internally
- Observations
- Facts
- Trends/ Patterns

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Improving Change Models

McKinsey 7S

Kotter

Lewin

Burke-Litwin

p.3 & 4
29
 “The way we do things”

Organisational Most difficult aspect of

organisational change
Culture Change
Transformational factor:
system wide, related to
external environment,
revolutionary interventions

C11
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Beliefs, Values, Attitudes and Behaviours
Examples
• Culture
Beliefs • Faith
• Education
Ideas you hold to be true • Experience
• Mentors
DifficuLty to change

Values • Happiness
• Wealth
What is important to you • Career
(long lasting beliefs) • Family

Attitudes • Being
professional
How you treat others and • Respect
approach situations • Peer pressure

Behaviours
How you act

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 Role of Without leadership, planned
organization change will never
Leadership be realized
- Burke (p.277)

C13
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Leadership

Transformational leadership vs. transactional management

p.227, 286-289
- Transformation leadership: those who bring about change
- Transactional manager: leader-follower transaction
relationship , maintain status quo

Executive leadership, p.289

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Successful Change
1. Top management support
2. Built on strengths and values
3. Not imposed from top
4. Holistic change
5. Planned change
6. Changes in the guts/ concrete
7. Stakeholder viewpoint
8. Ongoing

p.340 34