External forces (GM):

Social Changing consumer tastes (environmentally friendly, fuel efficient, etc) Economic Recession; high gas prices; high wages/benefits/retirees Competitors Chrysler; Ford; Asian producers Technological Quality poor Political Gov subsidies/bailout Legal Zero-emission vehicle; Fuel efficient cars

Internal forces (GM):

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Structure Bureaucracy; top down management Culture Doing things GM way; you get the toys by not making a mistake; 90s menatality People Management lacked vision; management complacency/arrogance Strategy Late responses; costly acquisitions

Kurt Lewins Force Field Analysis According to Kurt Lewin, An issue is held in balance by the interaction of two opposing sets of forces those seeking to promote change (driving forces) and those attempting to maintain the status quo (restraining forces). In order for any change to occur, the driving forces must exceed the restraining forces. Forces Promoting Change Changing customer tastes/lifestyle Competitors Bad press Success Size Paradigm

Forces Opposing Change

Lewins Model of Change: (Motivating EEs) Unfreeze Communicate (email) (Visible change) Change Visible Role modelling Training sessions (Make new behaviours stick) Re-freeze Rewards Continues training Contest/prizes

How to Implement Change Effectively Why do we resist change? Habit Fear of the unknown Economic security Failure to recognize the need for change Threats to social relationships

Why Organizations Resist Change:

1. Structural inertia org. charts/job description

2. Work group inertia 3. Threats to management power 4. Organizational culture

5. Paradigms view of how the world works 6. Cognitive scripts "Cognitive scripts" is the term used for the themes that flow habitually through

our thoughts. These cognitive scripts can influence both our emotions and our behaviour. They have been described as the tapes we play repeatedly in our heads -- those things we tell ourselves over and over again, often without conscious awareness; it works against common sense Flat orgs reduces bureaucracy Cross-functional teams flexible Top-mgmt commitment to change remove boundaries High involvement culture Use double-loop learning

Institutionalization Theory: Organizations generate overtime accepted practices for doing things (policies/procedures) Types of Change:
1. Developmental improves on current practices 2. Transitional replaces old with new (e.g. merger) 3. Transformational end result is unknown; requires EEs and culture to change

Themes: Managing transitional change (merger) Leadership during change Strategic planning for change Overcoming resistance to change Successful change strategies