Change Management

McShane/Von Glinow OB4e

Slide 17-1

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Force Field Analysis Model

Desired
Conditions

Restraining
Forces

Restraining
Forces

Current
Conditions

Driving
Forces

Restraining
Forces

Driving
Forces
Driving
Forces

Before
Change
McShane/Von Glinow OB4e

During
Change
Slide 17-2

After
Change

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Resistance to Change
Direct Costs
Saving Face

Forces for
Change

Fear of the Unknown

Breaking Routines
Incongruent Systems
Incongruent Team Dynamics

McShane/Von Glinow OB4e

Slide 17-3

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Creating an Urgency for Change

Inform employees about driving forces
Most difficult when organization is doing well
Must be real, not contrived
Customer-driven change
Adverse consequences for firm
Human element energizes employees

McShane/Von Glinow OB4e

Slide 17-4

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Minimizing Resistance at Nissan

Eriko Sugita/Reuters/Corbis

Carlos Ghosn launched a turnaround at Nissan Motor Company

that saved the Japanese automaker and relied on change
management practices rarely seen in Japan. Employee
involvement was a key strategy to minimize resistance to the
turbulent changes that occurred.

McShane/Von Glinow OB4e

Slide 17-5

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Minimizing Resistance to Change

Communication

Highest priority and first

strategy for change
Improves urgency to change
Reduces uncertainty (fear of
unknown)
Problems -- time consuming
and costly

McShane/Von Glinow OB4e

Slide 17-6

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Minimizing Resistance to Change

Communication
Learning

McShane/Von Glinow OB4e

Provides new knowledge

and skills
Includes coaching and
action learning
Helps break old routines and
adopt new roles
Problems -- potentially time
consuming and costly

Slide 17-7

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Minimizing Resistance to Change

Communication
Learning
Employee
Involvement

Increases ownership of
change
Helps saving face and
reducing fear of unknown
Includes task forces, future
search events
Problems -- timeconsuming, potential conflict

McShane/Von Glinow OB4e

Slide 17-8

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Minimizing Resistance to Change

Communication
Learning
Employee
Involvement
Stress
Management

When communication,
training, and involvement do
not resolve stress
Potential benefits
More motivation to change
Less fear of unknown
Fewer direct costs

Problems -- time-consuming,
expensive, doesnt help
everyone

McShane/Von Glinow OB4e

Slide 17-9

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Minimizing Resistance to Change

Communication
Learning
Employee
Involvement
Stress
Management
Negotiation

When people clearly lose

something and wont
otherwise support change
Influence by exchange-reduces direct costs
Problems
Expensive
Gains compliance, not

commitment

McShane/Von Glinow OB4e

Slide 17-10

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Minimizing Resistance to Change

Communication
Learning
Employee
Involvement
Stress
Management
Negotiation
Coercion

McShane/Von Glinow OB4e

When all else fails

Assertive influence
Firing people -- radical
form of unlearning
Problems
Reduces trust
May create more subtle

resistance

Slide 17-11

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Refreezing the Desired Conditions

Realigning organizational systems and
team dynamics with the desired changes
Alter rewards to reinforce new behaviors
Feedback systems
Help employees learn how they are doing
Provide support for the new behavior patterns

McShane/Von Glinow OB4e

Slide 17-12

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Strategic Vision & Change

Need a vision of the desired future state
Identifies critical success factors for change
Minimizes employee fear of the unknown
Clarifies role perceptions

McShane/Von Glinow OB4e

Slide 17-13

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Change Agents
Change agents apply transformational leadership
Help develop a vision
Communicate the vision
Act consistently with the vision
Build commitment to the vision

Also apply transactional leadership

Aligning employee behavior through rewards,
resources, feedback ,etc.

McShane/Von Glinow OB4e

Slide 17-14

2008 The McGraw-Hill Companies, Inc. All rights reserved.

Diffusing Change with MARS Model

Motivation
Successful pilot project
Supervisor support and reinforcement

Ability
Competencies to adopt pilot project
Role modeling from people in pilot project

Role perceptions
Translating pilot project practices -- neither too specific
nor too general

Situational factors
Resources and time to implement pilot project elsewhere

McShane/Von Glinow OB4e

Slide 17-15

2008 The McGraw-Hill Companies, Inc. All rights reserved.