Creating and Managing Change Chapter 18 McGraw Hill Irwin Copyright 2011 by the McGraw Hill Companies Inc All rights reserved Organization Development Organization development OD The system wide application of behavioral science knowledge to develop improve and reinforce the strategies structures and processes that lead to organizational effectiveness 18 2 Organization Development Strategic interventions helping organizations conduct mergers and acquisitions change their strategies and develop alliances Technostructural interventions relating to organization structure and design employee involvement and work design 18 3 Organization Development Human resources management interventions Attracting good people setting goals and appraising and rewarding performance Human process interventions Conflict resolution team building communication and leadership 18 4 Achieving Greatness Strategy focused on customers continually fine tuned based on marketplace changes and clearly communicated to employees Execution good people with decision making authority on the front lines doing quality work and cutting costs 18 5 Achieving Greatness Culture one that motivates empowers people to innovate rewards people appropriately entails strong values challenges people and provides a satisfying work environment 18 6 Achieving Greatness Structure making the organization easy to work in and easy to work with characterized by cooperation and the exchange of information and knowledge throughout the organization 18 7 Managing Change Shared leadership is crucial to the success of most change efforts people must be not just supporters of change but also implementers Change agents People who create change 18 8 Motivating People to Change General reasons for resistance Inertia Timing Surprise Peer pressure 18 9 Motivating People to Change Change specific reasons for resistance Self interest Misunderstanding Different assessments Management tactics 18 10 Reasons for Resistance to Change Figure 18 1 18 11 Motivating People to Change Figure 18 2 18 12 A General Model for Managing Resistance Unfreezing Realizing that current practices are inappropriate and that new behavior is necessary Performance gap The difference between actual performance and desired performance 18 13 A General Model for Managing Resistance Moving Instituting the change Refreezing Strengthening the new behaviors that support the change 18 14 Force field Analysis Force field analysis An approach to implementing the unfreezing moving refreezing model by identifying the forces that prevent people from changing and those that will drive people toward change 18 15 Force field Model of Change Desired state Restraining forces Status quo Driving forces Time Specific Approaches to Enlist Cooperation 18 17 Methods for Managing Resistance to Change Table 18 2 18 18 Methods for Managing Resistance to Change Table 18 2 18 19 Harmonizing Multiple Changes Total organization change Introducing and sustaining multiple policies practices and procedures across multiple units and levels 18 20 Leading Change Figure 18 3 18 21 Sources of Complacency Figure 18 4 18 22 Shaping the Future Reactive change A response that occurs under pressure problem driven change Proactive change A response that is initiated before a performance gap has occurred 18 23 Creating the Future Adapters Companies that take the current industry structure and its evolution as givens and choose where to compete Shapers Companies that try to change the structure of their industries creating a future competitive landscape of their own design 18 24 Adding Value Personally Table 18 3 18 25 Learning Cycle Explore Discover Act Figure 18 6 18 26 Level 5 Hierarchy Figure 18 7 18 27 Destination CEO Coca Cola Co What examples can you provide of Isdell s efforts to deliver Coke back to the worldclass status it had once enjoyed Brainstorm some new beverage ideas that Coke might consider for the future 18 28