Change Management Lessons PDF

Introduction ============ - - **Definition\ **Managerial activity with the goal of identification, preparation, planning, implementation, and maintenance of the changes needed for environmental adaptation and organizational renewal. **Today's Key Words** - - - - Adaptation is nece...

Introduction ============ - - **Definition\ **Managerial activity with the goal of identification, preparation, planning, implementation, and maintenance of the changes needed for environmental adaptation and organizational renewal. **Today's Key Words** - - - - Adaptation is necessary, but stability is key as well. **Adaptation Types** 1. 2. 3. **Organizational Change** - - - - - - - - - - Managed organizational change includes: 1. 2. 3. **Types of Change** 1. - - - - - 2. - - - - - **Speed of Change** - - **Transactional vs. Transformational Variables** - - - - - These changes significantly affect the organization and fundamentally reshape its characteristics. Organization change from a strategic perspective ================================================ **Organizational Change from a Strategic Perspective** **Factors Influencing Organizational Change\ **Organizational changes can be driven by both internal and external factors, such as: - - - - - **Digitalization and Digital Transformation** - - - - - - - **Adaptation Paradox** - - **Internal Factors Driving Change** - - - - **Simultaneous Needs in Organizations\ **Organizations need to balance two competing focuses: 1. 2. **Exploitation and Exploration** ### Exploitation - - - - - - ### **Exploration** - - - - - - **Ambidexterity in Organizations** - - - - - - - - **Comparison of Structural and Contextual Ambidexterity** **Aspect** **Structural Ambidexterity** **Contextual Ambidexterity** -------------------------------- -------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------- **Implementation** By separating exploration and exploitation. The individual divides their working time and resources between exploration and exploitation. **The Role of Top Management** Organizational planning, balancing between exploration and exploitation. Creating a supportive context for individuals. **Nature of Roles** Relatively clearly defined. Relatively flexible. **Employee Skills** More specialists. More generalists. **Structural Separation** - **Contextual Development** - - - **Focus**: - - Org. development from a structural perspective ============================================== - - **The Dilemma**: Balancing these opposing forces. ### **Stability in the Organization** 1. - - - 2. - - 3. - ### **Flexibility in the Organization** 1. - - 2. +Effective design and minimization of organizational redundancy. +Enforcement of synergies. +General organizational and performance improvements through efficiency. ### **Differentiation and Integration** - 1. - - - - 2. - - - 3. - - - ### **Transnational Model** - 1. - 2. - - 3. - - 4. - - - **In the Transnational Model** - - - - - Capability based perspective ============================ - - In order to keep up with rapid environmental change, companies need capabilities through which: - - - **Role of Strategy**: - - **Innovation**: - - - **Change**: - - - **Why are Dynamic Capabilities Significant?** - 1. - - - - - 2. - - - - 3. - - - - - - **The Knowledge-Based Approach**: - - - - - - - - - - - Leadership perspective on change mgmt ===================================== **Two Opposing Approaches** - - - - - - - - - - - - - - - - **Type E** - - - - - - - - **Type O** - - - - - - - - **Combination of Type E and O** - - - - - - Internal environment for change =============================== **Important Elements of the Model** - - - - **Actors of the Organization Change** 1. - 2. - 3. - 4. - 5. - *If different changes occur in parallel, two additional roles emerge:* - - - - ### **Roles and Responsibilities** #### **Project Manager** - - - - - - - - - #### **Change Manager** - - - - - - - - - #### **Sponsor/Leader** - - - - - - - - - ### **Path Dependence** 1. - - - 2. - - 3. - - - ### **Organizational Resistance** 1. - 2. - - - - ### **Motivation for Change** Change management must make a strong motivational effort to build commitment. - 1. 2. 3. 4. 5. 6. - 7. 8. 9. ### **Motivational Process Flow** 1. - 2. - 3. - 4. - 5. - Steps of the implementation process =================================== #### **Antecedents** - - - - - ### **Outstanding Models of Change** - 1. - - - 2. - 3. - ### **Phases of Change Management** #### **1. Analysis and Preparation** - - - - - #### **2. Planning and Implementation Support** - - - - #### **3. Implementation, Monitoring, and Institutionalization** - - - - - *Note*: - - - - ### **Detailed Steps in the Implementation Process** #### **1. Analysis Phase** - - - - - - - - - #### **2. Leadership Selection Phase** - - - - - - - - - - #### **3. Support Systems Phase** - - - - - - - - - - - - - ### **Transformation Process** - - - ### **Pre-Transformation Steps** 1. - 2. - 3. - ### **Key Elements of Successful Implementation** 1. - 2. - 3. - Main tools of change management =============================== #### **Change Strategies** - 1. - - 2. - - 3. - - 4. - ### **Strategy Types: Top-Down and Bottom-Up** **Strategy** **Top-Down** **Bottom-Up** ---------------------------- ------------------------------------------- ----------------------------------------------- **Normative Re-Educative** Leadership, modeling, communication. Involvement and participation. **Rational-Empirical** Influencing by change agents. Group-level problem solving and learning. **Action-Centric** Allocation of resources between projects. Interaction between project and organization. **Power Relations-Based** Leader reward or punishment. --- ### **Leadership in Change Management** - - **Success Factors for Leadership in Change**: 1. - - - - 2. - - 3. - - - **Main Tasks for Leaders During Change**: 1. 2. 3. 4. 5. 6. 7. ### **Influencing Key Stakeholders** - - **Role of Change Agents**: - - - - - **Methods Used by Change Agents**: 1. 2. 3. ### **Criteria for Effective Communication** 1. - - 2. - - - - 3. - - - 4. - **Change Projects** - - - ### **Managing Organizational Resistance** - - - - - ### **Groups and Teams** - - - - - - ### **Typical Mistakes in Change Management** 1. 2. 3. 4. 5. Constant change in the organisation =================================== **Small-Scale Change**: - - - - - - ### **Types of Learning** 1. - 2. - 3. - ### **Pillars of Learning Organizations** - - 1. - 2. - 3. - 4. - 5. - ### **Bottom-Up Change Initiatives** - - - - - - ### **Analyzing the Organizational Culture** - - - - **Steps to Transform Culture**: 1. - 2. 3. - - 4. - 5. - - 6. **Questions to Address**: - - - - - **How to Make the Change Happen**: - - - 11.Innovation and knowledge management ====================================== **Knowledge network**: Structural holes in the knowledge network reduce exploratory knowledge search with a focus outside the company if the social network developed. This is because researchers then combine their own knowledge with that of other researchers rather than seeking new knowledge. **Social network**: Structural holes in the social network increase exploratory research, as researchers have fewer internal peer relationships and this do not combine their knowledge. **Strong and weak social networks** An important result of the new research is that if there is little knowledge coming from outside and if community ties are strong, a homogenous approach often leads to the adoption of suboptimal solutions. if community ties are weak, individual solution-seeking and diversity in the discovery of new knowledge boost innovation performance. ### 1. Structural issues of change The importance of process orientation Another change for renewal can be to increase the process approach in the organization, as a process-oriented structure can support not only operational efficiency but also innovation performance. This is because in process-oriented operations, tasks are more comprehensive and employee are given more information, which leads to higher levels of commitment and more effective idea generation. [Structural changes in order to achieve renewal:]  ### **2.** **Behavioural issues of change** **Behavioural factors** Innovation and change are related also in terms of behaviour, as we have seen that the contextual ambidexterity does not focus on separation, but on the individual alignment of conflicting goals in terms of behaviour. **[Top managers:]** **[Middle managers]** **[Experts]** **Decline and renewal** At the same time, it is important to point out that often, but not always, the way to stop organizational decline is through renewal and innovation. This is because the performance of organizations can decline for a variety of reasons: ### 3. Knowledge and technology related issues of change [ ] **[The role of knowledge management]** The primary goal is to improve performance Knowledge thus enhances innovation performance and thereby increases the competitiveness of the company. Knowledge management involves: **[Knowledge management systems:]** Technology management is also critical area in relation to knowledge management, as technology supports external knowledge acquisition and innovation change processes. Knowledge management systems are information systems that support: Depending on their functionality, knowledge management systems can support contextual ambidexterity, i.e. change management can include the development, implementation and use of new knowledge management technologies.  For experts, the role of strong internal networks in supporting exploration or exploitation cannot be generalized, because it depends on the combination of existing knowledge and external knowledge that can be channeled. Summary ------- Structural changes for innovation and renewal can focus on strengthening/weakening internal networks, building links to external knowledge sources and developing process orientation. On the behavioural side, senior managers are future-oriented, visionary and alert to potential new business areas. Knowledge management systems can support innovation. Knowledge management technologies can support exploration and exploitation activities with different functions at managerial and expert level. Innovative Leaders ------------------ **Innovation Premium:** The "**innovation premium**" refers to the extra value a company gains from investors because they believe the company will deliver future innovations. Leaders of companies with high innovation premiums excel in questioning the status quo and are unafraid to provoke meaningful questions. **Characteristics of Innovative Leaders:** - - - - - - - **Embedding Innovation:** - - **Examples of Innovative Companies:** - - - - **How Leaders Foster Innovation:** - - - **Understanding Innovation:** - - **Which managerial activites lead to the emergence of an innovative idea and the innovation premium?** · Thinking in contexts · Proactive response research · Asking catalytic questions **What does the innovation premium come from?** · From the investors' belief that the company will create something new beyond its current activites 12) Technology development and innovation projects ================================================== Part 1: Introduction The phenomenon of organizational change Part II: The context of organizational change External change-Internal change Exploitation-Exploration Stability-Flexibility Integration - Differentiation Efficiency-Responsiveness Structure Strategy Levereging existing capabilities- Developing new capabilities Organizational change and change management Organization planning - Organization development E-type change-O-type change According to Davenport and Westerman, digital transformation is not only about developing and implementing a new technology, but also about continuous change in the organization by investing in new capabilities and recombining people, tools and business processes. **Technological (process) innovation** According to the OECD (1997), technological process innovation is defined as a new or significantly improved production (value creation) method that involves changes in equipment, human capital and working methods, and results in new or improved products or more efficient production. **Business model innovation** Technology-based innovation in value proposition and operational logic can lead to either business model transformation or business model innovation. Digital transformation from different organizational perspectives ----------------------------------------------------------------- We can see the following links based on the previous courses: 1\) Innovation is important for achieving long-term effectiveness. 2\) Innovation also brings changes in the organization. 3\) A project can be a tool for change management and therefore also a tool for adaptation. Consequently, digitalisation-technology development projects can also be part of organizational change. Innovation Potential for technological innovation or business model innovation Change Changes in key characteristics such as technology, processes, outputs Digital transformation Technology Developing and implementing new solutions Project Technology development and implementation projects as components of complex change The success of the projects According to a 2015 survey, only 29% of technology development projects were successful. The changing environment can be identified as one of the reasons for the low success rate. Many technology development projects have to be implemented in an environment where changes that are late for the project but necessary for the organization are taking place. A \"moving target\" presents development challenges and can have implications for costs, schedule and functionality. The success of technology development projects is not only evaluated by organizations along the traditional project triangle, but the project is (also) seen as a product. On this basis, a technology development project can be considered successful, if\... Success factors for technology develpoment projects --------------------------------------------------- **Effect of late changes** Avoiding late changes and changing conditions is among the top 10 factors in terms of time and cost, while it is only the 13th most important factor in terms of quality. This can be explained by the fact that requirements tend to change in response to new or changed user needs, the satisfaction of which can raise the quality of the resulting product. cost time Quality **Success factors for a technology development project in the event of organizational change** IT project management success factor There are no late changes to expectations. Link with organizational change The revised expectations may be the result of organizational changes. Modified expectations can mean increased costs and new schedules, but can also improve the quality of the outcome product. The quality of the relationship and communication between the project manager and senior management. The project manager can influence the revised expectations resulting from organizational change. Different knowledge management activities at each stage. In the case of modified expectations, it is necessary to return to the collection and channelling of product- and company-specific knowledge into development. Success factors that can provide a project-level response to the challenges in the context of organizational change. Success factors for a technology development project in the event of organizational change IT project management success factor Link with organizational change Advice and knowledge sharing by project members. The number of high-knowledge individuals in a knowledge network is critical in the presence of a high level of uncertainty (e.g. radical change). The project manager\'s personality, project management attitude and leadership style. During an organizational change and if needs change, the project manager\'s leadership skills become more important. The technological knowledge of the managers involved in the project. Knowledge of the applicability of technologies increases the potential for adaptation to change. Success factors that can provide a project-level response to the challenges in the context of organizational change. Technology development project success factors in case of organizational change ------------------------------------------------------------------------------- In a fast-changing environment a success factor can be: **Relationship between technology development projects and organizational change** Technology development projects do not have a unilateral effect on organizational change, but organizational change also has a continuous impact on the conditions under which projects are implemented. In other words, individual development projects can not only support change, but change can also influence the conditions for development. Strategic goals for digitalization Technology development projects Change Adaptation management and adaptation skills of Qoject members Promoting change Organizational change New directions Change of Senior management (adverse) interests and deciding on directions conditions **The impact of development on change** If project members have change management and stakeholder management competencies, they can not only support change and reduce organizational resistance during implementation, but can also influence the direction and/or extent of organizational change during system design or functional fine-tuning. **The impact of change on development** Development conditions, circumstances and expectations may change during the project in line with senior management (adverse) interests. To manage these, adaptability rather than change management capabilities are required from the project members. **Summary** **Technology development and innovation projects** can be part of organizational change and a tool for change management. **Digital transformation** is more than just applying new technologies to an organization, as it involves transforming processes and developing skills. The implementation of technology development projects can be challenging due to the,,moving target\" during organizational change, so project members need to have not only change management skills but also adaptation skills. **False answers are false because:** \"Managers can see digitization and technological innovations as a sure salvation.\" The products are even more important than these. \"To respond to the decline of existing business areas by developing new digital business models.\" Attention should also be paid to the development of existing business areas.