Facilitating Organizational Change - Week 2 F2024 PDF

FACILITATING ORGANIZATIONAL CHANGE BUSN 10277 Week 2 The Impact of Change on Organizations Understanding Organizational Change and Its Ripple Effects Shauna Richter shauna.richter@mohawkcollege...

FACILITATING ORGANIZATIONAL CHANGE BUSN 10277 Week 2 The Impact of Change on Organizations Understanding Organizational Change and Its Ripple Effects Shauna Richter [email protected] Reflecting on Change Think about a recent change you experienced in your workplace or personal life. Consider: – What was the change? – How did it impact the people involved, the processes, or the overall culture? Poll 1: How well was the change executed? Poll 2: How well was the change received? Agenda for Today Zoom Environment – You get what you put into it Key Themes for Today: – Understanding Organizational Change – Impacts of Change on Business Processes, People, Products, Technology – Case Studies: Successful and Unsuccessful Change Initiatives – Assessing Change Readiness In class Activity – The Ripple Effect Next Steps... The Ripple Effects of Change Key Points: – Change affects every part of an organization. – People, processes, products, technology are all influenced by change. Impact Areas: Disruption or Improvement – Processes: Workflow Redesign Standard Operating Procedures (SOPs) Quality Control Communication Flow – People: Roles, Responsibilities & Organizational Structure: Skills and Development: Engagement : Communication and Culture: – Products: Product Development Product Lifecycle Customer Experience Supply Chain Adjustment – Technology: Systems Integration Data Management Security Automation The Ripple Effects of Change Impact Areas: Disruption or Improvement – Processes: Workflow Redesign – Changes often necessitate a redesign of workflows to improve efficiency or align with new objectives. This could involve redefining roles, eliminating redundant steps, or introducing new processes. Standard Operating Procedures (SOPs) – Modifications may be needed to existing SOPs to reflect new ways of working. This includes updating documentation, training materials, and compliance measures. Quality Control – Impact on quality control measures, such as implementing new quality standards or metrics, to ensure the outputs of the new processes meet organizational expectations. Communication Flow – Change can disrupt established communication channels, requiring new tools or methods to maintain effective information flow between departments and teams. Change and Business Processes Key Points: – Change can streamline or complicate processes. – "How do changes in processes affect daily operations?“ – Example: Buying at coffee at Tim Horton’s – Introduction of the “side counter” or “mobile order” process – (Whiteboard as a group) Change and Business Processes The Ripple Effects of Change Impact Areas: Disruption or Improvement – People: Roles, Responsibilities & Organizational Structure: – Changes may require redefining job roles, adjusting responsibilities, or restructuring teams, which can affect job security and clarity around duties. Skills and Development: – Employees may need new skills and training to adapt to new processes, technologies, or ways of working. This could involve upskilling or reskilling initiatives. Engagement : – Change can impact employee morale and motivation, either positively or negatively, depending on how well it is managed and communicated. Communication and Culture: – Effective communication and alignment with organizational culture are crucial for managing resistance and ensuring employees understand and support the change. Change and Organizational Culture Key Points: – People are key to the success or failure of change – Culture can either facilitate or hinder change. – Change impacts morale, productivity, and engagement. – Employees may go through emotional stages during change: denial, resistance, exploration, and acceptance. Case Study 1: Successful Change Microsoft’s Cultural Transformation Example: Microsoft underwent a significant cultural transformation under the leadership of CEO Satya Nadella, starting in 2014. Key Factors: – Strong Leadership: Nadella focused on fostering a culture of innovation, inclusiveness, and growth mindset. – Clear Communication: The company emphasized transparency and openness in its communication strategy, both internally and externally. – Employee Involvement: Employees were encouraged to embrace learning and take risks, contributing to the development of new products and services. Outcome: The transformation led to increased employee engagement, innovation, and a significant rise in stock prices. Microsoft shifted from being a ‘know-it-all’ company to a ‘learn-it- all’ company, which played a pivotal role in its renewed success. The Ripple Effects of Change Impact Areas: Disruption or Improvement – Products: Product Development – Change initiatives can impact product design, features, or specifications to better meet customer needs or align with market trends. Product Lifecycle – Changes might accelerate or extend the lifecycle of a product. For example, an organization may decide to innovate faster or extend the support of existing products. Customer Experience – Changes in product strategy can directly affect customer satisfaction and loyalty. Organizations might need to redesign products or services to enhance usability, functionality, or value. Supply Chain Adjustment – Modifications in sourcing, production, and distribution processes may be necessary to support new product initiatives or respond to changes in demand. The Ripple Effects of Change Impact Areas: Disruption or Improvement – Technology: Systems Integration – Implementing new technology often requires integration with existing systems, which can be complex and require significant adjustments in both hardware and software. Data Management – Changes in technology can impact how data is collected, stored, analyzed, and used. New tools may require new data governance policies or data migration efforts. Security – New technology might necessitate improved security protocols to protect against vulnerabilities and ensure data privacy and compliance. Automation – Technology changes may lead to increased automation, which can impact job roles, reduce manual tasks, and improve efficiency. However, this also requires re-training and potential restructuring of teams. Case Study 2: Unsuccessful Change Blockbuster’s Failure to Adapt to Digital Trends Example: Blockbuster, a leading video rental company, failed to adapt to the digital streaming trend, leading to its downfall. Key Factors: – Resistance to Change: Blockbuster's leadership was resistant to shifting from its traditional brick-and-mortar business model to a digital subscription model, despite the emergence of competitors like Netflix. – Poor Planning: Blockbuster underestimated the impact of digital disruption and failed to innovate in a timely manner. – Lack of Readiness: The company was not prepared to pivot quickly to an online model and faced organizational inertia. Outcome: Blockbuster filed for bankruptcy in 2010, as it could not compete with Netflix's innovative digital strategy. IN-CLASS GROUP ACTIVITY Change Ripple Effect Simulation Objective: Map out the ripple effects of a hypothetical change scenario. Instructions: – Break into your group in Zoom breakout rooms. – Each group will receive a hypothetical scenario (e.g., a merger, new technology implementation). – Identify the impacts on business – Assess the company’s readiness for change. – Create a "Ripple Effect Map" using a virtual whiteboard tool. Deliverable: Present your map and findings to the class. (Professor will select 1-2 groups at random) Review Rubric for In class Activity Category Criteria Points Group Collaboration Evidence of effective teamwork and collaboration as demonstrated by the final /10 product and presentation. Understanding & Demonstrates clear understanding of the topic and objectives. Content presented is /10 Content Quality accurate, well thought out and relevant. Creativity & Innovative approaches or creative problem-solving during the activity. Clear and /10 Presentation effective communication, including eye contact, voice clarity, and audience engagement. Organization & Use of Well-organized presentation with logical flow. Effective use of visual aids to enhance /10 Visual Aids understanding. Q&A Handling & Effectively handled questions/discussion from the audience. Reflection on activity /10 Reflection and presentation, noting areas for improvement and lessons learned. Grading Scale: Total Points | | /50 (45-50 points): Exceptional performance, demonstrating a high level of understanding, creativity, and collaboration. (40-44 points): Strong performance, with good understanding and teamwork but minor areas for improvement. (35-39 points): Satisfactory performance, meets expectations but with several areas needing improvement. (30-34 points): Below expectations, with significant issues in understanding, organization, or collaboration. (Below 30 points): Does not meet expectations, with little evidence of effort or understanding Example Ripple Effect Map Sample Ripple Effect Map with identified impacts on people, processes, product, technology Change Topic Options or Pick Your Own Idea Switching from In-Person to Online Exams Launching a New Student Feedback Platform Moving from Hybrid to In Person Classes Implementing Mandatory Digital Attendance Software for Classes Eliminating all use of cash payments on Campus Changing an Inventory Management System Elimination of all plastic in a fast food restaurant Moving from paper to digital invoicing Replacing a professor halfway through the term Break out Rooms Break out into your course group Work together to identify the ripple effects and assess readiness. – What were the main impacts identified? – What strategies would you recommend to mitigate impacts? Time Limit: ~20 minutes Create a "Ripple Effect Map" using a virtual whiteboard tool. Return to large group and be ready to present 2 groups will be selected to present This is a graded assignment. Assessing an Organization's Readiness for Change What is Change Readiness? – Change readiness refers to an organization's capacity to accept, implement, and sustain changes effectively. It involves assessing the organization's willingness, preparedness, and ability to undertake new initiatives. Why Assessing Change Readiness Matters: – Understanding change readiness helps organizations identify potential barriers and resistance early, enabling proactive planning and intervention. It allows for a more tailored change strategy, ensuring higher chances of successful implementation. Key Factors in Assessing Change Readiness: – Leadership Support – Communication Strategies – Employee Engagement Assessing an Organization's Readiness for Change Key Factors in Assessing Change Readiness: – Leadership Support: Leadership buy-in and commitment are critical for driving change. Leaders must visibly support the change and provide the necessary resources, such as time, money, and training. Effective change starts from the top; leaders should model desired behaviors and align organizational goals with the change initiative. Example: Leaders can assess readiness by evaluating their own and other leaders’ commitment to change, such as their willingness to allocate budget and resources or their engagement in communicating the vision. Assessing an Organization's Readiness for Change Key Factors in Assessing Change Readiness: – Communication Strategies: Clear, transparent communication is essential for building trust and reducing resistance to change. This involves sharing the reasons for change, the benefits, potential impacts, and the timeline. Frequent communication helps to align stakeholders and keep everyone informed. Example: An organization might use surveys or focus groups to understand employee concerns and determine how effectively information about the change is being disseminated. Assessing an Organization's Readiness for Change Key Factors in Assessing Change Readiness: – Employee Engagement: Engaged employees are more likely to embrace and support change. Engagement can be assessed through surveys, interviews, or focus groups to understand employees' attitudes toward the change, their readiness to adapt, and any potential resistance. Example: An organization might look for signs of readiness through high participation in training sessions, positive feedback, and enthusiasm about the change. Assessing an Organization's Readiness for Change Methods to Assess Change Readiness: – Surveys and Questionnaires: Use surveys to gather data on employees' perceptions, concerns, and openness to the change. Key Areas to Measure: Understanding of the change, perceived benefits and challenges, and overall readiness. – Focus Groups and Interviews: Conduct small group discussions or one-on-one interviews to explore attitudes, concerns, and suggestions in more depth. Key Areas to Measure: Specific resistance points, support levels, and communication effectiveness. – Readiness Checklists: Use a checklist to evaluate organizational factors like resource availability, stakeholder alignment, and risk assessment. Example Checklist Items: Availability of training programs, clarity of change vision, and stakeholder engagement levels. Week 2 – In class Learning Assignment Ripple Effect Group Assignment & Presentations Week 2 – Personal Learning Assignment Week 2 – Quiz (MyCanvas) Reading for Week 3: Roles – The 5 Essential Responsibilities of Leadership in Change Management - https://honehq.com/resources/blog/leadership-in- change-management/ – 9 Key Roles of Change Leaders - https://www.amanet.org/articles/9-key-roles-of-change- leaders/