Introduction to Change Management PDF

INTRODUCTION TO CHANGE MANAGEMENT As we look at individuals who grow over a period of time, from infancy to adolescence to teenage and eventually adulthood, it would help to look at any corporation in the same light. As a child, the individual is open to change, she is able to learn and adapt to dif...

INTRODUCTION TO CHANGE MANAGEMENT As we look at individuals who grow over a period of time, from infancy to adolescence to teenage and eventually adulthood, it would help to look at any corporation in the same light. As a child, the individual is open to change, she is able to learn and adapt to different situations quickly. Upon becoming a teenager or adult, the rate of change slows down and the adaptability to different situations becomes a tedious process. There are also changes that the individual wants to make but is faced by resistance from their parents/elders at home or in school and college. Similarly, as a company/organisation is incorporated, it starts going through a process of learning and growing. The only way of growth is to accept and successfully manage change. Thus, you will notice that when an organisation is young, it is able to adapt and change more easily than when an organisation has become multi-layered and fully grown. Usually after certain levels of growth, higher levels of management begin to resist change more frequently and as a consequence organisational growth slows down. Thus, to be able to grow, companies need to be constantly open change. Change management is a complex process and requires serious attention as well as involvement from the management and people from across the company, in order to achieve a meaningful or a progressive transformation at all levels. Merely asking the employees to change is not enough. Organisations need different individuals to be the drivers of change at different levels in the organisation. Change management teaches the organisation to identify the change makers, their ability and motivations for change. This helps to keep the different levels in sync with each other and at the same stages in the process of change. If we did not manage change, different levels of the organisation would be adopting change at different rates, leading to discord in the organisation. Management: Employee: Management: 1 CMBDS1.1 Prof. Yash Dugar SIGNIFICANCE OF CHANGE An organization’s readiness for change management influences organizational strategies and policy related decisions. By improving the readiness for change, organizations can strengthen their adaptability mechanisms and build their internal competencies for facing future uncertainties. In the era of globalization, organizations function across cultural boundaries with large investments in human capital as well as physical resources. They give utmost importance to technological change and innovative practices for a leadership advantage. Business alliances like mergers, acquisitions, diversifications, takeovers and various other collaborative ventures have become the most preferred strategic best practices for the organizations to survive the fierce forces of competition, through transfer of people, technology, processes and leadership. For successfully handling this transition and converting the threats of change into opportunities, organizations must be flexible and open for Change Management. People play a very vital role in driving business excellence People are the most valuable assets. Hence, a change in the method of handling a job role, implementation of facilitating interventions and training people about the new practices or techniques, can result in impressive results in terms of the return on investment (ROI). How organizations manage change or respond to the business transitions largely depend upon the adaptability of people or readiness of the people in understanding the changes in the process and method of handling a job. Change management processes directly affect the human resource strategies of an organization depending upon the goals or strategies of an organization. Effective Change management process help organizations in understanding the changing customer needs, meeting their demands and expectations much better since the requirements are well defined. Any good business is driven primarily by its customers, both, internal and external. Internal customers are the employees of the organisation whose needs must be catered to in order to maintain an optimal working environment and the external customers are the end consumers who drive revenue growth for the organisation. Thus, both customers need to be catered. The most successful organisations are those which are able to predict the changing needs before time and implement strategies to combat the same. 2 CMBDS1.1 Prof. Yash Dugar Organizational change affects the leadership thinking style Leaders of bigger organisations have a set of beliefs that they feel is unique to themselves, people such as Warren Buffet and Jeff Bezos have certain unique characteristics that have made them the successes they are today. These individuals are at the top level of the chain of command and have almost unlimited resources at their disposal. For them to accept change and realign their beliefs is not easy. When change makers in the organisations are able to drive systematic and planned change, the leadership also takes notice and is more receptive to the change. This consequently leads to a change in their thinking and leadership styles. Subsequently, the positive outcomes of the change may reinforce benefits by establishing the systems and processes in place. It will also help in establishing an integrated framework for achieving the developmental goals. Therefore, we can see that the success of the change management process largely depends upon: 1. Effective planning, 2. Establishing of objectives 3. Communication of objectives to the people involved in it 4. Establishing of the required framework to deliver the expected goals or outcomes. Planned change, if effectively implemented, can be beneficial in terms of controlling costs, minimizing risks, reducing the stress and anxiety by controlling uncertainties. It helps in setting up new milestones, establishing objectives, defining priorities and identifying the limitations for driving excellence in new initiatives. If implemented with proper planning, change management does not affect the day to day functioning of an organization, rather it functions concurrently. Instead, it creates a scope for establishing best practices, defining the operational framework and regulations for the people, processes and system. It engages people in the entire process and motivates them to work towards realization of a common goal or objective and deliver excellence in performance through collaborative efforts and involvement in the process as a whole. Research in this direction proves the fact that organizations which have an established change management process are more likely to excel in meeting the business goals or achieve excellence in their project outcomes. 3 CMBDS1.1 Prof. Yash Dugar IMPORTANCE/IMPERATIVES OF CHANGE So far, we have seen overall reasons/motivators for organisations to change. We can therefore summarise the importance/imperatives of change for organizations as below: 1. Crisis: Change becomes a necessity when an organization finds itself in a crisis. It helps it rectify some of its processes or activities that may have become ineffective. Initiating changes to discard these processes assists the organization to withstand the turbulent times. 2. Performance Gaps: In some situations, there is a gap between the current situation in the organisation and the projected situation. Thus, the organization's goals and objectives are not being met or other organizational needs are not being satisfied, and change becomes imperative to close these gaps. 3. Technological Advancements: Change is important in coping with emerging technological advancements in society. Transforming the business in line with new technologies helps to edge out its competitors, thanks to increased productivity. Incorporating change in line with technology helps the development of new procedures for carrying out various needed tasks. 4. Organizational Culture: Many companies initiate change to improve their organizational culture. Changing the organizational culture, which could include basic beliefs, values, feelings, and internal and external relationships, can improve its efficiency and productivity. Effective organizational culture also attracts new customers, increases customer satisfaction, reduces costs of operations and increases worker retention. 5. Identification of Opportunities: Change becomes imperative when opportunities are identified in the market place that the organization needs to pursue in order to increase its competitiveness. For e.g.: - Instead of making a brick-and-mortar store, a company can choose to make products available online when they identify a new geographical market for their products. 6. Reaction to Internal & External Pressure: Management and employees, particularly those in organized unions often exert internal pressure for change. External pressures come from many areas, including customers, competition, changing government regulations, shareholders, financial markets, and other factors in the organization's external environment. 7. Mergers & Acquisitions: Mergers and acquisitions create change in a number of areas often negatively impacting employees when two organizations are merged and employees in dual functions are made redundant. 8. Planned Abandonment: Changes becomes imperative as a result of abandoning declining products, markets, or subsidiaries and allocating resources to innovation and new opportunities. 4 CMBDS1.1 Prof. Yash Dugar LEVELS OF CHANGE Change can be at individual, group and organisational levels: 1. Individual Level Change: At the individual level change is reflected in developments such as job assignments, physical move to a different location, or the change in maturity of a person which occurs overtime. A significant change at the individual level will have its repercussions on the group which, in turn, might influence the wider organisation. A manager who desires to implement a major change at the individual level, transferring an employee for instance, must understand that the change will have repercussions beyond the individual. 2. Group Level Changes: Most organisational changes have their major effects at the group level. This is because most activities in organisations are organised on group basis. The groups could be departments, or informal work groups. Changes at the group level can affect work flows, job design, social organisation, influence and status systems, and communication patterns. Managers must consider group factors when implementing change. Informal groups can pose a major barrier to change because of the inherent strengths they contain. Formal groups have a higher tendency to resist change, as often seen by employee unions to changes proposed by management. The paradoxical relationship between individual and group change is such that for a group to change, the individual must change, and conversely, if enough of the group changes, it leads to a change in the individuals most resisting change. 3. Organization Level Changes: Change at this level involves major programmes that affect both individuals and groups. Decisions regarding these changes are generally made by senior management and are seldom implemented by only a single manager. Frequently they occur over long periods of time and require considerable planning for implementation. Example of these changes would be re- organisation of the organisation structure and responsibilities, revamping of employee remuneration system, or major shifts in an organisation’s objectives. Change at the organisational level is generally referred to as organization development. 5 CMBDS1.1 Prof. Yash Dugar THE CHALLENGES OF CHANGE MANAGEMENT To develop a comprehensive change management plan, leaders have to acknowledge the obstacles that could come their way and how to address them. 1. Employee Resistance: If the majority of employees are not on board with the changes to be implemented, this can greatly hamper the transition. As a result, they may not make implementation a priority which will cause productivity to suffer. This can happen if organizational culture is not acknowledged, communication is not clear, and employees are left out of crucial decision-making. 2. Planning: Planning for a company-wide transition can be overwhelming and stressful. These can cause leaders to ignore vital details and not include essential stakeholders who need to be involved in conversations about changes. Each aspect of the rollout needs to be addressed, and potential employee and customer responses need to be mapped out. 3. A Lack of Communication: Organizational leaders may not always transparent about challenges the company is facing. Therefore, when changes are brought to employees, they do not have context for why these transitions need to occur. If the leaders are honest, organizations can pre-empt questions and ill feelings about changes the employees may have and subsequently be able to tackle them before it gets too hazardous. 4. Leadership Buy-in: Nothing can derail a transition quicker than a lack of management commitment. There may be some top executives who feel the change is needed, while some others at the same vertical do not agree. This may lead to animosity and both parties may use office politics to convey their dislike and steer the company their preferred direction. This is why it is vital to start from the top and involve all management in initial conversations about the plan and why it is critical to the success of the company. 6 CMBDS1.1 Prof. Yash Dugar 4 TYPES OF CHANGE Based on the complexity and dynamism, the change process can broadly be classified into certain types. This classification is on descriptive parameters and thus need not be very rigid, but it helps to understand the different concepts driving change. These types of change are: 1. Reactive change: Changes which are in response to a particular event or a series of events are called reactive changes. Generally, most sluggish organizations are engaged in reactive changes. These types of changes are attempted when the demand for products and services register an increase or decrease, or a problem occurs. For example, with the wider acceptance of bitcoin across the world, many companies that initially resisted technology were forced to react and adopt technological changes required in order to attract customers from a wider demographic. These types of changes usually catch the organisations procrastinating, and should be used at a means to review the mistakes made and the reasons the company was reactive and not proactive. Reactive changes are usually done swiftly and many times the organisations may be rushed into making the changes required, this leads to lower standards of planning and execution. The fewer the instance of reactive change, the better it is for the organisation, this observation holds true when we assume that the company was proactive to the changes needed and the planning and execution of the change was of higher standards. 2. Anticipatory change: Change carried out in expectation of an event or a series of events is called anticipatory change. Organizations in anticipation may turn-in or reorient themselves to future demands. Turning in would involve making incremental changes to systems, processes, products, strategies etc. in anticipation of external events. Reorientation is a more holistic term and involves the entire company moving in a new direction, from the present stage to the future in anticipation of a changing environment and involves a longer transition process. For example, for a company like Apple, turning in would mean reducing the cost of the iPhone in anticipation of the next Samsung flagship and reorientation would mean becoming a major player in the electric cars’ segment in order to challenge the likes of Tesla and General Motors. 7 CMBDS1.1 Prof. Yash Dugar 3. Planned change: Planned change can also be called developmental change; it is undertaken to improve the current way of operating. It is a calculated change initiated to achieve a certain desirable performance and to make the organization more responsive to the internal and external demands. It is the ideal way to implement change. Planned change must be periodic and regularly implemented. Usually there are individuals identified for driving these changes who are trained as change makers. Planned change can also be driven by external change managers who spend time to understand the current situation of the organisation and provide consultations on its future state that would drive the organisation in a positive direction. 4. Sudden change or unpredictable change: This type of change is forced onto the companies by various factors. It takes place suddenly without any planning and due to strong external factors. It is sudden because organizations usually do not foresee and plan for such change. As this change is unpredictable, it be traumatic for organizations because they do not have proper control over such changes. It is by far the riskiest type of change and should be avoided at all costs. Sudden political or social changes in the environment may bring such changes. The recent Covid pandemic is a prime example of such a change. Companies that were unable to manage a sudden change in their finances, their manpower, their expenses or their products were forced to shut down and go out of business. On the other hand, companies that were well placed to manage such contingencies have flourished. Examples are aplenty on both sides of the story, and it is clearly evident that companies which were agile and ready to manage the change were the ones who have recorded phenomenal growth while the ones which did not try to adapt have perished. 8 CMBDS1.1 Prof. Yash Dugar FORCES OF ORGANIZATIONAL CHANGE: External Forces: The external environment is very rarely under the control of organisations, as a consequence, they do not have any control over the variables in such an environment. Accordingly, if the organisation cannot change the environment it must change themselves to align with the environment. Some of these external forces are as follows: 1. Technology: Technology is one of the major external forces which calls for change. The adoption of new technology such as artificial intelligence, direct satellite systems and flexible manufacturing operations has profound impact on the organisations that adopt them. The substitution of computer control for direct supervision results in wider spans of control for managers and flatter organisations. 2. Marketing Conditions: There was a time when market conditions used to be static, there were very few options in any product. For e.g.: - In pre liberalisation India, there were just four cars to choose from and two types of television sets available. Today you’ll find four different cars and multiple types of television sets in just one household. Thus, for any company to last beyond a few years, they must constantly evolve. The market as a whole, is always in the process of rapid change as the needs, desires and expectations of the customers change rapidly and frequently. New methods of advertising are used to influence the customers. The concept of consumerism had gained considerable importance and thus, consumers were treated as kings. But in the future, one can safely say that the consumers will be treated as the product, companies such as Facebook and Google sell consumer data and make billions of dollars. This is a paradigm shift and companies that are able to change their approach and capitalise on this market will be the ones to benefit the most. 3. Social Changes: An alteration in the social and cultural environments also imposes some changes the organisations have to adjust to. People today are more connected than they have ever been in history. A social change anywhere in the world has the potential to spark social change all over the world. In recent history, events such as the #MeToo movement and Black Lives Matter, have found their way across the globe. Companies now have to predict local trends based on global socio-cultural cues. 4. Political Forces: Political environment within and outside the country have an important impact on businesses. The larger the global presence, the more essential it is for a company to successfully meander through the international political system. The involvement of governments in business enterprises has increased multi-fold over the past few decades in most countries. They aim at controlling the corporate sector by amending and implementing laws and regulations to suit their political agendas. In many instances, the organisations do not have any direct control over political and legal forces, but they have to adapt to meet the pressure of these forces. 9 CMBDS1.1 Prof. Yash Dugar Internal Forces: There could be a multitude of internal forces that motivate change, some of the major internal causes are explained as follows: 1. Nature of the Workforce: The nature of workforce has drastically changed over time. Different work values have been expressed by different generations. After many decades of observing the corporate set-up, one can surmise the following, workers who are in the age group of 50+ value loyalty to their employers, workers in their mid-thirties to mid- forties value their lifestyle and flexibility over company loyalty, while the youngest generation of employees value experiences and money over all else. The profile of the workforce is also changing fast. The new generation of workers has better educational qualifications; they place greater emphasis on human values and question the methods of their managers. 2. Change in Managerial Personnel: Change in managerial personnel is another force which brings about change in organisation. Old managers are replaced by new managers which is necessitated due promotion, retirement, transfer or dismissal. Each manager brings her own ideas and way of working in the organisation. The informal relationships change because of changes in managerial personnel. Sometimes, even though there is no change in personnel, their attitudes change. As a result, the organisation has to change accordingly. Changes in the organisation are faster when top executives change. Change in top executives will lead to important changes in the organisation. 3. Deficiencies in Existing Management Structure: Sometimes changes are necessary because the existing organisational structure is not optimal in terms of its arrangement and processes. These deficiencies may be in the form of a top-heavy management, unnecessary managerial levels, lack of coordination among various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between line and staff and so on. However, in static organisations, the need for change goes unrecognized until some major crisis occurs. In dynamic organisations, there is these issues are usually identified proactively and this leads in the aversion of possible crisis. 4. To Avoid Developing Inertia: Most successful companies are always in a constant state of change. In some organisations, managers undertake change activities just to avoid developing inflexibility/rigidity. Proactive managers are often of the view that the organisation should be dynamic, because just following a single method is not the best tool of management every time. Thus, changes are incorporated so the personnel develop liking for change and there is no necessary resistance when major changes in the organisation are brought about. 10 CMBDS1.1 Prof. Yash Dugar ORGANISATIONAL CHANGE AND CULTURE “Corporate culture” is a popular term often used as a buzzword to describe the climate within an organization. Corporate culture refers to the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization’s goals, strategies, structure, and approaches to labour, customers, investors, and the greater community. “Corporate culture” is a somewhat vague term, but it can have a huge impact on the fortune of a company and the company’s employees. Broadly, on the basis of adherence to organisational culture, there are two types of Organisational culture: Strong Organizational Culture: Strong organizational culture refers to a situation where the employees adjust well, respect the organization’s policies and adhere to the guidelines. In such a culture people enjoy working and take every assignment as a new learning and try to gain as much as they can. They accept their roles and responsibilities willingly. Weak Organizational Culture: In such a culture, individuals accept their responsibilities out of fear of superiors and harsh policies. The employees in such a situation do things out of compulsion. They treat their organization as a mere source of earning money and never get attached to it. 11 CMBDS1.1 Prof. Yash Dugar On the basis of structure, these are the 4 different types of Culture found in the Organisation: 1. Clan Culture: Clan cultures have a friendly, collaborative culture and can be compared to a large family i.e., a clan where people have a lot in common. Strong bonds of loyalty, tradition, and commonality generally form. This type of culture is most common in start- ups and small to medium sized family managed businesses. 2. Adhocracy Culture: The root word here is “ad hoc.” An adhocracy is a dynamic and innovative environment where employees are willing to take chances and leaders are typically seen as inspirational innovators willing to challenge assumptions and take risks. Core values reflect change and agility, this is not the type of culture where employees are likely to hear, “We tried that already, and it didn’t work.”, rather the conversations are more about how to try things a different way in order to achieve results. Think Facebook and any variety of tech companies that must stay nimble and innovative to remain competitive. 3. Market Culture: A market culture is a culture in which the goal is to get down to business, get work done, and achieve results. The market dictates the culture. If the market reacts positively, work culture will be easy-going, if the market reacts negatively, the work culture will be hard, long hours to achieve the marketing goals. This is often a competitive environment, even among co-workers. The purpose of being at work in a company with this type of culture is to make as much profit and capture as much market share as possible. Amazon is a great example of this type of company, and Jeff Bezos is known as being a demanding taskmaster. Apple, under Steve Jobs is another example. 4. Hierarchy Culture: Process and procedure are everything in a hierarchy culture. Leaders are there to monitor and facilitate adherence to tried and true ways of doing business. Costs and mistakes are kept low by following the rules and the guidelines that have gotten the business this far in the first place. Government organizations are good examples of this type of culture, as are organizations where safety is a primary concern, health care and aviation, for example. 12 CMBDS1.1 Prof. Yash Dugar THE IMPORTANCE OF ORGANISATIONAL CULTURE The culture of the workplace controls the way employees behave amongst themselves as well as with people outside the organization. 1. The culture of the workplace goes a long way in promoting healthy competition at the workplace and decides the way employees interact with each other. Employees try their level best to perform better than their fellow workers and earn recognition and appreciation of the superiors. It is the culture of the workplace which actually motivates the employees to perform. 2. The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace. Every organization must have set guidelines for the employees to work accordingly. Each individual is clear about his roles and responsibilities in the organization and know how to accomplish the tasks ahead of the deadlines. 3. The work culture goes a long way in creating the brand image of the organization. The work culture gives an identity to the organization. In other words, an organization is known by its culture. No two organizations can have the same work culture. It is the culture of an organization which makes it distinct from others. 4. The organization culture brings all the employees on a common platform and promotes healthy relationship amongst the employees. The employees must be treated equally and no one should feel neglected or left out at the workplace. It is essential for the employees to adjust well in the organization culture for them to deliver their level best. 13 CMBDS1.1 Prof. Yash Dugar FACTORS AFFECTING ORGANIZATION CULTURE Culture represents the beliefs, ideologies, policies and practices of an organization. It gives the employees a sense of direction and also controls the way they behave with each other. There are several factors which affect the organization culture: 1. Individuals working with the organization. The employees in their own way contribute to the culture of the workplace. The attitudes, mentalities, interests, perception and even the thought process of the employees affect the organization culture. Example - Organizations which hire individuals from army or defence background tend to follow a strict culture where all the employees abide by the set guidelines and policies. The employees are hardly late to work. It is the mindset of the employees which forms the culture of the place. Organizations with majority of youngsters encourage healthy competition at the workplace and employees are always on the toes to perform better than the fellow workers. 2. The nature of the business also affects the culture of the organization. Stock broking industries, financial services, banking industry are all dependent on external factors like demand and supply, market cap, earning per share and so on. When the market crashes, these industries have no other option than to terminate the employees and eventually affect the culture of the place. Market fluctuations lead to unrest, tensions and severely demotivate the individuals. The management also feels helpless when circumstances can be controlled by none. Individuals are unsure about their career as well as growth in such organizations. 3. Company goals and objectives. The strategies and procedures designed to achieve the targets of the organization also contribute to its culture. Individuals working with government organizations adhere to the set guidelines but do not follow a procedure of feedback thus forming its culture. Fast paced industries like advertising, event management companies expect the employees to be attentive, aggressive and proactive. 4. The clients and the external parties to some extent also affect the work culture of the place. Organizations catering to UK and US Clients have no other option but to work in shifts to match their timings, thus forming the culture. 5. The management style: The way management believes in handling the employees also affects the culture of the workplace. There are certain organizations where the management allows the employees to take their own decisions and let them participate in strategy making. In such a culture, employees get attached to their management and look forward to a long-term association with the organization. The management must respect the employees to avoid a culture where the employees just work for money and nothing else. They treat the organization as a mere source of earning money and look for a change in a short span of time. 14 CMBDS1.1 Prof. Yash Dugar STRATEGIES FOR CHANGING ORGANIZATIONAL CULTURE Employees working for a considerable amount of time in any particular organization tend to make certain rules and follow some policies as per their convenience and mutual understanding, often for personal as well as professional benefit. Such policies and procedures practised by the employees for a long time, become the modified workplace culture. This culture often gives the employees a sense of belonging and direction at the workplace. Organizational culture however, can never be constant. It changes with time. Let us understand the concept with the help of an example. Organization A was a well-known event management firm. Tom, Sandra, Peter and Jack represented the management. All four were in their mid-thirties and emphasized on hiring young talent. As a result, the organization followed a youth culture. The employees were aggressive, on their toes and eager to do something innovative always. They worked hard and partied hard. The organization followed a strong reward culture, where the employees performing exceptionally well were appreciated and recognised suitably. Appraisals and promotions came in no time and feedbacks were quick. The management also encouraged informal get-togethers, dinners and office parties to bring the employees closer and increase the comfort level. After proving their mettle for some years, Tom, Sandra and Peter decided to move on for better opportunities. Tim, Maria, Sara all in their fifties stepped into their shoes and took charge along with Jack, the only member left from the previous team. As they came from an older school of thought, they did not approve the style of working. They brought their own people from previous organizations, and gave them middle management roles, the existing employees were asked to adhere to the new work culture. As expected, this caused problems for the existing employees. The new management strongly supported punctuality, and did not appreciate the work hard party hard culture at the workplace. There were no feedbacks or rewards. The earlier employees lacked enthusiasm and never bothered to do something innovative, the new employees faced problems in transition because of the difference in work cultures and this led to the organisation performing far below its potential. Thus, we can see how a change in management changed the entire style of working. 15 CMBDS1.1 Prof. Yash Dugar Reasons for changes in work culture 1. A new management, a new team leader, a new boss brings a change in the organization culture. 2. Financial loss, bankruptcy, market fluctuations also lead to change in the work culture of the organization. 3. Acquiring new clients might cause a change in the work culture. The employees might have to bring about a change in their style of working to meet the expectations of the new clients. 4. The employees on their own might realize that they need to bring a change in their attitude, perception and style of working to achieve the targets at a much faster rate. Such self-realization also changes the work culture. ADJUSTING TO CHANGING ORGANIZATION CULTURE The work culture represents the ideologies, principles, policies and beliefs of the organization. The individual’s style of working, her behaviour and ways of interaction also contribute to the culture of the organization. There are several reasons which lead to a change in organization culture. Change in management, poor financial conditions, revisions in goals and targets bring a change in the culture of the organisation. Accepting changes in work culture is the toughest thing to do for an employee. Not all employees can happily adapt to organizational changes. Employees need time to cope with a new culture. Miracles can’t happen overnight and habits do not change all of a sudden. The employees must spend some time to understand and adjust to the new culture. One should work with an open mind and willingly accept things. The employees must try their level best to accept the changes with a smile and work accordingly. One should never be in a rush. The management must also give time to the employees for them to gel with the new culture. Don’t pressurize anyone to accept changes all of a sudden. The employees must design new strategies, new plan of actions and policies to meet the new challenges. Try to find out the exact reasons for the change. The ideas which were successful earlier might now fall out of place. One should not be adamant. Sit with your team leader, discuss all possible options and try to implement something which would work best in the new culture and benefit you as well as your organization. An employee must change his behaviour and thought process as per the culture. It is essential to be flexible. Being adaptable at the workplace always pays in the long run. Remember everything happens for the best. One should always try to look at the positive aspects of life rather than cribbing on things which are beyond anyone’s control. 16 CMBDS1.1 Prof. Yash Dugar Example: Jack worked with an organization of repute. His organization followed a culture where the employees never reached office on time. There were no strict rules and regulations for the employees. Jack found his work culture very comfortable as there was no pressure to reach work on time. Very soon, his organization hired senior management from its competitor to take charge of the organization. The senior manager came in and saw that there was an obvious performance gap because of employees not coming to office at the same time. She realised that when employees needed their colleagues, they were not always around. To address this situation, she made several changes in the work culture, the first and the foremost being fixed timings for all the employees. Everyone irrespective of the designation had to reach office on time. All the employees had to adhere to the guidelines and policies of the organization. Condition A Jack found it very difficult to adjust to the new culture. He does not accept the sudden change in the work culture, cribbed amongst his fellow workers and felt his work was a burden. Condition B Jack happily accepted the change and tried his level best to adjust to it. He was intelligent enough to understand that after all the change was for the benefit of the organization. He got up little early every day, and reached office on time. He gave her best every day and won the appreciation of her superiors as well as the management. Thus, condition B is an ideal situation when adapting to change. But there has to be communication and understanding between all parties in order to implement the change. One should always remember that a little change in one’s behaviour can make the organization a better place to work. 17 CMBDS1.1 Prof. Yash Dugar Though organisational culture cannot be easily changed many authors have identified the following factors which may play an important role in the cultural change process: A strong leader. A clear vision of what needs to be done. Development of new work procedures. Openness of an organisation to learn. 1. A strong leader: A strong leader does not necessarily have to be from top management, it could be anyone within the organisation who people respect and look up to. These individuals help to bring about and sustain a cultural change. These individuals are able to recognise that members of the organisation are reluctant to change and work towards finding an amicable resolution to their reluctance. Although change might be driven by a strong leader at the helm of the organisation, in the process of cultural change other influential leaders across different levels of the organisation also emerge. 2. A clear vision: Besides intense energy to initiate cultural change, a leader also must have sense of vision or direction as to where the organisation is heading. The leader should have strong belief and must share with others as to what the new culture will be like. The clarity of vision may occur due to following two factors viz.: From the values that the leader may have and The crisis that must be handled to save the business. The process of vision includes not only determining the destination but also generating commitment from all organisational members to contribute to their fullest extent to achieve organisational goals. The employees should also clearly know cost if change does not take place. 18 CMBDS1.1 Prof. Yash Dugar 3. Development of new work procedures: Organisations, in order to bring about a cultural change must also adapt new procedures that reinforce the cultural values which are being espoused (advocated). New work procedures help to break association with old values from which organisations seek to depart. New work procedures include the excessive use of teams as well as changes in job design. The new work procedures would include all or some of the following: Changes in communication patterns Co-operation among organisational members Decision making Changes in organisational policies pertaining to selection, training and compensation. The new procedures for performing the work provides a venue for organisational members to reframe their values, attitudes and beliefs about the organisation and what it is trying to accomplish. A failure to change how work is performed even though new values and beliefs have been expressed often results in backsliding: By Backsliding we mean return to the old ways of thinking and feeling and ultimately behaving in ways from which organisation is attempting to evolve. 4. Openness of an organisation to Learn: An organisation as a whole, along with its leaders and workers must be open to learn, grasp and adapt to a changing environment. The organisational members should have patience and perseverance. Instead of viewing mistakes as punishable offences or signs of weakness, they should be regarded as a part of a normal and healthy change process. An organisation becomes a “learning organisation” when they are not only comfortable with the growth process but also treat their members in a nurturing manner, as opposed to cultivating a punishment culture. An organisation which is open to learn also accepts the fact that good ideas and opportunities for growth originate at all levels of the organisation, and not just from top management. 19 CMBDS1.1 Prof. Yash Dugar MODELS OF CHANGE: 1. Kurt Lewin’s Change Management Model: The Planned Approach to Organizational Change Kurt Lewin’s Three Stages model or the Planned Approach to Organizational is one of the cornerstone models of change management. Lewin, a social scientist and a physicist, during early 1950s propounded a simple framework for understanding the process of organizational change known as the Three-Stage Theory which he referred as Unfreeze, Change (Transition) and Freeze (Refreeze). According to Lewin, change for any individual or an organization is a complicated journey which may not be very simple and mostly involves several stages of transitions or misunderstandings before attaining the stage of equilibrium or stability. For Lewin, the process of change entails creating the perception that a change is needed, then moving toward the new, desired level of behaviour and finally, solidifying that new behaviour as the norm. The model is still widely used and serves as the basis for many modern change models. For explaining the process of organizational change, he used the analogy of how an ice block changes its shape to transform into a cone of ice through the process of unfreezing. Let’s say you have ‘cube’ of ice but you’d like a ‘cone’ of Ice. To transform the cube to a cone, you must: 1. “unfreeze” or melt the ice 2. “change” the mould to a cone shape and 3. “refreeze” the water into the new, desired shape Stage 1 - Unfreezing: This is the first stage of transition and one of the most critical stages in the entire process of change management. Before you can cook a meal that has been frozen, you need to defrost or thaw it out. The same can be said of change. Before a change can be implemented, it must go through the initial step of unfreezing. Because many people will naturally resist change, the goal during the unfreezing stage is to create awareness of how the status quo, or current level of acceptability, is hindering the organization in some way. Old behaviours, ways of thinking, processes, people and organizational structures must all be carefully examined to show employees how necessary a change is for the organization to create or maintain a competitive advantage in the marketplace. Communication is especially important during the unfreezing stage so that employees can become informed about the imminent change, the logic behind it and how it will benefit each employee. The idea is that the more we know about a change and the more we feel it is necessary and urgent, the more motivated we are to accept the change. 20 CMBDS1.1 Prof. Yash Dugar Stage 2 - Change: This stage can also be regarded as the stage of Transition or the stage of actual implementation of change. Now that the people are 'unfrozen' they can begin to move. Lewin recognized that change is a process where the organization must transition or move into this new state of being. This changing step, also referred to as 'transitioning' or 'moving,' is marked by the implementation of the change. This is when the change becomes real. It's also, consequently, the time that most people struggle with the new reality. It is a time marked with uncertainty and fear, making it the hardest step to overcome. During the changing step people begin to learn the new behaviours, processes and ways of thinking. The more prepared they are for this step, the easier it is to complete. For this reason, education, communication, support and time are critical for employees as they become familiar with the change. Again, change is a process that must be carefully planned and executed. Throughout this process, employees should be reminded of the reasons for the change and how it will benefit them once fully implemented. It is believed that this stage of transition is not that easy due to the uncertainties or people are fearful of the consequences of adopting a change process. Stage 3 - Freeze (Refreezing): During this stage, the people move from the stage of transition (change) to a much more stable state which we can regard as the state of equilibrium. Lewin called the final stage of his change model freezing, but many refer to it as refreezing to symbolize the act of reinforcing, stabilizing and solidifying the new state after the change. The changes made to organizational processes, goals, structure, offerings or people are accepted and refrozen as the new norm or status quo. Lewin found the refreezing step to be especially important to ensure that people do not revert back to their old ways of thinking or doing prior to the implementation of the change. Efforts must be made to guarantee the change is not lost; rather, it needs to be cemented into the organization's culture and maintained as the acceptable way of thinking or doing. Positive rewards and acknowledgment of individualized efforts are often used to reinforce the new state because it is believed that positively reinforced behaviour will likely be repeated. 21 CMBDS1.1 Prof. Yash Dugar Lewin’s change management model can be implemented in three ways: 1. Changing the behaviour, attitudes, skills of the individuals working in the organization. 2. Changing the existing organizational structures, systems and processes 3. Changing the organizational climate, culture and interpersonal style. Today "Change management" is a well-known concept in businesses world. But, how businesses transform totally depend upon the type of change and another thing is reaction of employees towards organizational change. In the 1940s the basic model of change was developed by Kurt Lewin for knowing organizational change in better form. From old time to till now model still gives the accurate result. The important aspect of this model is for understanding about the change phenomena. This model is also popular with the name of three stage model or Unfreeze – Change – Refreeze model of change. a. Driving Forces: This is a force that pushes towards the cause of change. This is a force which pushes a person in the direction of desired objective. They cause a move in the balance towards change. b. Restraining forces: These are those forces those opposite to driving force. These forces are against the change so they make the hurdle in the path of change. These forces cause a move in the equilibrium which is against or oppose the change. c. Equilibrium: This the situation where driving and restraining forces are at equal and opposite position as a result there is no change occurs. Increase and decrease in the equilibrium condition by takes place by making in the adjustment of restraining and driving forces. 22 CMBDS1.1 Prof. Yash Dugar Lewin’s model stressed on the interdependence of various units as well as subunits in an organization. This model assumes that organizations function under static conditions and move from one state of stability to another state of stability in a planned way, but the present-day organizations function in turbulent scenarios and uncertain business environments. Furthermore, several critics criticized Lewin’s planned approach to change management for the following reasons: It was criticized for being too simple and mechanistic, as a result of which it may not be applicable for the present organizational scenario. This model ignores the role of Power & Politics and conflicts. Moreover, it ignores the importance of feelings and experiences of employees which play a crucial role in the entire change process. The model is very plan or goal driven. This model supports top-down approach to change management and ignores the importance of bottom-up approach in the change management process. 23 CMBDS1.1 Prof. Yash Dugar 2. LEAVITT’S DIAMOND MODEL Leavitt’s Diamond or the Leavitt Business Diamond is a model that can be applied to and used for change management. It gives insight into a company’s critical success factors and was developed in the early 1970s by the American professor and organisational psychologist Harold Leavitt. According to the Leavitt Diamond Model, the success factors required to accomplish change are Structure, Tasks, People, and Technology. In the model, these four factors are placed in a square shape and interconnected, thus creating a diamond shape. This is what the model owes its name to. There are other comparable business models shaped like a diamond, the best known of which are those by Michael Porter and Edward Lawler III. Leavitt’s Diamond: four Components The Leavitt’s Diamond model consists of four components, which Leavitt calls the most important factors in an organisation’s success. The four components are mentioned below and it is indicated what a particular change in each of them causes in the other three: Leavitt’s Diamond Change 24 CMBDS1.1 Prof. Yash Dugar  Structure Structure is not only about an organisation’s hierarchical build-up and the layout of the various departments. It also involves the mutual relations between departments and employees, the coordination between various levels of management, and communication patterns. These also result in the responsibilities within the organisation. A structure may be changed and adjusted for many reasons. Think of a reorganisation, a partnership, acquisition, or merger; restructuring of product groups, or reduction of management layers. A change in structure always comes with changes in another component or other components of the diamond. Change in the People component As soon as the structure changes because of one of the above examples, something will change in the employees as well. Their motivation, participation, and productivity may increase or decrease. On the other hand, a change in employees may in turn influence the structure of the organisation. When deploying highly qualified staff or training the skills of existing staff, less supervision and guidance is needed and managers’ span of control will increase. Change in the Tasks component A new organisational structure means different departments and, naturally, different tasks for the staff as well. The working methods and procedures change along with the end goal. Moreover, as soon as new company processes are developed, a number of positions or even levels of management may disappear completely. Change in the Technology component As soon as something changes in the area of technology, such as automation, this requires a renovation of organisational structure as well. For example, new positions will be created, and certain work may perhaps be taken over by technology. This will result in a reduced number of positions, along with which the organisational structure will have to change as well. It may also be the case that the coordination between departments will have to be adjusted. 25 CMBDS1.1 Prof. Yash Dugar  Tasks This component has two parts: on the one hand, those tasks that individual employees are assigned within their jobs; on the other hand, the goals on strategic, tactical, and operational level. In short, it involves all the things that need to be done in order to achieve a certain goal at the organisational, departmental, or individual level. Leavitt states that tasks should definitely make qualitative contributions to the organisational goal in the form of productivity and return on investment. Change in the People component As soon as there is a change of staff, or employees’ knowledge and expertise changes through training or a specific hiring policy, the individual tasks within their jobs will change as well. Change in the Structure component When the organisational structure changes, departments will also be restructured, resulting in a different arrangement of job positions. A different way of working will be expected from employees, which includes different and/or additional tasks. In case of reorganisation, too, the company goal will change, with consequences for each employee’s individual tasks. Change in the Technology component A change in technology will often have a great impact within an organisation. It entails that employees will have to work differently, and will receive different tasks. Certain work will be taken over by technology, which changes the content of the tasks for the staff. For example, manual input will no longer be part of the tasks, whereas digitally adjusting and processing certain information will. 26 CMBDS1.1 Prof. Yash Dugar  People This refers to all employees within an organisation. Without manpower, there is no productivity and an organisation is unable to function. This component also pertains to all skills, competencies, knowledge, and efficiency that employees bring. Change in the Tasks component When tasks change, it directly influences employees. Staff are used to doing what they do and will have to be motivated to carry out different tasks. Moreover, they will also have to be capable of carrying out additional or different tasks. Training and education are often required when new tasks are offered. Change in the Structure component A change in organisational structure usually has a restructuring of divisions and positions as its consequence. This means that employees receive different job positions with a new TAR package: tasks, authorities, and responsibilities. Change in the Technology component The application of new technology generally requires extensive training for employees, in order for them to be able to work with it as effectively and efficiently as possible. In addition, it may mean new employees are hired, who are already knowledgeable about and experienced with the new technology. 27 CMBDS1.1 Prof. Yash Dugar  Technology Technology is a broad concept. It is aimed at being able to carry out tasks better, easier, and faster within an organisation. Think, for example, of cloud services, a customer relationship management (CRM) system, and software applications. Upgraded machines and devices fall under this component as well. Change in the People component What is the effect of change in the people component of the Leavitt’s Diamond? New technology requires flexibility of employees. Firstly, it is important for them to know how to work with the new technology. In addition to instruction and training, motivation plays an important role there. When hiring new staff with specific qualifications, too, it’s a good idea to offer technology to them that can help them carry out their work well. Change in the Tasks component Changes to tasks or goals, too, may lead to technological changes. For example, the customer service employee who is given the additional task of carrying out order processing would be aided by the company investing into a well-functioning CRM system. Change in the Structure component In case of a reorganisation, it may happen that departments merge or disappear. Nevertheless, productivity should be kept going, and the arrival of an automated technical process is a prerequisite. This way, a call centre will no longer have to be operated by employees, but may operate in part through a computer system and a selection menu. 28 CMBDS1.1 Prof. Yash Dugar Mutual Dependence within Leavitt’s Diamond According to Harold Leavitt, all four factors in the Leavitt’s Diamond have mutual interactions, which means they always need to be brought into accordance. Leavitt’s Diamond is an interactive approach, in which the four factors are mutually dependent and influence one another. Leavitt emphasises that whenever a factor changes and influences the organisation, the other three factors will also change. Because of this direct effect, they will also need to be adjusted in order to be able to process the change. This means the Leavitt’s Diamond model is an integrated approach, and it is often used for managing changes within organisations. It is aimed at behaviour within organisations, the dynamics of organisational change, and the interaction of the four mutually coherent components that apply to each organisation. The Leavitt’s Diamond may be useful in case of, for example, the introduction of new systems or a change of organisational structure. Consider the example below, a fast-food restaurant is temporarily changing from in- house dining to a digital ordering and take away system. a. Tasks: The key tasks of the restaurant are to take orders, cook the food and then serve it to customers. As well as secondary tasks such as cleaning, customer service and management. Clearly, there will be a significant change in all tasks, how orders are taken, the way the food is cooked, (as chefs now have to prepare meals for delivery), the payment methods, it will also affect the cleaning activities as there will be significantly lesser utensils, food packaging activities will increase etc. b. People: The 3 key roles in the restaurant are taking orders, cooking and serving the food. As stated above all three of the above roles will be affected by the change and training may even be necessary for all individuals to adapt to the change successfully. In particular, the individuals taking order will no longer be needed, the cashier won’t be needed, the bus-boys will have to be retrained for packaging etc. c. Structure: As the individuals taking orders are no longer needed a restructuring of the workforce will take place. This will result in either a lay-off of workers, or transferring them into new roles. If the second option is taken training may be required. The online team will get more importance over the accounts team which used to deal with cash on a daily basis, the delivery boys will be paid higher than the packaging boys etc. d. Technology: This strategy is clearly heavily focused on technology. Technology will need to be developed and streamlined so that it is efficient enough to make the order process faster than before. Provisions will have to be made to allow for customisation options for patrons who have specific orders. A live order tracking system will have to be made available to the customers. Thus, we can see the interdependence and the effect change has on each of the factors. 29 CMBDS1.1 Prof. Yash Dugar  3. KOTTER’S 8-STEP CHANGE MANAGEMENT MODEL John Kotter. A professor at Harvard Business School and world-renowned change expert introduced his eight-step change process in his 1995 book, "Leading Change." [CREATING A CLIMATE FOR CHANGE] Many initiatives fail or at best fall short of their original aim because the organisation either lacks interest in the proposed change effort or spends too much energy resisting the change management process. Step 1: Create A Sense of Urgency For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. This isn't simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about what's happening in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself. What you can do: Identify potential threats , and develop scenarios showing what could happen in the future. Examine opportunities that should be, or could be, exploited. Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking. Request support from customers, outside stakeholders and industry people to strengthen your argument. Step 2: Build A Guiding Coalition Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough – you have to lead it. You can find effective change leaders throughout your organization – they don't necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. Once formed, your "change coalition" needs to work as a team, continuing to build urgency and momentum around the need for change. 30 CMBDS1.1 Prof. Yash Dugar Step 3: Form A Strategic Vision and Initiatives When you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember. A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense. [ENGAGING AND ENABLING THE ORGANISATION] Kotter’s 8-step change model is about showing people a truth that influences their feelings. We’ve seen how a sense of urgency moves people to action and helps us pull together a guiding team that can go on to prepare a clear and simple vision of the future Step 4: Communicate the Vision What you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do. It's also important to "walk the talk." What you do is far more important – and believable – than what you say. Demonstrate the kind of behavior that you want from others. Step 5: Remove Barriers If you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting. Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. Step 6: Create Short-Term Wins Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short timeframe (this could be a month or a year, depending on the type of change), you'll want to have some "quick wins " that your staff can see. Without this, critics and negative thinkers might hurt your progress. Create short-term targets – not just one long-term goal. You want each smaller target to be achievable, with little room for failure. Your change team may have to work very hard to come up with these targets, but each "win" that you produce can further motivate the entire staff. 31 CMBDS1.1 Prof. Yash Dugar  [IMPLEMENTING AND SUSTAINING CHANGE] In Engaging and Enabling Change we learned that short-term wins are critical to successful change because they offer credibility, resources and momentum. Step 7 is about maintaining that momentum not letting up so the early changes are built on. Finally, we learn how to make change stick by nurturing a new culture by developing positive behaviour and shared values through a series of successful changes Step 7: Build on the Change Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Step 8: Institute the Change / Make it Stick Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started. John Kotter’s 8-step change model comprises eight overlapping steps. The first three are all about creating a climate for change. The next on engaging and enabling the organisation. And the last, implementing and sustaining change. 32 CMBDS1.1 Prof. Yash Dugar From experience we learn that successful change occurs when there is commitment, a sense of urgency or momentum, stakeholder engagement, openness, clear vision, good and clear communication, strong leadership, and a well-executed plan. Kotter’s 8-step change model recognises each of these characteristics. Advantages of Kotter’s Model ▪ It is an easy step by step model which provides a clear description and guidance on the entire process of change and is relatively easy for being implemented. ▪ Emphasis is on the involvement and acceptability of the employees for the success in the overall process. ▪ Major emphasis is on preparing and building acceptability for change instead of the actual change process. Disadvantages of Kotter’s Model ▪ Since it is a step by step model, skipping even a single step might result in serious problems. ▪ The process is quite time consuming (Rose 2002). ▪ The model is essentially top-down and discourages any scope for participation or co- creation. ▪ Can build frustration and dissatisfaction among the employees if the individual requirements are given due attention. 33 CMBDS1.1 Prof. Yash Dugar 34 CMBDS1.1 Prof. Yash Dugar  4. NUDGE THEORY The groundwork for the idea of the nudge theory was laid by American behavioural scientists Richard H. Thaler and Cass R. Sunstein in their 2008 book titled Nudge: Improving Decisions About Health, Wealth, and Happiness. Nudge theory is built on the notion that you can subtly ease people into the decisions you want them to make by reducing the effort required & increasing the motivation to do so. This comes in handy when there are desirable changes to be made but there’s a risk that they might be overlooked because of the effort required to make them or if they’re non- obvious; people end up taking undesirable alternatives, simply because they’re apparent and are on the path of least resistance. 1. Clearly define your changes The first step, similarly to other models, is to bring clarity to what you want to achieve with the Change process. If you’re going to indeed enlist your full team as a clear sponsor and supporter of the Change, you need to ensure transparently what you aim to achieve. One of the biggest misunderstandings about Nudging is that is seen as a form of manipulation. Although some individual nudging techniques can be used to trigger responses from individuals against their will, these can only be applied in short term reactions. Here we need to develop lasting relationships, thus the need for absolute transparency. 2. Consider changes from your employees’ point of view Understanding the employee’s point of view is critical at this stage. Think about the elements you should already be aware of (such as culture, structure, jobs and role design) and complement this with an in-depth understanding about skills levels, knowledge and emotional commitment, and try to imagine their reaction to change. Then, try to elaborate on one or more scenarios where Change is achieved, but the process to get there is done in a more desirable way for your employees. Desirability is critical here, but don’t think just in terms of time. Often it is a question to find the process that best highlights the benefits for the individuals involved in the process. 3. Use evidence to show the best option Scenarios elaborated need to be supported by sharp evidence to prove that the suggested option is the best one. This step is often ignored by most Change Management methods, that are concentrated on one long term vision, and they tend to go immediately into execution usually. Evidence can be linked to Performance, as well as to other elements that support the change decision and the path to achieving this. Using an evidence-based approach will also allow you to justify the chosen option vs different possible change paths, that are identified as less desirable. 35 CMBDS1.1 Prof. Yash Dugar 4. Present the Change as a choice The three above steps allow to implement the real core moment of the Nudge theory, i.e. let people choose Change. By using the multiple options identified, the employee’s point of view and all the evidence in support, people will have all the tools to make their choice and support the Change project. By becoming a Conscious Choice, the change process will gain the commitment of the individuals that are involved. This is also why this step can start a loop. If you get a rejection, again you can’t force the process. Still, you should move back to question if a) you have examined all possible scenarios, b) you are clear with your goals and c) you have identified enough substantial evidence. 5. Listen to feedback Whether your Change was rejected or not, you need to be open to whatever feedback your team may have. You might have missed a possible alternative or an effect that the Change might have on current operations. Your team is the best suited to find these issues and warn you so that actions can be taken to limit the problems themselves. Listening to feedback also will make people more valued (especially if then actions are taken in alignment with the feedback themselves). 6. Limit obstacles One of the biggest hurdles in change processes is the fact that we often make lives miserable for the people that are going through the change process itself because we don’t adapt processes and policies that might impact them. It is essential to think about all the possible obstacles both before the start of a change process and during the process itself, trying to remove all the barriers you can. You can’t identify everything from the beginning, so make sure you also remove those that you intercept through the feedback of your teams. Any roadblock can diminish the team’s commitment to achieving. Showing consistent effort removing obstacles will also make it possible to justify occasionally those that cannot be removed. This way, transitioning to the new way of working will be more uncomplicated and more comfortable, and require less energy distraction from the team members. 36 CMBDS1.1 Prof. Yash Dugar 7. Keep the momentum up with short-term wins Once you are on the path to achieving Change, make sure you celebrate all the small victories on the way. The problem with long term change goals is that it is difficult to sustain the effort for an extended period without reward. This does not need to be monetary; sometimes, it is just about recognising that a step has been achieved. For this reason, it is essential to break down a large project into smaller goals and objectives, that can be achieved over a short period. This way, every individual milestone that is reached can be celebrated. The same is valid when the Change Process is in place, but the effects are not yet achieved. It is the most delicate phase because we need to sustain the Change so that adoption is complete. Also here, ensuring that goals are split into smaller milestones, will be useful in making change stick. 37 CMBDS1.1 Prof. Yash Dugar