{"id":714,"date":"2019-06-20T03:40:05","date_gmt":"2019-06-20T07:40:05","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/ob1herrmann\/?post_type=chapter&p=714"},"modified":"2020-07-29T04:35:08","modified_gmt":"2020-07-29T08:35:08","slug":"13-2-planning-and-executing-change-effectively","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/ob1herrmann\/chapter\/13-2-planning-and-executing-change-effectively\/","title":{"raw":"13.2 Planning and Executing Change Effectively","rendered":"13.2 Planning and Executing Change Effectively"},"content":{"raw":"
\r\n
\r\n
\r\n

Chapter 13: Managing Change<\/small><\/h2>\r\n

Planning and Executing Change Effectively<\/h2>\r\nHow do you plan, organize, and execute change effectively? One of the most useful frameworks in this area is Kurt Lewin\u2019s three-stage model of planned change (Lewin, 1951). The assumption is that change will encounter resistance. Therefore, executing change without prior preparation is likely to lead to failure. Instead, organizations should start with unfreezing<\/a><\/span>, or making sure that organizational members are ready for and receptive to change. This is followed by change<\/a><\/span>, or executing the planned changes. Finally, refreezing<\/a><\/span> involves ensuring that change becomes permanent and the new habits, rules, or procedures become the norm.\r\n\r\nFigure 13.7<\/span>\r\n
\r\n
\r\n\r\n\"Lewin's<\/a>\r\n

Lewin\u2019s three-stage process of change emphasizes the importance of preparation or unfreezing before change, and reinforcement of change afterward or refreezing.<\/p>\r\n \r\n\r\n<\/div>\r\n<\/div>\r\n

\r\n
\r\n

Kotter's Eight-stage Process<\/h2>\r\nJohn Kotter, a Harvard University professor, wrote a book in 1996 titled Leading Change<\/em> in which he discussed eight steps to changing an organization (Kotter, 1996).\r\n\r\nFigure 13.8<\/span>\r\n
\r\n

Kotter\u2019s Eight-stage Process for Change<\/h3>\r\n

Harvard Business School professor John P. Kotter proposed that companies should follow eight stages when instituting change. Here is a summary of his suggested steps.<\/p>\r\n\r\n

    \r\n \t
  1. Create a sense of urgency when introducing the change effort.<\/li>\r\n \t
  2. Build a coalition.<\/li>\r\n \t
  3. Create a vision for change and make change a part of the vision.<\/li>\r\n \t
  4. Communicate a plan for change<\/li>\r\n \t
  5. Eliminate obstacles to change<\/li>\r\n \t
  6. Create small wins<\/li>\r\n \t
  7. Build on change<\/li>\r\n \t
  8. Make change a part of culture.<\/li>\r\n<\/ol>\r\n
    \r\n

    Source: Kotter, J. P. (1996). Leading change.<\/em> Boston, MA: Harvard Business. School Press.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n

    \r\n\r\n \r\n

    In the next section, we integrate the two models with more recent work in the area to present a roadmap to how organizations may want to approach change.<\/p>\r\n\r\n<\/div>\r\n

    Step 1: Unfreezing Prior to Change<\/span><\/strong><\/p>\r\n\r\n

    \r\n

    Many change efforts fail because people are insufficiently prepared for change. When employees are not prepared, they are more likely to resist the change effort and less likely to effectively function under the new system. What can organizations do prior to change to prepare employees? There are a number of things that are important at this stage.<\/p>\r\n\r\n

    \r\n

    Create a Vision for Change<\/h2>\r\n

    In successful change efforts, the leader has an overall vision for the change (Herold et al., 2008). When this vision is exciting and paints a picture of a future that employees would be proud to be a part of, people are likely to be more committed to change. For example, Toyota is a master of kaizen<\/em>, or continuous improvement. They also follow the philosophy of kakushin<\/strong>, or revolutionary change, as needed. Regardless of the nature of the particular change, there is an overall vision for the company that justifies and explains why change is necessary \u201cto build the dream car of the future\u201d (Stewart & Raman, 2007).<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Communicating a Plan for Change<\/h2>\r\n

    Do people know what the change entails, or are they hearing about the planned changes through the grapevine or office gossip? When employees know what is going to happen, and when and why, they may conquer their discomfort with change. Research shows that those who have more complete information about upcoming changes are more committed to a change effort (Wanberg & Banas, 2000).<\/p>\r\n

    Ensuring that top management communicates with employees about the upcoming changes also has symbolic value (Armenakis, Harris, & Mossholder, 1993). In any organization, many changes are done on a daily basis, with some taking root and some disappearing after a short while. When top management and the company CEO discuss the importance of the changes in meetings, employees are provided with a reason to trust that this change is a strategic initiative. For example, while changing the employee performance appraisal system, the CEO of Kimberly-Clark Corporation made sure to mention the new system in all meetings with employees, indicating that the change was supported by the CEO.<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Develop a Sense of Urgency<\/h2>\r\n

    People are more likely to accept change if they feel that there is a need for it. If employees feel their company is doing well, the perceived need for change will be smaller. Those who plan the change will need to make the case that there is an external or internal threat to the organization\u2019s competitiveness, reputation, or sometimes even its survival, and failure to act will have dire consequences. For example, Lou Gerstner, the former CEO of IBM, executed a successful transformation of the company. In his biography Elephants Can Dance<\/em>, he highlights how he achieved cooperation as follows: \u201cOur greatest ally in shaking loose the past was IBM\u2019s eminent collapse. Rather than go with the usual impulse to put on a happy face, I decided to keep the crisis front and centre. I didn\u2019t want to lose the sense of urgency\u201d (Gerstner, 2002; Kotter, 1996).<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Building a Coalition<\/h2>\r\n

    In order to convince people that change is needed, the change leader does not necessarily have to convince every person individually. In fact, people\u2019s opinions toward change are affected by opinion leaders, or those people who have a strong influence over the behaviours and attitudes of others (Burkhardt, 1994; Kotter, 1995). Instead of trying to get everyone on board at the same time, it may be more useful to convince and prepare the opinion leaders. Once these individuals agree that change is needed and will be useful, they will become helpful allies in ensuring that the rest of the organization is ready for change (Armenakis, Harris, & Mossholder, 1993). For example, Paul Pressler, after becoming the CEO of Gap Inc. in 2002, initiated a culture change effort in the hope of creating a sense of identity among the company\u2019s many brands such as Banana Republic, Old Navy, and Gap. For this purpose, management segmented the employees into groups instead of trying to reach out to all employees at the same time. Gap Inc. started by training the 2,000 senior managers in Leadership Summits, who in turn were instrumental in ensuring the cooperation of the remaining 150,000 employees of the company (Nash, 2005).<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Provide Support<\/h2>\r\n

    Employees should feel that their needs are not ignored. Therefore, management may prepare employees for change by providing emotional and instrumental support. Emotional support may be in the form of frequently discussing the changes, encouraging employees to voice their concerns, and simply expressing confidence in employees\u2019 ability to perform effectively under the new system. Instrumental support may be in the form of providing a training program to employees so they know how to function under the new system.<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Allow Employees to Participate<\/h2>\r\n

    Studies show that employees who participate in planning change efforts tend to have more positive opinions about the change. Why? They will have the opportunity to voice their concerns. They can shape the change effort so that their concerns are addressed. They will be more knowledgeable about the reasons for change, alternatives to the proposed changes, and why the chosen alternative was better than the others. Finally, they will feel a sense of ownership of the planned change and are more likely to be on board (Wanberg & Banas, 2000). Participation may be more useful if it starts at earlier stages, preferably while the problem is still being diagnosed. For example, assume that a company suspects there are problems with manufacturing quality. One way of convincing employees that there is a problem that needs to be solved would be to ask them to take customer calls about the product quality. Once employees experience the problem firsthand, they will be more motivated to solve the problem.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n

    \r\n

    Step 2: Executing Change<\/strong><\/h2>\r\n

    The second stage of Lewin\u2019s three-step change model is executing change. At this stage, the organization implements the planned changes on technology, structure, culture, or procedures. The specifics of how change should be executed will depend on the type of change. However, there are some tips that may facilitate the success of a change effort.<\/p>\r\n\r\n

    \r\n

    Continue to Provide Support<\/h2>\r\n

    As the change is underway, employees may experience high amounts of stress. They may make mistakes more often or experience uncertainty about their new responsibilities or job descriptions. Management has an important role in helping employees cope with this stress by displaying support, patience, and continuing to provide support to employees even after the change is complete.<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Create Small Wins<\/h2>\r\n

    During a change effort, if the organization can create a history of small wins, change acceptance will be more likely (Kotter, 1996; Reay, Golden-Biddle, & Germann, 2006). If the change is large in scope and the payoff is a long time away, employees may not realize change is occurring during the transformation period. On the other hand, if people see changes, improvements, and successes along the way, they will be inspired and motivated to continue the change effort. For this reason, breaking up the proposed change into phases may be a good idea, because it creates smaller targets. Small wins are also important for planners of change to make the point that their idea is on the right track. Early success gives change planners more credibility, while early failures may be a setback (Hamel, 2000).<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Eliminate Obstacles<\/h2>\r\n

    When the change effort is in place, many obstacles may crop up along the way. There may be key people who publicly support the change effort while silently undermining the planned changes. There may be obstacles rooted in a company\u2019s structure, existing processes, or culture. It is the management\u2019s job to identify, understand, and remove these obstacles (Kotter, 1995). Ideally, these obstacles would have been eliminated before implementing the change, but sometimes unexpected roadblocks emerge as change is underway.<\/p>\r\n\r\n

    Step 3: Refreezing<\/strong><\/h2>\r\n<\/div>\r\n<\/div>\r\n
    \r\n

    After the change is implemented, the long-term success of a change effort depends on whether change becomes part of the company\u2019s culture. In other words, the revised ways of thinking, behaving, and performing should become routine. For this reason, there are a number of things management can do.<\/p>\r\n\r\n

    \r\n

    Publicize Success<\/h2>\r\n

    In order to make change permanent, the organization may benefit from sharing the results of the change effort with employees. What was gained from the implemented changes? How much money did the company save? How much did the company\u2019s reputation improve? What was the reduction in accidents after new procedures were put in place? Sharing concrete results with employees increases their confidence that the implemented change was a right decision.<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Build on Prior Change<\/h2>\r\n

    Once results start coming, it is important to benefit from the momentum created by these early successes by pushing for even more change. Following the philosophy of continuous improvement may be a good idea here. Instead of declaring victory early, the company is advised to make continuous improvements to how business is conducted.<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Reward Change Adoption<\/h2>\r\n

    In order to ensure that change becomes permanent, organizations may benefit from rewarding those who embrace the change effort. The rewards do not necessarily have to be financial. The simple act of recognizing those who are giving support to the change effort in front of their peers may encourage others to get on board. When the new behaviours employees are expected to demonstrate (such as using a new computer program, filling out a new form, or simply greeting customers once they enter the store) are made part of an organization\u2019s reward system, those behaviours are more likely to be taken seriously and repeated, making the change effort successful (Gale, 2003).<\/p>\r\n\r\n<\/div>\r\n

    \r\n

    Make Change a Part of Organizational Culture<\/h2>\r\n

    If the change effort has been successful, change will have become a part of corporate culture. In other words, in addition to the changes in procedures, processes, or technology, the mindset of people will also have changed. If change occurs only in superficial elements, it would be misleading to declare change a success. For example, if a company institutes a wellness program emphasizing healthy habits, rewarding employees for adopting healthy choices and providing resources to maximize health, this change effort would be deemed a true success if valuing employee health and well-being also becomes a part of the organization\u2019s culture. Creating a Web site, and printing booklets and distributing them are all tools leading to this goal, but achieving the true goal also necessitates a change in ingrained assumptions of management and employees putting work before employee health and well-being.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n

    \r\n
    \r\n
    \r\n
    \r\n\r\n \r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"
    \n
    \n
    \n

    Chapter 13: Managing Change<\/small><\/h2>\n

    Planning and Executing Change Effectively<\/h2>\n

    How do you plan, organize, and execute change effectively? One of the most useful frameworks in this area is Kurt Lewin\u2019s three-stage model of planned change (Lewin, 1951). The assumption is that change will encounter resistance. Therefore, executing change without prior preparation is likely to lead to failure. Instead, organizations should start with unfreezing<\/a><\/span>, or making sure that organizational members are ready for and receptive to change. This is followed by change<\/a><\/span>, or executing the planned changes. Finally, refreezing<\/a><\/span> involves ensuring that change becomes permanent and the new habits, rules, or procedures become the norm.<\/p>\n

    Figure 13.7<\/span><\/p>\n

    \n
    \n

    \"Lewin's<\/a><\/p>\n

    Lewin\u2019s three-stage process of change emphasizes the importance of preparation or unfreezing before change, and reinforcement of change afterward or refreezing.<\/p>\n

     <\/p>\n<\/div>\n<\/div>\n

    \n
    \n

    Kotter’s Eight-stage Process<\/h2>\n

    John Kotter, a Harvard University professor, wrote a book in 1996 titled Leading Change<\/em> in which he discussed eight steps to changing an organization (Kotter, 1996).<\/p>\n

    Figure 13.8<\/span><\/p>\n

    \n

    Kotter\u2019s Eight-stage Process for Change<\/h3>\n

    Harvard Business School professor John P. Kotter proposed that companies should follow eight stages when instituting change. Here is a summary of his suggested steps.<\/p>\n

      \n
    1. Create a sense of urgency when introducing the change effort.<\/li>\n
    2. Build a coalition.<\/li>\n
    3. Create a vision for change and make change a part of the vision.<\/li>\n
    4. Communicate a plan for change<\/li>\n
    5. Eliminate obstacles to change<\/li>\n
    6. Create small wins<\/li>\n
    7. Build on change<\/li>\n
    8. Make change a part of culture.<\/li>\n<\/ol>\n
      \n

      Source: Kotter, J. P. (1996). Leading change.<\/em> Boston, MA: Harvard Business. School Press.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

      \n

       <\/p>\n

      In the next section, we integrate the two models with more recent work in the area to present a roadmap to how organizations may want to approach change.<\/p>\n<\/div>\n

      Step 1: Unfreezing Prior to Change<\/span><\/strong><\/p>\n

      \n

      Many change efforts fail because people are insufficiently prepared for change. When employees are not prepared, they are more likely to resist the change effort and less likely to effectively function under the new system. What can organizations do prior to change to prepare employees? There are a number of things that are important at this stage.<\/p>\n

      \n

      Create a Vision for Change<\/h2>\n

      In successful change efforts, the leader has an overall vision for the change (Herold et al., 2008). When this vision is exciting and paints a picture of a future that employees would be proud to be a part of, people are likely to be more committed to change. For example, Toyota is a master of kaizen<\/em>, or continuous improvement. They also follow the philosophy of kakushin<\/strong>, or revolutionary change, as needed. Regardless of the nature of the particular change, there is an overall vision for the company that justifies and explains why change is necessary \u201cto build the dream car of the future\u201d (Stewart & Raman, 2007).<\/p>\n<\/div>\n

      \n

      Communicating a Plan for Change<\/h2>\n

      Do people know what the change entails, or are they hearing about the planned changes through the grapevine or office gossip? When employees know what is going to happen, and when and why, they may conquer their discomfort with change. Research shows that those who have more complete information about upcoming changes are more committed to a change effort (Wanberg & Banas, 2000).<\/p>\n

      Ensuring that top management communicates with employees about the upcoming changes also has symbolic value (Armenakis, Harris, & Mossholder, 1993). In any organization, many changes are done on a daily basis, with some taking root and some disappearing after a short while. When top management and the company CEO discuss the importance of the changes in meetings, employees are provided with a reason to trust that this change is a strategic initiative. For example, while changing the employee performance appraisal system, the CEO of Kimberly-Clark Corporation made sure to mention the new system in all meetings with employees, indicating that the change was supported by the CEO.<\/p>\n<\/div>\n

      \n

      Develop a Sense of Urgency<\/h2>\n

      People are more likely to accept change if they feel that there is a need for it. If employees feel their company is doing well, the perceived need for change will be smaller. Those who plan the change will need to make the case that there is an external or internal threat to the organization\u2019s competitiveness, reputation, or sometimes even its survival, and failure to act will have dire consequences. For example, Lou Gerstner, the former CEO of IBM, executed a successful transformation of the company. In his biography Elephants Can Dance<\/em>, he highlights how he achieved cooperation as follows: \u201cOur greatest ally in shaking loose the past was IBM\u2019s eminent collapse. Rather than go with the usual impulse to put on a happy face, I decided to keep the crisis front and centre. I didn\u2019t want to lose the sense of urgency\u201d (Gerstner, 2002; Kotter, 1996).<\/p>\n<\/div>\n

      \n

      Building a Coalition<\/h2>\n

      In order to convince people that change is needed, the change leader does not necessarily have to convince every person individually. In fact, people\u2019s opinions toward change are affected by opinion leaders, or those people who have a strong influence over the behaviours and attitudes of others (Burkhardt, 1994; Kotter, 1995). Instead of trying to get everyone on board at the same time, it may be more useful to convince and prepare the opinion leaders. Once these individuals agree that change is needed and will be useful, they will become helpful allies in ensuring that the rest of the organization is ready for change (Armenakis, Harris, & Mossholder, 1993). For example, Paul Pressler, after becoming the CEO of Gap Inc. in 2002, initiated a culture change effort in the hope of creating a sense of identity among the company\u2019s many brands such as Banana Republic, Old Navy, and Gap. For this purpose, management segmented the employees into groups instead of trying to reach out to all employees at the same time. Gap Inc. started by training the 2,000 senior managers in Leadership Summits, who in turn were instrumental in ensuring the cooperation of the remaining 150,000 employees of the company (Nash, 2005).<\/p>\n<\/div>\n

      \n

      Provide Support<\/h2>\n

      Employees should feel that their needs are not ignored. Therefore, management may prepare employees for change by providing emotional and instrumental support. Emotional support may be in the form of frequently discussing the changes, encouraging employees to voice their concerns, and simply expressing confidence in employees\u2019 ability to perform effectively under the new system. Instrumental support may be in the form of providing a training program to employees so they know how to function under the new system.<\/p>\n<\/div>\n

      \n

      Allow Employees to Participate<\/h2>\n

      Studies show that employees who participate in planning change efforts tend to have more positive opinions about the change. Why? They will have the opportunity to voice their concerns. They can shape the change effort so that their concerns are addressed. They will be more knowledgeable about the reasons for change, alternatives to the proposed changes, and why the chosen alternative was better than the others. Finally, they will feel a sense of ownership of the planned change and are more likely to be on board (Wanberg & Banas, 2000). Participation may be more useful if it starts at earlier stages, preferably while the problem is still being diagnosed. For example, assume that a company suspects there are problems with manufacturing quality. One way of convincing employees that there is a problem that needs to be solved would be to ask them to take customer calls about the product quality. Once employees experience the problem firsthand, they will be more motivated to solve the problem.<\/p>\n<\/div>\n<\/div>\n

      \n

      Step 2: Executing Change<\/strong><\/h2>\n

      The second stage of Lewin\u2019s three-step change model is executing change. At this stage, the organization implements the planned changes on technology, structure, culture, or procedures. The specifics of how change should be executed will depend on the type of change. However, there are some tips that may facilitate the success of a change effort.<\/p>\n

      \n

      Continue to Provide Support<\/h2>\n

      As the change is underway, employees may experience high amounts of stress. They may make mistakes more often or experience uncertainty about their new responsibilities or job descriptions. Management has an important role in helping employees cope with this stress by displaying support, patience, and continuing to provide support to employees even after the change is complete.<\/p>\n<\/div>\n

      \n

      Create Small Wins<\/h2>\n

      During a change effort, if the organization can create a history of small wins, change acceptance will be more likely (Kotter, 1996; Reay, Golden-Biddle, & Germann, 2006). If the change is large in scope and the payoff is a long time away, employees may not realize change is occurring during the transformation period. On the other hand, if people see changes, improvements, and successes along the way, they will be inspired and motivated to continue the change effort. For this reason, breaking up the proposed change into phases may be a good idea, because it creates smaller targets. Small wins are also important for planners of change to make the point that their idea is on the right track. Early success gives change planners more credibility, while early failures may be a setback (Hamel, 2000).<\/p>\n<\/div>\n

      \n

      Eliminate Obstacles<\/h2>\n

      When the change effort is in place, many obstacles may crop up along the way. There may be key people who publicly support the change effort while silently undermining the planned changes. There may be obstacles rooted in a company\u2019s structure, existing processes, or culture. It is the management\u2019s job to identify, understand, and remove these obstacles (Kotter, 1995). Ideally, these obstacles would have been eliminated before implementing the change, but sometimes unexpected roadblocks emerge as change is underway.<\/p>\n

      Step 3: Refreezing<\/strong><\/h2>\n<\/div>\n<\/div>\n
      \n

      After the change is implemented, the long-term success of a change effort depends on whether change becomes part of the company\u2019s culture. In other words, the revised ways of thinking, behaving, and performing should become routine. For this reason, there are a number of things management can do.<\/p>\n

      \n

      Publicize Success<\/h2>\n

      In order to make change permanent, the organization may benefit from sharing the results of the change effort with employees. What was gained from the implemented changes? How much money did the company save? How much did the company\u2019s reputation improve? What was the reduction in accidents after new procedures were put in place? Sharing concrete results with employees increases their confidence that the implemented change was a right decision.<\/p>\n<\/div>\n

      \n

      Build on Prior Change<\/h2>\n

      Once results start coming, it is important to benefit from the momentum created by these early successes by pushing for even more change. Following the philosophy of continuous improvement may be a good idea here. Instead of declaring victory early, the company is advised to make continuous improvements to how business is conducted.<\/p>\n<\/div>\n

      \n

      Reward Change Adoption<\/h2>\n

      In order to ensure that change becomes permanent, organizations may benefit from rewarding those who embrace the change effort. The rewards do not necessarily have to be financial. The simple act of recognizing those who are giving support to the change effort in front of their peers may encourage others to get on board. When the new behaviours employees are expected to demonstrate (such as using a new computer program, filling out a new form, or simply greeting customers once they enter the store) are made part of an organization\u2019s reward system, those behaviours are more likely to be taken seriously and repeated, making the change effort successful (Gale, 2003).<\/p>\n<\/div>\n

      \n

      Make Change a Part of Organizational Culture<\/h2>\n

      If the change effort has been successful, change will have become a part of corporate culture. In other words, in addition to the changes in procedures, processes, or technology, the mindset of people will also have changed. If change occurs only in superficial elements, it would be misleading to declare change a success. For example, if a company institutes a wellness program emphasizing healthy habits, rewarding employees for adopting healthy choices and providing resources to maximize health, this change effort would be deemed a true success if valuing employee health and well-being also becomes a part of the organization\u2019s culture. Creating a Web site, and printing booklets and distributing them are all tools leading to this goal, but achieving the true goal also necessitates a change in ingrained assumptions of management and employees putting work before employee health and well-being.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

      \n
      \n
      \n
      \n

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