Changing of the Management Plan for SWC - Assignment Example

Abstract Changing Course “Nothing endures but change” said the learned Heraclitus (c. 535–c. 475 BCE). For enterprises too change is inevitable, especially at time of growing competition hinged to globalization and deregulation, and changing expectation and values of the society. Change can be planned or unplanned. Unplanned changes reveal the reluctance or inability of the management to look ahead and prepare the enterprise to react to future opportunities and constraints. On the other hand, planning the changes helps the enterprise to prepare itself for changes that can be anticipated and thus can minimize the number of situations where hasty and expensive changes have to be made in panici. This has exactly happened. At SWC, the change was unplanned. A separate Customer Service Department was carved out of the existing Sales Department. As it would have been expected, the change was sudden, un-expected and unplanned, and the consequent debilitating effect in the form demotion and even laying off employees, shifting responsibilities, resistance to change was rising. As SWC plans to expand internationally, these resistances will be more obvious. Moreover, the negative impact of the brewing resistance now threatens to thwart the benefits of the change. On the back drop of the need for a new Customer Service Department, the present document proffers a “Change Management Plan” for SWC. The objective of the document is to guide organizational movement to the new structure delineating the most appropriate change management strategy while proffering an executable model. The document draws inspiration from fleet maneuvers, where change is a game, yet planned to attain the precision level in seconds and yards. In enterprises too, change management should be as planned, rehearsed, and as prepared that way. And as convinced, determined and deliberate as it is done there. The end result no doubt would be a perfect maneuver. Executive Summary Managing change in a large and complex organization such as SWC is a convoluted evolution, especially after a wasted attempt and at a time when the company is planning global expansion and in the face of growing rebellion against the change. People are physical bodies with minds in them. Bring changes by imposing authority is a trap and many organisations have gone into it as SWC had faced. Bringing participatory changes is a slow but almost sure model, but the quantum of participation needed can only be ascertained after a systematic study and planning. The Change Management Plan of SWC (CHAMPS) would follow the following steps for bringing effective changes. Steps for Implementing A Change Management Plan Step # 1: Scope and objectives determination Step # 2: Actors and factors identification Step # 3: Consequences evaluation Step # 4: Choosing the right strategy Imposed change management model Participative change management model Level 1 – Informative Level 2 – Consultative Level 3 - Participative Step # 5: Gaining support for change Drawing attention to the need for change Getting support for specific proposals Personality composition of the audience Establishing the informal communication network Handling objections to change Step #6: Managing conflict Withdrawal Smoothing Compromising Forcing Confrontation Step #7: Making structural arrangements Structural arrangements Special projects and assignments Temporary groups Meetings Experiments Pilot projects New organizational units Adopting organizational development (OD) techniques Team building Confrontation Feedback Coaching and counseling Training and developing people Action learning Learning organization Organizational diagnosis and problem solving techniques Campaign-type, action-oriented change programs Why SWC Failed? SWC filed in its earlier attempt because, it failed to take many of the steps mentioned above and tried to climb the staircase by jumping many of these steps. The consequence was obvious. Contents Changing Course 1 Executive Summary 2 Steps for Implementing A Change Management Plan 2 Why SWC Failed? 3 Contents 4 Introduction 6 Understanding the Underlying Principle 6 Two Approaches to Change 6 Consequences of Non Adherence 7 Project Necessity 7 Approach to Handle the Situation 7 Section 1 8 Identifying Causes of Failure 9 The Spoilsport 9 Before Developing a change management plan 10 Ascertaining the primary objective 10 Adopting the suitable technique 11 Determining whether change to be imposed or made participatory 11 Evaluating the consequences 12 Section 2 14 Implementation Plan 15 Conclusion 16 Bibliography 17 Websites Visited 17 Photo Credits 17 Notes 17 Change Management Plan for SWC Project Short Name: CHAMPS Introduction Managing change in SWC may not be a simple evolution given that it is a fairly large enterprise with plans to expand globally. An idea how the degree of difficulty and the time involved to bringing in the change depends upon the complexity of organization is depicted at the figure below. The easiest and thus requiring shortest time to change being knowledge and the most difficult and time consuming is to change group behaviors and organisations. Understanding the Underlying Principle What change management actually is? Simply speaking change management is managing changes in organisations, which includes an array of activities that are aimed at helping the enterprise successfully accept and adopt new ways and new technologies to serve its customers. Change when effectively managed, it enables the transformation of strategy, process, technology and people to improve performance. Two Approaches to Change Change management can be undertaken in two ways such as through an evolutionary process by bringing slow but continuous changes or through a revolutionary process by bringing drastic and radical changes. Unplanned changes such as it was undertaken by SWC are usually revolutionary in nature, while a planned change more often is deliberate and slow – evolutionary in nature. Figure 4: Two approaches to change management Consequences of Non Adherence Failure in change management planning has cost many companies across the world million of dollars in failed or delayed implementationii. The examples are just ubiquitous. Project Necessity Consequent to the SWC management’s decision to carve out a separate customer service department from the existing sales department, it is observed that it has met with many road blocks. Resistance groups are threatening to sabotage the change process, which if occurs can be detrimental to the company’s global plans and reputation, besides costing in time and money. The fact that SWC is expanding globally and there is a strong and urgent need for customer orientation, there is therefore a strong need for remedial measures, which is proposed to be undertaken through the project “Change Management Plan for SWC” Short Name “CHAMPS”. This is a logical step in the right direction. Approach to Handle the Situation CHAMPS will handle this case as a medical practitioner would handle a patient, namely, under the two stages as follows: Investigation. Identifying the causes of failure of the last attempt to change Prescription. Developing a change management plan to overcome the resistance These have been elucidated under separate sections in the subsequent pages. Section 1 Investigation Identifying Causes of Failure An analysis of the earlier actions taken by the SWC management to carve a separate department from the existing Sales department and the series of events taken place reveal that the primary reason for this precarious situation is due to an unplanned approach to the issue. The company has failed to appreciate the human aspect of the change, which is the root cause of the resistances to change. A look at the reasons for resistance to changeiii is placed below: The Spoilsport It is to be seen that in SWC’s case, what of the above mentioned causes of resistance has played the spoilsport. It is necessary because, the findings would form the basis of CHAMPS’ further course of action. To determine the quantum of contribution of one or all of these causes, a process of investigation is to be carried out. Many techniques are available to this. However, due to constraints of space, it is not possible to discuss all of them. One way of doing this is by undertaking an opinion poll of the management cadre and then analyzing the information to arrive at a conclusion. A suggestive questionnaire is placed at Table 1 below. Table 1: Identifying reasons to change Sl. Reasons for resistance to change Possibility Yes NO 5 4 3 2 1 1. Lack of conviction that change is needed 2. Dislike of imposed change 3. Dislike of surprises 4. Fear of the unknown 5. Reluctance to deal with unpopular issues 6. Fear of inadequacy and failure 7. Distributed practices, habits and relations 8 Lack of respect for and trust in the person promoting change Adopted from: (International Labour Office Geneva Edited by Milan Kubr, 2005)Management Consulting – A Guide to Profession. Consulting and Change, Page 91 Before Developing a change management plan This section delineates the points that CHAMPS must consider before developing the change management plan, such as: Ascertaining the primary objective. Adopting the right technique. Determining change to be imposed or made participatory. Evaluating the consequences. Ascertaining the primary objective For instance, the primary objective of Project CHAMPS would be to: “minimize the productivity dip that may occur during and due to change process.” An understanding of the performance dip is placed at Figure below: Figure 5: Preempting the performance dip during the change management process can save the project from failure. Adopting the suitable technique CHAMPS must carefully choose the right technique from the beginning itself, failing which it may create a great deal of disenchantment and may miss the target as it happened in the earlier attempt to change made by SWC. Apparently, continuing to use an inapt technique is a trap that must be avoided. Two criteria are important in choosing a change management technique. One, it should be compatible with the organizational culture. If it is not, it should be explained at length why the technique was chosen, how it will be used and nuances of how it would be adopted during its use. Two, the people responsible for the change (viz. managers and the consultant) should be able to use it effectively and must feel comfortable with the technique. Determining whether change to be imposed or made participatory Imposed change is an unwelcome measure, especially if it is done from a position of authority. The immediate consequence would be unhappiness and resentment. Therefore, the management of SWC must think twice before deciding to impose a change. On the other hand, the participative change process may be slower and more time-consuming and costly than imposed change, but it is considered to be long lasting. It helps to prevent resistance and generates commitment to change. In addition, participative change helps management to draw on people’s experience and creativity, which is difficult to do if change is imposed. There are different levels and forms of participation in the change process depending on the nature and complexity of the change. 1st level – The manage informs the concerned staff 2nd level – Consultation and discussion about the change takes place. 3rd level – Management seeks active of the staff in planning and implementing the change. CHAMPS must carefully evaluate all the options and recommend the quantum of participation required. Evaluating the consequences It is also essential to know what would be the consequences of the desired change. The figure below poses a panel of questions that are to be answered by SWC. Figure 6: The panel of consequence evaluation questionnaire that must be answered by SWC to undertake effective changes. Section 2 Prescription Implementation Plan The change will be ushered in the following sequences: Step # 1: Scope and objectives determination Writing down the objective and determining scope of change is the first step successful implementation plan. Many plans have been foiled without this step, especially in the unplanned changes. Step # 2: Actors and factors identification Identifying the stakeholders and the factors influencing the change forms the next step. Step # 3: Choosing the right strategy Choosing the right strategy is a necessary step in the process. Whether the model of change that will be followed is to be imposed or participative in nature and if it will be participative, to what level of participation will be called for in the particular case in point – these questions are to be decided in advance. SWC failed to consider all these points and adopted an imposed change management model, which resulted in failure of the change process. Step # 4: Consequences evaluation Evaluating the consequences of the intended objectives vis-à-vis the chosen strategy is an important exercise. Step#5: Gaining support for change Without gaining support for the change may jeopardize the change process. Following points may be considered while implementing this phase. Drawing attention to the need for change Getting support for specific proposals Personality composition of the audience Establishing the informal communication network Handling objections to change Step #6: Managing Conflict In planning and implementing change, it is natural that interpersonal or intergroup conflict may arise. The reasons could be many, see text box alongside. Adopting conflict resolution techniquesiv such as the following will prove to be useful: Withdrawal. Retreating from an actual or potential conflict situation. Smoothing. Emphasizing areas of agreement and deemphasizing areas of difference. Compromising. Searching for solutions that bring some degree of satisfaction to the conflicting parties. Forcing. Exerting one’s view point at the potential expense of another – often open completion and win-lose situation. Confrontation. Addressing a disagreement directly and in a problem-solving mode – the affected parties work through their disagreement. Step #7: Making structural arrangements Conclusion Regardless of the model that is adopted for bringing the changes, SWC need to know that the change is not just to address the customer service issues or says to increase sales, reduce costs and increasing profitability; it is about people and their concerns. It is reinventing strategies and management processes and, therefore, must be enterprise-wide as a social organizationv. Unless a comprehensive and carefully planned approach is adopted, there is every chance that the change management may not succeed. Even veterans in change management fail sometimes. No one can be quite sure of the success of one particular model or approach in another situation. Change management has to be tailor-made to suit each and every individual case. With this as the constant, SWC must plan all the variables in its changes. SWC must be aware that the change is not an end in itself. It is only a means of adjusting to new conditions and sustaining or increasing competitiveness, performance and effectivenessvi. Finally, SWC must make smart maneuvers to overcome the resistance to change, but before that it has to be convinced, determined and deliberate just as ships change their course in fleet maneuvers. Bibliography International Labour Office Geneva Edited by Milan Kubr. (2005). Management Consulting - A Guide to the Profession, 4th Edition. New Delhi: BookWell. Lahey, R. a. (October 2001). The real reason people won't change. Harvard Business Review , 85-92. Lippitt, G. (1982). Organizational renewal. Eaglewood Cliffs, NJ: Prentice-Hall. M.Overdorf, C. C. (March-April, 2000). Meeting the challenge of disruptive change. Harvard business review , p.67. Websites Visited 1. http://www.change-management.com/tutorial-checklist-org-cm.htm 2. http://klariti.com/change-management-plan-template/ 3. http://www.businessballs.com/changemanagement.htm 4. http://www.businessballs.com/organizationalchange.htm 5. http://www.businessballs.com/employeemotivation.htm Photo Credits 1. Cover page: http://www.tourvoile.fr/media/get_image.php?site=25&base=article&table=article&refe=23273&num=1&codef=zoom Notes Read More