CHANGE MANAGEMENT

Examination
Professional Diploma Courses
ANSWER ALL QUESTIONS

1. Definition of Change Management (3 marks)

Change management is a process of overseeing and facilitating change at any level where it occurs.
It is up to management teams to decide exactly how this change will be addressed, develop the
process and how to best execute and apply.

The BNET Business Dictionary defines change management as “the coordination of a structured
period of transition from situation A to situation B in order to achieve lasting change within an
organization.” Similarly, the Change Management Learning Center defines change management as
“the process, tools, and techniques to manage the people-side of business change to achieve the
required business outcome, and to realize that business change effectively within the social
infrastructure of the workplace.”

Change management is not a reactive response if change happens; it is preparation for when
change happens. Change management allows you to assess your situation and why change is
needed, align your efforts and resources, and manage the change itself.

By coordinating and structuring change as a process to be managed, you have a far better chance
of seeing results from your efforts. Change management should lead your employees, teams,
departments and organization toward thriving and benefiting from change, rather than reacting
and merely surviving it—or even worse, seeing no results from the change efforts.

As Dr. Russell Johnson, MSU Foundation Professor of Management in the Eli Broad College of
Business, relates, only half of all change management efforts lead to results, explaining that while
“very few” had negative effects on an organization, “about half of them had no effect, whereas the
other half had positive [but] varied in terms of how positive those changes were. So, although
change may not hurt the company, often times, it does not help the company. And that is
especially true when changes aren’t rolled out the proper way.”

2. What are internal and external forces of change (5 marks)

The Internal Environment
The internal environment of an organization refers to events, factors, people, systems, structures,
and conditions inside the organization that are generally under the control of the company. The
company's mission statement, organizational culture, and style of leadership are factors typically
associated with the internal environment of an organization. As such, it is the internal environment
that will influence organizational activities, decisions, and employee behavior and attitudes.
Changes in the leadership style, the organization's mission, or culture can have a considerable
impact on the organization.

The External Environment

The external environment are those factors that occur outside of the company that cause change
inside organizations and are, for the most part, beyond the control of the company. Customers,
competition, the economy, technology, political and social conditions, and resources are common
external factors that influence the organization. Even though the external environment occurs
outside of an organization, it can have a significant influence on its current operations, growth, and
long-term sustainability. Ignoring external forces can be a detrimental mistake for managers to
make. As such, it is imperative that managers continually monitor and adapt to the external
environment, working to make proactive changes earlier on rather than having to take a reactive
approach, which can lead to a vastly different outcome.

3. Why People are resistant to change (5 marks)

1. People fear being different--especially when there's no precedent

We're creatures of habit. For the most part, we love routine and procedure. If it hasn't been done
before, there will be some in your organization who likely can't see the end from the beginning.

Every organization needs a visionary, but merely stating your vision is not enough. You also have to
show, not just tell. You can demonstrate how you would like to do things before actually doing it.

Minimize the frustration and hurt feelings by communicating and demonstrating. Wherever
possible, keep some things the same. Stay focused on the important reasons change is being
sought. And avoid a follow-the-leader-because-I-say-so attitude.

2. People feel overwhelmed or stressed

Fatigue can be a killjoy for change. If an organization has been through a lot of upheaval, people
may resist change simply because they're tired. And when people are tired, they tend to be cranky,
angry, and irritable.
It has been my experience that when the environment is tense or inundated with projects, the
people in that environment will be the same way.

When this is the case, leaders have to be understanding of people's complaints and attentive to
their needs throughout the change process. Keep the reasoning for change front and center, and
make the environment more conducive for future change.

3. People fear a departure from the status quo

By definition, implementing change is a departure from "the way it's always been done." Those
who were a part of the old way or who have another idea are likely to be defensive of both.

Transformation, especially when it's from the top down, can make people feel uncomfortable.
Some people may feel betrayed. Others may simply dread the new day that changes may bring.

In either case, leaders can help people embrace change by acknowledging those parts of the past
that were good while at the same time making it clear that the change being presented is
necessary.

4. People lack trust in the one making changes

When people respect their leaders, it's often because the leader has built trust over a period of
time. When a new leader step in to replace an old leader, it's important that the new leader
embrace the responsibility of building trust with the people they lead.

If trust is not built, then mistrust is the default response and mistrust often becomes evident in a
resistance to change.

Leaders can build trust by being honest and then by including people in the change process.
Further, they can create an environment in which people believe the change can be implemented
and managed for the benefit of all.

5. People know change brings a new set of possibilities and problems

Many people prefer for things to stay the way they are than for it to head off into a direction that is
largely uncharted or unknown. By instinct, we know that a new way presents both possibilities and
problems. But most would rather reject the possibilities if it also means avoiding the problems.

There's a common saying: "Better the devil you know than the devil you don't."
Change is risky in any institution. You can balance resistance by creating certainty of the process.

4. What are the barriers to change (5 marks)

Lack of Clarity
Poor Communication Strategy
Execution of Several Projects at once
Inability to Identify the keystone change
Lack of management buy-in
Lack of Active Participants

5. Explain Lewin’s Change Model (10 marks)

Kurt Lewin’s Force Field Theory states that restraining forces influence the behavior of both the
group and individuals, ultimately deciding the fate of change. The driving forces motivate & steer
employees towards the new state. The restraining forces highlight potential resistance to change,
acting as the prime barriers to change initiatives.

Lewin suggests that it is crucial to balance these forces through effective change communication
and employee involvement, by providing employee training to bridge the skill gap. Change agents
must implement stress management techniques, ensure compliance is met, and use convincing
change reasoning.

Stage 1 - Unfreeze
The first stage in Lewin’s model deals with perception management and aims to prepare the
affected stakeholders for the upcoming organizational change. Change leaders must look at ways
to improve the company’s preparedness for change and create a sense of urgency similar to
Kotter’s change model.

During this stage, effective change communication plays a vital role in getting the desired team
member buy-in and support of the people in the change management.

The following activities under the ‘unfreeze’ stage will help you embrace change better:

 Conduct a needs analysis by surveying your organization to understand the current

loopholes in the business processes
 Obtain organizational buy-in
 Create a strategic change vision and change strategy
  Communicate in a compelling way about why change has to occur
 Address employee concerns with honesty and transparency

Stage 2 - Change
Once the status quo is disrupted, this stage deals with the implementation of change. In this stage,
you must consider an agile and iterative approach that incorporates employee feedback to
smoothen the transition.

You can further look at the following actionable items to keep uncertainty at bay:

 Ensure a continuous flow of information to obtain the support of your team members
 Organize change management workshops and sessions for change management exercises
 Empower employees to deal with the change proactively
 Generate easy wins as visible results will motivate your team

Stage 3 - Refreeze
Employees move away from the transition phase towards stabilization or acceptance in the final’
refreezing’ stage.

However, if change leaders fail to strengthen the change by reinforcing it into org culture,
employees might revert to previous behaviors.

The following activities will help you support the change:

 Identify and reward early adopters and change champions

 Collect employee feedback regularly
 Offer on-demand employee training and support
 Explore digital adoption platforms such as Whatfix to be your partner in change with
intuitive features such as interactive walkthroughs, customizable popups, and multi-format
self-help content.
 6. What is Kotter’s Change Phases: (12 marks)

Kotter’s 8 Step Change Management Model is a process designed to help leaders successfully
implement organizational change. This model was developed by John P. Kotter, a Harvard Business
School professor, and presented in his book “Leading Change,” which was based on years of
research that showed that there’s only a 30% chance of effective organizational change
implementation.
a. Data, information and knowledge

1- Create Urgency
The first step is to create a sense of urgency about the need for change.

In order to achieve lasting transformation, all involved should feel the sense of urgency for change
and believe that change is needed for organizational growth. If they don’t support the initiative,
then the momentum will be difficult to maintain and as such any changes made may not last very
long.

The goal of this step is to prepare employees for the forthcoming change and to encourage them
to participate. For this step to be successful, the change project should have the support of around
75% of the organization’s management.

Here is what you need to do to create an environment where everyone is aware of the existing
problem and motivated to participate in its tackling:

Identify the company’s existing problems and opportunities. You can use a SWOT analysis with the
team for this.
Discuss openly with staff what is going on and why change is needed at this moment.
Create a discussion forum to discuss the challenges, threats, and possible solutions.
Ask for support from stakeholders and industry experts to back you up.

b. Tacit & Explicit knowledge

2- Put A Team Together

This step focuses on creating a strong team with all the necessary skills, qualifications, reputation,
connections, and authority to lead change initiatives and influence stakeholders.

Depending on the nature of the proposed change, the size of the team will vary.

For a team to be effective it should consist of:

 The sponsor: This is generally a high-ranking executive who is in charge of the change
initiative. Their responsibilities include providing executive-level assistance as well as
sufficient resources required to implement the change initiative.
 The senior guiding team: The members of the senior guiding team are chosen by the
sponsor. It is made up of people (leaders) with the influence in the area to make decisions
and gather resources and support for the project. The team will be in charge of creating
the vision and strategy, allocating resources, eliminating roadblocks in the process, driving
the organization through the process, resolving issues, and communicating with
stakeholders.
 Field guiding team: The field guiding team consists of highly reputable and recognized
individuals that represent the constituencies in the company who are involved in the
change. Their role is to promote the organization’s vision and lead it through the process.
 Change teams: Change teams are groups of managers and supervisors whose role is to
ensure that all the tasks are performed effectively and in time. They’ll also be involved in
 the development and implementation of the change program.

Once you’ve put together a team, focus on establishing clear objectives and cultivating a culture of
trust and commitment at all levels in the company.

A team should:

 Have a shared understanding of why change is necessary.

 Have a shared understanding of the team’s mission and purpose, as well as the goals and
objectives it is striving to achieve.
 Have a clear understanding of each other’s roles and responsibilities, as well as the
performance metrics.
 Understand the risks and challenges of the change project, as well as the success factors.
 Have clear systems and processes in place for tracking progress, making decisions,
monitoring issues, and resolving disagreements.
 Have clear communication channels

c. Knowledge creation

3- Develop Vision and Strategies

The aim of this step is to build up a clear vision for the company’s initiative and plan effective
strategies to help the team in achieving it.

It encourages team members in their efforts by presenting an achievable picture of what success
will look like in the end.

The vision for a company is what motivates and guides its team’s actions. It should provide realistic
goals that are achievable in order to help measure success, which will appeal to the stakeholders of
the company as well.

To establish a clear and appealing vision, do the following:

 Align it with the organization’s core values and the change initiative.
 When establishing a vision, consider the suggestions of your employees.
 Verify that it can be easily communicated and fully understood by everyone.
 Incorporate data like projections, market research, and company trends.
 Make sure it’s easy enough to explain in less than five minutes.

d. Knowledge worker

4- Communicate the Change Vision

The goal of this step is to communicate the vision and strategy in a way that encourages the rest of
the company to accept and support the change initiative.

The objective is to win the hearts and minds of your employees, to encourage them to make
sacrifices in order to support the change, and persuade them that the change is achievable and
that the rewards are beneficial to both the business and themselves.

Here’s what to do, to do this effectively:

 Take every opportunity to communicate the vision and tactics by incorporating them into
everyday decision-making, problem-solving, or routine activities.
 Talk the talk and walk the walk. It is absolutely crucial to your long term success that the
 senior management demonstrate the behavior that they expect from the rest of the
members.
 Encourage employees to provide feedback and freely and honestly address their fears,
issues, anger, and concerns.
 To minimize misunderstanding and uncertainty, use simple language while communicating
the message.
 To get the message across, use all of the organizational communication channels.
5- Remove Obstacles
When implementing organizational-wide change, obstacles will come up often.

Inadequate processes, employee resistance to change, disempowering management,

organizational rules and structure, and so on, are just some of the examples that can pose a serious
obstacle.

At this stage, the guiding coalition and senior management should concentrate on removing any
obstacles that are slowing down the organization’s progress toward its change goal.

What to do:

 Understand the internal obstacles to change that are preventing it from being
implemented. This stage can be aided by the guiding coalition, which is made up of
employees with different specialties. Additionally, open communication with employees
and stakeholders can assist in the diagnosis of obstacles.
 Ensure that the new change vision is reflected in all organizational processes, structures,
policies, and reward systems.
 Recognize and reward employees who work hard to implement change.
 Give employees the training, coaching, and mentoring they need to achieve their best and
tackle obstacles successfully.
e. Knowledge economy

Employees may become discouraged after working for long without having a sense of
accomplishment with the tasks.

That’s why it is critical to set short-term goals to achieve and celebrate early in the change process
in order to maintain momentum and inspire employees to continue supporting the effort.

A short-term win brings a huge improvement to an organization because it can be executed in a

short amount of time. A fast success like this should be made transparent and obvious to anyone in
the company, recognizable, and connected to the change initiative.

Here’s what to do:

 Identify achievable short-term wins, such as initiatives to reduce costs, enhance

procedures, and boost profits, for example. It’s critical to weigh the pros and cons of the
goal you choose, as missing a chance to attain an early goal can demotivate a team.
 Break the transformation project down into smaller chunks with short-term objectives.
 Encourage other employees by recognizing and rewarding individuals who are responsible
for these fast victories.

f. Knowledge Management System

7- Keep the Momentum

This step is all about keeping the change going by ensuring that the teams are working hard to
achieve the change vision while keeping track of their progress.

It’s critical that people are advised to refrain from big victory celebrations after just a few
successfully attained goals.

To keep the momentum of change going:

 Determine what worked well and what went wrong after each victory to determine what
needs to be improved.

 Maximize the advantages of the quick wins and continue to work on larger-scale change
across the company.

 Identify and eliminate unnecessary procedures and interdependencies.

 Continue to share the vision and provide benefits.

8- Make The Change Stick 

The change leaders’ goal in this step is to create a new culture where change can be sustained.

This includes adjusting organizational norms and values, procedures, reward systems, and other
infrastructure components to ensure that everything is in line with the new strategy.

To make a change stick:

 Discuss the importance of the new changes by emphasizing the advantages they provide.

 Identify and embrace change-supporting norms and values.

 When identifying and recruiting new talent, or promoting employees, include these new
norms and values.

 Create new training and development programs to assist employees in gaining the skills and
competencies they need to adapt to the new changes.

 Improve or eliminate organizational procedures that do not match with the new
culture. Also, get rid of those who are hindering your growth.