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Management by hitt back porter CH02

Chapter 2
Managing
Change

PowerPoint slides by
R. Dennis Middlemist
Colorado State University


Learning Objectives
After studying this chapter, you should be
able to:






2

Explain why personal change is critical to

managerial success
Describe the general process of change
Discuss three common failures of change
Describe the general process of enhancing
change success

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Nature of Change
• It is easier to deal with

12%
28%

predictable change than
unpredictable change
60%

• Change may be

increasingly
unpredictable
Highly unpredictable
Unpredictable
Predictable
Highly predictable
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Adapted from Exhibit 2.1: Predictability of Change


Rate of Change
 If rate of change is

13%

87%



Increase
Decrease
Stay the same
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increasing: managers
benefit by increasing their
ability to anticipate change
 If change is somewhat
unpredictable: managers
benefit from increasing their
ability to respond quickly to
changes
Adapted from Exhibit 2.2: Rate of Change


Managerial Competency for
Leading Change
5%

Excellent

35%

Good

39%

Fair
Poor
Does not have the
leaders to do it
5

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20%
1%
0%

10%

20%

30%

40%

0%

Adapted from Exhibit 2.3: Prevalence of Change Management Capability


Managerial Competency for
Leading Change
 Leading change is a critical managerial

activity
 Senior executives do not see an ample
supply of lower level managers with
this skill

6

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Forces for Change:
External Forces
 New competition
 Technology
 Shift in customer

preference
 Change in regulations
 Change in general
economic environment

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Forces for Change:
Internal Forces
 Change in internal

environment
 Change in leadership

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Forces for Change:
Three Conclusions
At the micro level it is important to have
an understanding of
 The general process of change
 The general forces for change failure
 The keys for successful change

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Process of Change
 Change goes through three distinctive

phases
 Unfreezing
 Movement
 Refreezing

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Phase 1: Unfreezing
 Habits are strongly patterned ways

behaving
 We can also have patterned ways of
viewing and interpreting events
 To change a patterned way of behaving
or thinking, that pattern must be
“unfrozen”
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Phase 2: Movement
 Major determinants of movement
 Level of certainty or uncertainty associated

with the change
 Magnitude of the change

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Phase 3: Refreezing
 Habitual behaviors and perceptions are

strong
 Change may not be permanent
 After a change is made, actions should be

taken to prevent reversion to old patterns
 Reinforce the change until it becomes more
established

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Forces for Failure
Right Thing

Wrong Thing

Done well
3. Refreeze

1. Unfreeze

Done poorly
2. Movement

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Adapted from Exhibit 2.4: Change Failure Framework


Unfreezing: The Failure to See
 The power of past mental maps
 The longer a mental map has been successful, the

harder it is to see the need for a new one
 Overly simplistic view of the past and future
 Difference in the context may not be seen
 Maintaining equilibrium
 People resist pressures to change in order to
maintain equilibrium

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Movement: The Failure to Move
 Change uncertainty
 Lacking clear alternatives, people may

intensify their efforts doing what they know
 Outcome uncertainty
 Lacking clear answers are to questions,

people are less likely to change

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Movement: The Failure to Move
 Requirement uncertainty
 Believing they may lack

essential skills, knowledge, or
tools, people are unlikely to
make a needed change, even
if a great reward awaits them
for changing

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Refreezing: The Failure to Finish
 Most significant change does not

produce instant, positive consequences
 The lack of reinforcement of the new
behaviors allows old behaviors to
reappear

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Overcoming the Failure
to See
 Create high contrast
 Focus people’s attention on key differences
 Focus on the core contrasts
 Help people see and remember those key

differences (create images)

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Adapted from Exhibit 2.5: Declining Contrast


Overcoming the Failure
to See
 Create confrontation
 Managers often have to confront their people

with the key contrasts between the past,
present, and future
 Present the contrasts repeatedly
 Inescapable experiences
 Involve

as many of the senses—touch, smell,
sight, sound, taste—as possible

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Overcoming the Failure to
Move
 Educate employees as to the desired

change
 Help employees see the new destination
 Help them see the anticipated benefits of
going there

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Overcoming the Failure to
Move
 Know and understand what it takes to

execute the change
 Assess the level of
employee capabilities
 Provide training, tools,
or other resources

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Overcoming the Failure to
Finish
 Create early wins and reinforce desired

behavior
 Help people see the progress of the
change
 Inform them of their personal progress
 Inform them of collective progress

 Repeat messages of old and new maps

often

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Overcoming the Failure to
Finish
 Create high impact, inescapable

confrontations
 Involve as many of the senses as
possible
 Physically assure experiences cannot be
avoided

24

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