Chapter 1 / Introduction to Change Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business. ~ Mark Sanborne ~

WHAT IS ORGANISATIONAL CHANGE A change across the organisation that impacts one or more dimensions of its functioning such as staffing, structuring, work allocation or turnouts is referred to as an organisational change Every organisation passes through various phases of evolution, identifying challenges, targeting customers, setting goals and achieving them 2

CLASSIFICATION OF ORGANISATIONAL CHANGE 3

TYPES OF ORGANISATIONAL CHANGES Organisation-wide Change is one which spans across the entire organisation, e.g. restructuring of the organisation Subsystem Change could be seen in the restructuring of a small department or the introduction of a new product or service Transformational Change is one which is at once all assuming, fundamental and radical, e.g. a change in the company’s organisation structure from a hierarchical one to one with several self directing teams or a slashing of impact levels Incremental Change is gradual, such as the implementation of a new software or system to augment efficiency Organisational Changes Organisation-wide Change Subsystem Change Transformational Change Incremental Change Developmental Change Remedial Change Planned Change Unplanned Change 4

TYPES OF ORGANISATIONAL CHANGES (continued) Planned Change is one which is undertaken after a concerted decision is taken by the management to proactively adopt a new strategy or effect a structural / functional Change Unplanned Change is what happens in order to meet an unforeseen contingency Developmental Change is one that occurs when a company wants to better an existing situation or level of performance Remedial Change on the other hand is suited to correct a current aberration or a poor performance Organisational Changes Organisation-wide Change Subsystem Change Transformational Change Incremental Change Developmental Change Remedial Change Planned Change Unplanned Change 5

CHANGE DRIVERS There are many factors that drive Change across an organisation - we may label them as External Change Drivers and Internal Change Drivers Internal drivers may materialize from external drivers for Change, e.g. if clients are becoming more challenging, an External Change Driver, then, internally it would necessitate improvement in the quality of products and services, or an improvement in the innovation process itself Many times it is seen that external drivers of Change expose internal inefficiencies that lead to Change 6

WHAT DRIVES CHANGE The stimulants for organisational Change could be many Organisational Changes occur, for instance, when an organisation Changes its overall strategy for success, adds or removes a major section or practice, or Changes its operating techniques Organisational Change is provoked by external forces, for instance to address the need for an increase in productivity or services in response to new clients Organisational Changes may stem from a Change in mission, a restructuring of operations, introduction of a new product or service, layoffs sparked by internal or external contingencies, new technologies, merger and acquisitions, new programs such as Total Quality Management 7

WHY IS IT DIFFICULT TO ACCOMPLISH CHANGE IN AN ORGANISATION Change is almost always perceived as a negative threat Typically for every proposed Change, there is always an equal and opposite resistance acting against it Organisation wide Change, is often difficult to accomplish because not only are people cynical of Change, they are also afraid of it Organisation wide Changes are stalled because of conflicting goals within the organisation 8

APPROACHES TO CHANGE 9

© Copyright 2011 The Art of Change Management Implementing Change from the Top ISBN: 978-93-80227-60-3 Published by Embassy Books, India. www.artofchangemanagement.com Author: Percy Agreras Dastur www.percydastur.com Email: contact@percydastur.com