Discuss about the Current Change Management Theory.
In the context of professional and personal domain, change is likely to be constant. It requires immense time and energy to cope in this ever changing world. In order to make the task easy several individuals have designed various models to manage change in structural manner. Managing change is a process wherein the range of an assignment is altered in order to fulfill the changing requirements. It requires structured models and a planned outline to be able to move from existing state to a preferred state. Effective change management is required to ensure that the operations are as per budget and the work gets converted into increased ROI. In this ever changing fast paced environment, it is all the more essential that businesses do not apply random methods, but regularly ensure structured changes and adopt new methods to meet the business requirements. It is a continued activity that requires both time and expertise to be executed effectively. Change management involves the employees of the company as the change affects both the organization as well as the employees.
The first model that is discussed in the report is the very famous and successful model created by Kurt Lewin in the year 1950. It is still valid in today’s business environment. Lewin explained the model by the changing forms of ice. The three stages explained by him are unfreeze, change and refreeze. The first stage requires thorough groundwork for the change; therefore the business should make the mind that change is essential and therefore unavoidable. This is an important stage because as per human tendency, people resist to change. Therefore, at this stage it is important to enlighten people the need for the change and what benefits the change will bring in. The next stage is the stage where the actual change happens (Hossan, 2015). It is a lengthy stage as it requires time, as people embrace the changed progress. In this phase, there is a need of good leadership to make the transition process easier for its people. To ensure success of this stage time and communication has to be invested. The third phase is to refreeze as the change has happened and been implemented. This phase requires people to be back to their routine. This step requires that changes are implemented even after the objectives of change have been met.
The model is although too simple, but still it is relevant to isolated change assignment like government projects etc. The model contributes to understanding the behavior of individual and group components therefore it is valid today. The model might not work in case of very unstable business environment. Also, the model uses top down management approach which makes it more applicable for small business with slow change deadlines. For businesses which require continuous innovation, an employee driven change would be more suitable.
The next model that is discussed is the McKinsey 7 S Model created by consultants of the company in the year 1980. This model is one of the models that have stayed with the changing times. The model involves seven stages. The first stage is a strategy where step by step planning is done to achieve the goals (Team, 2015). The next stage involves the structure that has to be followed. Then comes system stage whereby an order of the task relating to daily activities is carved out. Next are the shared value that is the main worth of the business that have to be incorporated. The next stage is the style which discusses the way in which the change is executed. Next S refers to staff and their capacity to perform the task. Finally, seventh S is the skill of the employee (Normandin, 2012).
This model is still relevant in today’s organizations as it provides a manner to understand the uniqueness of every organization and incorporates both emotional and practical aspects of change for a successful transition of change. Also the model incorporates all parts of the change and do not leave any essential component. It also provides a direction to the business for change to take place successfully. The only drawback of using this model is that all the components are dependent on each other, therefore failing in one area means failing of all the parts (Connelly, 2016).
This theory was invented by John P. Kotter, Harvard Business School Professor through his book ‘Leading change’; it is most popular and adopted theories in the world. This theory is divided into eight steps which focuses on the concept that how people will change. These stages are as follows: –
Create Urgency – This step involves creating urgency among people in order to motivate them towards change. This is done by conversing openly about market competition. If many people start talking about it, the urgency is built. For this, the organizations identify threats and analyze what can happen in future; opportunities should be discussed and not be ignored. Then discussions can be held to bring dynamism and convince people to think about change. Build Team – Under this step, Kotter suggests that the right people should be selected with a good mix of commitment, skills and knowledge. To lead change, powerful or influential people with wide sources, skills should be united. Teams can be formed from stakeholders asking for emotional commitment from them to drive change. Next is Create Vision – This stage includes creating the correct vision through creativity and emotional connect linking all the great ideas and solution leading to change. A clear vision will help everyone to understand the concepts clearly. A short summary should be prepared which clarifies the future of the organization and create a strategy to execute change. Communicate the vision – The vision should be well communicated to people. This will determine the success of the organization. The vision can be communicated not only through the meeting, but anytime when a person gets a chance. This can be done when the leaders talk about their vision daily and address the anxiety and concerns of people daily with open and honest hand. Next comes Remove Obstacles – There will be some barriers and resistance to change. Continuous follow ups and barriers should be checked and steps should be taken to remove them so that the vision can be executed successfully. Change Leaders should be identified who can communicate and deliver the change, people who are resistant to change and other barriers should be identified to implement change successfully. Actions should be taken to remove these obstacles. Create short term Win – Show some quick wins of change to staff, which will them to motivate. Create short term targets and while achieving them, many people will be influenced (Heraclitus, 2016). Rewards should be given to people while achieving these targets. Build Change – Change is a long and deep process. Management should not be just happy because of quick win; in fact real change is deep. After every win, realize and make new steps towards achieving the vision and continuous improvement should be implied to processes. Anchor changes in corporate culture. – Finally, the changes should become part of your organization culture. The change should be seen in every aspect in day to day work. Support from people is very important in this.
These steps are very important for today’s organization as well. These are easy steps to incorporate and follow. Accepting change is important to change to happen successfully. Ericsson successfully applied these steps in their change managing projects in 2008 when they entered 4G network and other projects (Shurrab, 2014).
This model is a practical model which answers change management for all stakeholders. While all other models focus on steps, this model suggests that change occurs when every person is able to change successfully. Developed by Jeff Hiatt, CEO this model focuses on 5 actions necessary for change (Hiatt, 2006). These five steps are building blocks to success and each should be completed while moving to the next. The first step is Awareness for Change – For any change to happen, it is important to understand why this change is necessary. Planned communication is necessary; when this step is completed the individual will fully understand why change is important. Desire to support change – Once awareness of change is clear, the individual develops desire to participate and support change. Desire can be built when an individual is offered incentives to be part of the change. Knowledge on how to change – Knowledge on change can be provided by normal training and education method. Few methods of training are coaching, mentoring etc. Ability to implement skills – The individual has to adapt skills while on practical performance; this can take some through coaching and practice. Reinforcement – It is been ensured that individuals don’t turn to old methods of performance and take corrective action (Prosci Change Management Team, 2013).
This model is most used in today’s organization. When a Texas group wanted to digitalize, this biggest change management was done through Adkar method. A change management network was built which provided information, tips to all individual so that resistance to people decreases. They prepared dress rehearsal activities to implement change successfully. Surveys were conducted about people’s opinion and knowledge. This model hence is most popular among organizations to implement change successfully (Prosci Inc., 2014).
Recommendations and Conclusion
The report discusses four change models and its relevance in today’s environment. In a model like McKinsey 7 S Model, all the factors are interrelated and interdependent on one another, the failing of one part means failing of all and this is the greatest disadvantage of this model. Also, some models are complex as compared to the others, therefore the models should be chosen as per the structure of the organization. For an example, the model which uses top down management approach should be applied for small business with slow change deadlines and for businesses which require continuous innovation, an employee driven change would be more suitable.
References
Connelly, M., 2016. Change Management Models, Available at: https://www.change-management-coach.com/change-management-models.html
Heraclitus, 2016. Kotter’s 8-Step Change Model. Implementing Change Powerfully and Successfully.
Hiatt, J., 2006. The Essence of ADKAR: a model for individual change management: Prosci, Available at: https://www.change-management.com/The-Essence-of-ADKAR.pdf
Hossan, C., 2015. Applicability of Lewin’s Change Management Theory in Australian Local Government. International Journal of Business and Management, 10(6), pp. 1-13.
Normandin, B., 2012. Three Types of Change Management Models. 28 August, Available at: https://www.quickbase.com/blog/three-types-of-change-management-models
Prosci Change Management Team, 2013. Prosci: Change Management Series, Available at: https://www.change-management.com/prosci_change_series.pdf
Prosci Inc., 2014. Case study – impact of effective change management, Available at: https://www.change-management.com/tutorial-why-case-study.htm
Shurrab, H., 2014. The Eight Step Model of Change – a Case Study on Ericsson. April, Available at: https://www.slideshare.net/hafezshurrab1/the-eight-step-model-of-change-a-case-study-on-ericsson
Team, C., 2015. Major Approaches & Models of Change Management, Available at: https://www.cleverism.com/major-approaches-models-of-change-management/
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