Effective Change Management Strategies

Change Management in an organization

Susan, the Vice President of ASP Software has begun the process of organizational restructure at ASP Software. The changes include reorganization of staff, reduction of staff and the implementation of the new processes. To this end, Susan has communicated the impending change to everyone concerned in the organization but has not done that formally (Cummings and Worley, 2014). She has held a meeting with all employees including managers and made the new organizational chart public. Further, she has expressed willingness to provide training for the new roles of employees and managers. She has also expressed the need reduce recruiting cycle time, team cohesion and enhancing team cohesion. However, there are improvements that can still be implemented by use of change models as will be discussed going forward.

ADKAR model

This approach to change management is focused on individual and organizational change. For change to be successful, it must begin with the individuals then it translates to the whole organization. Susan failed to apply this approach’s first limb which is an answer to the question for change. The employees of ASP Software should have been given reasons for the change in an honest and convincing way to make them understand and relate to the change. Employees need to understand the reason for the change so that they own the process, and they need to be encouraged to ask questions (Brisson-Banks, 2010). A project is only as good as the people involved hence a good strategy is having everyone on board. Once an individual at ASP has understood the reason for the change, they are now ready to appreciate the same. Subsequently, an employee can make up their mind to support and participate in the restructure knowing what all is about (Nickols, 2010). Hence at the outset Susan should have thought of telling the employees what they stand to gain from the changes being introduced. Employees in an organization are human hence thy have feelings and may become emotional about the change. It is important to allay any fears that they have by appealing to their emotional side. For instance Susan could have explained that they have decoded to implement change so as to avoid losses which would have caused more layoffs than the current situation. This way even if they may not care about the business, they will care about profitability and their jobs. Knowledge is one of the most important components of change. Lack of it has led to unsuccessful organizational restructure in many institutions. In this case, the team from employee relations are venturing into recruitment which they have never done before. This team must be trained so as to acquire the necessary knowhow to diligently undertake their tasks. Above all, the employees must be told clearly their new job description and the expectations (Jones and Jones, 2013). Therefor Susan should identify the knowledge as has been done then organize for trainings for the concerned employees and departments. It is also advisable not to assume that employees even in other departments have enough knowledge. Susan can monitor the situation for nay knowledge gap issues then prepare training plan for the concerned employees or department.

Implementing a new process requires that the ability of the team members is not in doubt. Where it is clear from the onset that employees lack certain abilities required to proceed with the change the same should be taken into consideration and the necessary training commenced (Rainey and Fernandez, 2012). Learning of new skills is not a one day affair hence should be a continuous activity until Susan is convinced that the concerned employees can adequately handle their new tasks. Assumptions on the ability of employees have led to costly errors for organizations undergoing restructure and ASP Software should not fall into the same pitfall. Reinforcement is necessary in effecting the necessary change. The heads of department and managers should be encouraged to frequently give feedback to employees so that they can know whether they are in the right direction. Hence, they should provide recognition and praise where things have been done right and offer direction and help where necessary.

Lewin’s Model

This model splits the process into three stages. That is unfreeze, make changes and refreeze. This approach is most effective when dealing with resistance to change at the organization. Susan has identified resistance and an air of uncertainty among some employees. Once Susan has realized the perceptions of most employees of the change, she needs to prepare them for than change. Preparing them for the change entails explaining why there is need for change and the benefits that it will bring (Bate, 2010). It is notable that Susan had not done any of this hence the apprehensions among the employees. After the preparation and dealing with the resistance, Susan can now proceed to effect the changes and guide the team as they adapt. To limit challenges in the initial stages of change, Susan should invest in education, support and communication. Just as evident in the first model of change, education in the form of training will be a big boost to the change process towards making the employees well suited for their new roles. Regular communication is key in identifying problems that might arise in the course of change (Rothaermel, 2015). Again, employees should have people like mentors who they can go to in case of nay challenges for support. Regular meetings with respective managers are also useful in obtaining feedback and offering guidance where necessary. Once changes have been effected, regular reviews should be done to ensure that the employees have adapted to their new roles as prescribed.

The McKinsey 7S Model

The McKinsey 7S Model is a tool that Susan can use in understanding how to align the ASP organization, and where significant change can be implemented. This model entails seven elements, which include strategy, structure, systems, shared values, skills, style, as well as staff. It is significant to note that each of these elements is vital for the success of ASP, yet they need time, as well as attention, in order for them to function properly (Channon & Caldart, 2015). Based on the seven elements, the strategy is the plan that is devised, in order to maintain, and also build significant competitive advantage over the existing competition. Structure is the manner in which the organization is structured. Systems are the daily procedures, as well as activities, which staff members purpose to engage in, in order to get the job that is done. Shared values, which are also referred to as “superordinate goals” are the core values that the company includes in its corporate culture, as well as the general work ethic. Style is the style of leadership that the company adopts. Staff are the employees, and this is in line with their general capabilities. Finally, skills are the actual skills, as well as competencies of the organization (Ravanfar, 2015). Overall, if ASP can be able to bring together all these elements, then Susan should be confident that ASP is moving on a right path

Organisational development

Organisational Development (OD) does not necessarily mean organizational change, both can be two different things depending on the circumstances of each organization. The common model for OD has been the action research models (ARM). Kurt Lewin is credited for routing for the ARM model through his famous words, ‘No research without action; no action without research (Cummings and Worley, 2014).’ Before the ARM, there was the PDCA cycle by Shewhart to elaborate the need for continuous improvement in organizations.

During the Plan stage, actions are taken to decide the most appropriate ways of improving the processes in the organization. Similarly, Susan is at a position to apply this model to determine the necessary improvements required to make ASP better and competitive in the market. This model and stage is closely linked to total quality management and continuous improvement in organizations as put forward by Edward Deming (Choi and Ruona, 2011). The next step is the Do stage where the plans laid out in the first stage are implemented on a trial or pilot basis. This is done to give a tentative result of the effects of the improvements suggested. At this testing stage, the organization can gauge the possible reaction of the employees upon actual implementation. In the Check or Study stage, the results of the pilot stage are considered to determine whether the desired changes have been effected. The last step which is the Action stage, involves the actual implementation of the successful process from the previous stage. In case the process implementation is successful, the cycle begins all over again beginning with the Plan stage to implement new processes necessary for the organizations continuous improvement (Choi and Ruona, 2011). If unsuccessful, the process will be repeated using the same cycle and noting the reasons for the failure and making the necessary adjustments. However, the ARM model has been criticised for the misleading cycle processes when it actually appears like a linear one. As a result, the Organization development process (ODP) model has been introduced to modify the above (Brison-Banks, 2010). The ODP model is similar to what Susan had begun doing by inviting Nathan, a professional to take the organization through the process. The first step is entry where a consultant like Nathan is invited and takes time learn about the background of the processes. At this stage, an agreement is reached for work to begin. After agreement is finalised, the next step is setting up a team to work with the consultant and Susan should have done this during their meeting with Nathan.

In the next stage, the consultant will make an assessment of the organization’ culture and give feedback to the management of concerned client. Following the above, an action plan is drafted based on the goals and objectives of the organization. For ASP Nathan must take into account the ne objectives with regard to expectations. These plans will be subsequently implemented and assessment of the same is done to gauge the success. If successful, the effected improvements will be adopted and institutionalized into the organizations policies. In case the objectives were not met, the process should begin all over again just like in the PDCA cycle (Thompson, Strickland and Gamble, 2015). At the end, the consultant will withdraw from the process once the objectives have been met. Similarly, Nathan will be engaged with ASP up to the phase where the organization has adopted the requisite improvements and it has been deemed a success. The nature of OD is such that it does not require the consultant for subsequent continuous improvements. One the consultant is done with the initial round of implementation, the organization can continue improving its processes on its own the internal mechanisms. The ODP model has been criticised for being too long and some consultants may skip some of the stages but this may not bring out the desired results if that is done. Other criticism is that it’s a conventional approach that is basically meant to find problems (Thompson, Strickland and Gamble, 2015). Despite all these, the two models have been used successfully by organizations to implement continuous improvements.

Benefits of Coaching

Businesses have and still use coaching to encourage their employees to improve their communication and interpersonal skills, manage conflicts effectively, and also realize effective ways of motivating employees. Coaching builds people and the organization as a whole. Studies show that 80 per cent of people who are coached exhibit increased self-confidence and another 70 per cent report improved work performance and improved communication skills (Jones, Woods and Gillaume, 2016). Further, 86 per cent of companies that implement coaching have stated that they got back over and above their investment in coaching (Jones, Woods and Gillaume, 2016). Therefore coaching has been used by organisations fill gaps in employee performances. In enhancing significant and effective coaching, managers should opt to apply the GROW model into practice. This should be applied in the coaching sessions as it results into a clearly defined results of the four phases. In identifying problems and also generating significant idea for solutions, the coachee should be active, for enhancing the effectiveness of the session. GROW stands for Goal, Reality, Options, and Will (Cox, 2015). In this regard, the first step for effective coaching session is the set significant goal, for a longer term and a shorter term. The goals set need to be SMART (Measurable, Acceptable, Realistic and Timely). The second step is for the coach to be aware of the actual situation that the coachee is in. In this regard, the coach should be able to identify various obstacles that can weigh down the coachee. The third step is to generate ideas, which contribute to seeking solution of the problem. In this regard, the coach generate solution, to every option. Finally, the last step is to select a choice for one option. This leads to the action plan and the motivation of the coachee, following the plan should be maximised (Grant, 2016).

Increased employee engagement

Coaching enhances the engagement of an employee in their respective tasks. This translates the ability of employees to take responsibility for their work and increased productivity in the organization. Increased productivity means that there are no layoffs and instead a retention policy for employees which encourages consistency in the organization. It is an unbiased way of helping employees change certain undesirable behaviours that hinder their performance and career development. For ASP, coaching will be necessary for all employees and more emphasis on those taking up new roles so as to ensure they are actively involved in their tasks. Continual recruitment is expensive, time consuming and interferes with the workflow, thus coaching is important since it will minimize such instances by encouraging employee loyalty to the company (Leonard-Cross, 2010). Employees who are well couched and skilled will be an asset for ASP and can effectively achieve its goal of reducing the time cycle of recruitment.

Personal development

When employees are coached and mentored by the senior ones or the established managers, they get to acquire new skills that will improve the function of department and organization. Younger or less experienced employees get a chance to become better and guide them through their career path (Leonard-Cross, 2010). An employee who feels and is on the right career path is likely to be aligned to the organizations’ expectations. Organizational and individual opportunities can be identified through coaching to move the organization forward. When employees learn to resolve conflicts and concerns within the lines of confidential relationship, there is reduced levels of frustration at the workplace which is not good for productivity. Coaching also instils in employees a feeling of being valued by the organization hence are likely to have high levels of job satisfaction (Ellinger et al., 2011). There is an added sense of self-worth for employees who will be even more focused on achieving the organization’s goals.

Team efficiency

Coaching is mostly done after undertaking the SWOT analysis of the organization. Hence, the focus of the sessions will be on the weaknesses and strengths. During the sessions, managers get an opportunity to also find out the weaknesses of their team and streamline resources towards rectifying the problem. There are high potential employees that can be identified through coaching and can thereafter be considered for leadership development to drive the organization forward (Jones, Woods and Gillaume, 2016). It can also act as an avenue of changing unsuitable organizational cultures with an aim of creating a more productive and positive workplace. In this regard, Susan had already identified Steven as a high potential employee and has given him higher role to exploit his potential towards increased productivity. Again coaching skills improve management leadership as well as promoting diversity awareness (Ellinger et al., 2011). It is important to have employees who are tolerant and accommodating to colleagues from different backgrounds. A positive attitude is thus inculcated through caching so that employees offer positive support for the organization’s initiatives. Consistent coaching can also be used to demonstrate value of the company by pitching the same to a prospective client who will most probably be impressed.

Dealing with resistance

Employees can exhibit resistance to the new structures because change is not always easy and people are used to their normal schedule. It is important to implement change management effectively at the beginning. This means doing formal communication of the change to the employees which Susan should have done, with all the details to avert rumours and any anxieties. Hence doing change management right the first time can prevent serious resistance (Leonard-Cross, 2010). By using a structured change management model, engaging the managers and communicating the rationale for the change the instances of resistance are radically reduced (Jones, Woods and Gillaume, 2016). Suzan should have therefore, involved the five managers in the first instance and made all employees aware of the need for change. Again, the employees should understand what they stand to gain with the new changes so that they feel part of change. Resistance must always be expected even when it’s the best idea. Thus, this should be expected by the person proposing change. It should therefore not be a surprise for Susan that employees are resisting the change. This something that should be expected at the beginning so that there is a plan on how to deal with it. For instance, the employee relations specialist may be against the change because it will bring more work within a short time span. Rather than a reactive management approach, a proactive one is better and minimized challenges in the process (Huczynski, Buchanan and Huczynski, 2013). The most suitable approach for Susan in the proactive approach is therefore Prosci’s three phase change management process which requires preparation, managing and reinforcing change.

The next step should involve identifying the root causes of resistance to change. Fear of job loss and lack of awareness as to the reason for change are some of the causes of resistance. The response by Susan should be to present a compelling need for the proposed change with an aim of convincing all employees that it is to their benefit. This can also be approached from an individual level once key resistant individuals have been identified (Bate, 2010). However, it is not appropriate to victimize or fire someone because they are against organizational change. The ADKAR model provides change management approach that is focused on resistance to change and can best work for ASP.

Performance and Reward Management

The first step is getting an effective system in place for measuring and evaluating the performance of an employee. Organizational rewards can be both financial and non-financial. A person enjoys the organizational rewards by virtue of their employment relationship with the concerned organization (Gungor, 2011). Rewards in an organization takes the form of intrinsic, extrinsic and social nature. The intangible benefits that accrue to an employee by virtue of job itself can be referred to as intrinsic reward. Extrinsic rewards one hand refers to those provided by the organization whereas social rewards concern benefits derived from interactions with other people at the place of work (Rees and Smith, 2017). For ASP, a reward system can be designed to reward the performance of employees that have embraced change in the organization. Employees can be rewarded through recognition and appreciation for embracing change at the organization. It is important to recognize and let the employees know that they are on track. Small behavioural changes like keeping time, reduced errors and team works can be recognized so as to influence others to emulate such behaviour (De Gieter and Hofmans, 2015). Alternatively, the first person to meet the new goals of ASP can be publicly recognized to give other employees motivation to stick to the new way of doing things in the organization. When employees are committed to the organization’s goals and achieves exemplary results, they need to be recognized and failure may lead to a demoralized employee. And that is why recognition is important (Armstrong, 2010).

In as much as the reward system used may not be monetary, the same must be linked to performance. There are employees that value skills development over monetary rewards. It is therefore important for the HR division to be conscious of the various preferences of their employees. At this point, motivation theories will come handy. Maslow’s hierarchy of needs can be a reference point for the HR division to reward employees depending on what level of need an employee is interested in fulfilling (De Gieter and Hofmans, 2015). In designing reward parameters, it is advisable to involve the employees so that when rewards are issued, it meet the need of the concerned employee. ASP’s new company goals should be tied to any proposed rewards. This way, rewards will be given only to the positive appreciation of change that directly impacts the company’s strategic goals. Rewarding employees based on other factors not within the coverage of company goals can elicit perceptions of favouritism and must be avoided at all cost (Rizwan and Ali, 2010). In the beginning, employees should be adequately informed of the new changes and what is expected of them. This can be done by placing the mission and objectives of the company on a wall where everyone can see them. Then, employees need to know how their performance contribute to the organization’s mission. Employee specialists should be aware that they are to deliver twice the previous number within a shorter timeline. Hence, an employee or a team that performs over and above is rewarded.

Rewards should not be negative to the extent of being associated with pressure or fear. Instead, it should be linked with passion and purpose (Shields et al., 2015). Fear and pressure on employees does not offer a long term solution which is unsustainable approach to business (Lotta, 2012). Contrastingly, passion and purpose have been proven to work over time. Preferably, rewards should be issued in a specific and consistent manner. Susan can resort to using specific individual goals and criteria so as to reward all those achievers embracing the changes at ASP. This way, even the lower achievers will be recognised instead of rewarding only one overall winner. It brings out the aspect of fairness among employees giving them motivation to work harder that they may get the reward another time. Instilling a sense of ownership among the employees can be done through reward system that makes employees believe in the work they are undertaking (Lotta, 2012). Employees will have a long-term focus with continuous improvement. Susan should thus adopt strategies like rewards for new skills acquired relevant to the new changes and goals of ASP, instant or on the spot rewards, monthly and annual rewards. This schemes if adopted will quickly create a sense of value among the employees and encourage them give effort to the organisation and adhere to the new changes

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