Unit 4

Types of Change
4.1. Planned Vs. Unplanned Change
A business organization often requires changes when it undertakes projects or initiatives to
improve performance, seize opportunities or address key issues. The changes to processes that
occurred are including job roles, organizational structures, and types and uses of technology.
Ultimately, subordinates have to change on how to do their job by embracing and learning a new
way of the working or else the initiative will fail.
As defined in chapter 3;
Change management is a structured approach to ensure the changes are thoroughly and
smoothly implemented for achieving lasting benefits of change.
The focus of change management is on the wider impacts of change particularly on people as
individuals and teams move from the current state to the future state.
Therefore, change management emphasizes on the people side of change and targets
leadership at all levels of an organization including executives, senior leaders, middle
managers, supervisors and staff.
Types of Change Management Programs
Change management programs enable organizations to control the installation of new processes
to improve the realization of business benefits.
There are two types of change management programs namely;
a. Systematic organization-wide change initiatives that involves an organization-wide
transformation effort.
b. Specific internal change management or change control program that involves providing
tools and processes to control daily operational or project-specific change.
Change management programs require leaders to;
 Focus on results,
 Overcome barriers to change,
 Repeatedly communicate simple, powerful messages to subordinates and continuously
monitor progress.
In change management program;
a. Leaders have to maintain a goal-oriented mindset by establishing clear, firm goals and
designing incentives to confirm these goals are met.
b. Leaders identify subordinates who are most affected and also work to predict, measure
and manage the risk of change in order to overcome barriers to change.
c. In times of change, leaders alter communication frequency and the methods to manage
how a shaken workforce perceives and reacts to information such as ensure sponsorship
throughout the organization and reorganize around decision making.
d. Leaders follow through and monitor the progress of each change initiative.
Change Management Model

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Change management is an important aspect of management that tries to ensure that a business
responds to the environment in which it operates. Change is the result of dissatisfaction with the
present strategies for example poor performance, failure to meet organizational goals etc.
Leaders have to develop strategies to implement change because change does not happen by
itself and it is essential to develop vision for a better alternative.
A. ADKAR Model
The ADKAR model was developed by Jeff Hiatt in 2003 and it was introduced as a practical
tool by Prosci, a renowned change management consultancy and learning center.
The ADKAR model is mainly intended to be a coaching and change management tool to
assist subordinates through the change process within organizations.
ADKAR is an acronym for Awareness, Desire, Knowledge, Ability, and Reinforcement.
ADKAR describes successful change at the individual level and outlines the goals of
successful change as leaders have to manage organizational change starts with understanding
how to manage with a single subordinate.
ADKAR is a goal-oriented change management model that allows change management
teams to focus their activities on specific business results. It was initially used as a tool for
determining if change management like communications and training were having the
desired results during organizational change. However, the limitations of this model are the
missing out on the role of leadership and principles of program management to create clarity
and provide direction to change.
Table 4.1 Action steps for each ADKAR building block
To build Awareness • Effective and targeted communications
• Leaders sharing the why and the vision
• Ready access to information
To create Desire • Leaders demonstrating their commitment
• Managers and supervisor advocating the change
• Subordinates participation and involvement
To develop Knowledge • Effective training with the proper context
• Education for during and after the change
• Job aides and real-life application
To foster Ability • Coaching by managers, supervisors
• Hands-on exercise, practice and time
• Elimination of any potential barriers
To Reinforce Change • Celebrate successes, individually and as a team
• Rewards and recognition that is meaningful
• Feedback on performance and accountability

On the other hand, ADKAR model captures the business/process dimension of change and the
individual dimension of change. It also provides a clear management checklist to manage
change. As a result, ADKAR model is an effective tool for planning change activities,

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diagnosing gaps, developing correction action and supporting managers and supervisors.
B. Lewin’s Three Stages Change Model
Lewin’s (1949) three stages change model denoting the step by step phases of unfreezing,
changing and refreezing using the analogy of changing the shape of a block of ice. This
subsequent process of change elaborates the varying outline sequence upon the essential stages
of change.
In context of process model of change, the culture has been recognized by Lewin as moderator
for organizational change.
The first stage of change is;
1. unfreeze step involves preparing the organization to accept change is necessary, which
involves breaking down the existing status quo before leader can build up a new way of
operating.
 The key to unfreeze stage is developing a compelling message showing why the existing
way of doing things cannot continue.
 Leaders have to point out the declining sales figures, poor financial results, worrying
customer satisfaction survey and so on to show that things have to change in a way that
everyone can understand.
 Leaders need to challenge the beliefs, values, attitudes, and behaviors that currently
define it.
 By forcing the organization to re-examine its core, leaders have to create a controlled
crisis effectively, which in turn can build a strong motivation to seek out a new
equilibrium.
 Without this motivation, leaders will not get the buy-in and participation necessary to
affect any meaningful change
After the uncertainty created in the unfreeze stage, the change stage is where subordinates begin
to resolve their uncertainty and look for new ways to do things.
 Subordinates start to believe and act in ways that support the new direction. The
transition from unfreeze to change does not happen overnight.
 Subordinates take time to embrace the new direction and participate in the change
proactively.
 Subordinates need to understand how the change will benefit them in order to accept the
change and contribute to make the change successfully.
 Not everyone will fall in line just because the change is necessary and will benefit the
organization.
 This is a common assumption and pitfall that should be avoided.
Lewin identified internal and external forces driving change as well as forces restraining it as
follows. There will be no change if there is equilibrium between the two sets of forces.
Therefore, the driving force must exceed the restraining force in order for change to occur.
a. Internal forces for change (from within the business or organization):
 A general sense that the business could “do better”.
 Desire to increase profitability and other performance measures.
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  The need to recognize to increase efficiency and competitiveness.
 Natural aging and decline in a business (e.g. machinery, products).
 Conflict between departments.
 The need for greater flexibility in organizational structures.
 Concerns about ineffective communication, de-motivation or poor business
relationships
b. External forces for change:
 Increased demands for higher quality and levels of customer service.
 Uncertain economic conditions.
 Greater competition.
 Higher cost of inputs.
 Legislation and taxes.
 Political interests.
 Ethics and social values.
 Technological change.
 Globalization.
 Scarcity of natural resources.
 Changing nature and composition of the workforce.
C. Kotter 8-Step Change Model
Kotter (1995) defined a model for understanding and managing change based on his experience
in consulting with hundreds of organizations. He noticed the numerous difficulties associated
with change efforts, distilled the common themes and turned them around into a prescriptive
framework. His model (refer to Table 4.2) is aimed at the strategic level of the change
management process and is best interpreted as a “vision” for the change process.
Table 4.2 8 Steps to transforming the organization
Establishing a sense of urgency Urgency motivates subordinates and generates a sense
of realism with respect to change efforts goals. It is
also essential to achieve the right chemistry and mix
amongst team members, paying close interest to levels
of emotional commitment
Forming a powerful guiding Forming a powerful guiding coalition is the most
coalition concerned in the gathering of the powers that be, senior
management and key influences within an
organization, encouraging teamwork and unity
throughout the process
Creating a vision The creation of this vision serves as a roadmap for the
change effort, developing strategies on how one is to
undertake each phase of the change
Communicating the vision Leader should involve key influencers from as many
facets of the change process for their individual buy-in,

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 communicating clearly and thoroughly throughout the
process
Empowering others to act on the It involves eliminating change obstacles, anticipating
vision and looking ahead, focusing on the change systems and
structures declining change. Risk taking is also
encouraged in the form of activities and ideas
Planning for and creating short-term Breaking up the over change initiatives into smaller
wins manageable fragments that can be measured for
completion and success. Leaders should be rewarded
for their efforts leading to the overall change initiatives
Consolidating improvements and Focus is centered on change systems, policies,
producing still more change procedures that hinder the vision, hiring, promoting
and developing subordinates who can implement the
vision
Institutionalizing new approaches Clarifying connections between new behaviors and
organizational success. Leadership development and
succession is also of significance

D. Jick’s 10-Step Change Model

Jick (2009) developed a tactical level model to guide the implementation of major organizational
change (refer Table 4.3). Jick’s approach to implementing change is from a relatively realistic
point of view.
Table 4.3 10 Steps for implementing change
Analyze the organization and Assessing the specific organization and its actual need for
the need for change change
Create a shared vision and Once an actual need for change is established, Jick’s second
common direction step, similar to Kotter’s third step, involves creating a shared
vision and a common direction for driving change
Separate from the pas Indicating the importance of separating current change
initiatives that have been undertaken in the past
Create a sense of urgency Creating urgency around the vision and separation achieved
in steps two and three
Support a strong leader role It is crucial for a change-oriented leader to have a team
around him that can support and execute the change vision
Line up political sponsorship Emphasizes gaining buy-in from senior management and key
influencers that could assist move the change initiative
forward
Craft and implementation Once the vision is created, the leadership and management
plan buy-in has been secured, one needs to expertise and create an
implementation plan

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 Develop enabling structures Captures activity around developing enabling structures,
removing any foreseen obstacles that may hinder the progress
of the change initiative at hand
Communicate, involve people Involves disseminating an honest message amongst the
and be honest change agents and the recipient of change
Reinforce and institutionalize Reinforcing the actual change initiative and then once
the change complete, institutionalizing the change ensuring that the effort
is sustainable and can be maintained well after the actual
change effort has been executed

4.2. Revolutionary vs. Evolutionary Change

Change can also be viewed based on its pace—that is, either evolutionary or revolutionary.
a. Evolutionary change: focuses on the incremental steps taken to bring about progress
and change. Organizations like Johnson & Johnson show a strategy for incremental
change. Visionary companies have a philosophical commitment to constant change, but
at a measured pace. Kaizen, total quality management, quality circles, and benchmarking
are examples. Each technique has at its core a belief in continuous, gradual change.
b. Revolutionary change focuses on bold, discontinuous advances. To the observer, these
“leaps” bring about dramatic transformations in organizational strategies and structure.
Organizations and managers involved in revolutionary change push the envelope and
practice outside-of-the-box thinking.

Source: Warren R. Plunkett, 2008, p293

4.3. Business process re-engineering (BPR)

4.3.1 Definition

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 Reengineering is an approach for making changes that inevitably affects quality and
productivity improvements.
Reengineering requires that individuals and organizations “think in terms of processes—
order fulfillment, for example—that may extend across many departments, and that they
organize their work accordingly. . . . The goal, in addition to reducing costs, must be to . .
. respond quickly and effectively to [one’s] customers.”
But changes in anything and anywhere in a company have ripple effects, as Michael
Hammer’s words indicate: “A sales [representative] has to recognize that his job . . . is
acquiring orders, and that’s a process in which he is only one player—it’s a process that
includes the finance people, the marketing people and others.
Reengineering calls for an ongoing questioning of the need to do everything through a
continuing investigation of its why and how. The aims are to determine what no longer
needs to be done, what must be done, and how to better execute those processes.
Reengineering changes fundamental ways in which people and their organizations handle
their processes. Typical results of reengineering have been to change organizations’
missions, visions, values, activities, and structures. Outsourcing has transferred internal
operations to external suppliers, downsizing or rightsizing the organization through the
process. Both have led to the loss of thousands of jobs. The results can be increased
efficiency, quality, and profitability or the opposite, depending on how top management
manages change and its aftermath. Any tool used incorrectly can deliver more harm than
good.
“Thus, business process reengineering is a diagnostic tool that can point to longterm
opportunities, eliminating all non-value-added activities”
4.3.2 BPR processes
1. Define Business Processes. Map the current state (work activities, workflows, roles and
reporting relationships, supporting technology, business rules, etc.)
2. Analyze Business Processes. Identify gaps, root causes, strategic disconnects, etc. in the
context of improving organizational effectiveness, operational efficiency and in achieving
organizational strategic objectives.
3. Identify and Analyze Improvement Opportunities. Identify, analyze and validate
opportunities to address the gaps and root causes identified during analysis. This step also
includes identifying and validating improvement opportunities that are forward facing –
often strategic transformational opportunities that are not tethered to current state process.
4. Design Future State Processes. Select the improvement opportunities identified above
that have the most impact on organizational effectiveness, operational efficiency, and that
will achieve organizational strategic objectives. Make sure to select opportunities for
which the organization has the budget, time, talent, etc. to implement in the project
timeframe. Create a forward-facing future-state map that comprehends the selected
opportunities.
5. Develop Future State Changes. Frequently overlooked (and a key root cause in failed
BPR initiatives), this is where the above opportunities are operationalized before
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 implementation. New workflows and procedures need to be designed and communicated,
new/enhanced functionality is developed and tested, etc. Changes and opportunities
cannot be implemented until they are operationalized.
6. Implement Future State Changes. Classic implementation based on dependencies
among changes/opportunities, change management, project management, performance
monitoring, etc.
4.3.3. BPR techniques and tools
After knowing the benefits of BPR, the big step is making it happen. If the mere thought of
redesigning a business process sounds overwhelming, you’re not alone. It is technically
conducted as follows.
A. Identify the need for change
Depending on the size of your business and current analytics, this could be easy as cake or a
challenge to overcome. For example, if you’re in a start-up, the need for process redesign is
likely constant, and the team is small enough to make an easy decision. Things get more
complicated when businesses are larger.
B. Establish the right team
As important as finding the right process to redesign is pulling together the right team. For
process re-engineering, the team will likely consist of
Senior Manager: A key decision-maker has to be involved so that you can avoid bottlenecks.
With a senior manager heading the team, then the changes can be made with no hold-ups. Also,
the senior manager will play a key role in organization, communication and execution.
Operational Manager: Obviously, you’ll need someone who knows the process you’re
redesigning extensively. The operational manager will be able to share knowledge on how the
process currently works, where the problems occur and the ideas they have to improve the
outcome.
Reengineers: Reengineers are the hands-on type of people on the team. This could be IT experts,
manufacturers, or the like.
C. Identify processes and define KPIs
You’ve likely heard the phrase, “If it can’t be measured, it can’t be managed.” Before you go
ahead and make changes to any process, you need to define your KPIs, or key performance
indicators, for a said process. This is the way by which you can assess if your changes are
pushing you closer to your goals or not.
 Define Business Processes: You can use tools like business process mapping to outline
current business processes.
 Analyze Business Processes: Once you ensure that your data and models are accurate,
then you can analyses how your current processes are working. You can use data
automation tools to asses and analyze how things are working currently. They can
provide you with data and reporting that offer insight into business processes.
 Identify and Analyze Improvement Opportunities: Through analysis, you will find
where inefficiencies exist. Here is your place for business process re-engineering. You’ll

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 have to validate how a change will improve the current workings before implementing
full-scale changes. You can do this with the help of software and models.
 Design Future State Processes: This is one of the biggest keys in BPR. With strategy
and logic, you have to come up with how the new process will work. This also involves
proper communication to the relevant parties, so they know how to implement the new
process and follow procedures. With a software solution, this can simply be done because
you can define the model or process to run consistently throughout an organization so
that the new process is automated. This can decrease human errors.
 Implement Changes: Make sure that with project management, performance
management and change management, the new process is in place and working as
designed.
D. Assess KPIs
Take another look at the KPIs you had previously defined from the old process to assess
efficiency. You can use reports and dashboards to monitor if the new process is optimizing your
business. If not, then you have to modify it again. If all is working well, then, congratulations!
You have successfully re-engineered a business process.