Change management

DOUGLAS MACBETH: Management of Change: Change what? For many situations involving contracts, for example, outsourcing or insourcing, there will be major changes to plan and implement. These can cover the processes and systems by which things are done, the organisation structure and the associated job roles and/or the people doing them. Change is continuous in some way or another. So it is important to recognise this feature of organisational life and to look for the positive in it rather than worry or focus on the change itself.

People impact: Of course, in most changes there are people who will see their interest enhanced and others, diminished. While the former can be encouraged and will welcome the change, the latter will try to resist and might become antagonistic and try to damage the process. Those who will ultimately benefit from the change will go through different stages, as the impact is assessed and they work through their reactions from initial shock and denial of the need or benefit, through anger that it is happening to them and fear that they will not be able to cope with the change, and then a more careful and rational assessment of all of the features leading to an acceptance before ideally, a rebuilding process where the benefits are recognised and commitment to the change can take place.

Change process: Given the ubiquity of change, it as no surprise that academics have created a model to help guide people involved. Dr. John Kotter has been developing his eight step model for many years. Essentially this model is as follows. Stage one, create. Here a sense of urgency to recognise the need for change is required. Stage two is build. Here, a guiding coalition to address the issues of management and involvement and communication. Stage three, form, is a strategic vision of the future and the initiatives needed to support the change. Stage four is enlist. Ideally, an army of volunteers of people who want the change and who will work to make it happen are gathered and motivated. Five is enable.

Support the change by actions to remove any barriers to the implementation of the change. Stage six, generate, is to look for short term wins, to demonstrate that the change is beneficial. This helps persuade people that the change is working and delivering the intended benefits. Seven, sustain. Keep the change effort going. And if possible, accelerate and then embed the change wherever it is needed. And eight is institute. The change has now become the new normal and in turn, this creates new barriers to the next round of required change. And the process cycles again.

Involve the other party: In business relationships and contracts, the change must involve the other party. And so the whole change process has to take account of the other organisation. And in fact, a three way change is needed. One is in the interaction space between the parties, while the other two are back in the main organisations in supporting the interacting people, so that all three groups are fully aligned and working together in what is now a shared enterprise.