Chapter 2
Managing
Change
PowerPoint slides by
R. Dennis Middlemist
Colorado State University
Learning Objectives
After studying this chapter, you should be
able to:
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Explain why personal change is critical to
managerial success
Describe the general process of change
Discuss three common failures of change
Describe the general process of enhancing
change success
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Nature of Change
• It is easier to deal with
12%
28%
predictable change than
unpredictable change
60%
• Change may be
increasingly
unpredictable
Highly unpredictable
Unpredictable
Predictable
Highly predictable
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Adapted from Exhibit 2.1: Predictability of Change
Rate of Change
If rate of change is
13%
87%
Increase
Decrease
Stay the same
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increasing: managers
benefit by increasing their
ability to anticipate change
If change is somewhat
unpredictable: managers
benefit from increasing their
ability to respond quickly to
changes
Adapted from Exhibit 2.2: Rate of Change
Managerial Competency for
Leading Change
5%
Excellent
35%
Good
39%
Fair
Poor
Does not have the
leaders to do it
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20%
1%
0%
10%
20%
30%
40%
0%
Adapted from Exhibit 2.3: Prevalence of Change Management Capability
Managerial Competency for
Leading Change
Leading change is a critical managerial
activity
Senior executives do not see an ample
supply of lower level managers with
this skill
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Forces for Change:
External Forces
New competition
Technology
Shift in customer
preference
Change in regulations
Change in general
economic environment
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Forces for Change:
Internal Forces
Change in internal
environment
Change in leadership
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Forces for Change:
Three Conclusions
At the micro level it is important to have
an understanding of
The general process of change
The general forces for change failure
The keys for successful change
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Process of Change
Change goes through three distinctive
phases
Unfreezing
Movement
Refreezing
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Phase 1: Unfreezing
Habits are strongly patterned ways
behaving
We can also have patterned ways of
viewing and interpreting events
To change a patterned way of behaving
or thinking, that pattern must be
“unfrozen”
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Phase 2: Movement
Major determinants of movement
Level of certainty or uncertainty associated
with the change
Magnitude of the change
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Phase 3: Refreezing
Habitual behaviors and perceptions are
strong
Change may not be permanent
After a change is made, actions should be
taken to prevent reversion to old patterns
Reinforce the change until it becomes more
established
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Forces for Failure
Right Thing
Wrong Thing
Done well
3. Refreeze
1. Unfreeze
Done poorly
2. Movement
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Adapted from Exhibit 2.4: Change Failure Framework
Unfreezing: The Failure to See
The power of past mental maps
The longer a mental map has been successful, the
harder it is to see the need for a new one
Overly simplistic view of the past and future
Difference in the context may not be seen
Maintaining equilibrium
People resist pressures to change in order to
maintain equilibrium
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Movement: The Failure to Move
Change uncertainty
Lacking clear alternatives, people may
intensify their efforts doing what they know
Outcome uncertainty
Lacking clear answers are to questions,
people are less likely to change
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Movement: The Failure to Move
Requirement uncertainty
Believing they may lack
essential skills, knowledge, or
tools, people are unlikely to
make a needed change, even
if a great reward awaits them
for changing
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Refreezing: The Failure to Finish
Most significant change does not
produce instant, positive consequences
The lack of reinforcement of the new
behaviors allows old behaviors to
reappear
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Overcoming the Failure
to See
Create high contrast
Focus people’s attention on key differences
Focus on the core contrasts
Help people see and remember those key
differences (create images)
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Adapted from Exhibit 2.5: Declining Contrast
Overcoming the Failure
to See
Create confrontation
Managers often have to confront their people
with the key contrasts between the past,
present, and future
Present the contrasts repeatedly
Inescapable experiences
Involve
as many of the senses—touch, smell,
sight, sound, taste—as possible
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Overcoming the Failure to
Move
Educate employees as to the desired
change
Help employees see the new destination
Help them see the anticipated benefits of
going there
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Overcoming the Failure to
Move
Know and understand what it takes to
execute the change
Assess the level of
employee capabilities
Provide training, tools,
or other resources
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Overcoming the Failure to
Finish
Create early wins and reinforce desired
behavior
Help people see the progress of the
change
Inform them of their personal progress
Inform them of collective progress
Repeat messages of old and new maps
often
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Overcoming the Failure to
Finish
Create high impact, inescapable
confrontations
Involve as many of the senses as
possible
Physically assure experiences cannot be
avoided
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