Managing the Consequences of Change

1. Managing the Consequences of Change

2. Managing the Consequences of Change Aim of session: To give the Manager a recognition of the direct and indirect aspects of change

3. Managing the Consequences of Change Learning Outcomes: At the end of this session the student will be able to: • Understand the consequences for the organisation, or maintaining the status quo • Appreciate the “ripple effects” of change throughout an organisation

4. Managing the Consequences of Change Learning Outcomes cont. • Identify the human and financial implications for the organisation, teams and individuals

5. Managing the Consequences of Change There is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than the creation of a new system. For the initiator has the enmity of all who would profit by the preservation of the old institutions, and merely lukewarm defenders in those who should gain by the new ones. (Machiavelli)

6. Managing the Consequences of Change • 75% of all transformation efforts fail • 50 – 75% of re-engineering projects fail • Why?

7. Managing the Consequences of Change Why Failure? • Ill prepared employees • Disregarding the domino effect • Goals set are too far in the future • Change programme has no clear vision • Misunderstanding of what change is • Not a quick fix

8. Managing the Consequences of Change Why Failure? – Individual resistance • Habit • Loss of freedom/inconvenience • Economic implications • Fear of unknown • Past security

9. Managing the Consequences of Change Why Failure? – Organisational resistance • Maintaining stability • Investment in resources • Past contracts/agreements • Threats to power/influence

10. Managing the Consequences of Change The direct and indirect effects and consequences of change on people, departments, teams, and the organisation can cause “stress”.

11. Managing the Consequences of Change • What do we mean by “stress” • A shortened form of “distress” (Linked to creating nervous tension, worry, feeling pressured, being tense) • Perceptions vary

12. Managing the Consequences of Change • Stress is a mismatch between what is demanded of an individual and what they are able to do • When a person cannot cope with what is demanded and cannot deliver what they have to do, this can lead to feeling negatively pressured

13. Managing the Consequences of Change Stress is not: • Routine pressure of work • Meeting deadlines • Hard work • Negotiating, competing, arguing • Great responsibility • Boredom or conflict

14. Managing the Consequences of Change • Some stress can be positive • Fight or flight syndrome • Surge of adrenalin • Extra boost of energy NB: if positive stress wears off and turns to negative stress, then becomes detrimental

15. Managing the Consequences of Change Most environments are stressful to live and work in! • We subject ourselves to pressure • Change in organisations is here to stay • Not a weakness or a failure to own up to suffering stress, or stress-related illness

16. Managing the Consequences of Change • Seven most stressful events that could occur in our lives on a scale of 0-100: • Death of spouse/partner 100 • Divorce 73 • Marital Separation 65 • Jail sentence 63 • Death in family 63 • Personal injury/serious illness 53 • Marriage 50

17. Managing the Consequences of Change • Recognising stress is critical in minimising its detrimental effects on both individual and the organisation. • Stress can manifest itself in various ways • As a Manager, being alert to potential symptoms is part of Duty of Care

18. Managing the Consequences of Change Symptoms/signs of possible stress displayed: • Nervousness and anxiety • Inability to relax • Impatience and hostility • Depression, loss of perspective • Always blaming others • Insecurity

19. Managing the Consequences of Change Symptoms/signs cont. • Inability to concentrate • Forgetfulness • Loss of humour • Indecision • Often ill • Gaining/losing weight

20. Managing the Consequences of Change • Stress can be sub-divided • Personal versus work related causes • Internal versus external causes NB: In order to manage stress, have to take account not only of events and circumstances that cause stress, but how individuals perceive those circumstances.

21. Managing the Consequences of Change How not to manage stress! • Starting to smoke/smoking more • Alcohol • Working longer hours • Blaming others • Being an ostrich • Self guilt • Over eating/not eating

22. Managing the Consequences of Change • What can you do to assist in minimising adverse effects of stress? • Which indicators could you use to measure any stress in an organisation? • What could you do to overcome stress at work in one of your employees?

23. Managing the Consequences of Change Recap Key Points: • Stress can be defined • Stress is not always negative • Everyone suffers a degree of stress • It is possible to establish whether you are suffering stress • As a Manager you are able to reduce stress levels for employees most of the time

24. Managing the Consequences of Change Key points cont: • Understand stress has detrimental consequences • There are number of different causes of stress • Different ways to manage stress • Managing stress promptly

25. Managing the Consequences of Change The effects of change in an organisation on individuals • Teams broken up/reformed - imbalances • New tasks, new responsibilities • Staff relocation, travelling times • Financially detrimental • Creates “ripple effect”

26. Managing the Consequences of Change Possible effects on individuals cont: • If change is linked to merger, purchase • New culture • New rules, regulation, procedures • New management • Perhaps new equipment, products, processes

27. Managing the Consequences of Change Consequences for the organisation of change or maintaining the status quo. Consider: • Responding to external pressures/changes (PESTLE analysis) • Responding to market forces, competitor behaviour (SWOT) • Determining what has to change (if anything)

28. Managing the Consequences of Change Organisational change/maintaining status quo Cont.: • Planning change, allocating resources • Implementing, contingency, monitoring and reviewing outcomes • Being aware of Barriers to Change in people(resistance) & organisation (why change fails)

29. Managing the Consequences of Change • Being aware of the effect of too much change, and ripple effect of change • Being aware of past failures, poorly planned & implemented change • Being aware of consequences of not changing • Evaluation and consolidation of change

30. Managing the Consequences of Change Evaluation of Change: • Did change achieve its objectives? • What was the effect on the organisation’s performance? • Internally • Externally • Culturally