Question

Explain the major theories of effective change management and how these are implemented and evaluated. Select and describe two major theories of change management, e.g. Lewin or Kotter. Select one of the theories and illustrate it in practical sense – you can use a hypothetical scenario here or a workplace example. Include evaluation, an overview of the outcome and the overall impact.

Answer 1

Managing change within an organization requires a lot of effort. For that some theories were proposed by experts in the field. Some of them are as follows:

1. Lewin’c Change Management Model
2. McKinskey’s 7 s model
3. Kotter’s change management theory
4. Nudge Theory
5. ADKAR model
6. Bridges’ Transition Model
7. Kubler Roass 5 stage model

• Lewin’s change management model included 3 steps – unfreeze the old learning, Change is being learnt and refreeze the new learning. After this, the employees get a new sense of stability and gets comfortable with the change
• In McKinskey 7s model, the change is being brought to effect using 7 elements in an organization. They are strategy, structure, system, staff, skills, shared values and style. This model addresses the importance of all the elements in an organization and offers a directional factor to change.
• Kotter’s change management theory has 8 steps involved in it. By the step by step implementation of these stages, change can be bought into effect without causing much disruption. This is considered to be a time consuming model as this is a step by step process and no steps could be skipped.
• Nudge theory uses concepts of behavioral science, economics and political science to bring about changes. This is through encouraging and motivating someone to move towards the change. This method doesn’t encourage methods of punishment and retrenchment if not adapted to the change.
• ADKAR model is a goal oriented tool, which focus on the final stage which should be achieved, rather than focusing on the steps to reach the goal. This is mostly done by providing support to the employees during the stages of transition and understanding their reason for resistance while the change happens. ADKAR model stands for Awareness, Desire, Knowledge, Ability and Reinforcement.
• Bridges’ transition model concentrates on the transition not the ultimate change that is required. Transition is something that happens to people when they go through some kind of change. The main stages of this model are ending, losing and letting go, being in the neutral zone and having a new beginning.
• Under Kubler Ross 5 stage model, various emotional states a person feels during the change is being considered. This model helps to understand the trauma and fluctuations of a person’s emotion and helps in dealing with it. The 5 stages are denial, anger, bargaining, depression and acceptance.

Considering any 2 change management theories for explanation, i.e Kotter’s and Lewin’s.

Lewin’s Change Model:

It is considered as the one of the most effective and popular models of change management. It was proposed by Kurt Lewin in 1950s and the various stages in his model are:

1. Unfreezing the old learning – The organization and the employees in the organization must be prepared to adapt with the change. For that they must try to overcome the pressures of individual resistance as well as group conformity. In this phase, people try to resist change, Thus it is very important to break this status quo.
2. Moving towards new learning – This is the stage where the actual change takes place. Only a good leader can lead the people towards the new change. Communication is the key factor which makes this stage effective. Various trainings, demonstrations and empowerment activities can be included to achieve the desired result.
3. Refreezing the new learning – The already made change is being stabilized and reinforced within the framework. After this, the employees get used to the new phase and works comfortably in the current scenario.

Kotter’s 8 steps of change management – John Kotter introduced his ground breaking theory in change management which consist of 8 sequential steps, which are:

1. Creating urgency – Make the people understand as to what is happening and the need to acceot the change. Instill a feeling that there is a “need” for the change and not just “want” for the change.
2. Form a powerful coalition – Identity the key people who can be pivotal for the change is the next stage. With their support, creating the change can be a much easier task. Coalition can spread messages and ensure that there is support from all walks inside an organization.
3. Create a vision for change – The vision should be short, understandable and relevant. It should also be inspirational to have its maximum effect. The vision should always consider the needs and wants to employees of lower end as they are more in number and difficult to handle if left unattended.
4. Communicate the vision – Effective communications should be done regarding the changes that are to be made and the long term effects of the change. Make sure to utilize the power of coalition to communicate. This could be through written or oral modes of communication.
5. Remove obstacles – During the communication phase, the issues faced by employees in accepting the change should be addressed. Such hindrances should be removed as soon as possible in order to implement the change in a faster pace.
6. Create short term wins – Usage of short term targets to measure and evaluate the positive side of implementing the change will be a good option. This could be used to justify as to why the change was necessary.
7. Build on the change – There are chances that the entire steps will fail if not finished properly. Sustaining and cementing the change after the evaluation of the short term wins achieved is mandatory.
8. Anchor the changes in corporate culture – The changes made should be made a part of the corporate framework according to the norms and regulations.

An example of creating a change with the help of Kotter’s 7 steps for a merger program in an bank are:

• Educate the employees regarding the need for the merger. Make them understand the current losses the bank had to incur due to non performing assets.
• Make sure that the labor unions are included in the change for forming coalition. The support from these unions is inevitable for the merger.
• Make people understand that with this merger with a superior bank, the NPA could be reduced considerably and also this could help in creating a financial stability.
• This idea must be communicated all around the firm in written as well as oral form. Meetings could be conducted with employees not in favor of the merger.
• After understanding the employees’ concerns regarding retrenchment, reduction in pay etc, make necessary clarifications regarding the future policies of the bank. Make sure that if there is lay offs, necessary compensations are assured.
• After the step by step implementation of the change, the financial reports of the firm could be used to make the employees understand the reduction in NPA and the increase in the market value of the company.
• Sustain the change with the help of legal framework. Also make sure that the promises given before the merger is being adhered to.