Homework answers / question archive / College of Banking and Financial Studies Assignment Brief – BTEC Higher National Diploma in Business (Level 5) Spring 2020 -2021 Assignment 2 ST: Student Name /ID Number Unit Number and Title 17 – Understanding and Leading Change – A/508/0529 Academic Year Spring 2020-21 Unit Assessor Ms Leena Barretto I

College of Banking and Financial Studies Assignment Brief – BTEC Higher National Diploma in Business (Level 5) Spring 2020 -2021 Assignment 2 ST: Student Name /ID Number Unit Number and Title 17 – Understanding and Leading Change – A/508/0529 Academic Year Spring 2020-21 Unit Assessor Ms Leena Barretto I

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College of Banking and Financial Studies Assignment Brief – BTEC Higher National Diploma in Business (Level 5) Spring 2020 -2021 Assignment 2 ST: Student Name /ID Number Unit Number and Title 17 – Understanding and Leading Change – A/508/0529 Academic Year Spring 2020-21 Unit Assessor Ms Leena Barretto I. V. Name Ms Joyce Noronha. Member, LIVT Assignment Title Leadership decision-making and approaches to change initiatives Issue Date 15th April 2021 Formative Feedback Date 6th May 2021 Final Submission Date To be announced Submission Format: 1. The submission is in the form of a 15-minute individual PowerPoint presentation and 5 minutes allocated for questions. 2. The presentation slides and speaker notes should be submitted as one copy and uploaded to Turnitin. 3. You are required to make effective use of PowerPoint headings, bullet points and subsections as appropriate. 4. Your research should be referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. 5. The recommended word limit is 1,500 to 2,000 words, including speaker notes, although you will not be penalised for exceeding the total word limit. 6. The file must be saved in the format: student ID-ULC-Formative-A2, for formative submission and student ID-ULC-Summative-A2, for summative assignment. 7. In case of extenuating situations, the relevant college policies apply Unit Learning Outcomes: LO3. Determine how barriers to change influence leadership decision-making LO 4. Apply a range of leadership approaches to a change initiative. 1 Assignment Brief and Guidance: With reference to the case study and the sources given below you are required to prepare and present a power point presentation critically evaluating the following 1. Force field analysis in the context of meeting organizational objectives. 2. The effectiveness of leadership approaches. 3. Models of change management. CASE STUDY : Volkswagen: The scandal explained. BBC reporter Hotten (2015) explained the Volkswagen emissions scandal as of the smartest engineering deceptions of modern times. It was also known as the "diesel dupe". In September 2015, the Environmental Protection Agency (EPA) found that many VW cars being sold in America had a "defeat device" - or software - in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results. The German car giant has since admitted cheating emissions tests in the US. McConnell (2018) spoke to Harvard Business School professors, Bill George and Amy Edmondson to get their take on what business leaders can learn from the scandal. The VW scandal, like every good scandal before it, has left business leaders wondering where exactly it all went wrong, who at VW is behind it, how leaders ought to lead through a crisis – and whether the brand can recover. It even spawned a hashtag, #dieselgate, which has become the world’s unofficial forum for discussing causes of the crisis and its possible fixes – all while aiming a healthy amount of frustration and resentment at the company’s top executives. As a result, the Supervisory Board of Volkswagen AG appointed Dr. Herbert Diess as the Chief Executive Officer to tackle the crisis. However, lately due to internal disputes, Volkswagen swapped main brand’s leadership. How has this change impacted the company? According to Rauwald (2020), CEO Herbert Diess ceded direct control of the German company’s main passenger-car brand after clashing with labour unions over production issues affecting two key models. Ralf Brandstaetter, currently chief operating officer for the VW brand, will take over the unit so that Diess can focus on leading the group, the automaker said Monday after an extraordinary supervisory board meeting. Losing direct responsibility for the VW brand marks a setback for Diess after he decided to assume both jobs when taking the reins at the world’s largest automaker two years ago. The CEO is wrestling with internal tensions over concerns that VW’s flagship Golf and the electric ID.3 might face greater difficulties as software problems hamper production plans. While the Golf output is important to ensure sufficient utilization of Volkswagen’s largest factory in Wolfsburg, Germany, the ID.3 is key to meeting stricter European emission rules. Brandstaetter’s appointment marks a victory for Volkswagen’s influential labour leaders, who played a key role in getting him the COO position at the VW brand two years ago. Brandstaetter is a seasoned executive who has held senior procurement positions in Germany and at the SEAT division in Spain. Volkswagen’s purchasing chief Stefan Sommer is leaving the company after less than two years in his post, the company said in a separate statement late Monday. Speculation over a leadership change 2 at the VW brand started last week after German trade publication Auto Motor Sport reported that Porsche CEO Oliver Blume might take over. Blume, who sits on Volkswagen’s management board, is responsible for the group’s production operations in addition to leading the German manufacturer’s most profitable brand. Two years after the emissions scandal threatened to destroy it, VW is more profitable than before and has €20bn plans for electric cars. It has outperformed its German rivals. Something to find out, what went so right with Volkswagen’s restructuring? (McGee 2018) Source: Hotten, R. (2015). Volkswagen: The scandal explained. Available https://www.bbc.com/news/business34324772 (Accessed 7th March 2020) McConnell, I. (2018). Dirty Leadership Truths We Learned from VW’s Emissions Scandal. Available https://arielle.com.au/top-harvard-professors-weigh-in-on-vw-dieselgate-what-it-means-for-leadershipculture-and-the-future-of-work/ (Accessed 7th march 2021) McGee, P. (2018). What went so right with Volkswagen’s restructuring? Available https://www.ft.com/content/a12ec7e2-fa01-11e7-9b32-d7d59aace167 (Accessed 7th March 2021) Rauwald, C. (2020). Volkswagen Swaps Main Brand’s Leadership after Internal Disputes. Available https://www.bloomberg.com/news/articles/2020-06-08/volkswagen-board-weighs-leadershipchange-at-main-car-brand (Accessed 7th March 2021) 3 Learning Outcome Learning Outcomes and Assessment Criteria Pass Merit Distinction LO3 & 4 LO3 Determine how barriers to change influence leadership decision-making P4 Explain different barriers for change and determine how they influence leadership decisionmaking in a given organisational context. M3 Use force field analysis to analyse the driving and resisting forces and show how they influence decisionmaking. D2 Critically evaluate the use of force field analysis in the context of meeting organisational objectives. LO 4. Apply a range of leadership approaches to a change initiative. P5 Apply different leadership approaches to dealing with change in a range of organisational contexts. M4 Evaluate the extent to which leadership approaches can deliver organisational change effectively applying appropriate models and frameworks. D3 Critically evaluate the effectiveness of leadership approaches and models of change management. 4 LEARNER ASSESSMENT SUBMISSION AND DECLARATION When submitting evidence for assessment, each learner must sign a declaration confirming that the work is their own. Please list the evidence submitted for each task. Indicate the page numbers where the evidence can be found or describe the nature of the evidence (e.g. video, illustration). LO Evidence submitted Page numbers or Description LO3 LO4 Additional comments to the Assessor: Learner declaration I certify that the work submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Learner signature: Date: 5 ASSESSMENT RECORD SHEET – FORMATIVE FEEDBACK Programme BTEC HND BUSINESS LEVEL 5 Learner name Determine how barriers to change influence leadership Assignment decision-making and apply Assessor name title a range of leadership approaches to a change initiative. 17/ Understanding and Targeted learning Unit no. and leading change aims/assessment title criteria First Submission Deadline Targeted criteria LO3 and LO4 Date submitted Criteria achieved Assessment comments LO 3 LO 4 General comments Assessor declaration I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Assessor signature Date Date of feedback to learner Resubmission authorisation by Lead Date Internal Verifier* * All resubmissions must be authorised by the Lead Internal Verifier. Only one resubmission is possible per assignment, providing: ? The learner has met initial deadlines set in the assignment, or has met an agreed deadline extension. 6 ? The tutor considers that the learner will be able to provide improved evidence without further guidance. ? Evidence submitted for assessment has been authenticated and accompanied by a signed and dated declaration of authenticity by the learner. **Any resubmission evidence must be submitted within 15 working days of receipt of results of assessment. ASSESSMENT RECORD SHEET - RESUBMISSION – SUMMATIVE FEEDBACK Deadline Date submitted Targeted criteria P4 P5 M3 M4 D2 D3 Criteria achieved Assessment comments General comments Learner Declaration I certify that the evidence submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Learner signature Assessor declaration Date I certify that the evidence submitted for this assignment is the learner’s own. The learner has clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice. Assessor signature Date Date of feedback to learner 7 8 Unit 17 – Understanding and Leading Change UNIT CODE: A/508/0529 ASSESSOR: LEENA BARRETTO Professional Studies Department Understanding and Leading Change MODULE LEVEL: 4 CREDIT VALUE: 15 UNIT TYPE: CORE Professional Studies Department Understanding and Leading Change LEARNING OUTCOME: 4 LEARNING OUTCOME: APPLY A RANGE OF LEADERSHIP APPROACHES TO A CHANGE INITIATIVE TOPIC: PART 1- SITUATIONAL LEADERSHIP: The context of a task/activity/challenge determines the appropriate leadership style/approach. Professional Studies Department Understanding and Leading Change Leadership “Leaders are best When people barely know they exist, Not so good when people acclaim them, Worst when they despise them, But of a good leader, who talks little, When their work is done, the aim fulfilled, The people will all say “ We did this ourselves” from Lao-Tse (Ancient Chinese Philosopher) Understanding and Leading Change Professional Studies Department Leadership is a Process Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Kenneth Blanchard and Paul Hersey’s Situational Leadership …. ? Based on the principle that there is no best Leadership style. Effective leadership occurs when the appropriate leadership style is matched to an individual’s development level on a specific goal or task. ? Situational Leadership is not something you do to people, but something you do with people. Understanding and Leading Change Professional Studies Department The Situational Leadership Model The Situational Leadership Model suggests that there is no “one size fits all” approach to leadership. Depending on the situation, varying levels of “leadership” and “management” are necessary. However, leaders must first identify their most important tasks or priorities. Second, leaders must consider the readiness level of their followers by analyzing the group’s ability and willingness. Depending on the level of these variables, leaders must apply the most appropriate leadership style to fit the given situation. Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department The Three Steps of the Situational Leadership Model ? Step 1: Identify the Most Important Tasks or Priorities ? Step 2: Diagnose the Readiness Level of the Followers ? Step 3: Decide the Matching Leadership Style Understanding and Leading Change Professional Studies Department Figure 21.3 Situational leadership® model Source: From P. Hersey and K.H. Blanchard, Management of Organizational Behaviour: Utilizing Human Resources, Prentice-Hall, Englewood Cliffs, NJ, 1988. Situation Leadership® is a registered trademark of the Center for Leadership Studies. Used with permission. All rights reserved Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Situational Leadership Type 1- Directing This leadership approach is most appropriate when the followers have low willingness and low ability for the task at hand. When the followers cannot do the job and are unwilling or afraid to try, then the leader must take a highly directive role. Directing requires those in charge to define the roles and tasks of the followers, and supervise them closely. Decisions are made by those in charge and communication is one-way. If the leader focused more on the relationship in this situation, the followers would become confused about what must be done and what is optional. Directing is often used when the issue is serious or comes with drastic consequences if not successful. The leader maintains a directive position to ensure all required actions are completed. Understanding and Leading Change Professional Studies Department Situational Leadership Type 2- Coaching This leadership approach is most appropriate when the followers have high willingness but low ability for the task at hand. Like Directing, ? Coaching still requires leaders to define roles and tasks clearly, but the leader seeks ideas and suggestions from the follower. ? Decisions remain the leader's prerogative, but communication is much more two-way. ? Followers needing coaching require direction and supervision because they are still relatively inexperienced, but they also need support and praise to build their self-esteem, and involvement in decision-making to restore their commitment. ? While Coaching, the leader spends time listening, advising, and helping the follower gain necessary skills in order to do the task autonomously next time. Understanding and Leading Change Professional Studies Department Situational Leadership Type 3- Supporting ? This leadership approach is most appropriate when the followers have low willingness but high ability for the task at hand. ? Supportive leadership works when the follower can do the job, but is refusing to do it or showing a lack of commitment. ? The leader need not worry about showing them what to do, but instead should be concerned with finding out why the followers are refusing and work to persuade them to cooperate. ? The key to supportive leadership is motivating and building confidence in people! ? Clarification on the details of the process won’t matter, as the follower already knows what to do but lacks the motivation to act. ? Supportive leadership involves listening, giving praise and making the followers feel good when they show the necessary commitments for success. Understanding and Leading Change Professional Studies Department Situational Leadership Type 4- Delegating ? This leadership approach is most appropriate when the followers have high willingness and high ability. ? Leaders should rely on delegating when the follower can do the job and is motivated to do it. ? There is a high amount of trust that the follower will do well, and the follower requires little supervision or support. ? Delegating still keeps the leader involved in the decisions and problem-solving, but execution is mostly in the hands of the followers. Because the follower has the most control, he is responsible for communicating information back up to the leader. ? Followers at this level have less need for support or frequent praise, although as with anyone, occasional recognition is always encouraged. Understanding and Leading Change Professional Studies Department Advantages of Situational Leadership Creates a common language of performance Accounts for multi-directional influence Accelerates the pace and quality of employee development Allows leaders to effectively drive behavior change Teaches leaders to accurately interpret and effectively respond to their environment Professional Studies Department Understanding and Leading Change Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department References ? Hayes, J. (2014) .The Theory and Practice of Change Management, 4TH ed. China: Palgrave MacMillan Understanding and Leading Change Professional Studies Department Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Unit 17 – Understanding and Leading Change UNIT CODE: A/508/0529 ASSESSOR: LEENA BARRETTO Professional Studies Department Understanding and Leading Change MODULE LEVEL: 4 CREDIT VALUE: 15 UNIT TYPE: CORE Professional Studies Department Understanding and Leading Change LEARNING OUTCOME: 3 LEARNING OUTCOME: DETERMINE HOW BARRIERS TO CHANGE INFLUENCE LEADERSHIP DECISION-MAKING TOPIC: PART 3- LEADERSHIP AND DECISION-MAKING: Doing the right thing is important when dealing with change as change mostly affects people. Decisions should be considered with this in mind. Professional Studies Department Understanding and Leading Change How Does Decision Making Affect Change Management? ? We are the product of our decisions, yet we rarely consider the consequences of making the wrong ones, and decision making skills often fall by the wayside. To allow for successful change management to occur within a business, leaders must make the right decisions even when it is challenging to do so. ? Our society looks at outcomes and generally ignores the process. ? Successful organizational change depends on leaders – managers and bosses who have direct authority with people going through the change – to support and execute change in their span of influence. Effective leaders acknowledge that their support is crucial to success and commit to doing their part. The following are some of the roles leaders may play as they drive change in your organization. ? Understanding and Leading Change Professional Studies Department ? Assume, your organization is on the brink of a massive project. The results will impact your organization’s future for decades. You must select the project manager and have two choices — Jim or Lisa. Jim’s last two projects were wildly successful (under-budget and ahead of schedule) but he is an Answer #2 person — through and through. Lisa’s last two projects were abysmal (way over-budget and behind schedule), but she has an extraordinarily gifted Answer #1type mind. Lisa’s leadership, communication, and organizational skills are far superior to Jim’s. Who do you choose to lead the project? ? There are more variables to consider and real life is always more nuanced than a hypothetical scenario in a blog post, but most organizations have a mindset that would lead to selecting Jim. “He must be doing something right. Look at his results!” Understanding and Leading Change Professional Studies Department ? There are a plethora of real-world decisions and actions that we could take to increase the likelihood of success of the project. For example, you would probably want to know why Lisa’s projects yielded disastrous results and why Jim’s were successful. However, few could argue that organizations often place excessive emphasis on past results when making decisions. There are several reasons why organizational leaders make this “mistake” and several actions that they can take to increase their decision-making abilities while still striving for results-driven behavior. Understanding and Leading Change Professional Studies Department ? McKinsey on Change Management ? https://www.youtube.com/watch?v=k69i_yAhEcQ Understanding and Leading Change Professional Studies Department 3 Keys to Better Decision Making for Successful Change Management ? We draw conclusions based on patterns derived from insufficient data. ? I’ll use my own weaknesses to highlight this example. I wrote an article with the hope of having it published. After the third rejection letter, my instinct was to conclude the article wasn’t good enough. Conservatively, there are 200 hundred publications that I could provide this article to for publication consideration. Is my conclusion rational? Of course not. Keep in mind, my conclusion is not necessarily incorrect, but it is not rational because I have insufficient data to support my conclusion. Understanding and Leading Change Professional Studies Department ? We see what we expect to see. Worse, sometimes we see what we want to see. Assume you hired two different consultants specializing in Operational Excellence. Both consultants have excellent reputations and exceptional pedigrees. However, assume that you told each consultant a different story. To the first consultant, you share your concerns that your corporate culture is severely damaged. To the second consultant, you share that you believe your corporate culture is as strong as it has ever been but you are concerned about how to maintain that strong culture. You provide each consultant the same information with the same access to the company. You request a report from each about the health of the company’s culture of Operational Excellence. How do you think those reports will differ? Understanding and Leading Change Professional Studies Department ? We are afraid of being wrong and alone. ? This is why financial bubbles are created. There is a saying about decision makers that is both absolutely true and also impossible. “The majority of decision makers will wait for the majority of decision makers to do something before they will.” Leading up to the financial disaster of 2009, there was ample information available to conclude that the housing market had grown out of control. Yet, the world’s “wisest” investors continued to invest in residential real estate. Why? Presumably, because the majority of the other “wisest” investors continued to do so as well. We are susceptible to valuing the opinions of others above logic and reason. Understanding and Leading Change Professional Studies Department ROLES AND RESPONSIBILITIES FOR CHANGE ? Understanding the roles and responsibilities that you and others play in the change effort is essential. They will provide clarity on the expectations, project scope and responsibility for each contributor. Typically, there are four key roles: the Sponsor (Senior Leaders), Champion (Leader), Change Agent (Human Resources) and Stakeholder (Employees). ? The Sponsor is usually the Director/Dean in the department/faculty and: ? Has the overall responsibility for the department or faculty. ? Is the person who has authority over the project and over the individuals who will implement the change. ? Provides funding, resolves issues and scope changes. ? Approves major deliverables and provides high-level direction. ? Has a clear vision, identified goals andUnderstanding measurable outcomes for and Leading Change the change initiative. Professional Studies Department ROLES AND RESPONSIBILITIES FOR CHANGE ? ? ? . The Champion is usually the Sr. Manager/Chair in the department/faculty that: Has the overall day-to-day authority. Provides the Sponsor with information about the issues and challenges. ? Engages and involves the right people on the ground. ? Brings the change vision to life. ? Encourages (and sometimes enforces) new and desired behaviours. Understanding and Leading Change Professional Studies Department ROLES AND RESPONSIBILITIES FOR CHANGE ? . The Change Agent is the person or group that assists the department/faculty to implement the proposed change i.e., Human Resources. Their role is to advise and guide the Champion and Sponsor throughout the change initiative and: ? Focus on assisting, advising and coaching the Sponsor and Champion in the change effort. ? May act in a number of roles – data gatherer, educator, advisor, facilitator or coach. ? Has no direct-line authority to or over the Sponsor or Stakeholders. ? Act as subject-matter-experts in the change management process. ? Stakeholders are those employees who Understanding will be impacted by the and Leading Change change. It is critical that they are involved in the process and Professional Studies Department Six Roles of a Leader During Change ? 1. Sponsor ? Leaders act as advocates for the change at their level in the organization. They are representatives who keep the change in front of their peers, the “higher-ups.” A Sponsor is the person who won’t let the change initiative die from lack of attention, and is willing to use their political capital to make the change happen. As sponsor, the leader is the champion. ? 2. Role Model ? Leaders of change must be willing to go first. They demonstrate the behaviors and attitudes that are expected of everyone else. Employees watch leaders for consistency between words and actions to see if they should believe the change is really going to happen. Leaders are self-aware and deliberate. Understanding and Leading Change Professional Studies Department Six Roles of a Leader During Change 3. Make Decisions ? As managers, leaders usually control resources such as people, budgets, and equipment, and thus have the authority to make decisions that affect the initiative. They have the ability to say “yes” or “no” to the project moving forward within the span of their control. During change, leaders must leverage their decision-making authority and choose the options that will support the initiative. Leaders are decisive and set priorities that support change. 4. Communicate ? Leaders are the face and the voice of change. They communicate often to share information, keep people updated and offer encouragement. When employees hear multiple messages in the organization, the one they listen to the most is their immediate boss. Leaders interpret the change message to be relevant for their reports, while still matching the overall message. Leaders are Understanding and Leading Change transparent and consistent. Professional Studies Department Six Roles of a Leader During Change 5. Engage ? Leaders provide the motivation to change and get people involved. They create a sense of urgency and importance about the change, and show commitment and passion about getting things done. They offer recognition to those who are participating and doing well. Leaders realize that change can be difficult, and understand the need for people to be motivated to step out of their comfort zone. The Leaders are energetic and empathetic. 6. Hold Accountable ? With their authority, leaders hold people in the organization accountable for the change. They uphold agreements and make sure others do the same. They don’t let people get away with not changing, and work to understand the underlying reasons so they can remove obstacles. Leaders follow through on delivering consequences when people don’t do their part. Leaders are exacting Understanding and Leading Change and fair. Professional Studies Department ? Effective leaders recognize that change cannot happen unless they fulfill the roles that only those in authority can. Enlist their support and clarify the roles you need them to fill in their areas and in different situations. Help leaders in your organization see the importance of the unique part they play in change, and help them fulfil it. Understanding and Leading Change Professional Studies Department References ? Hayes, J. (2014) .The Theory and Practice of Change Management, 4TH ed. China: Palgrave MacMillan ? https://upboard.io/decisions-making-successful-change-management/ ? https://www.enclaria.com/2011/10/06/six-roles-of-a-leader-during-change/ Understanding and Leading Change Professional Studies Department Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Unit 17 – Understanding and Leading Change UNIT CODE: A/508/0529 ASSESSOR: LEENA BARRETTO Professional Studies Department Understanding and Leading Change MODULE LEVEL: 4 CREDIT VALUE: 15 UNIT TYPE: CORE Professional Studies Department Understanding and Leading Change LEARNING OUTCOME: 3 LEARNING OUTCOME: DETERMINE HOW BARRIERS TO CHANGE INFLUENCE LEADERSHIP DECISION-MAKING TOPIC: BARRIERS AND RESISTANCE TO CHANGE: Using a force field analysis to understand likely opposition and support for change in a contemporary context. Schein’s organisational culture model, self-efficacy perceptions and situational resistance when determining barriers. Professional Studies Department Understanding and Leading Change Understanding and Leading Change Professional Studies Department What Is Force-Field Analysis? ? Kurt Lewin's Force Field Analysis is a powerful strategic tool used to understand what's needed for change in both corporate and personal environments. ? Kurt Lewin, a pioneer in the study of change, developed the concept of force-field analysis to enable people to manage change better. ? • Lewin suggests that change results from the relative strengths of competing, driving and restraining forces – the driving forces push the organization towards change; the restraining forces push against change. ? • Force-field analysis helps you to understand the balance of driving forces and restraining forces in respect of a particular change. ? • Based on this understanding your group can identify appropriate restraining forces to remove or decrease and identify appropriate driving forces to increase. Understanding and Leading Change Professional Studies Department ? May the Force be with you, or against you. ? Kurt Lewin views culture as being in a state of equilibrium. ? He writes: "A culture is not a painted picture; it is a living process, composed of countless social interactions. Like a river whose form and velocity are determined by the balance of those forces that tend to make the water flow faster, and the friction that tends to make the water flow more slowly the cultural pattern of a people at a given time is maintained by a balance of counteracting forces." (Lewin, K. 1948. Resolving Social Conflicts, p.46.) ? "To bring about any change, the balance between the forces which maintain the social self-regulation at a given level has to be upset" (Lewin, K. 1948. Resolving Social Conflicts, p.47.) Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department ? So before change the force field is in equilibrium between forces favourable to change and those resisting it. Lewin spoke about the existence of a quasi-stationary social equilibrium. ? For change to happen the status quo, or equilibrium must be upset – either by adding conditions favourable to the change or by reducing resisting forces. ? What Kurt Lewin proposes is that whenever driving forces are stronger than restraining forces, the status quo or equilibrium will change. ? Now that's useful. Especially if we apply this to understanding how people move through change and why they resist change. Understanding and Leading Change Professional Studies Department ? There will always be driving forces that make change attractive to people, and restraining forces that work to keep things as they are. ? Successful change is achieved by either strengthening the driving forces or weakening the restraining forces. ? The force field analysis integrates with Lewin’s three stage theory of change as you work towards unfreezing the existing equilibrium, moving towards the desired change, and then freezing the change at the new level so that a new equilibrum exists that resists further change. Understanding and Leading Change Professional Studies Department ? Using the Force Field Analysis ? Lewin's force field analysis is used to distinguish which factors within a situation or organisation drive a person towards or away from a desired state, and which oppose the driving forces. ? These can be analysed in order to inform decisions that will make change more acceptable. ? 'Forces' are more than attitudes to change. Kurt Lewin was aware that there is a lot of emotion underlying people's attitude to change. ? To understand what makes people resist or accept change we need to understand the values and experiences of that person or group. ? Developing self awareness and emotional intelligence can help to understand these forces that work within us and others. It’s the behaviour of others that will alert you to the presence of driving and restraining forces at work. Understanding and Leading Change Professional Studies Department When Would You Use It? ? Use this early on in a project or program to identify the most effective ways to bring about change. ? The results of an analysis translate into implementation actions. ? Brainstorming works well to identify both driving and restraining forces – so apply usual brainstorming rules. ? • Ensure that you quantify the impact of each force. ? • Analysis is much more powerful when done in a group rather than individually because it forces you to achieve a level of consensus. Understanding and Leading Change Professional Studies Department Process 1. Clearly state what change you are looking to bring about (or perhaps it is an option for change that you wish to explore). Write this at the top of your diagram. 2. Draw a vertical line down from the statement of change. On the right of the line, you can brainstorm the driving forces; on the left of the line, you can brainstorm the restraining forces. 3. For each force, agree a score between 0 and 5 to reflect the extent of the impact (positive or negative). 4. Draw an arrow where the length is equivalent to the score agreed and the thickness of the arrow is used to represent the relative importance of the force. 5. Brainstorm (or use a problem-solving technique like Problem Solving Team Building) to generate solutions for increasing driving forces and reducing restraining forces. Understanding and Leading Change 6. Create an action plan using the action plan template. Professional Studies Department What a Force-Field Analysis looks like Understanding and Leading Change Professional Studies Department Assign Scores ? Next, score each force, from, say, one (weak) to five (strong), according to the degree of influence each one has on the plan, and then add up the scores for each side (for and against). ? For a visual representation of the influence that each force has, draw arrows around them. Use bigger arrows for the forces that will have a greater influence on the change, and smaller arrows for forces that will have a weaker influence. ? By now, your Force Field Analysis should look something like the example in figure 2, below. Understanding and Leading Change Professional Studies Department Example Force Field Analysis Understanding and Leading Change Professional Studies Department Analyze and Apply ? Now that you've done your Force Field Analysis, you can use it in two ways: ? To decide whether or not to move forward with the decision or change. ? To think about which supportive forces you can strengthen and which opposing or resisting forces you can weaken, and how to make the change more successful. ? If you had to implement the project in the example above, the analysis might suggest a number of changes that you could make to the initial plan. For instance, you could: ? Train staff to minimize their fear of technology. The +1 cost of training increases "Cost" to -4 but the -2 benefits reduce "Staff fearful of new technology" to -1. Understanding and Leading Change Professional Studies Department Analyze and Apply ? Show staff that change is necessary for business survival. This new, +2 force supports the change. ? Show staff that new machines would introduce variety and interest to their jobs. This new, +1 force also supports the change. ? Raise wages to reflect new productivity. The +1 cost of raising wages takes "Cost" to -5, but the -2 benefits reduce "Loss of overtime" to -1. ? Install slightly different machines with filters that eliminate pollution. The -1 benefit of the new machines eliminates "Impact on environment" as a force against change. These changes would swing the balance from 11:10 (against the plan), to 13:8 (in favour of the plan). Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Example:. “CHANGING THE PROCESS OF PRODCUTION” 1 (very weak influence), 5 (very strong influence) Force Field Analysis Score Driving Forces Restraining Forces Score 4 GAINING PROFIT INTERNAL RESOURCES (SKILLS) 4 3 MAINTAINING GOOD REPUTATION BUDGET 5 3 BE UNIQUE IN THE MARKET TIME CONSRAINT 5 4 INCREASE PRODUCTIVITY AND EFFECIENCY INCREASE OF WORK 2 1 15 INCREASE NO. OF EMPLOYEES 16 Understanding and Leading Change Professional Studies Department Exampl e Understanding and Leading Change Professional Studies Department Edgar Schein’s Model of Organizational Culture ? Edgar Schein proposed a model of an organizational culture where the basic assumptions shape values and the values shape practices and behavior, which is the visible part of the culture. Organizations do not adopt a culture in a single day and in fact learn from past experiences and start practicing it every day thus forming the culture of the workplace. ? Schein believed that there are three levels in an organization’s culture. Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Schein’s Levels in an Organization Culture 1. Artifacts ? These mark the surface of the culture in every organization. ? The visible part of the culture can be noticed by a visitor or an ‘outsider’ in the form of the following aspects: ? Physical Artifacts can be found through the architecture and interior arrangements, physical space, and its allocation and office design, decoration, manner of dressing, and even mementos and trophies awarded on chosen occasions. ? Language gives away culture through modes of speaking, levels, and types of sound, slogans, and special expressions. ? Stories and myths circulating among the staff indicate what type of persons or acts are considered heroic, how certain types of situations should be handled, what should not be done, what happens in this organization if one acts in a particular way, and so on. Especially interesting are the stories that narrate what happens in ‘our’ organization if a high-status person breaches a rule, what happens if the organization has to choose between profits and people, what happens if you make a mistake around here/there. These stories can be Understanding and Leading Change about another-day-at-work-here, or about key events as well as about the past glory of the organization. Professional Studies Department Schein’s Levels in an Organization Culture 1. Artifacts ? Technology is also a part of the culture, since it reflects and shapes the values and assumptions through operations, materials, and knowledge. ? Visible traditions displayed at ceremonies and rituals, social practices, leadership practices, and work traditions that show ‘our way of doing things’. ? Artifacts are visible, but that does not mean that they can be understood easily and by everyone alike. In fact, artifacts can be confusing for an observer who is tempted to use readily available labels and stereotypes upon noticing them. Thus, the shapers of culture as well as students should avoid going too much into detail about an artifact, as well as overgeneralizing and labeling. Understanding and Leading Change Professional Studies Department Schein’s Levels in an Organization Culture 2. Values ? When compared to basic assumptions, values are at higher levels of consciousness and they reflect the members shared opinion on ‘how things should be’. When we say ‘opinion’, it means that when it comes to acting, these members may or may not act as per their values. The values help the organizational members classify situations and actions as either undesirable or desirable. ? The values seldom lead directly to basic assumptions even after the values have been articulated, listed, and arranged according to their priority. The observer may only find that the values do not form a pattern, or that they are contradictory, or incongruent with observed behavior. Understanding and Leading Change Professional Studies Department Schein’s Levels in an Organization Culture 3. Basic Assumptions ? An assumption is a kind of belief that is taken for granted as a fact and so it is never challenged. A pattern of basic assumptions evolve among the members of a social group and makes the core of the culture in any organization. ? When the basic assumptions are understood, the apparently isolated and confusing artifacts and values become coherent. Schein (1985) gave six types of assumptions that form the paradigm for every organization: ? 1. Assumptions about what is the ‘truth’ in physical and social matters, how reality and truth are determined, and whether truth is to be revealed or discovered. ? 2. Assumptions about the importance of time in a group, how time is to be defined and measured. Understanding and Leading Change Professional Studies Department Schein’s Levels in an Organization Culture 3. Basic Assumptions ? 3. Assumptions about how space is to be owned and allocated, the symbolic meaning of space around persons, the role that space plays in shaping relationships between individuals, and boundaries between intimacy and privacy. ? 4. Basic assumptions about the intrinsic or ultimate aspects of human nature, whether human nature is fundamentally good or bad, and whether it can be perfected. ? 5. Assumptions about the organization’s relationship with its environment, about the understanding of work and play, and how much activity and passivity should be appropriate. ? 6. Assumptions about the right way for people to relate with each other, the appropriate ways to distribute power and responsibilities, the relative merits of cooperation vs. competition, individualism or group collaboration, the basics of leadership – whether it should be a traditional authority, law or charisma. Appropriate ways of Understanding and Leading Change resolving conflicts and making decisions. Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change Professional Studies Department Leadership and culture ? Cultures basically spring from three sources : 1/ beliefs, values and assumptions of founders 2/learning experience of group members and 3/new beliefs brought in by new members/leaders. The first one is by far the most important. Leadership is highly sought by group members to reduce the group’s anxiety. ? Again, if the way to do things allow to get task completed while keeping group anxiety at a low level, this will become organizational culture. But if the environment changes and those assumptions become dysfunctional, the organization must find a way to change its culture. This is the role of the leader as John Kotter reported in his book What Leaders Do. Understanding and Leading Change Professional Studies Department Leadership and culture ? There are embedding mechanisms a leader defines that will define the culture. What leaders measures, how he reacts to critical incidents, how he allocates resources, how he allocates rewards and status, how he recruits, promotes and excommuniates. Then there are the structural mechanisms (organization structure, procedures, rituals, physical spaces, stories, statements. Through the way leaders handle these mechanisms (embedded and structural) they communicate both explicitly and implicitly on their assumptions. If they are conflicted, these conflicts become part of the culture. Understanding and Leading Change Professional Studies Department Managing Culture Change ? Edgar Schein proposes a conceptual model for culture change (chapter 17). The most important takeaway is this : change creates learning anxiety (leaving what we know to something we don’t). This learning anxiety can be fueled by any of the following (valid) reasons : fear of loss of power/position, fear of temporary incompetence, fear of subsequent punishment, fear of loss of personal identity and fear of loss of group membership. The higher the learning anxiety, the stronger the resistance and the defensiveness. Understanding and Leading Change Professional Studies Department Managing Culture Change ? Change agents must draw on Survival Anxiety (what will happen if we don’t do anything) to unfreeze the situation and make sure that Survival Anxiety is greater than Learning Anxiety. This is similar to the Burning Platform of Darryl Conner or the Sense of Urgency of John Kotter. In order to achieve this, it is strongly recommended to lower Learning Anxiety in a view to create psychological safety, doing the following : communicating a compelling vision, formal training, involvement of the learner, informal training of groups, practice fields coaches and feedback, positive role model, support groups in which learning problems are discussed and consistent systems and structures with the new way of thinking and working. The only way to overcome resistance is to reduce the learning anxiety by making the learner feel “psychologically safe”. Understanding and Leading Change Professional Studies Department Managing Culture Change ? The change goal must be defined concretely in terms of the specific problem you are trying to fix, not as culture change. The change may not be possible without cognitive redefinition whereby people will have to unlearn the former way of working to learn the new one. This unlearning period is psychologically painful. These new cultural elements can only be learned if the new behaviour leads to success and satisfaction. Understanding and Leading Change Professional Studies Department References ? Hayes, J. (2014) .The Theory and Practice of Change Management, 4TH ed. China: Palgrave MacMillan ? https://www.thebalancecareers.com/know-the-stages-in-change-management1917802 ? https://www.managementstudyhq.com/edgar-schein-model-theory.html ? https://thehypertextual.com/2013/01/17/edgar-schein-organizationalculture-and-leadership/ Understanding and Leading Change Professional Studies Department Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change LEENA BARRETTO Unit 17 –ASSESSOR: Understanding and Leading Change UNIT CODE: A/508/0529 Professional Studies Department Understanding and Leading Change MODULE LEVEL: 4 CREDIT VALUE: 15 UNIT TYPE: CORE Professional Studies Department Understanding and Leading Change LEARNING OUTCOME: 3 LEARNING OUTCOME: DETERMINE HOW BARRIERS TO CHANGE INFLUENCE LEADERSHIP DECISION-MAKING TOPIC: Initiated or imposed change: Deciding to be pre-emptive and proactive or responsive and reactive will be based on the situation and the nature/scope of the change. Adaptive and constructive change. Professional Studies Department Understanding and Leading Change Learning objectives ? Change as a barrier ? Challenges of change ? Approaches to overcome barriers ? Force field analysis Understanding and Leading Change Professional Studies Department LO3”: ? Initiated or imposed change: ? Deciding to be pre-emptive and proactive or responsive and reactive will be based on the situation and the nature/scope of the change. ? Adaptive and constructive change. ? Barriers and resistance to change: ? Using a force field analysis to understand likely opposition and support for change in a contemporary context. ? Schein’s organisational culture model, self-efficacy perceptions and situational resistance when determining barriers. Determine how barriers to change influence ? Leadership and decision-making: leadership decision-making ? Doing the right thing is important when dealing with change as change mostly affects people. Decisions should be considered with this in mind. Understanding and Leading Change Professional Studies Department Barriers to change ? 1. Organizational barriers to change• Structural inertia• Existing power structures• Resistance from work groups• Failure of previous change initiatives ? 2. Individual barriers to change Tradition and set ways: Fear of:• Loyalty to existing • Loss of power relationships • Loss of skills• Failure to accept the need • Loss of income for change • ? 3. The unknown• Insecurity • Redundancy.• Preference for the existing • Inability to perform as well arrangements in the new situation• Break up of work groups• Different person ambitions. Understanding and Leading Change Professional Studies Department What are the Barriers to Change Management? ? Conducting a baseline assessment is an ideal process that will help any organization to identify potential and actual barriers to change. Barriers will always create a gap in recommended and current practices, eventually having a negative effect on the daily production process of the organization. ? To prevent this from happening, it would be appropriate to pinpoint on the major barriers to change as well as knowing how stay clear of them. Once you know how to solve these barriers, it should be easy to plan and implement change. The most common barriers to change implementation are often the following. Understanding and Leading Change Professional Studies Department BARRIERS TO CHANGE ? Lack of Employee Involvement ? Lack of Effective Communication Strategy ? A Bad Culture Shift Planning ? Unknown Current State ? Organization Complexity Understanding and Leading Change Professional Studies Department Lack of Employee Involvement ? This is perhaps the most common barrier to change management. Employees always have the fear of change, and unless they are involved in the change process, it is highly likely that even the most loyal member of your employees will resist the change. The biggest mistake some organizations make is failure to involve employees in the change process. This spikes fear of the unknown, lack of desire to embrace a new culture and eventually a complete barrier to the change. ? Your efforts to introduce change can only succeed when you get employees involved in the change process as much as possible. Getting the employees involved means listening to their opinion, accounting for their output and assuring them that the change is for the good of all in the organization including them. Providing relevant, sufficient resources to drive them towards change will be a necessary thing to do, so that they are comfortable and ready to adjust to the new development within the Understanding organization. and Leading Change Professional Studies Department Lack of Effective Communication Strategy ? Some organizations have no effective communication strategy. In fact, some top leaders always assume that once they announce the change, people will adjust and be ready to get started with the new development. This is the silliest way to introduce change, hence forceful resistance to the change. ? CEOs should stop making announcement and introduce strategies. Employees do not need to know about the change only. They need to know how the change will affect them as well as how they will adapt to the change. Understanding and Leading Change Professional Studies Department Unknown Current State ? Change is always difficult for organizations that lack the idea of their current state. Trying to introduce and implement change without conducting an assessment and understanding the current blueprint of the organization is a common habit by many entities. Such entities actually do not realize that the failure to analyze the current organization’s blueprint will cause a barrier to the change they hope to introduce and implement. ? The only way to get around this is to analyze and fully understand the current blueprint of the organization before attempting to introduce or suggest any change. Once you go through the blueprint and understand it clearly, it becomes easier to plan and transition to a future state. Understanding and Leading Change Professional Studies Department Organization Complexity ? There comes a time when organizations begin to develop complex processes, making the process of planning and implementing change a bit more complex. ? The complexities include complex processes, products and systems, all which contribute to change barriers because they are often quite difficult for the members of the organization to understand. ? It is necessary to break this barrier by introducing a keen and skillful approach to tackle organizational fast growth as well as complexity. ? An organization can break this barrier by employing diligent, quality and highly effective project and change management approach. It is wise, however, never to tackle a change that is going to be too complex for your organization. You also do not want to introduce and try to implement complex changes if your organization still lacks the maturity to handle any complex change. Understanding and Leading Change Professional Studies Department A Bad Culture Shift Planning ? Sometimes the planning team totally has no idea that the change will affect people. ? Of course, the team at this state will only concentrate on planning administrative structure, work area responsibilities, job responsibilities as well as work reporting structure. ? More often than not, the planning team always fails to make decisions based on feelings and intuitions. This really overlooks how people feel, reason and work hence barrier to change. ? The only way to break this barrier is for the planning team to understand that the organization must not overlook the feelings of the employees. The organization has to do whatever it takes to prevent deep resentments, which usually occur due to disrespect of taboos and traditions at the workplace. Therefore, when focusing on critical thinking and objective analysis, it is important to understand that taking the feelings of the employees into account is quite a Understanding and Leading Change great way to overcome the barrier that usually hinder organizational Professional Studies Department Initiated or imposed change: Understanding and Leading Change Professional Studies Department Initiated or imposed change: ? Deciding to be pre-emptive and proactive or responsive and reactive will be based on the situation and the nature/scope of the change. ? Leading change within an organization can be a struggle, especially if your workforce feels the change has been imposed upon them rather than at their own initiation. The success of your change initiative will often boil down to how your employees direct their mental and physical energy levels while trying to accept and adapt to the change your organization is planning. ? On top of that, people are coping with shifting priorities and dwindling time, which can lead to fluctuating energy levels. We’re almost always expected to do more with less in both our personal and professional lives, and so we need to expend our energy in the most efficient way to meet our goals. Change Management Stages ? These change management stages will assist youandtoLeading approach Understanding Change change in your organization in a systematic manner that will help Professional Studies Department Stage 1: Initiation ? n this stage, one or more people in the organization realize the need for change. There is a nagging feeling that something is not right. This awareness can come from many sources, both inside and outside of the organization. It can also occur at any level in the organization. ? The people who are most familiar with the work often have the most accurate perceptions about the need for change. Organization members may experience the need to change by viewing other organizations, benchmarking, or bringing in new senior leaders with experience in other organizations. ? In large organizations, sometimes changes are imposed from outside of the immediate work unit. And, any size company may need to change because of changing customer needs. Understanding and Leading Change Professional Studies Department Stage 2: Investigation ? In this stage, people in the organization begin to investigate options for change. They begin to create a vision or picture of what the organization could look like after the changes. They should also determine, at this stage, the readiness of the organization to change. ? Stage 3: Intention ? In this stage, the change agents in the organization decide upon the course of change. They create a vision of where the organization should be and could be in the future. Planning and definition of major strategies occur during this stage of the change process. Recognition that change always requires a change in the organization's culture is important. Understanding and Leading Change Professional Studies Department Stage 4: Introduction ? In this stage, the organization begins the changes. The organization must have goals for the change and strategies for reaching those goals. This is the stage where personal reactions are more likely to occur. ? Leaders must begin the change by changing. Leaders and other change agents must establish clear expectations for changes. Involve as many of the employees in the organization as possible in initiating and implementing the change plan. ? "Change is hard because people overestimate the value of what they have—and underestimate the value of what they may gain by giving it up." -- Belasco & Stayer Understanding and Leading Change Professional Studies Department Stage 5: Implementation ? In this stage, the change is managed and moves forward. Recognize that all will not go perfectly. Change always takes longer than anticipated. Change activities are ignored as employees tackle their day-to-day responsibilities. ? Maintain constancy of purpose. The organizational systems must be redesigned to support the change. Provide recognition and rewards (positive consequences) for people who exhibit changed behaviors. Fire people who don't participate in and support the changes sooner rather than allowing them to remain and poison your progress. ? One Vice President at a scientific manufacturing company said that his biggest mistake when he was trying to transform his workplace was to allow non-supportive managers to stay 18 months. He should have fired them much sooner was his conclusion. Understanding and Leading Change Professional Studies Department Stage 6: Integration ? In this stage, the changes become the norm and are fully adopted. This may not happen for 18 months after changes are initiated. A total organizational change can take 2-8 years. When the changes have been successfully integrated into your organization, a new employee would not realize that the organization had changed. ? To accomplish this final stage, you must build the changes into all of the systems and processes in the organization so that the changes are fundamental to how you work. So, the changes will have an impact on how you hire employees, how you provide recognition and what you recognize, and how you measure the success and contributions of employees. Understanding and Leading Change Professional Studies Department Adaptive and constructive change. ? The best-laid plans of mice and men often go awry.” – Robert Burns, “To a Mouse” ? How do you actually accomplish your strategic initiatives for transformation when everything is constantly shifting? ? The answer: Adaptive Change. ? WHAT IS ADAPTIVE CHANGE AND WHY DOES IT MATTER ? Ron Runyon, VP – Support Delivery at F5, described adaptive change as still being able to climb a mountain – even when the weather conditions are foggy and you can’t see the summit. ? He shared their own story of adaptive change in the midst of a sweeping business transformation in the video below. Understanding and Leading Change Professional Studies Department ? Adaptive change, or “change that requires new learning for problem definition and solution implementation” according to change theorist Ronald A. Heifetz, is critical for today’s support leaders as they face what can feel like insurmountable challenges in a rapidly changing business environment. As opposed to “technical change,” the responsibility for the solution resides with the followers, not the leader or expert. In one of the seminal papers on the subject, researchers identified six guiding principles for adaptive change. ? 1. “Get on the balcony.” ? This is not the time to be in the weeds – it’s a time to get a view from above where you can identify patterns and resolve issues. Common reactions to change are work avoidance and power struggles, but if you’re right alongside the team, you won’t be able to spot them. ? 2. Identify the real challenge ? Don’t shy away from examining your people, your structures and everything in between as your organization adjusts to the adaptive challenge. What is stopping your organization from adapting to changes quickly? Understanding and Leading Change Professional Studies Department ? 3. Keep tabs on stress ? These sweeping changes generate stress and too much will debilitate your workforce. Regulate stress by reassuring employees and helping them identify their own issues with change. ? 4. Maintain disciplined attention ? Be open to contrasting opinions and perspectives. Every change will bring out its own issues and it’s important to create an environment where issues can be openly discussed and resolved. ? 5. Empower your workers ? Don’t let senior managers shoulder the responsibility for responding to swift market changes or customer expectations – the decision to act rests on all. Give every worker the responsibility and ability to make the decisions that they see fit. Don’t let bad habits of work avoidance in the face of change translate to responsibility avoidance. ? 6. Facilitate open communication ? Recognize that in these situations, the dissenting opinions are often silenced or without a proper venue, brought up at the wrong times. Understanding and Leading Change Professional Studies Department WHAT IS A CONSTRUCTIVE CHANGE? ? Change is a constant in business, and most managers have learned how to adjust to different circumstances by finding new ways of doing work within their organizations. There is a difference, though, between mere change and constructive change. Constructive change builds on what has come before rather than simply starting over again from scratch. In order to foster constructive change, some organizations have developed cultures of innovation so that they can proactively seek out opportunities rather than wait for change to disrupt their plans. ? Understanding and Leading Change Professional Studies Department ? . A change request that helps improving the project and its product, service or result and is discussed generally in a friendly style. B. A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract. C. A field change or ad-hoc change mandated by the project customer in a public construction project. D. A change request which will lead to the re-construction of an older version of the project performance baseline by the contractor. Understanding and Leading Change Professional Studies Department ? Creative Destruction ? Creative destruction is a term coined by the Austrian economist Joseph Schumpter to describe the process by which technology and innovation is introduced into the economy. This kind of change is often disruptive for firms that are already established, as they have to deal with new competitors and adjust to new ways of doing their work. Change of this sort always creates wealth for the overall economy, but also hurts individual businesses when they are forced to abandon previous work. This phenomenon makes it important for a company to plan ahead and build a constructive model for adaptation and change that won't involve having to throw away their previous accomplishments. ? Trial and Error ? Many organizations take advantage of the process of trial and error to build constructive change. No idea can be fully evaluated before it's put into practice in a day-to-day business environment. A project may be a failure, but if a business is savvy about how it evaluates itself it can use even a failure to benefit itself by learning new facts. The key difference between constructive change and anything else is the way that a company gains new knowledge that can be put into practice. Research and development projects are often set up as separate parallel functions that don't interfere with a company's main business model, but can be integrated with it if successful. Understanding and Leading Change Professional Studies Department ? Core Principle ? One way that a company maintains constructive change is by organizing itself around certain core principles that guide action and provide structure to what would otherwise be a chaotic process. Any change that aligns with the core principles of an organization can be looked at as being constructive. What often happens to a company facing a new kind of disruptive innovation is that the innovation makes it no longer profitable to focus around a past core principle. A company facing this situation must make the difficult choice to abandon past accomplishment if it wants to be successful. ? Positive Change ? One benefit of positive change is that it can often lead to further change that's even more beneficial. Constructive change is exponential and builds upon itself. When people see the positive effects of one change they are encouraged to make further changes along the same lines. Constructive change can be differentiated from other types of change by the way that it creates a virtuous cycle where accomplishments build one after the other. Other forms of change destroy as as they Understanding andmuch Leading Change build. Professional Studies Department References ? Hayes, J. (2014) .The Theory and Practice of Change Management, 4TH ed. China: Palgrave MacMillan ? https://www.thebalancecareers.com/know-the-stages-in-change-management1917802 Understanding and Leading Change Professional Studies Department Professional Studies Department Understanding and Leading Change Professional Studies Department Understanding and Leading Change