Change Management

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Enterprise Change Management Capability

Enterprise change management is an organisational core competency that provides competitive advantage and the ability to effectively adapt to the ever-changing world. An enterprise change management capability means effective change management is included into your organisation’s roles, structures, processes, projects and leadership competencies. Change management processes are consistently and effectively applied to initiatives, leaders have the skills to guide their teams through change, and employees know what to ask for in order to be successful.

Literature Review:

According to Cf. Burnes (2009:p. 322) change management is a complex phenomenon without clear defined and boundaries. A universal definition of the term ‘change management’ does not exist. For the purpose of this research the following definition provides an appropriate framework:

Change management is about transforming an organisation from a present state to a desired future state. It subsumes all measures, tasks as well as activities in an organisation that are necessary to initiate and execute broad, cross-functional and with regard to content far-reaching changes in strategies, structures, systems, processes as well as behavioural patterns. The central concern of change management is to create readiness and willingness for change within the organisation. Understanding and acceptance among employees are essential elements (Burnes, CF: 2009. p. 322). In contrast, Hughes (2010) argues that change management is about drawing detailed blueprints of desired target situations or about the application of methods and procedures to set strategic objectives. Rather change management is about designing the path of change.

Change management primarily focuses inwards on the organisation as well as on the people within the organisation and can be described as a continuous process. According to CF. Lauer (2010), “change management attends to organisational change transition processes at organisational, group and individual levels” with the potential involvement of all employees in ongoing processes of changing, rather than necessarily a single heroic manager, although the amount of involvement may vary considerably at different hierarchical levels (Hughes, 2010).

Change Project

A change project can be defined as a change management intention with set objectives and limited resources with regard to time, budget as well as workforce (CF. Gattermeyer & Al-Ani :2001). Moreover, it differs from daily business as well as other projects and can usually be described as unique. Projects are defined by having a starting point and an end. The terms ‘change project’ and ‘change initiative’ are used simultaneously in this dissertation (CF. Lauer, 2010). The overall objective of a change management project is a sustainable effective as well as efficient adaption of the structure and process organisation of a company - According to CF. Oltmanns & Nemeyer, (2010) the difference between a change project and a change program is that a change program does not have a defined end. A generic term applying to both is ‘change process’.

Models of Change

Several models describing a change project as a process and dividing it into different phases can be found in the change management literature. The most common and well-known model is the three-step model of change established by Kurt Lewin in 1947. Lewin (1947), identified three different phases in a change initiative: the unfreezing-phase, the changing-phase and the refreezing-phase. Other authors and their models are often oriented on the theory of Kurt Lewin. Likewise Nadler, Tushman and O’Reilly3 identified three phases in a change project. On the other side Krüger(2009) as well as Burke (2003) identified five different phases in a change initiative whereas Kotter(2011) identified eight steps to successful change. Moreover, Kanter, Stein and Jick (1992) suggested ten commandments for executing change and Doppler and Lauterburg(1994) identified twelve different phases in a change project.

According to Burnes, (2004) because of advances in technology, accompanied by the growing knowledge workforce and the shifting of accepted work practices, change has become a present feature within organisations. While many organisations accept the need for change, many of the change programmes do not achieve their intended outcomes (Balogun and Hope Hailey, 2004). It is thus in responding to the increasing importance organisational change, many have produced literature looking at the concept and processes of change management and the factors that contribute to its success and failures (Todnem, 2005, Fernandez & Rainey, 2006).

Arguably one of the most influential perspectives to change is that of of Lewin (1952, in Elrod II and Tippett, 2002) here it is argued that one such approach to change is known as ‘planned approaches’. Lewin argues that change involves a three stage process: one: unfreezing current behaviour; two: moving to the new behaviour; and, finally, three: refreezing the new behaviour.

Unfreeze: The first phase is named unfreezing-phase. The state of the changing organisation can be described as a quasi-stationary equilibrium caused by equal driving and restraining forces (CF. Burnes, 2009). These equal forces, originated internally or externally, sustain the equilibrium and are referred to as ‘the forces of inertia’ (Lewin:1947). Whereas driving forces are more often based on logic and data, restraining forces are more often based on emotions. According to Thompson & Martin, (2005) before an organisation can change successfully these forces need to be destabilised or unfrozen. With the above knowledge in place we therefore move to the second step. It implies that people have to be shaken up and prevailing habits, behaviours as well as ways of thinking have to be questioned. The first phase is about creating awareness for the need of change and to make people ready for the transformation. Grover et al. (1995) described it as creating a climate for change (Senior&Fleming: 2006). At this point in time creating readiness and willingness for change at all levels are essential tasks .According to Schein (1996), three steps are required to achieve sustaining and successful unfreezing. First the validity of the status quo has to be disconfirmed, second dissatisfaction about the existing ways of working has to be created as well as a feeling of survival anxiety or guilt and third psychological safety has to be provided. By applying this approach forces pushing for change are