10+IT+Change-Risk+Mgmt

risk management 10- Org. Change Mgmt. Types, Forms, Resistance to Change, How to implement CHANGE effectively Risk Management Risk Intelligence

"Change does not roll in on the wheels of inevitability, but comes through continuous struggle. And so we must straighten our backs and work for our freedom. A man can't ride you unless your back is bent." Martin Luther King, Jr. التغيير ليس بالامر الحتمي، علينا ان نكافح ونكابد لتحقيقة

The Dynamics of Change and Fear
==By [|Carly Fiorina] - [|Stanford] == Business, Performance, Change, Restructuring, Risk, Fear, Resisting Change media type="youtube" key="ZSQa7OwmVR8" width="420" height="315" LECTURE DESCRIPTION: So what do I know about CHANGE, first thing that I know is that everybody is afraid of something, everybody is afraid of something, all of you are afraid of something, all of us are afraid of something, What distinguish people who are successful in their life from those who are not, is what you do with your fear, some people are held back by their fears, and some people choose to move a head in spite of fear, Courage is not the absence of fear: courage is acting in spite of fear, but because everybody is afraid what most of the time people are afraid of ; is something new. __The essence of entrepreneur is risk taking__, **The essence of business is risk taking**. Taking a risk is all about trying something new, and yet as people go on in their lives they become afraid of trying something new, and so, CHANGE is always resisted, always; because people are afraid even if what they have is not satisfying to them, a lot of people are afraid to venture into the unknown, and that holds them back from CHANGE, and if you are trying to drive a company, an organization, or your colleagues towards change you have to know that they are afraid, and you have to know as well that the only way you can help people to get over their fear is ** __to give them a vision of something worth taking a risk for__ **, but the other reason that change is resisted is __**the natural momentum**__ , the natural instinct of any institution, any institution, I do not care if that institution is a family, a board, a university, a company, a 5 people or 500,000 people. Today, one of the many very interesting things that I do is I chair the advisory board for the Central Intelligence Agency, so I can say without fear of contradiction that this is true, government or agencies, everybody, the natural momentum of any organization is to preserve the status quo, WHY?, because people who have position of power and influence want to keep them. And so, they invest their energies in maintaining their position of power and influence. This not because people are bad, **it's just human nature**, and so again if you are focused on risk taking, change. You have to understand that the __**MOMENTUM**__ that works against you is the power of the status quo, and it is always there, and that is why CHANGE is hard. And the other power that pushes against change is __**FEAR**__ and so change has to have enough power. **1) The power of the VISION about what could be different,**
 * 2) It has to have enough FORCE, and enough ENERGY to over come people's fears, and**
 * 3) to over come the power of the STATUS QUO.**

Fiorina talks about the dynamics of change and fear. She notes that entrepreneurship is about risk-taking, and this is always associated with trying something new. Fiorina concludes by asserting that change involves gathering enough energy and force to overcome the power of status quo. Citation: Carly Fiorina, HP: Management and Leadership, Spring 2007. (Stanford University: Stanford eCorner), [] (Accessed September 15, 2009). License: Creative Commons Attribution-NonCommercial 3.0 "Change before you have to." - Jack Welch "People don't resist change. They resist being changed!" - Peter Seng "Everyone thinks of changing the world, but no one thinks of changing himself." - Leo Tolstoy "The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking." - Albert Einstein "You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete." - Buckminster Fuller Change usually involves three aspects; people, processes and culture as shown in the following figure: Change Management ===is a structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at helping employees to accept and embrace changes in their current business environment.===

1- Identifying reason for change, and why we need to change. 2- Determine and define the desired goals and objectives 3- Determine change agents, the person/team responsible for implementing change. 4- Crafting a change action plan. 5- Implementing the action plan 6- Evaluating the impact of action plan and matching results with intended outcomes. 7- Follow up, risk mgmt, and direct corrective actions when needed.



Organizational Responses :



Top manager :
- Hard time coming to grips with derict implication of the change.  - They often underestimate the impact that change has on their employee.  - They tend to isolate themselves.  - Often they engage in strategic planning session and gather information in survey report.  - They avoid communicating or seeking “ bad news”, because it difficult for them to admit “ they don’t know”.  - They expect employees to “go along” when a change is announced and blame their __ MIDDLE MANGER __ <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">if people complain about change. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;"> - They often feel betrayed when employee don’t respond positively.

<span style="color: #03ba5a; font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">Middle manager <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. Manger in the middle feel the pressure to “ make the organization change” according to the wishes of the top management. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. they feel pulled in different direction. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. Middle manger often lack information and leadership direction to focus on multiple priorities. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. They are caught in the middle and often fragmented because they don’t have clear instruction. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. they feel besieged with upset ,withdrawn employees who no longer respond to previous management approach, blamed o misunderstood by their supervision. <span style="color: #fa5b0f; font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;">Worker, employee: <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. worker feel attack or betrayed by change announced by management. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. They not really believing that “ my company could do this to me “. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. Many respond with resistance, anger , frustration , confusion. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. Their response can solidify into a wall of “ retirement on the job”. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">. They become afraid to take risk or to try new thing.

<span style="font-family: 'Lucida Console',Monaco,monospace; font-size: 150%;"><span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;">* Change must be <span style="color: #ff0000; font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;">realistic ,<span style="color: #0000ff; font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;"> achievable, <span style="color: #03ba5a; font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;">measurable.

<span style="color: #404040; font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;">Basic guideline during change : <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">1.Have a good reason for making the change <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">2.Involve people in the change <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">3.Put a respected person in charge of the process <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">4.Create transition management teams <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">5.Provide training in new values and behavior <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">6.Bring in outsider help <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">7.Establish symbols of change <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;">8.Acknowledge and reward people <span style="color: #ff0000; font-family: 'Comic Sans MS',cursive; font-size: 170%;"> How people change ? <span style="font-family: 'Comic Sans MS',cursive; font-size: 140%;"><span style="color: #ff0000; font-family: 'Comic Sans MS',cursive; font-size: 140%;">* Most people don't realize change unless they're within the midst of change management plan themselves. <span style="font-family: 'Comic Sans MS',cursive; font-size: 140%;"><span style="color: #ff0000; font-family: 'Comic Sans MS',cursive; font-size: 140%;">* People change from being lead, not from being told !! <span style="color: #ff0000; font-family: 'Comic Sans MS',cursive; font-size: 140%;">* <span style="font-family: 'Comic Sans MS',cursive; font-size: 140%;">Encourage your management team to use workshops with their people too if they are helping you to manage the change. How many people have quit smoking because of the written warning on cigarette package ?? = change management principle : =

<span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;"> 1. At all times involve and agree support from people within system (system = environment, processes, culture, relationships, behaviors, etc., whether personal or organizational) <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;"> 2. Understand where you/the organization is at the moment. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;"> 3. Understand where you want to be, when, why, and what the measures will be for having got there. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;"> 4. Plan development ,achievable measurable stage. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 130%;"> 5. Communicate, involve, enable and facilitate involvement from people, as arly <span style="font-family: 'Arial Black',Gadget,sans-serif;"> and openly and as fully as is possible.

<span style="color: #008080; font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;">Example:

California State University <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%;">While the 1980s may seem like a long time ago, a more recent example can be at California State University (CSU). Any IT system change that happens at the main campus has to go through every satellite campus, meaning those 23 campuses and thousands of employees, staff, and students <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%;"> must adapt their IT systems as well. Dealing with change at a smaller organization can be a nightmare by itself; it’s worse at a larger organization like CSU. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%;">But, instead of merely throwing their hands up in disgust, the IT department decided to institute an automated change management system. Using [|Cisco’s Pace] functionality, the company can now make upgrades that will automatically make changes to the entire system. And, to make their change management strategy even more effective, they are now defining who can use what system and what changes they can make to their designated area. Their [|change management strategy considered the human factor] and not only included the automated system, but also defined roles of change so that it would minimize the confusion and issues when a change has to be instituted.

<span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 170%;"><span style="color: #ff0066; font-family: 'Arial Black',Gadget,sans-serif; font-size: 170%;">change management <span style="color: #c8c80e; font-family: 'Arial Black',Gadget,sans-serif; font-size: 170%;"> vs. <span style="color: #000080; font-family: 'Arial Black',Gadget,sans-serif; font-size: 170%;">organization development : <span style="display: block; font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%; text-align: left;">As they grow and evolve, organizations undergo a series of changes throughout their life cycle. These changes create the need for a well planned development process. To understand the differences between organizational change and development, it is important to know the meaning of each term and to conceptualize the relationship between the two:

<span style="color: #ff0074; font-family: Arial,Helvetica,sans-serif; font-size: 150%;">change management :  • <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%; vertical-align: baseline;">Factors such as improvements in technology, the need for business diversification and expansion are all examples of driving forces of change in organizations. These factors contribute to the onset of organizational development by pushing business leaders and managers to take certain actions which will lead to the desired outcome. There are several types of organizational change. Some changes are planned and driven by innovative thinking, while others are unplanned. Sometimes change in an organization can affect the whole entity, and at other times it can have a direct impact on only one segment of the business structure. <span style="color: #0080f0; font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;">Relation between change mangment and orgnizational development : <span style="display: block; font-family: 'Arial Black',Gadget,sans-serif; font-size: 12pt; text-align: left;">Organizational change is the agent that pushes development forward. In this context, change becomes a major catalyst for growth and improvements in business processes. Development therefore depends largely on those active forces that propel organizations to greater heights when the right business decisions are taken and effectively executed by highly skilled managers and leaders.

<span style="color: #cc0099; font-family: 'Arial Black',Gadget,sans-serif; font-size: 150%;">change mangment type : <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 110%;">Before you can effectively manage change within your organization you must realize that there several different categories of change. The three main types include: <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 110%;"> 1. Developmental change <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 110%;"> 2. Transitional change <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 110%;"> 3. Transformational change <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 110%;"> Developmental change applies to times in which you recognize a situation that doesn’t need to be eradicated completely but needs improvement. Perhaps your marketing team isn’t completing certain tasks on time or your human resources department needs to find a better way to monitor employee hours. Sometimes you can find the right answer by making a simple modification that gives you the change you desire with little impact on the entire workforce. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 110%;"> Transitional changes occur when you are attempting to introduce a new phase to the organization. You may be adding a new department or procedure or you may be doing something as simple (or complex) as moving your organization to a new building. During these types of change it is important to keep a tight reign on your employees for a specified and controlled period of time. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 110%;"> Transformational change s are often the result of transitional change. Sometimes moving to a new phase in your organization's growth presents the need for new policies and procedures. Often times these needs appear very suddenly, so you’ll need to be on guard during transition so that you can react quickly if the need should arise. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 110%;">- What type of change do you see occurring within your organization regularly? Are you constantly undergoing some sort of change or do things remain stable? Can you identify an areas in which change is inevitable?



Institutionalizing in change management:

ü <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%;">There are a number of steps companies can take to create change friendly cultures. <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%;"> 1. Change Analysis <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%;"> 2. Change Champions <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%;"> 3. Change Councils <span style="font-family: 'Arial Black',Gadget,sans-serif; font-size: 120%;"> 4. Change Suggestions <span style="font-family: 'Comic Sans MS',cursive; font-size: 140%; text-align: left;"> Sustainability --> is the capacity to endure <span style="display: block; font-family: 'Comic Sans MS',cursive; font-size: 140%; text-align: left;"> - sustainability for human : <span style="font-family: 'Comic Sans MS',cursive; font-size: 140%; text-align: left;">The long term maintenance of responsibility.

Sustainability development

1<span style="font-family: 'Comic Sans MS',cursive; font-size: 140%;">) <span style="font-family: 'Comic Sans MS',cursive; font-size: 140%;">Is development that meets the needs of the present without compromising the ability of future generation to meet their own needs.   <span style="display: block; font-family: 'Comic Sans MS',cursive; font-size: 140%; text-align: left;"> 2) The behavior and practices needs to achieve the three pillars of sustainability : - economic. - social. - environment. Measurement sustainability : <span style="display: block; font-family: 'Comic Sans MS',cursive; font-size: 120%; text-align: left;"> - what are we trying to achieve? <span style="display: block; font-family: 'Comic Sans MS',cursive; font-size: 120%; text-align: left;"> - what is our theory of success ?

The key successful sustainability change efforts: 1. Goals      2. Roles     3. Rules

Making the transition to sustainability requires simultaneously change: <span style="display: block; font-family: 'Comic Sans MS',cursive; font-size: 140%; text-align: left;"> 1. operation 2. Org. culture

<span style="font-family: 'Comic Sans MS',cursive; font-size: 140%; text-align: left;">--> changing in operation requires: <span style="display: block; font-family: 'Comic Sans MS',cursive; font-size: 140%; text-align: left;"> • Clarity about economic, mechanical, technology fun. • Identification of all environmental :social, economic • Identification of highest and lowest point