The Three Phases of the Change Management Process

Contents

List of Abbreviations

List of Figures

1. Introduction of Change Management
1.1 Target
1.2 Structure

2. Theoretical Aspects of Change Management
2.1 Definition
2.2 Causes

3. Change Management Process in Practice
3.1 Preparation Phase
3.2 Planning Phase
3.3 Execution Phase
3.4 Supporting Measures

4. Critical Review of Change Management
4.1 Critical Factors
4.2 Success Factors

5. Conclusion

Appendix

Reference List

List of Abbreviations

Abbildung in dieser Leseprobe nicht enthalten

List of Figures

Figure 1 Three Phases Model of K. Lewin 1

Figure 2 Three Learning Processes 1

“If you always do - What you always did

– You will always get - What you always got”

(Lincoln)

1. Introduction of Change Management

1.1 Target

Most of the change management processes break down while only thirty percent of the change management processes are successful.^[1] This quotation defines the current problem or better to say the difficulties of organizations in realizing a successful change management nowadays. Thus, it is very important that the organizations create “change (they) can believe in” like Barack Obama carried out with his numerous successful changes, such as the rapid end to war in Iraq, the decrease in energy dependence and the setting up of universal health care.^[2]

Seen from a business context, the critical factors and success factors in a change management process will be analyzed on the basis of a fictitious example, the Paradise Hotel in London which is a luxurious five star hotel and a member of SLH (S mall L uxury H otels of the World).^[3] It is a small hotel, organized as a multi-line system, with thirty-five double rooms and forty suites available in different categories as, e.g. junior suite, premium suite and honeymoon suite. Around thirty employees work in this hotel at an average of four to five years.

By identifying the critical factors and the success factors of the Paradise Hotel, measures can be taken by the management to implement the single steps of the change management process successfully in the company and thus to achieve the company´s goal.

1.2 Structure

In the first chapter (1.1) the target of change management -to achieve company´s success through an effective change management process- has been declared as well as the structure of this essay (1.2).

After overviewing the topic, the word “change management” will be defined (2.1) and the reasons which lead to the need for this change management (2.2) in an organisation will be demonstrated.

Afterwards, the three phases of the change management process: the preparation, planning and execution phase, with the corresponding eight “steps of change”, will be clarified on the basis of the Paradise Hotel in London (3.1-3.3). Furthermore, the measures, which help to support the change management process, will be explained (3.4).

After this, the critical factors, which can break down the entire change process, and the equivalent of the critical factors- the success factors, which lead to a successful and efficient realization of the change management process, will be analyzed (4.1-4.2).

Finally, the conclusion will show how a company can implement the change process with its single steps in an adequate and triumphant way in the company (5.).

2. Theoretical Aspects of Change Management

2.1 Definition

“Change means nothing more than the fact that something is to be done differently from the way it has been done until now.”^[4] “It involves a disruption of existing activities and feelings, and it requires learning new ways of doing things. Managing change is letting go of illusions, accepting reality, and focusing on new possibilities.”^[5] Change management is a management tool to survey and to control the change process itself and to shape an optimal “design” of the way from the current company situation to the desired state. The aim of change management is to augment the company´s competitiveness and its efficiency.^[6]

In a business context, change defines the “alteration of a company´s strategy, organization or culture as a result of changes in its environment, structure, technology or people”.^[7] A change only works under taking into account the individuals, the company structure and culture.^[8]

2.2 Causes

The reasons for change are different, but always are driven by internal or external forces.^[9] External forces for change could be the market situation or market place, the technology and the government laws and regulations. For instance, “(…) the global marketplace has created a huge need for change because of internationalization and the increasingly dynamic situation.” Internal forces for change could be the corporate strategy, the work force, the employee attitudes, the technology and equipment. For example the implementations of new equipment or new technology in an organization would require new processes and structures and therefore “change”.^[10]

Seen in a business context, company´s growth is the reason for an alteration of buildings sizes in small and medium-sized companies, in big companies change means the reorganisation or the new strategic orientation of the enterprise.^[11]

3. Change Management Process in Practice

The change management process itself consists of three phases: the preparation, planning and execution phase. The well-known researcher Kurt Lewin talks about the “unfreeze, change and refreeze model”, where in the “unfreeze phase” the staff must be convinced by the management that a change is necessary for the company.^[12] The “change phase” requires a range of solutions to be acted upon as soon as possible to avoid resistance build up before the change. In the third phase, the “refreezing phase”, the change must be reinforced and formalized in the organisation.^[13]

These three phases can be subdivided into eight steps: the vision creation, the analysis of the current state and definition of desired state, the identification of barriers, the planning, testing and monitoring of measures and the maintaining of learning transfer. Simultaneously to the change management process, communication measures appear to support the eight steps, because change processes are dependent on being communicated in an appropriate manner with the parties involved.

3.1 Preparation Phase

The first phase consists of four steps: vision creation, analysis of current state, definition of desired state and the identification of barriers.^[14]

The first step of vision creation is defined at the beginning of the change process because it serves as an orientation for the company.^[15] Therefore, it is inevitable “to ensure that everyone affected by this change process” is involved to realize that everyone in the company shares and supports this vision.

The vision should be attractive and comprehensible for the parties involved to achieve a successful execution of the change in the company at least. To create an attractive vision, the aspects of “emotional appeal to those involved”, “the vision reaches far enough into the future”, but has still sufficient reference points to the present reality and the vision features “fascinating facets but can still be appreciated by the staff”. In addition, the needs of the customers, staff and all other stakeholders of the company, for example unions, suppliers, state and so on, need to be considered in the vision creation.^[16] An example for a vision of the Paradise Hotel could be “We will be a leader in the (premium hotel sector), focusing on customers, our people, growth, innovation and efficiency.”^[17]

The second step of the preparation phase is the analysis of current state by giving a description of a true picture of the company´s starting point. In this description the “hard facts” as well as the “soft facts” are analyzed.^[18] The “hard facts” in a company symbolizes the typical economic themes and numbers, while the “soft facts” are represented by the psychological and organizational themes.^[19]

[...]

^[1] Keller, S, Dewar, C 2012,`Die andere Wahrheit über Change Management`, Organisations Entwicklung, no.3, p.104

^[2] Passenheim, O 2010, ´Change Management`, Ventus Publ. Aps, p.7

^[3] Small Luxury Hotels of the World 2013, `Welcome to Small Luxury Hotels of the World, viewed 12 February 2013, http://www.slh.com/

^[4] Schüppel, J 2010, ´Organisational Culture and Change Management´, SRH FernHochschule Riedlingen, p.33, Riedlingen

^[5] Bellingham, R, Cohen, B 2001, `The Complete Guide to Wellness- Lifestyle Possibilities: Assesment and Interventions`, HRD Press, p.409, Amherst

^[6] Lauer, T 2010, `Change Management-Grundlagen und Erfolgsfaktoren´, Springer Verlag, pp.3-5, Berlin Heidelberg

^[7] Passenheim, O 2010, ´Change Management`, Ventus Publ. Aps, p.7

^[8] Lauer, T 2010, `Change Management-Grundlagen und Erfolgsfaktoren´, Springer Verlag, p.6, Berlin Heidelberg

^[9] Richter, J 2012, `Change Manager sind gefragt: Die neuen Herausforderungen für das Krankenhausmanagement`, no.11,p.54

^[10] Passenheim, O 2010, ´Change Management`, Ventus Publ. Aps, pp.7-8

^[11] Hlinka, A, Thurn, N 2012, `Change, aber mit Strategie und Gefühl`, p.2

^[12] compare Figure 1 Three Phases Model of K. Lewin

^[13] Passenheim, O 2010, ´Change Management`, Ventus Publ. Aps, p.17

^[14] Passenheim, O 2010, ´Change Management`, Ventus Publ. Aps, p.22/ Schüppel, J 2010, ´Organisational Culture and Change Management´, SRH FernHochschule Riedlingen, p.39, p.47, Riedlingen

^[15] Richter, J 2012, `Change Manager sind gefragt: Die neuen Herausforderungen für das Krankenhausmanagement`, no.11,p.55

^[16] Schüppel, J 2010, ´Organisational Culture and Change Management´, SRH FernHochschule Riedlingen, p.40, Riedlingen

^[17] Avis Budget Group Vision Statement 2009, `Avis Budget group Vision Statement`, http://www.samples-help.org.uk/mission-statements/avis-budget-group-vision-statement.htm

^[18] Rossmar, A, Reich, S 2012, `Aus 1 mach 2: DIOR: Veränderung als Chance`, www.personalwirtschaft.de

^[19] Schüppel, J 2010, ´Organisational Culture and Change Management´, SRH FernHochschule Riedlingen, p.35, Riedlingen