Example. ILM Level 3 Leadership & Management. Planning Change in the Workplace. Unit

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ILM Level 3 Leadership & Management Planning Change in the Workplace Unit Copyright Ultimate Learning Resources Ltd, Sleaford 2013 No part of this document
ILM Level 3 Leadership & Management Planning Change in the Workplace Unit Copyright Ultimate Learning Resources Ltd, Sleaford 2013 No part of this document may be reproduced without permission Contents Contents 1 Unit Specification and Learning Outcomes 2 Introduction 3 Defining Change 4 The Operating Environment 7 The Benefits of Change 12 The Barriers to Change 15 Managing Change 17 Planning Change 22 Financial Aspects of Change 27 Communicating Change 31 Taking People with You 37 Conclusion 42 Bibliography 43 1 Planning change in the workplace - Unit Specification Level: 3 Credit value: 2 Unit guided learning hours 9 Learning outcomes (the learner will) 1. Understand the forces for change in an organisation 2. Know how to identify and plan change in an organisation Unit purpose and aim: Assessment criteria (the learner can) 1.1 Identify the forces that may require own organisation to change by conducting a simple PESTLE or SWOT analysis Give an example of change required in the workplace reflecting the SWOT or PESTLE analysis Identify relevant human and financial factors in the consideration of planning change within the context of the example given Explain how to communicate with, and involve people to facilitate effective change Use a technique for planning change within the given context To be able to plan change in an organisation as required by a practising or potential first line manager. Indicative Content: PESTLE analysis Organisational SWOT analysis The principles of change management Methods of planning for change Use of Gantt charts, Network Planning as tools for planning change Identification of human and financial factors in the consideration of change The importance of communication and involving people to facilitate effective change This table is extracted from the ILM Qualification Specifications 2 Introduction To understand change and therefore to be able to successfully plan and implement change in the workplace, managers need to be aware of the different types of change, the origins of change and the way in which people react to and cope with change. The events of the last 30 to 40 years can sometimes lead us to believe that change is a recent phenomenon. The reconstruction of Europe post-world War II, the Cold War, and the Fall of the Berlin Wall all momentous events to the rise of globalism, and in particular the emergence of the Pacific Rim as an economic powerhouse, coupled with the inexorable march in technological growth makes the early part of the 21 st Century an exciting and challenging world in which to live. Change is not, of course, a new phenomenon. Over the centuries, as man s understanding of the world has grown from the Age of Enlightenment, to the Renaissance, to the Industrial Revolution we have seen significant change occurring. Indeed, let us consider the following 2 quotes from the 19 th Century: Benjamin Disraeli (1842) and Change is inevitable. Change is constant. It is not the strongest species that survive, nor the most intelligent, but the ones who are most responsive to change Charles Darwin In one sentence, Darwin asserts that change has been here since time began. In primitive times, we know that humans changed and adapted to their environment to survive. As we shall see, the need and desire to survive still drives change. Indeed, from the organisational and business context, an inability to recognise the need for change and to make change that sticks can be the difference between success and failure. This workbook introduces students to the concept of change, the importance of innovation and creativity one of the fundamental drivers of change in organisations and businesses and explores how to implement change within the workplace taking into account the human factor ; that is, how to take the people who are affected by the change with you. 3 Defining Change In any study of management it is important to establish a set of definitions for relevant concepts. Change is a word we come across frequently in a wide variety of settings. In its purest form, change is making something different. Webster s Dictionary offers the following definitions: To make different in some particular way to alter; To make radically different to transform; or, To give a different position, course or direction. These definitions offer some immediate insight into what change in the workplace might look like. In simple terms, change can take many forms and have different levels of impact, depending upon both the type of change and the timing. Each type of change will be perceived by those that are affected as carrying some level of threat. Typically, we find that there are 4 types of change that take place. Each of these has a corresponding indicative level of threat: Types Incremental Annual Step Metamorphosis (Major) Threat Level Low Low Significant High/Very significant (Based on Russell-Jones) Looking more closely at each type of threat, we can perhaps understand why the indicative level of threat is as it is. Incremental Change: is change which is typically improvement-driven. For example, a company identifies customer dissatisfaction with the way in which telephone calls are handled and changes the process for answering telephone calls to rectify and to improve the service offered. Annual Change: is change that takes place annually. An example of an annual change might include the setting of departmental budgets. Step Change: is incremental change that is implemented in phases or steps. For example, customer dissatisfaction with telephone call handling could be addressed by the company implementing several new processes or procedures at once. Metamorphosis or Major Change: is change which radically transforms the way business is done. The introduction of a central call centre to handle all customer calls would be an example of a major change. 4 Activity: Consider the types of change that you have experienced in your organisation or company, or, indeed, change that you have observed elsewhere and make a list of examples for each type of change: Type of Change Incremental Annual Step Major In completing the table, you are likely to have identified that a significant number of change initiatives which take place in organisations are as a result of something happening elsewhere. Indeed, in every organisation there are a myriad of things that can lead to or initiate change; these are often called change drivers. 5 Activity: Looking at your own organisation, list potential drivers for change: 6 Drivers for change might include some or all of the following: Planning Change in the Workplace ( ) New technology Government legislation The appointment of a new chief executive or senior figure Customer demand for new and improved products and services Internally-driven improvements in productivity and/or profitability Need to reduce costs Financial recession Local and (increasingly) global competition Competitor innovation Product obsolescence Loss of market share Loss of revenue Higher taxation Mergers and take-overs Organisational inefficiency The drivers do not of themselves, however, necessarily set out what change has to be made to survive or how that change could be made. For example, a reduction in the annual budget for a given department within an organisation might be addressed in a number of ways: money could be saved by reducing the number of people employed within the department or by changing the output in some way or, possibly, by doing less of whatever the department does. Analysing the Operating Environment Organisations that are serious about innovation are constantly looking ahead to spot opportunities and to identify where the challenges might lie. SWOT Analysis and PESTLE Analysis are 2 tools that help in isolating issues and opportunities for innovation. SWOT analysis can also be useful in assessing and evaluating an innovative idea. SWOT Analysis SWOT analysis standing for Strengths, Weaknesses, Opportunities and Threats helps provide focus on key issues. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. Identification of strengths and weaknesses, opportunities and threats is all very well but it is a deeper level of analysis that answers the more difficult questions such as so what and what could you do about it and what are the implications of your observations that are where time is likely to be well invested. The logic being that strengths will always give you opportunities, while weaknesses will usually present a threat. 7 E x t e r n a l I n t e r n a l When undertaking SWOT analysis, it is good practice to: Keep it simple Be realistic in assessing strengths and weaknesses Be specific and avoid ambiguity Consider applying SWOT to your competition (opens up new thinking, where identification of others strengths might give you opportunities to replicate and their weaknesses might give you opportunities to get ahead) Avoid over analysis and consider the implications of your observations So what? What could you do about it? Strengths Opportunities Implications? SET TARGETS Weaknesses Threats The SWOT ANALYSIS Framework (Format: AH Raymondson, 2008) So what? What could you do about it? What Why When Where How? 8 Activity: Undertake a SWOT analysis of your department and identify at least 3 possibilities for major change. 9 PESTLE Analysis PESTLE analysis standing for Political, Economic, Sociological, Technological, Legal and Environmental factors is useful in understanding the business environment as a whole, and is often used together with SWOT analysis. It can be useful in analysing drivers for change and in considering the implications and impact of change in the external environment on the organisation. Questions in applying the framework might revolve around: What key political influences are likely to impact on the business? What significant economic factors are there? What sociological aspects are most prominent? What technological advances are imminent? What current and future legislation might affect the business? What environmental issues need to be considered? The PESTLE Framework (Format: AH Raymondson, 2010) 10 The PESTLE Framework Activity: Consider some recent changes made by large organisations. Frame your thinking against the PESTLE model. What has been the impact of those changes for smaller organisations in terms of opportunities and/or threats? Use the following table below to capture your thoughts: PESTLE Framework Element Political Economic Sociological Technological Legal Environmental Change An example of an environmental issue that might span several of the PESTLE elements is the move to reduce greenhouse gasses. Legislation requires organisations to take certain actions and numerous economic benefits have been created for companies providing, for example, low emission materials and equipment, such as clean vehicles, loft insulation and low energy lighting. Application of technology has a part to play also in this field as with development of advanced computer processing units in vehicles to control engine efficiency, which contributes to achievement of lean burn engines and lower emissions. Similarly, the 11 Threats / Opportunities creation of low emission zones in cities has created both threats and opportunities difficulties for transport companies arise and opportunities for those providing solutions for example production of catalytic exhausts for delivery vehicles to enable them to meet the emissions requirements. Activity: Now, reconsider the PESTLE model to establish what changes might be necessary in your organisation. Consider too, the benefits of each change identified. Use the following table below to capture your thoughts: PESTLE Framework Element Political Economic Sociological Technological Legal Environmental Benefits of Change Issue Necessary Change Benefits of the Change (human & financial) Taking, as a starting point, the Darwinian view that change is essential for survival, the logical conclusion would be that change is a good thing. In an organisational context, any proposed change must bring benefit if it is to be meaningful. The concept of derived benefit can be difficult for some organisations to grasp. By failing to understand the benefit(s) to be obtained from a proposed change, and by not being clear about the benefit, these organisations run the risk of failing to successfully deliver the change. 12 One of the biggest challenges organisations face in identifying the potential benefits of a change is the definition of a readily understood measure of success. For example, a company decides to manage one of its support functions differently by outsourcing that function. To quantify the benefit in this case is reasonably easy since a comparison between the cost of in-house delivery and the cost of an outsourced service would reveal a cost saving. This easily quantified benefit is defined as a tangible benefit. Where things become more difficult is where there is a significant payback period that is, the benefit of the change will not be derived for several years or where the benefit is intangible. An intangible benefit is one which is not easily quantified. For example, a company proposes to allow staff greater freedom to choose their own working hours arguing that staff morale will be improved. Finding measures to confirm that the benefit improved morale has been achieved is challenging and, indeed, imprecise. Activity: Think of 5 significant changes that have taken place in your organisation and identify the potential benefits of change to your organisation and the people within the organisation. 13 Note: Every effort has been made to ensure the accuracy of this workbook. However, no liability can be accepted for misapplication of the content. In particular the legislative elements are subject to frequent change and readers are advised to check the latest legal situation before taking action in the workplace. 42 Bibliography/Further Reading Author Title Publisher Esther Making Sense of Change Kogan Page Cameron & Mike Green Management Daryl R Managing at the Speed of John Wiley & Sons Conner Change Charles Understanding Penguin Press Handy Organisations Chip and Dan Heath How to Change Things When Change is Hard Random House Business Books Dr Spencer Who Moved My Cheese? Vermillion Johnson John P Kotter Leading Change Harvard Business School Press Neil Russell- Jones Managing Change Pocketbook Management Pocketbooks Ltd 43 Notes 44 Notes 45 Notes 46 Notes 47
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