Speaker 1: Hello and welcome to today's lesson where we're going to cover 10 change management models in 10 minutes. So what are change management models? Well, they're simply guides or instructions to help you successfully lead change. No two change models are the same, but broadly speaking, they fall into two categories. Those that focus on the process of change, the steps you take, and those that focus on the human response to change or managing people through change. Now to remain competitive, organizations must continuously change. Without change, organizations stagnate, become uncompetitive, and go out of business. To thrive, organizations must accelerate their speed of change to execute faster than their competition. So this change is not just important, but critical to every organization. Now because of the importance of change, all leaders must ask themselves a critical question. How can I ensure that my change initiative is successful? This is where change management models can help. Now which change management model you choose is up to you and will depend on your particular circumstances. However, it's worth noting that you can combine elements of different models. Now let's jump in and take a look at the models. We're going to cover the process-focused models first and then the people-focused models. If you'd like any more detail on any of the models I cover, then there's going to be links below this video you can follow to learn more about particular models. So the first model we're looking at is Kotter's 8-step change model. Now John P. Kotter first described his model in a 1995 article in the Harvard Business Review. And broadly speaking, we can say that there are three phases to the Kotter change model. So first we have create a climate for change. This phase is about creating a shared understanding of the change you want to make and why you want to make it. Second we have engage and enable the organization. This phase is about engaging your team so that they are empowered and enthusiastic about effecting change in the organization. And third we have implement and sustain. This phase is about pressing ahead after your initial successes to build momentum and fully embed the change within your organization. Next we have Lewin's change model, also known as unfreeze-change-refreeze. Now Kurt Lewin is widely considered the founding pioneer of change management. But it's worth noting that there is evidence that Lewin never developed the three-step model or the unfreeze-change-refreeze model and that it only came into being after his death. Now this model involves creating the desire to want to unfreeze the current status quo, the desire to want to change things. Next you implement the necessary changes and then finally you solidify the new ways of working as the new normal. Next up is the PDCA cycle or Deming cycle. And this is a tool that can help you continuously improve your products, services and organizational processes. It's a four-stage cycle that you use over and over again for continuous improvement. Now this cycle is an excellent tool for reaching any goal or introducing improvements. Each cycle begins with a planning stage in which you identify and understand issues. You then generate solutions and choose the best one. In the do stage you implement your solution in a very small scale way, in a trial way. You then check the results in the check phase to see if they are as you expected. And finally if your solution performs as hoped you roll it out in full in the act stage before beginning the PDCA cycle all over again. The next model we're looking at is McKinsey's 7S framework which isn't a pure process model as it contains both people and process elements. It's really a strategic planning tool designed to help an organization understand if it is set up in the right way, a way that allows it to achieve its objectives. Now before the advent of this model when managers thought about organizational design they tended to focus on their organizational structure. However as organizations got larger and more complex coordination became just as important if not more important than structure. Now there are several things worth noting about the diagram here. Firstly all the areas are interconnected. This means that a change to one area will affect all other areas. Also there is no hierarchy and all areas are the same size. That indicates that all areas are considered to be equally important. The areas are divided into hard areas and soft areas. Hard areas are easy for management to influence and change so things like processes or strategy. Soft areas are more woolly and influenced by the culture of the organization. Now positioning shared values in the center of this model indicates that the organization's values are central to all elements, central to everything. Okay so that's all the process models covered. Now let's move on to the people focused models. So the first people focused model we're going to look at is the ADCAR model of change. Now this model is different from many other change management models because it focuses on guiding change at the individual level. In contrast most change models drive change at the organizational level. It focuses on the individual because the people within that organization must change first before an organization can change. The ADCAR framework is an acronym made up of five steps a person needs to undertake to be willing and able to change. You carry out the steps in order with each step building upon the previous step. Next we have nudge theory which is based on the idea that people can be nudged to make the right choice without coercing them or restricting their freedom of choice. It works by leveraging the biases inherent in every human being to nudge people towards exhibiting a desired behavior. Now quickly read the text contained in the triangle on the image here. Now the majority of people don't notice the second the when they read this text for the first time. Now if you did the same if you only noticed one the that's because you're using a mental shortcut to read the text rather than using your reflective thinking brain. Now the purpose of this example is simply to show you that every one of us has these cognitive biases and all nudge theory does is leverage these biases to move us towards taking specific action. Next up we have the satire change model. This model was designed to help people improve how they cope with major unexpected change. Although the model was developed initially for family therapy it also applies to how people cope with organizational change. At the heart of the model is the conviction that it is always possible for things to get better. However this takes time and things usually get worse before they get better. On the vertical axis we have our team's performance and on the horizontal axis we have time. One crucial point to realize about the curve within the diagram is that it is deliberately not a thin line. This means that our team's performance can oscillate within the bounds set by the curve. Now as you can see from the diagram there are five stages to the model. Next up we're looking at Bridges transition model. This is a three stage model that enables you to understand and manage the human side of change more effectively. The model helps organizations manage change successfully by mapping out the human response to change over three stages and these three stages are firstly ending, losing and letting go. So allowing people to let go and say goodbye to the old ways of doing things. Secondly the neutral zone which is an in-between time when the old is no more but the new hasn't arrived yet and finally the new beginning. That confusing time when people begin to engage in their new future but it all still seems new and very uncertain. Next up we have the change curve. This helps us understand how people emotionally experience a major disruptive change. It provides a rule of thumb as to how people emotionally handle change and it was first used to model how people come to terms with a terminal illness. The usage of this curve can help us as managers improve how we interact with those undergoing change. The final model we're looking at is Moore's three levels of resistance. This model is based on the idea that people resist change to protect themselves from harm. Now the three levels of resistance are level one I don't get it. At this level people are missing the facts and figures they need to understand why change is necessary. Level two I don't like it and here people experience an emotional response to the change. It's difficult for them to take on board new ideas when they're in a fight-or-flight mode. And finally I don't like you. People are not resisting the change at this level but they don't trust your ability to deliver it. So in summary like all change management models the models we've looked at today each provide guidelines to help you successfully lead change. Now two major categories of change management models exist. One focused on the process side and one on the people side. And you can take the best bits from different models to suit your particular needs. Now as I said at the beginning if you'd like to learn more about any of these models then there are links below this video so you can get more information. So that's it for this lesson. Really hope you enjoyed it and I look forward to speaking to you again soon.