Speaker 1: Good afternoon, Grade 11s. Today we're going to be looking at change management, which falls under the stress and crisis management topic. So, change happens all the time and at many levels in an organisation. The nature of humans causes them to generally resist change and not to go with it. Management plays a very important role and must guide and support workers to adapt and also accept changes that come about. Imagine if your school had to change their school badge, what kind of resistance the organisation would meet. Mostly people in the organisation simply respond to customer needs and move on to the next project. They do not necessarily change their way of thinking, but they are continuously learning and adapting and spreading knowledge and sharing ideas. So, I'm just going to read the definition on the slide. Change management is a term used for preparing and supporting individuals, teams and organisations in making organisational change. We are going to look at three theories of change management. The first one is business process re-engineering, often referred to as BPR. So, this is new processes are implemented that make business better. Business process re-engineering theory concentrates on new ways to get work done. This includes logistics, manufacturing and distribution. By implementing better processes, the organisation would be more efficient and cost effective. It would deliver products and services of excellent quality as well as increased productivity. The weakness of this theory is that it does not necessarily take the people's aspect of the organisation into account. People's attitudes towards change should receive attention. So, BPR is a radical redesign of core business processes so that you can achieve dramatic improvements in productivity, cycle times and quality. Right, the second theory of change management is total quality management, TQM, and you're going to study this in a lot of detail in grade 12. But the goal of TQM, total quality management, is to ensure consistent high quality products and or services at all times. So, in other words, do it right the first time, every time. In South Africa, businesses ensure high quality standards by adhering to the International Organisation for Standardisation, known as ISO. The weakness of this theory is that it lacks the ability to evaluate people since it concentrates only on existing processes. However, this was addressed later in ISO standards. So, total quality management is about a management approach to long-term success by ensuring that your customers are satisfied. In a TQM effort, all members of an organisation participate in improving the processes, the products and the services, and the culture in which they work. Hence the phrase, total quality management. The third theory of change management that we are going to be looking at is called ADCA. It is an acronym. The ADCA model was designed to focus teams with specific activities that will have an impact on the results. The name comes from the following. A stands for the awareness of the need for change, D the desire to support and participate in the change, K is knowledge of how to go about the change, A is the ability to implement the change, and R is the reinforcement to sustain the change and keep it going. The ADCA theory is very successful because it focuses on employees who feel involved and have an interest in the process. This model is task-specific so results can be measured and evaluated more easily. So, if we look at the advantages of ADCA, it evaluates the employees' resistance to change, how much are they willing to change. It helps employees to transition, to move through the change process. It creates employee-specific action plans and it develops a change management plan by engaging with the employees, not just simply coming forward and saying, this is what we are going to do and this is how we are going to do it, but rather negotiating, talking through the difficulties of bringing about a change. So, if we look at this graph here which looks at the phases of change for the project and how it affects the employees, at the bottom we've got ADCA, the awareness, the desire, the knowledge and understanding of why one has to change, the ability to implement the change and then to sustain it and reinforce it for the future. So, what happens with the business is they prepare and there's a need that they see, so they start designing this concept. Then, once they are implementing, they have to give the knowledge to the employees to know how to do it and then by reinforcing it, it is a sustainable project and hence we have a successful change. Now, we move on to managing change. Managing change is not easy and there's no quick and easy recipe that tells managers what to do. Real change requires people to adjust their behaviour, their attitude and often to go beyond the control of what they have. Top management can make decisions about the distribution of resources or the restructuring of a company, but no one can order people to use their imagination or to work together as a team. People and teams need to be empowered to find their own solutions and responses with the support of their managers. Given the impact that change has on employees, it is important that managers manage employees throughout the change process. They need to hobble their hands. The following change process serves as a guideline for change managers. The first one is to assess the environment. Scan the environment and collect information that will signal a need for change. For example, the need for technological change that could ensure higher productivity, better quality assurance and a decrease in production costs. The need for diversity in the workplace to appoint employees from a variety of different race groups, especially when the business operates globally. Stage two is to determine the performance gap. So with the information at your disposal, it is possible to figure out the gap between what a business wishes to achieve and what it is actually achieving. The third stage is identifying problems or opportunities within the business. It's very important to identify problems and opportunities immediately. For example, if sales are dropping, you need to understand why. It could be as a result of incompetent sales staff or because the product is no longer appeals to the consumer or possibly the marketing is not aimed at the right target market. So identify the problem opportunities. The fourth stage is to identify reasons for resistance to change. When people are confronted with the need to change, especially when it is driven internally, they often become emotional and tend to resist and fear change, not knowing how it's going to affect them. The following are just some examples of reasons for resisting change. For example, people could be thinking, we've never done it like this before. Why must we change it? Or we tried it before and it didn't work. So why should we change it? Or things are okay for now. We don't need to change anything. Just think of your schooling over these last two weeks, how that has had to change and how you might be resisting it or actually enjoying the change. Another reason for resistance could be a conflict of interest. So organizational change results in downsizing and cost cutting and so employees might be retrenched and not have jobs. Or it could be a misperception about what is going to be coming about. Or possibly labor contracts could be terminated. Now that we've identified the reasons for resistance, we need to look at stage five, which is to reduce resistance to change. And this is done by communicating openly and early enough with employees. Don't hide information from them. Providing clear and definite direction to employees. Inspiring and motivating them. Leading by example in order to build credibility and trust. And giving feedback to employees, which will help them accept the change that is due to come. Right, stage six is to set goals. But these goals must be realistic, measurable, attainable, and at this point you should be thinking, ah, smarter goals. Stage seven is develop a plan of action. It could be time consuming and complex, but ensures that everybody understands their role and the time frame and the deadlines that need to be met. Stage eight is implement this action plan. Throughout the implementation process people need to be rewarded for their efforts. This will help create a positive climate. And stage nine, constant monitoring of change. Change managers need to monitor the results to ensure that the change process was conducted closely and successfully. I was at an organization where we went through a major change and we employed or consulted with a change consultant. And we met with her twice a week for about an hour each time. And I remember thinking, we don't need this. We'll get through this fine. Little did I know it was so important to have that emotional support to constantly re-evaluate how the employees were doing. So how do we go about adapting to change? The most successful approach to change is through participation, involving employees, and open communication for management as these factors are crucial to the change process. But the biggest changes faced by businesses in the past few years include unemployment and retrenchment. Many businesses in South Africa who had to downsize and implement retrenchment policies have put plans in place to redeploy retrenched employees in order to remain economically active. One can just think of COVID-19 and how many small businesses are having to downsize because they are losing three weeks worth of income. Globalization. As a result of technological advanced communications and transport, businesses now not only compete locally, but with the rest of the world. So businesses need to adapt to these changes in the environment in order to remain competitive. Another major change that has affected people and businesses in South Africa is affirmative action. So affirmative action is a policy whereby the Employment Equity Act seeks to provide a formal structure to transform workplaces to be in line with the demographics of South Africa. Employees need to be properly informed of how affirmative action will be implemented in order to keep the workforce motivated. There's a lot of misconception about affirmative action. And lastly, we're going to look at John P. Cotter's eight-step model, which helps leading change. So the first thing is, step one, you need to create urgency where we are now and where we want to be in the future. So you need to inspire your employees. Step two, team talk to build a leading team. So form a powerful coalition. Step three, create a vision for change. Walk the talk to get the vision right. Step four, break the mold by communicating for buy-in. Communicate the vision to everyone. Step five, implement and consolidate with empowering action. So in other words, give people the sense of power, help them make decisions in this change process. Step six, reinvigorate by creating short-term wins. So you constantly want to reward people for the little things that they've started accepting and changing. Step seven, a new status quo through not giving up. So you build on the change that you've constantly created. Step eight, make the change permanent. Don't go back. Make it stick. So gentlemen, that is the end of change management. I hope you've learned a few things. Have a good evening.