 So, in today's class we are going to look at what are the steps involved in a successful change. Actually we will examine is there a science behind it, is there a pattern being followed in many many successful change interventions and across the world so many studies are being undertaken to figure out what is the core of successful organizational changes. So, what we are going to discuss applies more to the organizations because the out this is the outcome of the research being conducted in the organizational context. However, many of these steps would be relevant and some of the insights will also be relevant of what we are going to discuss at this societal changes. So, you might remember in the previous session we talked about Levin's change model and we discussed that Kurt Levin being the in many ways a pioneer in the group dynamics pioneer in the organizational psychology gave this very famous model of unfreezing movement in the infreezing. It is a simple and elegant model of the change process. John Porter who is the professor in Howardville's school, he studied the organizational change process very systematically since his PhD program and based on his exhaustive study what he came across is that there are three distinct organizational change phases and these change phases corresponds very well to what Kurt Levin talked about probably 50 years ago that is mobilizing phase, movement phase and sustained phase and they corroborate very well with the unfreezing, movement and refreezing. So, mobilization phase involves making the case for change initiative and building the organizational capacity for change. So, many time it happens that organizations are not able to understand, not recognize the need for change. Many time organizations are able to recognize the need for change, they recognize the urgency of the change, but they do not invest sufficiently on building the organizational capacity for change. I might be recognizing the need for change, but as an organization I am not being able to build the capacity that might be a situation. Both the steps are involved, both the components are involved and important in mobilizing phase. If we give sufficient attention to building this urgency, making the case for change initiative and building the organizational capacity that system, organizational system can move to the movement phase that is building the movement for change initiative and preserve and continue to build organizational capacity for change. We might build the capacity for change to initiate, but then as we go along we need to keep building the capacity to deal with the challenges coming across in the change process. And last, but not the least is institutionalization of the change initiative. So, this is more refined approach of the Kurt Levin's model and where it is further refined what we find is very well known in the field of organization change, it is the Quota's 8 step model. So, Quota has further defined the process, further elaborate the process based on the field research and what emerged was mobilization, movement and sustained steps, sustained phases have these 8 steps. So, first step is establishing a sense of urgency across the organization we need to communicate that how urgent it is to do things differently or for and to do different things. No change process in the beginning can claim to have all the people convinced and contributing to the change process. Generally, the change process requires a powerful and guiding coalition because like in the product adaptation, in the organizational adaptation also we see few people may be 10, 15, 20 percent people are the people who are willing to take initiative and first demonstrate the willingness and enthusiasm to adopt the change. So, we need to form the guiding coalition, one person one leader cannot ensure that organizations change, they have to have the coalition looking at that coalition other set of people become aware and get converted to the change process and that is based on creating a strong vision that is where the job of the leader comes. Leader is leader because the person having a strong vision. If you look at the Sanskrit or Hindi term for leader, it is called neta. The root of the neta is similar to the root of netratva and root of the netratva neta is similar to the root word netra and netra means eye. That simply means leader is the one who has more capable eyes. That simply means the leader is the one who has further and clearer vision. If one thing which is inevitable must for a leader to bring about any change is for her capability to see some see further and clearer then others if the person is not able to see further and clearer than others this person cannot become leader. So, that is the importance of creating vision not only having vision, but communicating vision is also equally important. We see many examples where leaders are able to communicate vision in a in many creative ways. For example, when the transformation process of Bank of Baroda was going on, the chairman of that time Dr. Nilkhandilwar in his town hall meetings would project the image of Bank of Baroda with the Baroda Maharaj with the date of birth and date of demise. Now in Bank of Baroda which was started by Maharaja of Baroda, Maharaja of Baroda commands very deep respect and people who would be present in the town hall meetings would recognize that they would not like to be identified as generation who cause and who was a witness to the demise of the bank. And that was a very strong way of communicating the vision for the change in this organization. This is a 40,000 strong employees organization that also changed from very lowest quarter of performance they moved to the highest 20-25 percent performing public sector banks in India into 3 years time. Empowering others to act on the vision, leader may have vision, they may form the coalition, but if they do not empower others not only with the capacity, but also with the trust to make the decisions wherever and whenever required they will not be able to work towards realizing that vision. Then comes the planning and creating for the short term wins. If you look at the top management team, they may get inspired, they may be inspired, they may be concerned about what this organization and they are going to accomplish in next 3 years or 5 years probably because they have the more data, they have access to more information and they have that vision. But many a time people who are reporting to them may not have that clarity, may not have that very far vision, they need something gratifying, something on which they can feel proud of in more immediate terms, in more short term or medium terms. So, for the larger number of people in the organization, we cannot just hold on to the one grand vision, we need to identify some milestone. Rightly identified milestone when achieved and when the recognition of that achievement is there, people feel motivated. So, you might have seen in many organization in the transformation process, they convert the transformation process, divide the transformation process in the 6 sigma projects or balances scorecard or some milestone of enterprise resource planning or emerges in acquisition also of organizations identifying some specific milestones, those milestones when achieved must be celebrated and must be planned and must be celebrated properly. That enthused the people that gives the faith and confidence to the larger number of people in the organization to carry on with the path of the change process. Third phase which is which quarter called sustain and which is which corroborates very well with the refreezing phase as identified by Gert Levin, talks about consolidation of the improvement in and producing still more changes. When things start happening, when balls start rolling, when initial results are positive about the change process, some organizations and some leader, they lose the sight. Many organization lose the intensity with which they are working on that in number change agenda, that does not help. Before actually securing the victory is not at all a good thing. Many organization fall prey to this problem and many leaders make this mistake. Leaders need to be patient and organization need to recognize that the initial success stories and the sign of success may not be the guarantee for the complete successful change process. So, initial change processes have to be consolidated with the improvements and producing still more changes and then the institutionalizing of the new approaches must be there. Many of you in your organization might have seen they write CMM level 4, CMM level 5 companies. CMM simply means competency maturity model. If we apply the competency maturity model on the people process, it is called PCMM. All the CMM whether it is PCMM or this CMM applied at the software development process has competency as its core. So, CMM 3, CMM 1, CMM 2, CMM 3, CMM 3, CMM 1 means there are no predictable processes. CMM 2 means manage that simply means there are predictable processes about recruitment, selection, etcetera if we are talking about the PCMM. Level 3 is about having the processes aligned to the competency and level 4 is about institutionalizing, mentoring, sustaining and building the culture of those objectives to which the CMM is geared to and level 5 CMM is about systems having inbuilt mechanism to bring about the change process. So, we need to identify and set up the systems and processes which have the inherent capability to get modified and changed. When the change process is ingrained in the normal process and systems, systems get the capability to keep redefining themselves and keep identifying what needs to be done in response to the market needs, in response to the needs of the internal customers or external customers. And that is what Kota talks about is institutionalizing the new approach. So, these steps are fine, but in organizations if the science is correct if these steps are so very well known while all organizations are not able to take these steps. Reason is that individuals have resistance to change. So, forces of resistance come from the direct cost involved because they have to learn new things, saving face because they may not feel confident to deal with the demand for the change process. Fear of the unknown, they do not know what is what is on the way. Breaking routines, we all want to continue with the existing routine and this sometime change process require to follow different routine. Incognito system, I am comfortable in working certain type of system with some technology, some reporting system, some way of interaction and receiving and taking feedback. However, a change process may require a different system which may feel incongruent to me and then incongruent team dynamics. Change process may require a different kind of interventions within my team. Suppose from the team based structure, from the team based incentive, I want to recognize the individual contribution as well then this kind of change will suddenly have impact on the quality of interaction going on in the team. So, these are the reasons why in spite of knowing what is to be done, what should be done, people resist for change. Resistance to and cost of change are like these. Resistance to change is experienced in the form of anger, active or passive aggression. Sometime people are aggressive, they have a active aggression, what we see in the what we have seen in many trade union agitations. Many time people show passive aggression also like going slow, just doing what is minimally required, waiting for the instructions before taking any decision etcetera. Sometime people have the people who do not stay in resistance by withdrawal, they just ensure that they do what is technically required for their carry, but do not take initiative. Fear of loss and they remain in a fearful situation that is also the resistance for change and there is a cost. Cost for change and any change has the cost as well is change in the reward structure, there is a change, there might be change in the power shift, requirement for the new evidences, need for the new relationship, challenge to identify and require time and energy. All these things are required, they are part of energy process. Disatisfaction leads to dissipation of the emotional energy about performance or opportunity gap. So, we need to look at why organization is going for the change. Is organization going for change because of the opportunity gap meaning organization is already doing fine, it is not loss making, it is making some profit, but still market has much more opportunity to be harvest that is called opportunity gap and then there is a performance gap. When organization is not able to perform as well as their competitors are being able to perform, opportunity gap is lack of initiative, lack of innovation. Performance gap is lack of efficiency and lack of management capabilities. So, we need to look at what is the gap in the change process organization is aiming to fill. And accordingly they need to communicate the need for change, what is the cost, the gap analysis about performance or opportunity must include the comparative data, contextual analysis, benchmarking, employee attitude. So, any change process, long term change process must be supported by a good database and that helps to identify the temperament of the change process and then the sharpening of the awareness of the gap analysis and meaning to involve the key people. Some key process choices are about building capability, building communication plan, collision, pace and involvement, training, building organization capability, metrics and missions. Pace of change has two aspects, direction and persuasion. Pace without appropriate direction is useless. Pace is not possible without persuasion because it is ultimately people who are going to implement the process. So, urgency or crisis, high dissatisfaction, low resistance, high level of support, change agent having the relevant information and changes when changes are clear then when these things have their direction is appropriate. But persuasion becomes more important when there is no crisis, when there is high need for commitment to engage in the change process, when change is not clear, when change is very complex and change agent needs support of the key consultants. So, it is a combination of the direction and the persuasion along with the performance gap and the opportunity gap decides the course of the change.