Who

Moved My
Cheese?

An Amazing Way to Deal

With Change In Your life
CHEESE
A Job
A Relationship
Money
Freedom
Health
Recognition
Spiritual Peace
An activity like
jogging or golf
Common Goals : we search for
favorite cheese

The maze is a complex system of

paths or tunnels in which it is easy
to get lost
One morning, there was no cheese at my
Station !!! Who moved my cheese?

The Changes
move your
cheese!
The question is how we react to
those Changes?
The Sniffs who The Scurry who
anticipate change early quickly scurry into
by sniffing it out action and adapts.
He likes to get things
done, so he takes
action

The Hems who deny The Haws who learn to

change and resist it adapt in time when he
out of fear. He wanted sees something better.
to remain in a place He was hesitant at first,
that was safe but then open-minded
enough to learn
something new.
Cheese is what we think will make us
happy, and when circumstances take
it away, different people deal with
change in different ways.
Yesterday’s
Cheese is NOT
coming back.
It’s time to
search for New
Cheese.
Whatever part of us we choose, we all
share the common need to find our
way in the maze of life and succeed in
changing times.
Anticipate Change &
Adapt to it quickly!
If you
do not
change,
you can
become
extinct.
When you move beyond your
fear, you feel free.

Move With The

Cheese & Enjoy It !
 What is change?

•Change can be a positive thing.

•We have to be flexible and adaptable.

•No one admits they fear change but

think everyone around them does –
denial.
Change happens !!!!!!!!
 Meaning
 According to Cook, Philip and Coffey, ‘ the
coping process of moving from the present state
to the desired state that individuals, groups and
organizations undertake in response to dynamic
internal and external factors.’

 There are two types of change

 Evolutionary change, which is gradual, incremental,
and specifically focused
 Revolutionary change, which is sudden and drastic.
Three Phases of Change

Current Transition Future

State State State
 Current State

• Individual generally prefer the current state

Current Transition Future

State State State
 Future State

• The future state is unknown to the us.

Current Transition Future

State State State
 Transition State

• The transition state creates stress and anxiety

Current Transition Future

State State State
"It is not the strongest of
the species that survives,
nor the most intelligent
that survives. It is the one
that is the most adaptable
to change."   
 In 1997, Jack Welch General Electric CEO then,
decided to send some mortgage and insurance
application work to a small team in Gurgaon.
 By 2002, that work had expanded to 10000
people company and was biggest part of GE
Capital.
 Genpact, the BPO, today is a $1.5 billion
industry. Last estimates, some 2/3 of
outsourced BPO work in the world is serviced
from India by 1.5 million workers.
 people
World
Technology
Politics
Forces For
Change
Economic
Globalization
Shocks
Competition
Types of Changes:
1) Planned
2) Accidental

Organizational
Change

Accidental
AccidentalChanges
Changes
planned
plannedChanges
Changes •• Changing
•• Changes Changingemployee
employee
Changesin inproducts
productsand
and demographics
services demographics
services •• Performance
•• Changes Performancegaps
gaps
Changesin inadministrative
administrative •• Governmental
systems Governmentalregulations
regulations
systems •• Economic
•• Changes Economiccompetition
competitionininthe
the
Changesin inorganizational
organizationalsize
size global
or globalarena
arena
orstructure
structure
•• Introduction
Introductionofofnew
new
technologies
technologies
•• Advances
Advancesin ininformation
information
processing
processingand
andcommunication
communication
 Types of Planned Changes
Two Types
Operational Change
based on efforts to improve basic work and organizational processes

Transformational Change
involves redesign and renewal of the total organization
 ORGANIZING FOR CHANGE…

Doing the right things

Leadership
How you achieve Who is responsible
your goals
Structure for what
Strategy
Purpose
shared vision/
values/goals
Organization Ongoing
Culture systems
Underlying processes
assumptions
that drive behavior
Workforce

Capacity and capabilities of

the people who do the work
 The Change Process
 Problem Recognition
 Identifying the causes of problem
 Implementing the change
 Generating motivation for change
 Managing the transition state
 Supporting the change
 Evaluating the change
 Resistance to change
INDIVIDUAL RESISTANCE ORGANISATIONAL RESISTANCE

Habit Structural inertia

Security Limited focus of change

Economic factors Group inertia

Fear of unknown Threat to expertise

Selective information Threat to established power

processing relationships
Threat to established resources
 Overcoming resistance to change
 Educating employees and improving
communication with them
 Encouraging employee participation
 Facilitation and support
 Negotiation
 Manipulation
Change Happens
Anticipate Change
Monitor Change
Adapt To Change
Quickly
Change
Enjoy Change !
Be Ready To Change
Quickly & Enjoy It
Again.
 Lewin’s 3 step Change process.

Unfreezing Changing Refreezing

Unfreezing Old behavior creates motivation to learn.

 Lewin’s Three-Step Process
 The first step, “unfreeze” involves the process
of letting go of certain restricting attitudes
during the initial stages of an outdoor
education experience. 
 The second step, "change" involves alteration
of self-conceptions and ways of thinking
during the experience.
 The third step, "refreeze" involves solidifying
or crystallizing the changes into a new,
permanent form for the individual
Unfreezing Techniques
people are taken from a state of being unready to change to being ready and willing to make the first step.

 Burning platform: Expose or create a crisis.

 Challenge: Inspire them to achieve remarkable
things.
 Evidence: Cold, hard data is difficult to ignore.
 Education: Learn them to change.
 Management by Objectives (MBO): Tell
people what to do, but not how.
 Visioning: Form Visions. Visions work to
create change.
 Changing Techniques
Once you have unfrozen the people, the next question is how you keep
them going.

 Coaching: Psychological support for

executives.
 Facilitation: Use a facilitator to guide team
meetings.
 First steps: Make it easy to get going.
 Involvement: Give them an important role.
 Open Space: People talk about what concerns
them.
 Step wise change: Break the work into
packages.
 Refreezing techniques
people are taken from a state of being in transition and moved to a stable
and productive state

 Burning bridges: Ensure there is no way back.

 Evidence stream: Show them time and again
that the change is real.
 Institutionalization: Building change into the
formal systems and structures.
 Reward alignment: Align rewards with
desired behaviors.
 Socializing: Build it into the social fabric
 Kotter’s Eight-Step Plan for Implementing Change
1. Establish a sense of urgency by creating a compelling reason
for why change is needed.
2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change and strategies for
achieving the vision.
4. Communicate the vision throughout the organization.
5. Empower others to act on the vision by removing barriers to
change and encouraging risk taking and creative problem
solving.
6. Plan for, create, and reward short-term “wins” that move the
organization toward the new vision.
7. Consolidate improvements, reassess changes, and make
necessary adjustments in the new programs.
8. Reinforce the changes by demonstrating the relationship
between new behaviors and organizational success.
 Case Example

ICICI Bank merger with Bank of Madura (December 2000)

What does it reveal ?

It reveals the importance of change management for the

Bank of Madura and how effective management of change
could bring out best results from the employees in the
Bank of Madura.
ICICI Bank Ltd. Bank of Madura (BoM)

ICICI was established by the Established in 1943, in

Government of India in 1955. Madurai, Tamilnadu. By 2000,
it became the no. 1 in
Tamilnadu.
Three times to that of Bank of One third the size of ICICI.
Madura

Staff strength was only 1,400. Staff strength was 2,500.

Departments into individual Management concentrated on

profit centers. the profitability of the overall
bank.
 Immediate Impact

 There were large differences in profiles, grades,

designations and salaries of personnel
 There was uneasiness among the staff of BoM as they felt
that ICICI would push up the productivity per employee,
to match the levels of ICICI
 BoM employees feared that their positions would come in
for a closer scrutiny.
 They were not sure whether the rural branches would
continue or not as ICICI's business was largely urban-
oriented.
 Employee behavioral pattern study

PERIOD  EMPLOYEE BEHAVIOR

Day 1 Denial, fear, no improvement

After a month Sadness, slight improvement

After a Year Acceptance, significant

improvement
After 2 Years Relief, liking, enjoyment,
business development activities
 Steps taken to Decrease resistance of
change by ICICI

 Established clear communication channels

throughout.

 Training programs were conducted which

emphasized on knowledge, skill, attitude and
technology to upgrade skills of the employees.

 Direct dialogue with the employee unions of the

BoM to maintain good employee relations.
 By June 2001, the process of integration
between ICICI and BoM was started
 ICICI transferred around 450 BoM employees to ICICI Bank,
while 300 ICICI employees were shifted to BoM branches.

 Promotion schemes for BoM employees were initiated and

around 800 BoM officers were found to be eligible for the
promotions.

 End of the year, ICICI seemed to have successfully handled

the HR aspects of the BoM merger.

“The win-win situation created”

ORGANISATIOANAL
RESTRUCTURING
Organizational restructuring
involves making changes to the
organizational setup. The changes
have impact on the flow of
authority, responsibility and
information across the
organisation.
 Commonly used re-structuring strategies
 Downsizing, rightsizing, smart sizing, lay offs: egs:
General Motors- 1991 decided to layoff 74000 employees.
IBM laid off 85,000 employees
 Egs-2- AT&T acquired Bell South, restructured resulting
lay offs of 10000 employees over a period of three years.

 Starburst: breaking the company into smaller independent

business units to increase productivity and flexibility. Eg:
Nicholas Piramal, Pfizer

 Spin off: Pfizer in 2011 decided to spin off four non-

pharma divisions-nutrition, consumer health, animal
health and capsule making. Eg: Biocon - syngene
Commonly used re-structuring strategies
 Verticalisation: organisation restructures itself to offer
tailor products and services to cater the requirements
of specific industry. Eg HCL in 2002 verticalised in five
different industries, retail, media, telecom,
manufacturing, finance and life science.

 Delayering: From tall to flat organisation. Eg: General

Motors reduced number of management from ten to
four.
 Business Process Re-engineering : restructuring is carried
out for making operational movement. Begins with
identifying how things are being done currently and then it
moves on to re-engineering the tasks to improve
productivity. Eg: Ford Motor, for its accounts payable
department. Mahindra & Mahindra.

 Outsourcing: Business prefers to outsource some processes

to other firms, allowing the company to concentrate on its
core business. Eg: Nokia planned to lay off 4000 employees
by the year end 2012, as it outsourced the production of
Symbian Operating System.

 Virtualization: pushing employees to the clients site. Also

upgrading technology, allows virtual offices to be set up.
Eg: ATM are virtual units of banks.
 Fishers Change process: The Process of Transition
This
What can
Denial
impact work
Can I At Last will this Change? and be
cope ? something’s have? What good
going to How will Change?
change ! it affect
I can
me? This is see
bigger than I Disillusionment myself
thought! I’m off!! in the
… this future
isn’t for
me! Moving
Did I
Forward
really
do that
Who am
I?
Happiness
Anxiety
Gradual
Acceptance
Fear

I’ll make
this
Threat Guilt Depression work if it
Hostility kills me!!