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Summary Leading Change (MBA - KUL) - R. Caers
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Leading ChangePART I – Ralf Caers
Session 1 2
Session 2 9
Session 3 16
Session 4 22
PART II – Caroline Bastiaensen
Session 1 33
Session 2 38
Session 3 55
Session 4 64
Sample exam 76
, PART I – RALF CAERS
Session 1
Introduction
• Why does managing change deserves to be a separate course?
o Change is difficult. Thus, maybe it does require a separate course for us to elaborate more
about it, comprehend why change can be difficult for people and try to find solutions for this
and help organizations move forward.
o Change is everywhere, but fundamentals may be similar. There is a constant need for
change around with the quicker technological innovation and the many developments.
o Is change necessary? It is constantly happening, and it seems like we need it in order to
move forward.
o Is change always a positive thing? Are there case where change makes things worse?
Negative consequences?
o So clearly, this course is relevant.
• Example:
o Situation 1: You come home after work to your kids who are overweight and snacking on
unhealthy food while watching television. You realize this isn’t a healthy habit, and would
prefer them to do some more exercise, eat healthier and slim down. You are sharing these
planned changes with them. You hope for it to work. But it isn’t as easy. They will probably
resist the change.
o Fact 1: People may resist the change that you propose. Even if it is the right thing to
do.
o Option: Show them the science?
§ “Childhood obesity as a predictor of morbidity in adulthood: a systematic review and
meta-analysis.”
§ Possible counter-argument: Life is often a normal
distribution: most people around the middle, and outliers
at both sides. There are exceptions, not all people who
were obese as kids will face this tragic situation.
§ Trying to convince people to live healthier (by drinking
less alcohol for example). But possible counter-argument; the case of Robertine: 97
years old lady is drinking 15 pints a day, and gets a free barrel as a birthday present
from AB Inbev. People who really want to drink then will compare themselves with this
outlier.
§ Something to take into account: disagreements in science. Thus, this might not be the
most convincing argument. “Metabolically healthy obesity”.
§ The other side of the curve: “Why do healthy people die running marathons?”.
o How to tackle situation 1: What can help: psychological inoculation.
§ Ask you to reject statements.
§ Slowly removing mental barriers (anchor points, reference frames).
§ Showing stable grounds: give the idea that you could be potentially successful in the
new situation.
§ Illustration: Tell a smoker the following statements and ask him to reject them.
Statement 1: if you quit smoking you will no longer be cool. The person might say no I
will still be cool because of my passion for breakdance. Statement 2: if you quit
smoking you cannot avoid gaining weight. The person again might be no, I know I can
because I was planning on starting to run again. So now those people will themselves
break their own beliefs.
§ Positive implications of psychological inoculation:
- does not force one’s perspective upon you
- makes you question your reference frame yourself
- makes you see the barriers (eg. belief that you are still physically fit, bet on it
by running some laps). Make people feel the barriers. Not always that evident.
Illustration: you want to make people more aware of poverty, making them
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, change their consumption style in order to donate to charities working against
poverty. But, how do you make people feel poverty? It’s not that easy.
(Illustration: Make Belgium great again: make 2020 great again: schenk een
kerstcadeau aan een kind in armoede.)
- who becomes owner of the problem can become owner of the solution
• Example:
o Situation 2: You decide to where the hijab and convert to Islam after a long life of partying
because you have come to the conclusion that living a more modest life would really be better
for you. It is likely that when you share this news with your family and friends, you stumble
upon a lot of resistance. Especially parents have this tendency to want to keep their children
where they are and how they are, that’s because they know what there is now and that seems
to be working.
o Another example illustrating this would be when you tell your mother you want to break up
with your partner of many years. You might have all the good reasons in the world to do so, it
might be the right thing for you but most likely you will receive an answer on the lines of “Are
you sure?” “Can you not work things out?”. That’s because they have gotten used to that
person, they have accepted and accommodated him into “their lives” and a break up would
require efforts to change those habits and uncertainty (Who knows who you will bring home
next time). They are in their comfort zone and it’s really easy to stay in there. In addition people
often reinforce that comfort.
o Fact 2: People may resist that you change. Even if it’s right thing to do.
• Example:
o Situation 3: You are not sure of what to do. You are doubting to be strong enough to make a
change and stick with it and face the consequence of that decision. An example could be that
of people who are transgender, wanting to change from one gender to the other. It is a lengthy
process, or it might shock people close to you who were not prepared for it. All of these
variables that come with taking this decision might make you resist undergoing that change.
o Fact 3: You may resist that you change. Even if it is the right thing to do.
3
, The punctuated equilibrium
• This looks like a heartrate monitor.
• There are always periods of minor change, and sometimes there are periods of major disturbances.
• Incremental change: period of minor change: could be doing things better, improving, or optimizing.
• Transformational change: period of major disturbance: means doing things differently, drastic
changes, invasive changes, restructuring.
Figure: Restructuring and reconfigurations at Ford (1985 - 2004)
• Restructuring and reconfigurations at Ford (1985 – 2004) - Girod S. & Whittington R. (2015)
“Change Escalation Processes and Complex Adaptive Systems: From Incremental Reconfigurations
to Discontinuous Restructuring.” Organization Science 26(5):1520-1535.
o Blue zone: normal levels of turnover.
o Restructuring: red lines: massive amounts of turnover.
o Again, same pattern: many periods of minor change (incremental change) and some periods
of major disturbance (transformational change).
o If after a major disturbance, the period of minor change doesn’t move fast enough in order to
adjust to this big change, then another period of major disturbance will have to follow soon
after again.
• The punctuated equilibrium
o Part of the evolution theory.
o The belief that change does not happen only
gradually, but with shocks.
o Period of relative stability followed by a shock.
o How long does such a cycle actually last for? This
depends on what kind of change you are looking at.
Depending on the industry a cycle could take 5-30
years. In recent years it’s moving more rapidly
because of technological advancements.
o Major disturbances caused by events that alter the
basic dynamics in an industry.
o External changer (external to industry)
§ economic conditions
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