Monday, 9 September 2013

Session 4- Drivers of World Change | Change Management & Change Leadership

Brief Overview of the Session:

As usual, we began with a recap of the topics discussed during the previous session, which were centred round Industrial Development and Innovation Management. What definitely left a deep impression was Prof’s comment on the issue of sustainable development which was discussed in the topic pertaining to Technology & Industrial Development. Prof showed us a another humbling truth: “If everyone consumed as much energy as the average Singaporean & us resident, the world’s oil reserves would be depleted in 9 years.” This makes me realize how unjust my previous complaint, pertaining to how the US’ efforts in sustainable development does not match its energy consumption, was. We are actually committing the same error. I agree with Prof that it is nonsensical to say that because we’re a small nation, we don’t have to put in as much effort because our consumption and efforts are so miniscule in terms of the global scale, whether we take action or not doesn’t make a difference. Even without considering our shamefully excessive consumption levels, the issue of sustainable development is global and worldwide. Everyone is involved and has a part, a responsibility in sustaining resources for the future generation. Instead of wasting our time on debating on who should shoulder the burden of supporting this crucial change, we should all gather and focus our energy and concentration on bringing about this change. This bring up the question on how we go from the passive seat of change, responding and adapting to change, to being the drivers of change, taking and initiating the necessary actions to bring about and facilitate change.

This somewhat brings us into this session’s topics, the Drivers of World Change and Change Management & Change Leadership.

Interesting observations & ideas:

4A- Drivers of World Change

Firstly, what is a driver of world change? A driver, is a factor that necessitates changes in the way we do things. Or as Prof simply puts it, it is a factor that changes a ball game. There are numerous drivers of world change, and therefore it is crucial to always remain open and receptive to unavoidable changes in the world. We have to be adaptable to the constantly changing environment in order to survive in this fast-paced era. Is that what we always have to do though? To accept and adapt to the change? This thought-provoking quote from George Bernard Shaw challenges that idea “The reasonable man adapts himself to the world; the unreasonable one persists to adapt the world to himself. Therefore all progress depends on the unreasonable man.” The unreasonable man here is one that opposes the changes, and their accompanying problems, in the world. He doesn’t just accept them and strive to generate solutions to tackle the problems that were brought about by the changes. This link back to the critical aspect of innovation: Innovating isn’t just about thinking up a good idea (the invention component), it is also about actually getting up and physically realizing that idea by integrating it into the market.

There are many different drivers of world change, Environmental drivers such as global warming and resource depletion, competition which lead to the creation of innovative products and product modifications through companies’ drive to attain market competitive advantage, social and demographic changes such as the Ageing population, etc. The key focus here would be to be able to identify and focus on drivers that directly affects your situation, whether as a company or an individual. We have to be aware of those drivers and evaluate what are their possible implications on our situation; after which we think of solutions to tackle and minimize those potential problems. We also have to be able to predict or forecast the future unknown and unseen changes those relevant drivers will bring, and think of what we can presently do or plan to do, to prepare ourselves for them.

It is interesting to note that certain drivers of change are interconnected. For example, Globalization causes increased market competition and changing world tastes and preferences, due to increased international exposure and transmission of social view, norms and trends. Likewise, competition is also connected to scientific discoveries & Technology Innovation; through the drive and desire to possess a competitive edge and becoming market leaders, companies constant undertake research and development programs which have led to numerous technological innovations and inventions. Another example would be how scientific discoveries and technological innovations have resulted in certain social and demographic changes, a currently prevalent one is the issue of Ageing Population; advancements in medical capabilities have resulted in a much longer average lifespan, etc.

We then moved on to discuss the difference between Evolutionary & Revolutionary change. Basically, an evolutionary change is one that is gradual and incremental in nature, whereas revolutionary change is one that is drastic, sudden and involves overhauling current procedures. In evolutionary change, there is continuous and incremental improvements. You have to adopt an ongoing APDC (Acting, Planning, Doing & Changing) approach. You act by recognizing the need for change, plan what steps you have to take to go about solving the problem, doing those planned actions, whereby in the process you discover which approaches work or don’t work, and finally you make changes to your actions and the situation. In contrast, revolutionary isn’t so gradual, it comprises of a radical change, a complete departure from what you are used to. It was brought up during the session, on whether a Disruptive change is the same thing as revolutionary change. Disruptive change is a change that is irreversible and unavoidable in your expected future. From this we can say that it is definitely more revolutionary than evolutionary, because it constitutes a radical departure from previous habits and methods.

Next, Prof showed us a curve that depicts the different ways society adapt to technology:



The focus here would be on the Chasm. Early adopters, visionaries are people who willing to think of solutions and try out the solution with the initial defects. Conversely, early majority pragmatists are those people who are willing to adopt new technology early, but they are unwilling to accept the problems attached to it. They want a system that is free from those problems and they are ready and committed to finding ways to generate a working system that is free from defects. They will only accept something that is already working correctly. Crossing this chasm is very difficult yet vital. Once again recalling the concept of Innovation, inventing a good idea is just the first step. The second equally important step would be to transform it to a viable market solution.

Readings- The readings for this session were generally to show us the different types of drivers of change, and see how their importance and relevancy vary according to country or industry. Reading 1 was from the National England commissioned report, and its focus was more on the environmental and climate changes. This is in contrast to reading 3, which is a report generated by the US National Intelligence Council. Although they did mention climate changes, their concentration was on economic (economic power shifts to China and India) changes and world security changes (the issue of terrorism). The second reading shows a more Asian context, being generated by the Asian Development Bank, on the advantages and importance of globalisation for Asia. The 4th reading shows yet another perspective, which I found particularly interesting because I’ve never heard of it before, drivers of change in the Zambian construction industry. Likewise, it cites different drivers from the other readings. I feel this illustrates an important step in adapting and managing change…before we can do anything, to handle change effectively, we have to first be able to correctly identify what are the various drivers that are going to directly and drastically impact us, and from there we would think of the possible implications and solutions.

Presentations- I felt that the presentations provided a clear example of how the drivers of world change are interlinked. The 1st presentation, for example, on how social media has brought about a new generation that will remake China, by Eric Sim, is about how increasing accessibility and usage of social media platforms such as online forums, blogs etc., has result in a change in the way people, especially youths, express themselves. Gone are the days when ideas in China are carefully screened and selected by the government before being introduced to the people. The people in China now demand for social justice and government accountability instead of just following the government blindly. Eric the China milk powder scandal as an example, by saying that the government would not have taken action so quickly had the matter not been blown up so internationally and globally through social media. I felt this was a very interesting observation, and thought about the India Gang rape scandal and the Bo Xi Lai scandal. Actions may not have been so strictly and quickly taken has it not been so widespread and globally disclosed. Likewise, this wouldn’t be the case had there not been globalisation and advancements in social media.

4B: Change Management & Change Leadership

We began this second portion on how to differentiate between a leader and a manager. Basically, a leader is the one who creates the direction and policy, creates an appropriate paradigm, and the manager is the one who ensures that this paradigm is follow and maintained. I really liked the videos for this session, they were simple videos, but they were very effective and inspiring. The first video illustrates a very interesting point on leadership. The 1st follower is the one that makes a leader, not the leader himself. The 1st follower is the one who attracts and generates other followers, and that’s when an idea becomes a movement. Without this 1st follower, the leader is just “a lone nut”, and he will stay that way unless his idea is able to inspire people to follow. I found the 2nd second video exceptionally inspiring and moving. Despite my not being able to understand Hindi, the message was stark and clear: Unless you take the initiative to do something about a problem, the problem won’t change and magically go away on its own. The leader is the one who is willing to take that first step and creating an example for other people to follow suit.
Next, we talked about the difference between responding and leading change. Responding to change is adopting a passive reaction towards change, whereby you wait for the change to occur first, before thinking of how to handle it. On the other hand, leading change is a proactive stance towards change, it involves recognising the need for change even before that change happens. Prof cited a very good example of the 5th terminal plan that was recently introduced. This is a plan in response to future national growth even before that growth has materialised.

There was another curve that Prof showed us, which is the Pessimism Time Curve:

The key issue here would be getting over that peak and going from informed pessimism to 
informed realism. Informed pessimism is where you start to know all the facts and become aware of all the potential problems and obstacles. Informed is where you become prepared to accept those challenges and become willing to take the necessary actions to do that. Like the chasm in the aforementioned technology adaptation curve, this step is very difficult, and many people get demoralised and drop off before they are able to do so.

Readings- The readings for this second portion illustrates a few main points. Firstly, we can no longer maintain the traditional approach to change management and have to now embrace a modern approach. The traditional approach is one that involves an unfreeze-change-freeze method. An organisation first unfreezes in order to adapt to change, makes the change, and freezes again to resume its business course in a steady mode. This method of managing change is now obsolete. In this era where ‘change’ is the only constant, we have to employ the modern approach, whereby organisations have to constantly adapt to change. The second key takeaway point from the readings would be that importance of including and involving employees in the change process. Organisational leaders should not just think of the change themselves and then impose these changes onto employees and expect them to adopt them as ordered. That will no longer work. If employees don’t understand how the change works and why it is important and necessary, they will resist and sabotage the success of the change movement. It is also mentioned in one of the readings that “People only resist change when it makes them feel out of control- when it is foisted on them without their consent”. Organisations don’t change, their people do, therefore it is important to consider and include the human element, employees, in change management. No one is going to follow others blindly anymore.

Presentations- I felt that Yap Shien Tah’s presentation on Jack Welch’s method of change management and leadership highlights certain interesting observations. Firstly, that leadership doesn’t always have to be formal. Jack Welch adopts an informal way of leading and interacting with his employees. I felt this sort of relates to the previous point on how employees have to have a part in change management. An informal style of leading results in greater and less constrained interaction and contact with employees and this makes them feel like they have a part in the company, which is a crucial factor in determining success in managing organizational change. Another good observation made is that smart leaders plan for the next generation, they are always one step ahead. This is similarly essential in successfully managing change. Companies have to recognize the need for change even before it becomes necessary, just like how Singapore planned ahead and embarked on a terminal 5 even before it became necessary. It is best for companies to think and plan for change while it is still at the top, and not wait for decline to first occur before doing anything about it.

Session rating: 8/10
I really liked the videos shown in class today, and the individual presentations were all particularly interesting to me this session….especially Hui Qi’s presentation on edible burger wrappers… :S I wonder how they taste like…hopefully much better than they look.


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