Change Management

 

Review of International Indexed Journals

Subject	:	Change Management
Lecturer	:	Dr. Muhammad Ichsan Hadjri, M.M.
Student
NIM	:	01023622328001
Name	:	Erfan Robyardi
Semester	:	2 (Two)

Foreword

 

Preparing this Dissertation Proposal is an assignment for the Change Management course, which is one of the requirements for getting grades in semester 2 (two). This assignment was carried out diligently in accordance with the instructions of the Teaching Lecturer, namely the honorable Dr. Muhammad Ichsan Hadjri, MM

In completing this assignment, a lot of help has been given from the Lecturer Team who teaches in semester 2 (two) and also the academic community of Sriwijaya University, as well as fellow colleagues, especially the class of 2022 Doctoral Degree Study Program (S3), Faculty of Economics, University Srivijaya. There are many shortcomings in this assignment, so we hope that constructive suggestions and opinions can be submitted as time goes by. Thank you for your help and good cooperation.

1.	Title
	Change management in sustainability transformation: A model for business organization Ibrahim E. Sancak Ostfalia University of Applied Sciences, ZWIRN-Research Center, Germany
2.	Change Process Models
	1)	Following other scientific fields (change management) to develop with a strategic sustainability management approach,
	2)	Applying an existing model (SRC model) to develop a sustainability transformation model (STM),.
	3)	Developing science-based roadmaps for business organizations,
	4)	Opening new lines of research in ESG-oriented sustainability transformation, 5. Demonstrating the weight between factors E, S, and G in the overall sustainability transformation capability
3.	The Need to Make Change This study enlarges the issues of sustainability transformation by applying tenStouten, Rousseau, & Cremer's model of evidence-based key steps in managing planned organizational change as a foundation for developing a sequential sustainability transformation model (STM) and classifying transformation steps in terms of E, S, and G factors. Stouten, Rousseau, & Cremer (2018) developed based on seven foundational models of organizational change: Lewin (1948), Cooperrider and Srivastva (1987), Beer et al., 1990, Judson (1991), Kanter et al. Wiek and Lang (2016) classified sustainability science into two distinct research streams: descriptive-analytical and transformational. Descriptive-analytical sustainability science is primarily concerned with describing and analyzing sustainability problems, and the latter aims to develop evidence-supported solution options for solving these problems (Wiek and Lang, 2016). Sustainability transformation is a solution-oriented research field that helps humanity achieve normative goals in the transition to sustainability (Abson et al., 2017). Our study falls within the field of transformational sustainability science. This study focuses only on ESG-oriented sustainability transformations and holding other factors constant. For example, this paper does not focus on evaluating the performance of specific sustainability practices, or the impact of other major trends, such as digital transformation. Moreover, no single approach can address the enormous variability large in organizations operating in different jurisdictions and sectors with company-specific problems (Kanter et al., 1992; Judson, 1991). Nature of organization plays an important role in where sustainability changes are initiated and how they affect system elements (Lozano and Garcia, 2020).
4.	The process of motivating organizational members and stakeholders to make changes Sequential steps in sustainability transformation :
	1).	Problem, risk and opportunity assessment (change step 1) Sustainability transformation begins with an assessment of the problems, risks, challenges, and opportunities. Such assessments require comprehensive analysis by professionals. Sustainability transformation has many aspects, especially sustainability science, organizational theory, regulatory dimensions, and more. The management team of a business organization is not expected to develop expertise in this area in a short time. Additionally, a company's staff may not have a strong enough background in sustainability and organizational change. Therefore, the first transformation step (TS 1) is to obtain consultation from scientists and experts. Working together with scientists and experts can speed up every step of a transformation program. As a second step (TS 2), developing a strong understanding will clarify the path to sustainability transformation. According to the PennState-Sustainability Institute (2019), understanding sustainability takes first place.
	2).	Select and support a guiding change coalition (change step 2) Change coalitions can be critical in assisting effective diagnosis due to the diverse input members can provide (Stouten et al., 2018). The design and members of a change coalition may convey a message about sustainability transformation: forming a strong and influential coalition of employees or other leaders may help signal consensus about that message (Kellogg, 2012; Bies, 2013; Stouten et al., 2018). In the context of organizational change, Kellogg (2012) suggests that implementing reforms within organizations may require reformers not only to mobilize against each other with different identities, but also to defend against counter-tactics from opponents. Beer et al., 1990 discussed the importance of coalitions consisting of various stakeholders. Furthermore, Sulkowski et al. (2018) argue that companies can catalyze collaborative relationships to create sustainable value. On the other hand, Kotter (2007, p. 4) marks “no creating a sufficiently strong guiding coalition” as one of the eight mistakes that lead to failure in transformation efforts. In transformationsustainability, change coalition is the engine that must be used
	3).	Formulate a clear and compelling sustainability vision (change step 3) As the third change step in this model (for both SRC and STM), formulating a clear and compelling vision for sustainability change provides a clear target for the organization and its stakeholders. The prescriptive literature and academic literature agree on the importance of articulating a compelling vision of change (Stouten et al., 2018). According to Kotter (2007), transformation efforts can take an organization in the wrong direction or anywhere without a reasonable vision. Kotter (2007, pp. 5–7) mentions a “lack of vision” and “not removing obstacles towards a new vision” as two of the eight mistakes that cause failure in transformation efforts.
	4)	Communicating the vision (change step 4) Change models agree that a vision should be communicated through multiple channels, including newsletters, social media, or workshops (Stouten et al., 2018). Additionally, research supports the value of a vision communication process based on repetition and quality evidence (Stouten et al., 2018). Furthermore, Kotter (2007) emphasizes “walk the talk.”
	5)	Mobilize energy for change (change step 5) Mobilizing energy for change refers to planning the actual implementation of change at various levels of the organization (Stouten et al., 2018). Studies show that only 30% of change programs are successful (Blackburn et al., 2011). Employee resistance and management behavior that does not support desired changes are the two main causes of failure in change, accounting for more than 70% of all failures (Black burn et al., 2011). Stouten et al. (2018) stated that an important part of actual change planning may be managers' readiness to face change, their skills in implementing change, and the extent to which they are trusted by change recipients.
	6)	Empower others to act (change step 6) A study (2020) conducted by the University of Cambridge Institute for Sustainability Leadership found that empowering employees with time and knowledge about transitions is one of the key factors in sustainability transitions. Using survey and interview data, Perkins and Serafeim (2015) analyzed how the authority and responsibilities of a chief sustainability officer vary across organizations at different stages (compliance, efficiency, and innovation) of sustainability commitments.
	7)	Develop and promote change-related knowledge and capabilities (change step 7) Sustainability transformation changes almost all dimensions of a business organization, and it is a long-term undertaking that requires a multi-angle touch. Change typically requires training and development at all levels, and effective change involves learning new skills and developing knowledge (Stouten et al., 2018). Using new and common language to communicate effectively with a common understanding in the ESG context is critical (KPMG, 2020). ESG-oriented sustainability transformation has its own rules, language and terminology; therefore, it addresses new knowledge for stakeholders.
	8)	Identifying short-term wins and using them to reinforce change progress (change step 8) Short-term wins help convince members who are cynical about change (Stouten et al., 2018). Kotter (2007) states that many people may give up and join those who have been resisting change without short-term results. The University of Cambridge Institute for Sustainability Leadership (2020) estimates that sustainability transformation will take more than five years. Most people will not travel long distances unless they see strong evidence showing that the change provides Muff, 2015, p.11). expected results (Kotter, 2007). Therefore, identifying short-term targets and wins will improve perception and motivation for change.
	9)	Monitor and strengthen the change process (change step 9) Many organizations make sustainability commitments, but do they actually achieve them? Eighty-five percent of Fortune 500 companies have bold sustainability commitments, but less than 30% are on track to meet those commitments (Engie Impact, 2021). Transformation for business organizations means a completely new set of processes, which require continuous monitoring and regular assessment, both from within and without. In sustainability transformation, attention can be paid to changes in change commitment, competence, and efficacy over time, as well as the adoption of new practices (Stouten et al., 2018). Monitoring and assessing sustainability performance in this phase means returning to the first change steps, specifically transformation steps 7 and 8 (identifying key performance indicators, or KPIs, and setting target values). Likewise, evaluating compliance with regulatory requirements and industry standards is also an important step in this phase. In the field of sustainability, new rules and regulations emerge from year to year. Therefore, aligning sustainability compliance efforts with regulatory requirements is part of sustainability transformation.
	10)	Institute change in company culture, practices, and management succession (change step 10) The final step in transformation concerns the institutionalization of changes in organizational culture, practices, and management succession (Stouten et al., 2018). Institutionalization involves implementing support structures, which help sustain new practices and increase their efficiency and effectiveness (Stouten et al., 2018). Kotter (2007) stated "not making changes in  corporate culture” as one of eight mistakes that cause failure in transformation efforts. Therefore, linking changes in organizational management practices, culture and succession is one of the main strategies in this phase (TS 48). Sustainability transformation for business organizations means integrating sustainability capability features, especially ESG factors, into the organization at all levels and dimensions, including culture. Kotter (2007) states that new behavior must be rooted in social norms and shared values. Organizations must always consider the big picture, especially ESG factors and, more broadly, the SDGs, in monitoring, adapting to the progress of change, and developing more continue the transformation program.
5.	Review process and maintain changes running as expected Sustainability, as a megatrend, forces business organizations to transform from the level of business as usual to the level of sustainability. This study configures a sustainability transformation model for business organizations. This research enlarges the sustainability transformation process by applying the ten key evidence-based steps of Stouten, Rousseau, & Cremer's model for managing planned organizational change as a basis for developing a sequential sustainability transformation model (STM) that classifies transformation steps in relation to environmental, social, and environmental factors. governance (ESG) ESG factors are the main criteria in sustainability transformation. Finally, it should be noted that our research can be applied to other organizations or organizations, including public sector organizations, and the validity of our findings can be tested based on company-, sector-, and jurisdiction-specific considerations. Additionally, different models of planned organizational change may produce different results; therefore, the same research questions can be tested with other models of organizational change. Factors in sustainability transformation are in line with theory and practical evidence. However, the application of ESG factors in planned organizational changes remains unclear for business organizations. This study highlights ESG-based sustainability transformation under the guidance of change management language Building a step-by-step path for business organizations towards sustainability shows that governance factors play the most significant and dominant role among ESG factors. Additionally, governance factors completely dominate the initial phase of a business organization's sustainability transformation. The results are in line with theoretical principles and practical evidence. These findings demonstrate the importance of governance factors in sustainability transformation. In addition to the core findings, the study also discusses the importance of developing more robust metrics to measure governance factors for stakeholders, given previous evidence that ESG ratings barely account for 20% of governance. These findings also have many policy implications for decision makers, researchers, self-regulating industry organizations, ESG rating agencies, sectoral, national and global standard setters and regulatory bodies regarding their approaches to sustainability, especially ESG alignment. The (STM) model itself, organizational change steps, transformation steps, and existing findings convey important matters for business organizations planning a comprehensive sustainability transformation Although our findings suggest that governance factors still dominate sustainability transformation projects for business organizations, this study can be applied to other organizations, and the validity of our findings can be tested based on company-, sector-, and jurisdiction-specific considerations. In addition, studies that focus on the interaction of E, S, and G factors, for example, how and why E factors influence S or G factors and vice versa, or how to balance sustainability components can better explain ESG-oriented sustainability transformations. field.
6.	Source        Journal of Environmental Management https://www.sciencedirect.com/science/article/pii/S0301479722027384?via%3Dihub