Welcome back. This is the IS/IT Governance course. This is module 4, Change Management. The idea behind change management is that you have made the IT investment, the new application has been developed, and now you want the users to use the system. So the idea behind change management is for the company to derive the value it expects from the new system, the users have to use the new system. So change management is about making sure that the users use the new system. In this module, we have two goals, change management basics and different change management strategies for different types of systems. In this lesson we will focus on change management basics. In this lesson we have three goals, understanding user resistance, different models of user adoption, and different levers for affecting user adoption. This video will focus on understanding user resistance. So what is user resistance? User resistance is the means by which employees communicate their discomfort with the system. If a system threatens users in anyway, they will resist. By threat, we mean any loss of status, loss of power, loss of revenue is a threat. If a system threatens users, they will resist. So better theories on resistance will lead us to implement better strategies. If we understand why users are resisting we will be able to implement better strategies. So let's start by looking at the level of resistance. Resistance can take one of these forms, apathy means inaction or lack of interest users don't show any interest in using the new system. Passive resistance means they delay using the new system, they make excuses for not using the new system and they continue with their former behavior. That is, they continue to act as if the old system is in place. Active resistance is when the voice opposing points of view ask others to not use the new systems and form coalitions of people who resist using the new system. Aggressive resistance is when users make threats against people who are proposing to use the new system. And people who are interested in using the new system, boycott, sabotage of the new system, are all manifestations of aggressive resistance. So the question is, why do users resist using a new system. So we can examine this question from the status quo bias perspective. So the idea is there is already a system in place, so the users make a rational decision that the new system does not favor them. So they assess the costs and benefits of the new system and they may see that there is a cost associated with the new system. They have to learn the new system, there is some uncertainty and risk associated with the new system. For example, the new system may make them feel incompetent. So rationally thinking, they prefer the old system to the new system, so they resist using the new system. So rational decision making leads to resisting using the new system. The second reason could be cognitive misperception. So even small losses may seem like a big deal. So even small flaws in the new system may seem like big hurdles to using the new system. So cognitive misperception may lead users to resist the new system. And finally, psychological commitment to the old system may lead users to resist the new system. So, for example, all the effort invested in learning the old system may seem like a waste which will cause users to resist using the new system. Similarly the effort required to feel in control of the new system may seem like excess amount of effort. Which may cause users to resist using the new system. So rational decision making, psychological commitment and cognitive misperception may lead to resisting the new system. So how do users cope with a new system? So we can look at a coping model of user adoption. Users choose different strategies of coping based on the assessment of consequences of a new system. Is a new system an opportunity to improve their performance or is the new system a threat to their position in the organization? The second dimension is a user's assessment of control over the situation. That is, how much control do they feel they have over their work, over themselves and over the technology? So based on their assessment of the consequences of the new system, and their assessment of their control over their situation, they may choose different strategies. So let's look at these coping strategies, one by one. So benefit maximizing strategy is when the users feel that the system presents and opportunity to improve their performance, and they have high control. That is, they have control over how they will perform their work, they have control over the technology. So in this case, users may modify the technology or modify their behavior, that is, gain training so that they can maximize, the benefits of the system. That is, they use the system to maximize their performance. The second strategy is benefits satisficing. So this is a situation where users feel that the new system presents an opportunity to improve their performance. However, they don't have any control over how they will perform their work and they don't have any control over the technology. So in the benefits satisficing approach, users goal is to do the best they can, realizing that they don't have any control over their work, themselves or the technology. But they believe that the system can help them improve their performance, so they try to use the system to maximize their performance. The next strategy is what is referred to as disturbance handling, where users see the system as a threat to their position. But they feel that they have control over their work, themselves, and the technology. So disturbance handling means users doing everything that is in their control, such as gaining training, modifying the system to minimize the threat of, for example, getting fired. The last strategy is referred to as self-preservation, which means that the user feel that the new system is a threat to their position, but they don't have any control. So self preservation is like hoping that this new system will pass and nothing will change. So self preservation is about hope and self deception to cope with the situation. Where the new system is a threat, but they don't have any control over the situation. Thank you.
