How to Change

Two distinct aspects in any change management situation need to be addressed: WHAT needs to change HOW to bring about that change

The Change Process

How to change?

TYPES OF ORGANIZATIONAL CHANGE

TYPES OF ORGANIZATIONAL CHANGE

Sigmoid Curve

Organizational Change Lewins View

Unfreeze

Change

Refreeze

The Change Management Process

Components of the Model

Why change? Gap analysis the desired future state and the present state Getting there from here action planning and implementation Monitoring and measuring the change

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Four Theories of Change

1. Evolution Model: 2. Life Cycle Model:
Natural selection among competitors in a population

Change as a sequence of proscribed stages

3. Debate-Synthesis Model:

Use of thesis, anti-thesis, synthesis to advance change (also called the dialectic model)

4. Goal Setting Model:

Recurrent discontinuous goal setting and implementation (also called the telelogical model)

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Process Theories
Evolution: Competition
Variation Multi Retention Units of Change Selection

Debate-Synthesis: Conflict
Thesis Anti-thesis Synthesis Conflict

Life Cycle: Compliant Adaptation

Start > Early Growth > Growth > Maturity > Decline > Rebirth

Goal Setting: Purposeful

Gap Analysis > Set Goals > Implement Plan > Measure

Single

Prescribed

Constructive

Mode of Change
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Open Systems Perspective

Organizations exchange information, material & energy with their environment. They are not isolated. A system is the product of its interrelated and interdependent parts It represents a complex web of interrelationships, not a chain of linear cause-effect relationships
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Open Systems Perspective (cont)

A system seeks equilibrium and one at equilibrium will only change if energy is applied Individuals within a system may have views of the systems function and purpose that differ greatly from those of others Things that occur within and/or to open systems should not be viewed in isolation. See them as interconnected, interdependent components of a complex system
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Types of change:

Nadler and Tushman combine two dimensions i.e. Episodic or Discontinuous and Continuous change to illustrate different types of change. They define four categories of change: tuning, adapting, redirecting or reorienting, and overhauling or recreating.

Types of change:
Tuning is defined as small, relatively minor changes made on an ongoing basis in a deliberate attempt to improve the efficiency or effectiveness of the organization. -Responsibility for acting on these sorts of changes typically rests with middle management. Adapting is viewed as relatively minor changes made in response to external stimulia reaction to things observed in the environment such as competitors' moves or customer shifts. -Responsibility for such changes tends to reside within the role of middle managers. Redirecting or reorienting involves major, strategic change resulting from planned programs. These frame-bending shifts are designed to provide new perspectives and directions in a significant way. For example, a shift in a firm to truly develop a customer service organization and culture would fall in this category. Overhauling or re-creation is the dramatic shift that occurs in reaction to major external events. Often there is a crisis situation that forces the changethus, the emergence of low-cost carriers forced traditional airlines to re-create what they do.

Nadler & Tushman Organizational Congruence Model

TRANSFORMATION PROCESS INPUT OUTPUT

ENVIRONMENT (P.E.S.T.)

RESOURCES

HISTORY/ CULTURE

S T R A T E G Y

INFORMAL STRUCTURE & PROCESS

SYSTEMS LEVEL

WORK

FORMAL STRUCTURE

UNIT/GROUP LEVEL

PEOPLE

INDIVIDUAL LEVEL

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Nadler & Tushman Organizational Congruence Model

INPUT

TRANSFORMATION PROCESS S T R A T E G Y
INFORMAL STRUCTURE & PROCESS

OUTPUT

ENVIRONMENT (P.E.S.T.)

SYSTEMS LEVEL

RESOURCES

WORK

FORMAL STRUCTURE

UNIT/GROUP LEVEL

HISTORY/ CULTURE

PEOPLE

INDIVIDUAL LEVEL

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Linear Event View of the World

Goal

Gap / Problem

Decision / Action

Results

Situation

Issues & Problems with the Linear View

Time delays and lag effects related to variables and outcomes you are trying to manage (e.g., inventory stocks and flows, customer satisfaction purchase decisions) Complexity makes cause effect relationships difficult to predict and track Attribution Errors and False Learning often result from the above

Systems are Dynamic & Complexity because :

What is:
Constantly Changing Tightly Coupled Governed by Feedback Nonlinear History-Dependent

What is needed:
Self Organizing Adaptive Characterized by Trade-offs Counterintuitive

Policy Resistant

A Feedback Model
Decisions

Goals
Environment

A Feedback Model
Decisions Goals Environment Goals of Others Actions of Others Side Effects

Quinns Competing Values Framework

Flexibility

Internally Focused

Externally Focused

Control

Quinns Competing Values (cont)

Flexibility
Human Resources View Open Systems View

Internally Focused
Internal Processes View

Externally Focused
Rational Economic View

Control

Quinns Competing Values (cont)

Flexibility
Human Resources View How to work with individuals & groups Teamwork & HR dept Mentor & group facilitator roles Open Systems View How to use power & manage change The challenge of change Innovator & broker roles

Internally Focused
Internal Processes View How to understand & control the work unit Consolation and continuity Internal monitor & coordinator roles

Externally Focused
Rational Economic View How to stimulate individual & collective achievement Maximization of output Producer & director roles

Control

Greiners 5 Phases of Organizational Growth

Size of organization LARGE Evolution stages Revolution stages 4: Crisis of RED TAPE PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5

5: Crisis of ?

3: Crisis of CONTROL

5: Growth through COLLABORATION

2: Crisis of AUTONOMY

4: Growth through COORDINATION 3: Growth through DELEGATION

1: Crisis of LEADERSHIP

2: Growth through DIRECTION 1: Growth through CREATIVITY MATURE

SMALL YOUNG Age of Organization

Change What ?

Advantages of Diagnostic Tools

Advantages of diagnostic tools Diagnostic Models: -Organization -Components Readiness for Change

Help understand what to change, how and why. Simplify a complex situation.

Identify priorities for attention.

Highlight various organizational properties (e.g. strategy and structure) and their interconnectedness. Provide a common language with which to discuss organizational characteristics. Provide a guide to the sequence of actions to take in a change situation. Help us be more efficient and rational as we attempt to understand and change an organization.

Diagnostic Models: Organization

Advantages of diagnostic tools Diagnostic Models: -Organization -Components Readiness for Change

Six-box organizational model:

The key focus here is on six variables purpose, structure, rewards, helpful mechanisms, relationship and leadership. This model is useful to maintain awareness of all areas for consideration even though one variable may be identified as the main area for attention.

7-S framework:
The 7-S framework: this focuses on seven key components that affect organizational effectiveness structure, systems, style, staff, skills, strategy and superordinate goals. The interconnectedness of these variables is vital to the success of change.

Star model:
An organization is effective when the five components of organizational design strategy, structure, processes and later capability, reward systems and people practices are in alignment.
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Force Field Analysis (1951)

Diagnostic Models: Organization

Advantages of diagnostic tools Diagnostic Models: -Organization -Components Readiness for Change

Six-box organizational model

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Diagnostic Models: Organization

Advantages of diagnostic tools Diagnostic Models: -Organization -Components Readiness for Change

7-S framework

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Components of the 7-S Model

Strategy A plan or course of action undertaken in response to or in anticipation of changes in the external environment. It leads to the allocation of the organizations finite resources to reach specific goals. How people and the work are formally organized. It relates to the nature of the formal hierarchy, reporting relationships, and other design factors that go into the formal structure (e.g., span of control, degree of centralization).

Structure

Systems

The formal and informal processes and procedures used to flow information and facilitate decision making and action.

Components of the 7-S Model

Style How the managers behave (their style, what they pay attention to, how they treat others) in the pursuit of organizational goals. At a more macro level, it means the nature and strength of the culture (norms, shared beliefs and values) that develops over time and influences behavior.

Staff
Skills

How human resources are developed and categorized over time.

The dominant attributes and distinctive competencies that exist in key personnel and the organization as a whole. Longer-term vision and shared values that shape what organizational members do and the destiny of the firm.

Shared Values

Applying the 7-S Model

Identifying Areas of Alignment and Misalignment That Will Need to Be Managed and Actions that Need to be Taken
on me nt alu e s tem s e tur St ruc Sk ills St yl e gy St rat e

St aff

dV

En vir

Strategy Structure Systems Staff Skills Shared Values Style Environment

Sh are

Sy s

Diagnostic Models: Organization

Advantages of diagnostic tools Diagnostic Models: -Organization -Components Readiness for Change

Star model

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Diagnostic Models: Organization

Advantages of diagnostic tools Diagnostic Models: -Organization -Components Readiness for Change

Congruence model:
The organization is broken down into four components task, individuals, formal organizational arrangements and informal organisation. This is influenced by the context where the strategy is formulated and the output is then the performance of the organization.

Burke-Litwin model:
This model identifies the transformational external environment, mission and strategy, leadership and organizational culture - and transactional sources of change.

Four frame model:

This offers four frames for the managers to conceptualize how the organization operates. These frames are structural, human resource, political and symbolic frames.

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Transformational

The Burke-Litwin

Model

Transactional

The Burke-Litwin Model

Transformational Factors: Those variables in the top half of the model (environment, leadership, mission and strategy, and organizational culture)
Changes in these factors are seen as likely due to interactions with the external environment

Transactional Factors: The remaining variables in the lower half of the model
These variables are more involved in the day-to-day activities of the organization

Org Alignment model

Leadership

Culture & Values Environment

Team Work

Skill Enhancement

Employee Focus Career Advancement & PMS Head Count

Organizational Aspirations

Technology Image Building

Org Structure & Reporting System

Social Life

Readiness for Change

Advantages of diagnostic tools Diagnostic Models: -Organization -Components Readiness for Change

Assessing the organization's readiness to change can be a mediating variable between change management strategies and the outcomes of desired strategies. A perchance audit of the readiness of an organization for change can provide an indication of the likely outcome of a change initiative at a particular point in time. Some ways of doing this include:
Questionnaires Stakeholder analysis: This focuses on the position of stakeholders in the change process and allows the manager to be better informed of how to confront potential issues. Force-field analysis: This identifies factors that are driving forces for change as well as restraining forces.

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Roadblocks in dealing with Change.

1. Assumption that rational people will see the inherent wisdom in the proposed change and will learn the needed new behaviors. 2. Assumption that Managers have the power and influence to enact the desired changes and they underestimate the power and influence of other stakeholders. 3. Managers look at the transition period as a cost, not an investment. 4. Managers are unable to accurately estimate the resources and commitment needed to facilitate the integration of the human dimension with other aspects of the change (e.g., systems, structures, technologies). 5. Managers are unaware that their own behavior, and that of other key managers, may be sending out conflicting messages to employees and eventually customers. 6. Managers find managing human processes unsettling (even threatening) because of the potential emotionality and the difficulties they present with respect to prediction and quantification. 7. Managers simply lack the capacity (attitudes, skills, and abilities) to manage complex changes that involve people. 8. Managers' critical judgment is impaired due to factors related to overconfidence65 and/or groupthink.

Thanks