Change Mgt

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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

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The Change ProcessHow to change?

TYPES OF ORGANIZATIONAL CHANGE

TYPES OF ORGANIZATIONAL CHANGE

Sigmoid Curve

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Organizational Change – Lewin’s View

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Unfreeze Change Refreeze

The Change Management Process

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• 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

Components of the Model

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1. Evolution Model: • Natural selection among competitors in a population

2. Life Cycle Model: • 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)

Four Theories of Change

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Process Theories

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Units of Change

Multi

Single

Prescribed ConstructiveMode of Change

Evolution: Competition Debate-Synthesis: Conflict

Goal Setting: Purposeful

Variation Selection

Retention

Thesis

Anti-thesis

Conflict

Synthesis

Gap Analysis > Set Goals > Implement Plan > Measure

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

Life Cycle: Compliant Adaptation

• 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

Open Systems Perspective

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• A system seeks equilibrium and one at equilibrium will only change if energy is applied

• Individuals within a system may have views of the system’s 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

Open Systems Perspective (con’t)

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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 re-creating.

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 stimuli—a 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 change—thus, the emergence of low-cost carriers forced traditional airlines to re-create what they do.

Types of change:

Nadler & Tushman – Organizational Congruence Model

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INPUT

ENVIRONMENT(P.E.S.T.)

RESOURCES

HISTORY/CULTURE

OUTPUT

SYSTEMSLEVEL

UNIT/GROUPLEVEL

INDIVIDUALLEVEL

STRATEGY

TRANSFORMATION PROCESS

INFORMAL STRUCTURE & PROCESS

FORMAL STRUCTURE

PEOPLE

WORK

Nadler & Tushman – Organizational Congruence Model

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INPUT

ENVIRONMENT(P.E.S.T.)

RESOURCES

HISTORY/CULTURE

OUTPUT

SYSTEMSLEVEL

UNIT/GROUPLEVEL

INDIVIDUALLEVEL

STRATEGY

TRANSFORMATION PROCESS

INFORMAL STRUCTURE & PROCESS

FORMAL STRUCTURE

PEOPLE

WORK

Environmental Pressure

Linear Event View of the World

Goal

ResultsDecision / ActionGap / Problem

Situation

• 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

Issues & Problems with the Linear View

• Constantly Changing

• Tightly Coupled

• Governed by Feedback

• Nonlinear

• History-Dependent

Systems are Dynamic & Complexity because :

• Self Organizing

• Adaptive

• Characterized by Trade-offs

• Counterintuitive

• Policy Resistant

What is: What is needed:

A Feedback Model

Decisions

Environment

Goals

A Feedback Model

Decisions

Goals Side Effects

Environment

Goals of Others

Actions of Others

Quinn’s Competing Values Framework

Flexibility

Control

Internally ExternallyFocused Focused

Quinn’s Competing Values (con’t)Flexibility

Control


Human Resources View

Open Systems View

Internal Processes View

Rational Economic View

Quinn’s Competing Values (con’t)

Flexibility

Control


Human Resources View Open Systems View

Internal Processes View Rational Economic View

• How to work with individuals & groups• Teamwork & HR dept• Mentor & group facilitator roles

• How to use power & manage change• The challenge of change• Innovator & broker roles

• How to stimulate individual & collective achievement• Maximization of output• Producer & director roles

• How to understand & control the work unit• Consolation and continuity• Internal monitor & coordinator roles

Greiner’s 5 Phases of Organizational Growth

Evolution stages

Revolution stages

Size of organization

LARGE

SMALL

YOUNGAge of Organization

MATURE

1: Growth throughCREATIVITY

1: Crisis ofLEADERSHIP

2: Growth throughDIRECTION

2: Crisis ofAUTONOMY

3: Growth throughDELEGATION

4: Growth throughCOORDINATION

5: Growth throughCOLLABORATION

3: Crisis ofCONTROL

4: Crisis ofRED TAPE

5: Crisis of ?

PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5

Change What ?

Advantages of Diagnostic Tools• 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.

Advantages of diagnostic tools

Diagnostic Models: -Organization-Components

Readiness for Change

Diagnostic Models: Organization




• 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)





Six-box organizational model

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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 organization’s finite resources to reach specific goals.

Structure 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).

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 How human resources are developed and categorized over time.

Skills The dominant attributes and distinctive competencies that exist in key personnel and the organization as a whole.

Shared Values

Longer-term vision and shared values that shape what organizational members do and the destiny of the firm.

Applying the 7-S Model

Identifying Areas of Alignment and Misalignment That Will Need to Be Managed and Actions that Need to be Taken

Envi

ronm

ent

Styl

eSh

ared

Val

ues

Skill

s

Staf

f

Syst

ems

Stru

ctur

e

Stra

tegy

Strategy

Structure

Systems

Staff

Skills

Shared Values

Style

Environment





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Star model

Diagnostic Models: Organization• 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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The Burke-Litwin ModelTransformational

Transactional

• 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

The Burke-Litwin Model

Org Alignment model

Organizational Aspirations

Image Building

Environment

Culture& Values

Social LifeOrg Structure & Reporting

System

Head Count

Career Advancement & PMS

EmployeeFocus

Team Work

Leadership

Skill Enhancement

Technology

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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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.

Roadblocks in dealing with Change.

Thanks

Change Mgt

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