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Lectu re Three-
Ch . 5Organizational Diagnosis
Frameworks (cont.)
Manag ing Organisat ional Change
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Chapter 5
Diagnosis forChange:
How to
Change?
McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
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Need for Change
Change = D x M x P > C
D = dissatisfaction with status quo M = new management model
P = process for managing change
C = cost of change
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The Formula for Changewas created by Richard Beckhardand David Gleicher, refined by KathieDannemiller and is sometimes called Gleicher's Formula. This formulaprovides a model to assess
the relative strengths affecting the likely success or otherwise of organisational change programs.
D x V x F > R
Three factors must be present for meaningful organizational change to takeplace. These factors are:
D= Dissatisfaction with how things are now;
V= Vision of what is possible;
F= First, concrete steps that can be taken towards the vision;
If the product of these three factors is greater thanR= Resistancethen change is possible. Because D, V, and F are multiplied, if any one is absent or low, then the
product will be low and therefore not capable of overcoming the resistance.
To ensure a successful change it is necessary to use influence and strategic thinking in order to
create vision and identify those crucial, early steps towards it. In addition, the organization must
recognize and accept the dissatisfaction that exists by communicating industry trends, leadership
ideas, best practice and competitive analysis to identify the necessity for change.
http://en.wikipedia.org/wiki/Richard_Beckhardhttp://en.wikipedia.org/w/index.php?title=David_Gleicher&action=edit&redlink=1http://en.wikipedia.org/wiki/Formulahttp://en.wikipedia.org/wiki/Formulahttp://en.wikipedia.org/w/index.php?title=David_Gleicher&action=edit&redlink=1http://en.wikipedia.org/wiki/Richard_Beckhard8/14/2019 Lecture 3 -v2.ppt
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Quiz 5
Change = D x M x P > C
Give live Example from Your own or fromBusiness History
2 pages max with seperate analysis for
each Keyword
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Learning vs. Unlearningas a major leap in Organisational
Change
Organisational Change Sustain by:
LearningEarning - Returning
Pre- Requisite before Change
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Learning vs. Unlearningas a major leap in Organisational
Change
Organisational Change Sustain by:LearningEarning - Returning
Quiz 6
Give Example of UL vs. L in
relevance to change
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Ref: http://artsfwd.org/4-types-org-culture/
Type of Organisation Challenge & Lean Thinking
http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/8/14/2019 Lecture 3 -v2.ppt
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Ref: http://artsfwd.org/4-types-org-culture/
Quiz 7
http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/8/14/2019 Lecture 3 -v2.ppt
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Diagnostic Tools
The image of the change
manager has an impact on the
types of tools that may be used.
The different images highlight the
range of reasons why tools like
these may be utilizedthey
illustrate the numerous wayschange can be interpreted.
DiagnosticTools
Images of
Managing
Change
Advantages
of diagnostic
tools
Diagnostic
Models:-Organization
-Components
Readiness for
Change
5-10
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Images of Managing Change
DiagnosticTools
Images of
Managing
Change
Advantages
of diagnostic
tools
Diagnostic
Models:-Organization
-Components
Readiness for
Change
Images Diagnostic Tools
Director Using diagnostic tools to build up your own knowledge baseand confidence about what needs to change by using models
that specify relationships among variables and pinpoint
where change is needed when things are not going well.
Navigator You will find the diagnostic tools attractive; models are waysof mapping the environment they describe.
Caretaker You will be less convinced of the capacity of the diagnostictools to support radical change, but several of the tools (see,
e.g., PESTEL and scenario analysis) provide insights into the
trends in the external environment that you will have to take
into account.
Coach You will focus on the diagnostic tools that highlight the goalsbeing sought and the competencies needed to attain them
Interpreter You will be attracted to the diagnostic tools that emphasizeimages, framing, and cognitive maps
Nurturer Having an interest in emergent strategy, you may remainunconvinced as to the value of such diagnostic tools.
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Advantages of Diagnostic Tools
Simplify a complex situation.
Identify priorities for attention.
Highlight interconnectedness of
various organizational properties (e.g.,strategy and structure).
Provide a common language with
which to discuss organizationalcharacteristics.
Provide a guide to the sequence of
actions to take in a change situation.
DiagnosticTools
Images of
Managing
Change
Advantages
of diagnostic
tools
Diagnostic
Models:-Organization
-Components
Readiness for
Change
5-12
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Diagnostic Models: Organization
DiagnosticTools
Images of
Managing
Change
Advantages
of diagnostic
tools
Diagnostic
Models:-Organization
-Components
Readiness for
Change
Six-box organizational model: The key focus here is on six variablespurpose,
structure, rewards, helpful mechanisms,relationship and leadership. This model is usefulto maintain awareness of all areas forconsideration even though one variable may beidentified as the main area for attention.
7-S framework: The 7-S framework: this focuses on seven key
components that affect organizationaleffectivenessstructure, systems, style, staff,
skills, strategy and superordinate goals. Theinterconnectedness of these variables is vital tothe success of change.
Star model: An organization is effective when the five
components of organizational designstrategy,
structure, processes and later capability, rewardsystems and people practicesare in alignment. 5-13
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Diagnostic Models: Organization
Congruence model: The organization is broken down into four components
task, individuals, formal organizational arrangementsand informal organisation. This is influenced by thecontext where the strategy is formulated and the outputis then the performance of the organization.
Burke-Litwin model: This model identifies the transformationalexternal
environment, mission and strategy, leadership andorganizational culture - and transactional sources ofchange.
Four frame model:
This offers four frames for the managers toconceptualize how the organization operates. Theseframes are structural, human resource, political andsymbolic frames.
Diagnosis by image: This technique allows organizational members to use
images to describe the organizations and this can be
used as a basis for discussion.
DiagnosticTools
Images of
Managing
Change
Advantages
of diagnostic
tools
Diagnostic
Models:-Organization
-Components
Readiness for
Change
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Diagnostic Models: Components
PESTEL Framework: This analyses the external environment in terms of six factors
political, economic, social, technological, environmental andlegal.
Scenario analysis: Creating stories of possible future scenarios that are
considered to be vital to the future of the organization
Gap analysis This is a tool used for reviewing the organizations position
based on where they are and where they want to get to.
Elements of strategy These are five elements of strategy that are considered
mutually reinforcingarenas, vehicles, differentiators, stagingand lowest costs through scale advantage. Any misalignmentof these signifies the need for change.
Strategic inventory This aims to identify the strategic assumptions of managers
and determine their consistency with the businessenvironment. This determines whether the strategy should bea focal point for change.
DiagnosticTools
Images of
Managing
Change
Advantages
of diagnostic
tools
Diagnostic
Models:-Organization
-Components
Readiness for
Change
5-15
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Diagnostic Models: Components
Newsflash exercise: This is an exercise that encourages managers to be
very specific and succinct about change and clearerabout the intended outcomes.
Cultural web: This provides a way of mapping the organizational
culture through seven elementsparadigm, rituals androutines, stories, symbols, control systems, powerstructures and organizational structure
Structural dilemmas: Six possible structural dilemmas that can be
encountered during change are diagnosed so areas
that have been traded-off during the change processcan be identified
The Boundaryless Organization: Success is arguably achieved only if four types of
organizational boundaries are diagnosed and reduced.These are vertical, horizontal, external andgeographical boundaries.
DiagnosticTools
Images of
Managing
Change
Advantages
of diagnostic
tools
Diagnostic
Models:-Organization
-Components
Readiness for
Change
5-16
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Readiness for Change
Assessing the organization's readiness tochange can be a mediating variable betweenchange management strategies and theoutcomes of desired strategies.
A perchance audit of the readiness of anorganization for change can provide anindication of the likely outcome of a changeinitiative at a particular point in time. Someways of doing this include: Questionnaires
Stakeholder analysis: This focuses on the positionof stakeholders in the change process and allowsthe manager to be better informed of how toconfront potential issues.
Force-field analysis: This identifies factors that aredriving forces for change as well as restraining
forces.
DiagnosticTools
Images of
Managing
Change
Advantages
of diagnostic
tools
Diagnostic
Models:-Organization
-Components
Readiness for
Change
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EXERCISE 5.1p.132Scenar io Construction
Purpose
Understanding diagnostic models, and developing the skill and confidence to use
them increases the available tools that a change manager has available in a change
situation. Often models are left for the academics to worry about, or at the other
extreme, managers choose one model and wont use anything else whether it is
appropriate or not! Different types of change managers (referring to the change
images) discussed in earlier chapters will have a preference for certain diagnostics,
and will tend not to use others. The student should be encouraged to at least
understand the available options (even if they dont intend to use them), and be
aware of their reasons for the ones they do use, as well as the strengths and
limitations of each model.
Options/Techniques/Requirements Format:
Individual or small groups of two to three students.
Materials:
Table 5.4 Scenario Methodology.
Select an organization.
Quiz 8-In Group
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Potential Problems and Helpful HintsIdentification of key drivers may take some time for the students with less
business experience.
The writing of a scenario could be modified to point form to place the importance
on the information, rather than a good story, although students with the skill to
capture the information in a story will be developing their communication skills.
Students may find 100 words or less to be restricting for the writing of each
scenario. Developing the skill to capture information and restrict the story to this
size is a valuable skill to learn. The equivalent in business is the elevator pitch
that entrepreneurs or skilled networkers use to promote their ideas or business.
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Lecture Handou t MGT634 30SEP13
K.B.F( Key Business Factors) What you try to sell, inspire or contribute to the
society, life and world
4 Ms
Manpower
Material
Method Machines
Example of K.B.F
Quality of life
Energy sustainability
Knowledge EconomyNational Economy
Education
Shaping of change is different than managing of change
Shaping of change is more difficult but it has more
effects
The secret behind change is setting the common sense
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Lecture Handou t MGT634 30SEP13
Lean thinking Lean thinking is about pull and its against push
For example, you have to select where to work,
how to live and what to know
In lean thinking, whole values should be seen and
considered
In lean thinking, take one, work on it then finish it beforestarting other tasks
Impacts of push style
Moda ( Waste, ie extra information)
Mory ( If Moda increase, it will causes mental and
physical strain)
Mora ( no sustainability) Pull style and lean thinking will reduce the above
Agility is important concept of change
In paradigm shifts, Agility will contribute in changing
the following
Mind
Heart
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Lecture Handou t MGT634 30SEP13
Case of PUSH/PULL stylesIncreasing number of beds in wards in Salmaniya
hospital will not solve problem
Where end-customer-end method ( empathetic
thinking) , you shouldnt allow people to become
patients
Equation of changeD M P > C
Implications of the equation
Total change benefit should be greater than total
costs
D & M can be started in parallel but to start P , D
&M has to be completedModel can be started from best point or worst
point
Example, We have to increase M, D and P as much as we
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Lecture Handou t MGT634 30SEP13
Learning VS Unlearning Nobody can change before unlearning
Unlearning assume that you will keep your
perceptions and thoughts aside to open the door for
new learning process
Learning steps
Observation Absorbing Reflection
Learning can be achieved only by doing
The main obstacle for change is people are not
willing to unlearn
To sustain the change, three things has to happenLearning
Earning
Returning
Diagnostics Tools example
KBC factors
Formula of change
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Lecture Handou t MGT634 30SEP13
Quizzes & Exercises Quiz 5 ( Situation analysis)
Quiz 6 ( You can give examples about
your organization or about yourself)
Quiz 7 , two ways can be done, either
choose your organization or
organization you know and explainwhy it is belong to certain type.
Explain in details your answer
Give example for companies for
every type.
For example Hierarchy
organizations tend to be Push style
Stability
Control
Clan organizations tend to be
Customer delight
Exercise 5.1 ( p132) , 2 students at least