ORGANISATIONAL CHANGE - created from Mind Map

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Conclusion

socio-technical perspective

Analysis of the complexity of change

Assessment of readiness to change

Determine resistance to change

Change management plan implementation

DRIVERS FOR ORGANISATIONAL CHANGE

Modern(ist) Operating Environments

Impact of technological change

Impact of the 21st century

Evolution of organizational change

New model:

New approaches

SOCIO-TECHNICAL ANALYSIS

O’Hara’s STS

STS model of change

Implications

CHANGE AND ORGANISATIONAL CULTURE

Human behaviour

Anthropological perspective

Organizational culture

Culture Classes

Impact of Culture on performance

Different Change Types

Tactical changes

Strategic changes

Ready to accept strategic change

Implications for change management

Role of training

Change Leaders

FAILURE FACTORS

Resistance to Change

Overcoming resistance to change

STAKEHOLDER ENGAGEMENT

Communication

Consultation/dialogue

Involvement

Pitfalls to avoid

– including organisational cultural dimension

influences management approach to change;

• affects communication approach;

• determines involvement of staff in the implementation and change management plan

• optimises resource utilisation (who is trained when);

• determine appropriate levels of training (including for IT staff)

Twentieth century scientific management frameworks

• Focussed on continuous improvement of existing approaches

– Idea of finding stable points

• Responding to change with change

• Designed people out of processes

» Leads to corporate rigidity and inertia

Twentieth century scientific management frameworks

• Problem:

– Modern operating environments consist of these characteristics

• Industry structures are ambiguous

• Entry thresholds are relatively low

• Rules of success are changing

• Traditional strategy frameworks (SWOT, PEST) may be losing their relevance for all but

the short-term

Context

• In the past, thousands of jobs a year were lost directly because of

automation

• Virtually all large scale automation of manual tasks has now taken

place, so job losses are fewer

– today jobs are lost because of cheaper labour (eg outsourcing)

• or takeovers/rationalisation/recession

When environment is complex and evolve rapidly then decisionmaking

has to be decentralised

• Strategic decision making is now more to do with communication to

shape the interactions between people

– It is about a shared perception, purpose and meaning

• Relationships with external organisations are important

• Technology & processes alone are not enough to differentiate

organisations

• ‘People’ are now the main assets

Historical shifts underlying modern

change

Traditional linear, supply–push approach

Demand led approach to

meeting consumer needs

Strategy

– design for action

• Structure

– modular,

collaborative network

• Governance

– Context &

coordination

Scenario planning

• Options Theory

• Portfolios of initiatives

• Continuously developing and adapting the new sources of temporary

advantage

• Identifying customer needs & expectations

– Success starts there, not from internal capabilities

– will vary over time

• so must offerings

First order level (Alpha)

– new system enhances the

task

– operators may not be

aware of any change

(technology:task)

Second order level (Beta):

– Method of task

accomplishment changes &

appears differently to

operators (technology:task)

– Manner in which people

interact with the technology

changes (people:technology)

– Roles of people doing the

task may change

(people:task)

Third order level (Gamma):

– Involves high level of

complexity

• Structural changes eg

flattened hierarchies

• Changes to reporting

relationships

• Increasing access to

information & changes to

power relationships

– Tasks devolvement

All projects are important but not all projects should be treated in a

similar manner

• Projects associated with gamma level change are difficult to manage

– Tasks are changes

– People are affected

– Management structure is transformed

• All factors need to be taken into account

• Benefits of automation have already been reaped

» Few alpha changes left

People engage in saying one thing but doing something else more often

than they are aware of or care to admit to

• Espoused values vs values in use

• Ostensive practices vs performed practices

• Behaviour is governed by a universal set of four values

– win and not lose in the situation at hand

– remain in control of the situation

– avoid embarrassment of any kind

– stay rational throughout the situation

A pattern of shared assumptions

• Invented, discovered or developed by a particular group

• Develops as the organisation adapts to external environment and

internal changes

• Is taught to new members of the group

• Is thought of as the correct way to think, react to internal/external

problems

Culture is defined by group parameters:

– language (eg professional jargon), concepts, boundaries, ideologies

• Bounded by normative criteria

– provide the basis for allocating status, power, authority, rewards, punishment etc

• Organisational culture and strategy are interdependent

• Early leaders beliefs may translate into assumptions that guide the

organisation

– Eg HP Way http://www.hpalumni.org/hp_way.htm

» organisational culture is not readily manipulated and

changed

I

People live and work in (multiple) communities

– social, geographical, professional, organizational or industrial

• Communities have values, but also norms

– Unwritten rules people use and follow to guide their behaviour (Armstrong, 2003)

– Typically, norms refer to such aspects of behaviour as

• treatment of others

• conduct in certain company or circumstances

• importance attached to certain symbols or objects

Culture is intrinsically tacit – so observation is key

– the stories told

– the symbols used, including language;

– the rituals and routines followed

– the organizational and power structures present

– the control systems used

– These provide an insight into the organization's values, norms, and assumptions

• football teams, faiths etc

• Also think of Apple, Google

Culture fulfils four important needs people have:

– It provides a sense of stability as values hardly change over time

– It provides a sense of identity

– It acts as a filter, enabling sense-making

– It communicates values to others

(Pottruck and Pearce, 2001)

• Strategic change by definition attempts to change peoples perceptions

and ways of working.

• IS/IT community have to change more radically due to IT/IS

increasingly requiring more radical change.

Advocacy culture: Examples of orgs: non-profit making; community focused; R&D

Significant levels of flexibility, autonomy and discretion, risk taking, creativity and

innovation

Hierarchy culture: Examples of orgs: military, governmental agencies

Organisations are structured, formalised and procedure driven with a culture of trust and

clearly defined roles and responsibilities.

Class culture: Examples of orgs: smaller independent organisations

Flexible organisations which are people centric; high level of mutual trust, sense of

obligation and loyalty

Staff development and teamwork prevail.

People are already loyal to the organisation so a sense of loyalty is easier to maintain.

Aspects such as shame might be particularly relevant.

Market culture: Examples of orgs: outward orientation and customer focus; selling a product or service

People are mission and goal oriented; leaders demand excellence and achievement of

measurable goals

Each organisation is built on a particular business model and

differentiates itself through its strategy

• An organisations has a state

– determined by its culture, structure, management system and people

• It also has a direction which is determined by

– strategic vision

– market position

– business processes

– assets

Organisation culture & senior management beliefs and assumptions

impact performance

• Strongly held beliefs act as filters or lenses that may mean they miss

significant change signals (Microsoft & the internet or security)

• Managers respond in terms of their existing culture because this is all

they know

from concrete level up can be blocked at certain higher points

– relatively small in scale & scope and will occur frequently

all elements from the top down have to change

– all encompassing and will be relatively rare

– Common problems:

• Changes are not carried through to the lower levels

• As old assets, people and management system stay in place then old attitudes remain

and resist change

• mid-level IT/IS changes CRM & ERP are implemented and not carried through to higher

or lower levels then anticipated benefits don’t materialise.

Organisations are constantly buffeted by industry and competitor

changes and actions

• Strategic changes initiatives increasingly require speedier

implementations.

• Prevailing perception is to maintain status quo. Why?

– Fear that previous practice is outdated

– Disconnect between organisation and the environment

– Size & complexity of organisation is such that any positive changes for one part

have negative consequences for another.

Identify key points of leverage eg

– Staff appointments can be used to strengthen desired culture

– Socialisation through effective induction

– Performance management/reward – to encourage desired behaviour

– Leadership/role models in relation to myths, behaviours & values

– Participation of all members in cultural reconstruction

– Interpersonal communication to support cultural adoption

– Structures, policies, procedures should be aligned with organisational strategy and

cultural objectives

Willcoxson & Millett, 2002

• PLUS: Training

Take account of differences in learning styles

• Determine modes/types of training & support required: online;

classroom; task specific etc

• Integrate with CPD (continuing professional development)

requirements

• Develop training plan

– Detailed implementation plan with Timescales

• Roll out training/provide ongoing support

Change leaders must be respected and have the proven ability to

deliver the expected results. (IS/IT reputation?)

• Must formulate a clear & compelling change message

• Perception of key managers is important in

– Identifying underlying problems

– Acknowledging the need for change

– Buying in to the change message.

• Simply pointing out the facts won’t convince people

Change message communication is limited and is not repeated often

enough.

• Once key managers buy-in, change is slowed due to perceived lack of

resources.

• Necessary business changes to achieve strategic change may not be

comprehensively identified, planned or executed.

• People say they buy-in but

– their behaviour and actions suggest otherwise (Jamie Oliver in US schools)

• Could focus initiative on those who inspire others

– mavens, Malcolm Gladwell “The Tipping Point”

Strategies to deal with resistance:

• Education, Support and Counseling

• Participation and Involvement

– Involve employees in the planning and implementation of the change.

• Negotiation and Agreement

– Give and take on both sides. It is important to avoid imposed solutions that only suit

managers.

• Manipulation and Co-optation

– Manipulation implies distortion of information by emphasising the advantages of

change and disregarding its disadvantages.

– Co-option refers to involving people who are key resistors in the decision making

process.

• Explicit and Implicit Coercion

Communication

Consultation / dialogue

Involvement

Most people don’t like change. What could you do to overcome

resistance to change?

• Make it a strategic issue

• Evaluate cultural readiness

• Involve employees in development initiatives

regular newsletters (printed, emails, posters, blogs, RSS feeds, etc.)

• annual report

• periodic updates regarding key developments

• circulation of publications or publications list

• project websites

• articles in sector press/local papers or academic literature

hold consultation meetings for the change

– pre change, during and after the change implementation

• hold open meetings to discuss policy or operational issues

• promote feedback and feed forward mechanisms

– Between stakeholders and change programme office

– evaluations, feedback forms, comment cards, etc

Ensure key stakeholders are represented

– on the management/ steering committee

• create advisory, policy and interest groups

– Involving stakeholders more closely in the planning and decision-making

• co-opt individuals onto the management committee

– for specific periods or purposes.

Forgetting that change begins with perception

– different people are likely to have differing perceptions of the same phenomenon,

event, technology or artefact.

• Forgetting the customers

– ultimate purpose of the organization is to satisfy their needs and expectations

• Ignoring competitors’ initiatives

– and other developments that may impact or could benefit performance

• Not developing a clear and compelling change message

– Need to challenge perceptions

– using abstract language instead.

• Allowing complacency

– by not making the strategic change relevant to each individual stakeholder

– not developing a sense of urgency.

Under-communicating the change message

– not listening to those affected by and involved in the strategic change.

• Not engaging key individuals

– at an early stage of the journey of change

– together can form a powerful guiding coalition and enable the strategic change

• Not executing the key organizational changes

– necessary for achieving the new goals and objectives.

• Not removing obstacles to progress

– including cultural artefacts that support the old strategy and not the new one.

• Not measuring progress against the new goals and objectives

– not evaluating the ongoing relevance of these goals and objectives

• as well as of change initiatives.

Going for ‘low-hanging fruit’ in an effort to achieve early wins and so

sustain commitment

– rather than going for those initiatives that may be hard and difficult but result in the

speedy achievement of the new goals and objectives.

• Beginning with the hard issues of strategic change

– i.e. processes, structures, assets, etc., because they are easy

– leaving the soft issues, i.e. people’s perceptions, behaviour, persuasive

communications, etc., to last because they are hard.

» ignoring the fact that change begins with perception.

ORGANISATIONAL CHANGE

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