Final 6360

September 27, 2025 Claire B 0 Comments

Good day writer,

Please see the attached pictures for the assignment instructions. Please include the topics of the attached.

Written Paper Checklist_____MGMT__________ POC: Dr. Randolph Smith, PhD

Score: Possible 20 Points /Each Column worth possible 2 points

Yes No

1. Used Research Format -Effective APA Format,

Organization and Structure, Proper Unity, Coherence, and

Standard Grammar, Citations, No personal pronouns, etc.

2. Reviewed and Analyzed a Management/Leadership/Org.

area, process, concept, or theory. Title correlates properly.

3. Applied the Management/Leadership/Organization

knowledge process in general or specific in the work place.

4. Analyzed and relate the relationship between a

Management/Leadership area and contemporary events.

5. Explained any management/leadership related concepts,

theories, and principles being employed or could be employed.

6. Referenced the nature and importance of

management/leadership to development and change.

7. Used in text – citations (where facts are presented) and

reference page properly in APA format. Direct quotes or

paraphrased citations

8. Identified future application to the

Management/Leadership/Organization field.

9. Used a minimum of five reference sources. (At least 2

reference must be peer or scholarly). Used at least 5 pages of

text, Cover sheet, reference page etc.

10. Used Summary/Conclusion:

Written Paper Checklist_____MGMT__________ POC: Dr. Randolph Smith, PhD

Total Points: Date:

Chapter 9: Action Planning and Implementation

Chapter Overview

• Change leaders have a “do it” attitude. Without action, nothing happens

• Action planning involves planning the work and working the plan. “Right” decisions = approximately right, as you gain feedback and learn as you go

• Action planning sorts out who does what, when, and how and tracks progress to promote learning and adaptation

• Tools to help you manage the process are discussed

• Successful change agents effectively engage others in the journey, develop detailed communication plans and the transition

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

• Implementation planning that engages and empowers others

• Action planning tools • Communications planning • Managing the transition

and after-action review

3 Approaches to Decision Making and Action Taking

• Thinking First • when the issue is clear and the context structured

• Seeing First • when many elements have to be combined into

creative solutions, commitment is key and communication across boundaries is essential. People need to see the whole before becoming committed.

• Doing First • when situation is novel and confusing, complicated

specifications would get in the way and a few simple rules can help people move forward

3 Generic Change Strategies

Change Type Characteristic Implementation Pitfalls

Programmatic Change

Missions, plans, objectives

Training, timelines, steering

committees

Lack of focus on behavior, one solution for all,

inflexible solutions

Discontinuous Change

Initiated from top, clear break, reorientation

Decrees, structural change,

concurrent implementation

Political coalitions derail change, weak controls, stress from the loss of

people

Emergent Change

Ambiguous, incremental and

challenging

Use of metaphors,

experimentation, and risk taking

Confusion over direction,

uncertainty, and possible slow

results

Working Your Plan

• Mobilize commitment to change through joint diagnosis of business problems

• Develop a shared vision of how to organize and manage for competitiveness

• Foster consensus for the new vision, competence to enact it, and cohesion to move it along

• Spread revitalization to all departments without pushing it from the top

• Institutionalize revitalization through formal policies, systems, and structures

• Monitor and adjust strategies in response to problems in the revitalization process

Working Your Plan

1. Think of a change situation you are familiar with. Return to Table 9.1 and consider whether it is a: a) Programmatic change b) Discontinuous change c) Emergent change

2. How well was it handled? Was the appropriate approach or should it have been handled differently?

Steps to Effective Change—Beer et al.’s Six Steps

1. Mobilize commitment through joint diagnosis

2. Develop a shared vision

3. Foster consensus for the new vision, competence to enact it, and cohesion to move it along

4. Spread revitalization to all departments without pushing it from the top

5. Institutionalize revitalization through formal policies, systems, and structures

6. Monitor and adjust strategies as you go

Jick’s Ten Commandments

1. Analyze the organization and its need for change 2. Create a vision and a common direction 3. Separate from the past 4. Create a sense of urgency 5. Support a strong leader role 6. Line up political sponsorship 7. Craft an implementation plan 8. Develop enabling structures 9. Communicate, involve people, and be honest 10.Reinforce and institutionalize change

Kotter’s Eight-Stage Process

1. Establish a sense of urgency

2. Create a guiding coalition

3. Develop a vision and strategy

4. Empower broad-based action

5. Communicate the change vision

6. Generate short-term wins

7. Consolidate gains and produce more change

8. Anchor new approaches in the culture

Lueck’s Seven Steps for Change

• Identify the leadership

• Focus on results, not activities

• Start change at the periphery, then let it spread to other units, pushing it from the top

• Institutionalize success through formal policies, systems, and structures

• Monitor and adjust strategies in response to problems in the change process

“No Plan Survives First Contact”

• While it is critical to plan and anticipate, planning is a means not an end.

• Don’t ignore vital emerging information just because it does not fit with carefully conceived plans.

• Contingencies and alternative ways of approaching change are important contributors to enhanced adaptive capacity.

Action Planning Tools

1. To Do Lists—A checklist of things to do

2. Responsibility Charting—Who will do what, when, where, why, and how

3. Contingency Planning—Consideration of what should be done when things do not work as planned on critical issues. Tools to aid with this include decision tree analyses and scenario analyses

4. Flow Charting

Action Planning Tools (cont.)

5. Design Thinking

6. Surveys and Survey Feedback

7. Project Planning and Critical Path Methods for Scheduling

8. Tools that assess outcomes and stakeholders (discussed in Ch. 6), including: a)Commitment Charts b)The Adoption Continuum (AIDA) c)Cultural Mapping

Action Planning Tools (cont.)

9. Leverage Analysis

10. Training and Development Tools

11. Diverse Change Approaches

Responsibility Charting Decisions or Actions

to be Taken Responsibilities

Susan Ted Sonja Relevant Dates Action 1 R A I For meeting on Jan 14 Action 2 R I May 24 Action 3 S A A Draft Plan by Feb 17

Action by July 22 Etc… Coding: R = Responsibility (not necessarily authority) A = Approval (right to veto) S = Support (put resources toward) I = Inform (to be consulted before action)

Project Planning

Schilling & Hill, 1998

Cycle Time

Opportunity Identification

Concept Development

Product Design

Process Design

Commercial Production

Example 1

Example 2

Organizing task to allow for parallel

processes to occur has been shown to save

time.

Level of Commitment to Action

• Opposed to the Change

• Neutral to the Change

• Let It Happen (weak support)

• Help It Happen

• Make It Happen

LOW

HIGH

Stage of Adoption

• Awareness • Becoming altered to the existence of something new,

such as a product, service, or procedure

• Interest • A growing inquisitiveness about the nature and benefits

of the new idea

• Desire/Appraisal • Studying strengths and weaknesses of new idea and its

application to their area, followed by small-scale testing

• Action/Adoption • Incorporating the new idea as part of the resources the

adopter brings to their job

Crossing the Adoption Chasm

Innovators Early Adopters

Early Majority Late

Majority

Laggards

The Chasm or Tipping Point of Support That Needs to be Crossed

Commitment Chart

Key Players

Level of Commitment Level of

Understanding (high, med, low)

Opposed Strongly

to Weakly Neutral Let It

Happen Help It

Happen Make It Happen

Person1 X àO Med

Person 2 X àO High

Person 3 X à àO Low

Etc…

Mapping People on the Adoption Curve

Key Players Aware Interested Desire for

Action

Moving to Action or

Adopting the Change

Person1 X àO

Person 2 X

Person 3 X à àO

Etc…

Action Planning Checklist

ü Is the action plan consistent with the analysis, vision, and objectives?

ü Is your action plan realistic, given your influence, and the resources likely to be available to you?

ü Are you and your team committed, and do have the competence and credibility to implement the action steps? If not, how will you address this?

ü Is the plan time-sequenced in logical order?

ü Is it clear who will do what, when, where, and how?

ü What are the milestones and the probability of success at each step? Have you anticipated secondary consequences of your actions?

Action Planning Checklist (cont.)

ü Have you anticipated possible secondary consequences and lagging impacts your plans may have?

ü Have you developed contingencies for risk areas and for how to proceed if things go better or differently than anticipated?

ü Who does your plan rely on? Are they “on-side”? If not, what will it take to bring them “on-side”?

ü Does your action plan take into account the concerns of stakeholders and possible coalitions they might form?

ü Who (and what) could seriously obstruct the change? How will you manage them?

Communication Needs for Different Phases in the Change Process

Pre-Approval Phase

Developing the Need for Change

Phase Mid Stream

Change Phase Confirming the Change Phase

Communication plans to sell top management

Communication plans to explain the need for change, provide a rationale, reassure employees, and clarify the steps in the change process.

Communication plans to inform people of progress and to obtain feedback on attitudes and issues, to challenge any misconceptions, and to clarify new organizational roles, structures, and systems.

Communication plans to inform employees of the success, to celebrate the change, and to prepare the organization for the next change.

Communicating for Change

1. Message and media redundancy are key for message retention. Carefully consider the impact and use of social media and how others affected may use it

2. Face-to-face communication is most effective

3. Line authority is effective in communications

4. The immediate supervisor is key

5. Opinion leaders need to be identified and used

6. Employees pick up and retain personally relevant information more easily than other types of information

Influence Strategies for Change

1. Education and communication

2. Participation and involvement

3. Facilitation and support

4. Negotiation and agreement

5. Manipulation and co-option

6. Explicit and implicit coercion

7. Systemic adjustment

Toolkit Exercise 9.2—Action Plans for Influencing Reactions to Change

1. Which of the following strategies have you seen used to overcome resistance to action plans?

a. Education and communication? b. Participation and involvement? c. Facilitation and support? d. Negotiation and agreement? e. Manipulation and co-optation? f. Explicit and implicit coercion? g. Systemic adjustments?

2. What were the consequences of the methods?

3. Which of these methods are you most comfortable with using? Which do you have the skills to use?

Toolkit Exercise 9.3 (cont.) Additional Lenses on Influence Tactics

a. Inspirational appeals b. Consultation: seeking the participation of others c. Relying on the informal system: existing norms and

relationships d. Personal appeals: friendship, loyalty e. Ingratiation: praise, flattery, friendliness f. Rational persuasion: using data g. Exchange or reciprocity h. Coalition building i. Using rules or legitimating tactics j. Appeals to higher authorities

– Which of the above have you used? How successful were they?

Push and Pull Tactics

• Push Tactics • Use of facts, logic, and/or pressure

(e.g., use of guilt and fear) to push people toward the change

• Pull Tactics • Inspirational appeals and other

influence tactics designed to attract and pull people toward the change

Implementation Tactics and Success

Tactic Percentage Use

Initial Adoption

Rate

Ultimate Adoption

Rate

Time to Adopt

(months)

Intervention 16% 100% 82% 11.2

Participation 20 81 71 19.0

Persuasion 35 65 49 20.0

Edict 29 51 35 21.5

A Checklist for Change: Transition Management

Transition Management: managing the implementation of the change project

ü How will the organization continue to operate as it shifts from one state to the next?

ü Who will answer questions about the proposed change? What decision power will they have?

ü Do the people in charge of the transition have the appropriate authority to make decisions necessary to ease the change?

ü Have we developed ways to reduce the anxiety created by the change and increase the positive excitement over it?

A Checklist for Change: Transition Management (cont.)

ü Have we worked on developing a problem-solving climate around the change process?

ü Have we thought through the need to communicate the change? Who needs to be seen individually? Which groups need to be seen together? What formal announcement should be made?

ü Have the people handling the transition thought about how they will capture the learning from the change process and share it?

ü Have we thought about how we will measure and celebrate progress and how we will bring about closure to the project and capture the learning so it is not lost (after-action review)?

What Makes for a Good Action Plan?

1. It can be done!

2. Organized as a timed sequence of conditional moves

3. Responsibility charts: who does what, when, why, how?

4. Measures and Outcomes are specified

5. The plan is consistent with analysis and objectives

What Makes for a Good Action Plan? (cont.)

6. Resources are available: money and people

7. Real “buy in” is there—involvement and public commitment, coalitions are considered

8. Early positives exist to help build momentum

9. Most importantly, you have the Vision and Goals needed to guide you in the right direction

Summary

• “Doing it” demands a good plan and a committed team who will work that plan

• Several strategies for approaching change and planning the work are discussed. Change agents, like good coaches, adjust as they go

• Action planning tools are discussed

• Effective action planning and implementation requires careful attention to communication and transition management

Chapter 3: What to Change in an Organization: Frameworks

Chapter Overview

• Change leaders must understand both the HOW and the WHAT of change. The focus here is on WHAT needs to change

• Open systems organizational frameworks are valuable assessment tools of what needs to change. Nadler and Tushman’s Congruence Model is explored in detail

• The non-linear and interactive nature of organizations is explored to make sense of their complexity

• Quinn’s competing values model is used to create a bridge between individual and organizational levels of analysis

• Organizational change over time is discussed

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

• Use Diagnostic Frameworks in Ch.3 to better understand: • How to Change & • What to Change

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

Dynamic Complexity because Systems are:

•Constantly changing

•Tightly coupled

•Governed by feedback

•Nonlinear

•History-dependent

•Self-organizing

•Adaptive

•Characterized by trade-offs

•Counterintuitive

•Policy resistant

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 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

Nadler & Tushman’s Organizational Congruence Model

Input

Environment (PESTEL)

Resources

History / Culture

Output

Systems

Unit

Individual

Informal Organization

Work Formal Organization

People

Strategy

Transformation Process

Nadler & Tushman’s Organizational Congruence Model

Input

Environment (PESTEL)

Resources

History / Culture

Output

Systems

Unit

Individual

Informal Organization

Work Formal Organization

People

Strategy

Transformation Process

Environmental Pressures for Change

Analyzing Organizations Using Nadler and Tushman’s Model

1.Use the congruence model to describe your organization or an organization you are familiar with. Categorize the key components (environment, strategy, tasks, etc.). What outputs are desired? Are they achieved?

2. Is the strategy in line with organization’s environmental inputs? Are the transformation processes aligned well with the strategy? How do they interact to produce the outputs?

3.When you evaluate your organization’s outputs, are there things your organization should address?

4. Are there aspects of how your organization works that you have difficulty understanding? If so, what resources could you access to help with this analysis?

Linear Event View of the World

Goal

Situation

Gap / Problem

Decision / Action Results

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 and purchase decisions)

• Complexity makes cause–effect relationships difficult to predict and track

• Attribution Errors and False Learning often result from the above

A Feedback Model

EnvironmentDecisions

Decisions

But Feedback Models are Messier

Goals

Decisions

Environment

Goals of Others

Action of Others

Side Effects

Quinn’s Competing Values Framework

Flexibility

Control

Internally Externally Focused Focused

Quinn’s Competing Values Framework (cont.)

Flexibility

Control

Internally Externally Focused Focused

Human Resources

View

Open Systems

View

Internal Processes

View

Rational Economic

View

Quinn’s Competing Values Framework (cont.)

Flexibility

Control

Internally Externally Focused Focused

Human Resources View • How to work with individuals and

groups • Teamwork and HR dept. • Mentor and group facilitator roles

Open Systems View • How to use power and manage

change • The challenge of change • Innovator and broker roles

Internal Processes View • How to understand & control

the work unit • Consolation and continuity • Internal monitor and

coordinator roles

Rational Economic View • How to stimulate individual and

collective achievement • Maximization of output • Producer and director roles

Greiner’s Five Phases of Organizational Growth

Evolution stages

Revolution stages

Size of organization

LARGE

SMALL

YOUNG Age of Organization

MATURE

1: Growth through CREATIVITY

1: Crisis of LEADERSHIP

2: Growth through DIRECTION

2: Crisis of AUTONOMY

3: Growth through DELEGATION

4: Growth through COORDINATION

5: Growth through COLLABORATION

3: Crisis of CONTROL

4: Crisis of RED TAPE

5: Crisis of ?

PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5

Stacy’s Complexity Theory and Organizational Change

• Organizations are webs of nonlinear feedback loops that are connected with individuals and organizations through similar webs

• These feedback systems operate in stable and unstable states of equilibrium, even to the point at which chaos ensues

• Organizations are inherently paradoxes, pulled by forces of stability and instability

Stacy’s Complexity Theory and Organizational Change (cont.)

• If organizations give into forces of stability, they become ossified and change impaired

• If organizations succumb to forces of instability, they will disintegrate

• Success is when organizations exist between frozen stability and chaos

Stacy’s Complexity Theory and Organizational Change (cont.)

• Short-term dynamics (or noise) are characterized by irregular cycles and discontinuous trends, but long-term trends are identifiable

• A successful organization faces an unknowable specific future because things can and do happen

• Agents can’t control the long-term future—they can only act in relation to the short term

• Long-term development is a spontaneous, self-organizing process that may give rise to new strategic directions

• It is through this process that managers create and come to know the environments and long-term futures of their organizations

Summary

• When assessing organizations, think of them as open systems— webs of interconnected and interdependent relationships that interact with the environment

• Change often originates in the external environment.

• Change upsets the internal equilibrium in an organization and thus may be resisted.

• Both evolutionary and revolutionary change is needed for organizational growth

• We need to understand the WHY and WHAT of change.

• Models in this chapter have focused on the WHAT of change

Chapter 2: How to Lead Organizational Change: Frameworks

Chapter Overview

• Chapter 2 differentiates between HOW to change and WHAT to change. Change leaders must understand both.

• This chapter focuses on HOW to create change • Six process-oriented models of planned, purposeful

change are discussed • The last of these is the Change Path Model: it is the

guiding framework used in this book • These six models will give you language to articulate

models of how to bring about organizational change

Getting a Handle on the Change Challenge

Two distinct aspects in any change management situation need to be addressed:

• WHAT needs to change

• HOW to bring about that change

Sigmoid Curve

Nature of Managed Organizational Change: Lewin’s View

Unfreeze Change Refreeze

Kotter’s Eight-Stage Process

1. Establishing a sense of urgency

2. Creating a guiding coalition

3. Developing a vision and strategy

4. Communicate the change vision

5. Empower employees

6. Generate short-term wins 7. Consolidate gains and produce more change

8. Anchor the new approaches in the culture

Gentile’s Giving Voice to Values

• Clarification and articulation of one’s values

• Post decision-making analysis and implementation plan

• The practice of speaking one’s values and receiving feedback from peers

Duck’s Five-Stage Change Curve

• Stagnation

• Preparation

• Implementation

• Determination

• Fruition

Beckhard and Harris’ Change Process Model

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

Components of the Model

• Awakening: Why change? What data helps to wake people up?

• Mobilization: Gap analysis—the desired future state and the present state

• Acceleration: Getting there from here— action planning and implementation

• Institutionalization: Monitoring, measuring the change, and helping to make the change stick

Toolkit Exercise 2.2 Interview a Manager

v Interview a manager who has been involved in implementing an organizational change. Ask them to describe the change, what they were trying to accomplish, and what happened?

v HOW did the managers work to make things happen? Who did they involve? How did they persuade others? What resources did they use?

v Describe WHAT was being changed. Why were these things important?

v Which was more important to the change in the end: HOW things were changed or WHAT was changed?

Summary

• We need to differentiate between WHAT needs to change and HOW to change

• This chapter has focused on the HOW change is accomplished, i.e., the process

• The HOW of change is all about managing the process. This chapter gives us ways of thinking about this process with particular attention to the Change Path Model

Chapter 11: The Future of Organizations and

the Future of Change

Chapter Overview

• This chapter presents an expanded summary model of organization change

• The future of organizational change and organizational change agents are discussed

• Two main routes exist to becoming a change agent: sophisticated technical specialist and strategic generalist routes

• Paradoxes related to change management are summarized

• Questions are raised about how to orient yourself to organizational change

The Change Path Model • Use Diagnostic

Models in Chs. 2 and 3 to Better Assessing the Context: • How to Change • What to Change

• Identify the need for change

• Articulate gap between current situation and desired future state and develop awareness of need for change

• Develop and disseminate powerful vision for change

Initial Organization Analysis Chapters 2 & 3

Awakening Chapter 4

The Change Path Model

Chapter 5 Navigating Change Through

Formal Structures and Systems

Mobilization Chapters 5 through 8

Chapter 6 Navigating

Organizational Politics and Culture

Chapter 7 Managing Recipients of Change and Influencing

Internal Stakeholders

Chapter 8 Becoming a Master

Change Agent

The Change Path Model

Acceleration Chapter 9

Institutionalization Chapter 10

• Planning and implementation that engages and empowers others

• Action planning tools • Communications planning • Managing the transition

and after-action review

• Tracking and measuring the change over time to assess progress, make modifications (as needed), and manage risk

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

Summary Checklist for Change

Following the Change Management Process:

• Chs. 2 and 3: Initial Organizational Analysis

• Unfreezing the system

• How to change?

• What to change?

• Understand the complexity, levels of analysis, and time dynamics of change

Summary Checklist for Change (cont.)

Awakening

• Ch.4: Building and Energizing the Need for Change

• Understanding the need for change

• Articulating the gap between the current mode of

operation and the desired future state and

developing awareness of the need for change

• Developing the powerful vision for change

Summary Checklist for Change (con’.)

Mobilization • Ch.5: Navigating Change Through Formal Systems

and Structures • Assessing their weaknesses and strengths • Leveraging them to gain approval • Leveraging them to gain acceptance • Creating more adaptive systems and structures

• Ch.6: Navigating Organizational Politics and Culture • Power dynamics • Perception of change and the change equation • Force field analysis • Stakeholder analysis

Summary Checklist for Change (cont.)

Mobilization

• Ch.7: Managing Recipients of Change and Influencing Internal Stakeholders

• Responses to change: +ve, ambivalence, and – ve

• Psychological contract • Stages of reaction to change • Impact of personality, experience on change

• Managing forward with recipients and internal stakeholders

Summary Checklist for Change (cont..)

Mobilization

• Ch.8: Becoming a Master Change Agent • Factors influencing change agent success

• Change leader characteristics

• Change leader development • Types of change leaders • External change agents • Effective change teams

Summary Checklist for Change (cont..)

Acceleration

• Ch.9: Action Planning and Implementation

• Implementation planning that engages and empowers others

• Action planning tools • Communications planning • Managing the transition and after-action

review

Summary Checklist for Change (cont..)

Institutionalization • Ch.10: Measuring Change—Designing

Effective Control Systems • Tracking and measuring the change over

time to assess progress, make modifications (as needed), and manage risk

• Institutionalizing the change through systems

The Impact of Organization Trends on Change and Change Agents

Organization Trends • Globalization—be big, or be specialized and excellent, or

be acquired, squeezed, or eliminated

• Virtual and networked organizations

• Loose/tight controls

• 24/7 response requirements

• Cost an quality focus, outsourcing and supply chain rationalization

• Crowd sourcing for capital, innovation, and talent

• Rise of big data, algorithms, and artificial intelligence

The Impact of Organization Trends on Change and Change Agents (cont..)

Organization Trends • Shortening product life cycles and increasing customer

expectations

• Influential online communities democratizing information access

• Increasing focus on integrated customer services and knowledge management

• Rapid technological change fundamentally alters industry structures, both in terms of the “what” and the “how”

• Changing demographic, social, and cultural environment

• Political changes are realigning alliances and the competitive environment

The Impact of Organization Trends on Change & Change Agents (cont..)

Impact on Organization Change • Strategic global perspective for both large firms & niche

firms • Knowledge of networks & emergent organizational forms

• Knowledge & risk management extends to virtual world & big data

• Web enabled communication, change related blogs, fast response capacity with a human face

• Negotiation & network development, quality, cost leadership and/or customer focus

• Creativity, innovation & deployment of resources

• Empowerment, teams, & process focus • AI, robotics, new materials, new processes & the IoT

The Impact of Organization Trends on Change and Change Agents (cont..)

Impact on Change Agents • Pattern finder • Vision framer • Organizational analyst and aligner • Mobilizer, empowerer, enabler, enactor • Disintegrator and integrator • Corporate gadfly and trend surfer • Generalist capacities: facilitation, influencing, negotiating, and

visioning skills; project management expertise • Specialist roles, related to technical expertise needed for

specific change initiatives • Capacity to develop and sustain the trust and confidence of

multiple stakeholders

Change Agents Need to Develop

1. A strong strategic and global perspective 2. Knowledge of networks and emergent organization forms 3. Skills in risk management and knowledge management 4. Understanding of the impact of Web-enabled communication,

use of social media in advancing external and internal change and fast response capacity

5. The ability to communicate globally while maintaining a human face

6. Perceptiveness of different cultures and norms and how they affect change

7. The capacity to create, deploy, and work with empowered teams with right mix of skills and abilities, operating with a vision focus • Boundaries come from vision and shared expectations

concerning performance and other understood standards and commitments

The Business of a Change Specialist

1. Mergers and acquisitions 2. Joint ventures and alliances 3. Organizational integration

specialists 4. Business stage specialists:

growth, maturity, decline, renewal

5. Large scale or disruptive change specialists

6. Crisis management specialists

7. Information technology system integrators

8. Organization structure specialists

9. Supply change integrators 10. Cross-cultural specialists by

specific cultures 11. Inter-organization specialists

including government or industry relations

12. Multi-party negotiation specialists … and the list goes on

Organizational Change Agent’s Skills

Increasingly complex change assignment of moderate scale

General Change Management Skills •Organizational and environment analysis •Leadership, visioning, negotiation, and other interpersonal communication and influence skills •Project management and implementation skills

Sophisticated knowledge of change leadership and general change management skills Strategic change assignments of high complexity &/or large scale

Solid technical understanding of more complex technical change being implemented

Technical/Domain-Specific Change Management Skills

• Technical knowledge of the specific change being implemented

• Knowledge of specific management change tools listed in Table 9.7 and Figure 9.4 of Chapter 9

Solid technical understanding of the simple change being implemented

Entry-level change assignments

Entry-level project management and change management skills

Change Paradoxes

Ø Managing complexity and ambiguity while

maintaining nimbleness and change momentum

Ø Managing the need to be simultaneously centralized decentralized

Ø Managing the need for both incremental (or

continuous) and radical (or discontinuous) change

Ø Encouraging participation and involvement but

recognizing the need for some degree of central

direction and control

Orienting Yourself to Organizational Change

1. Gain perspective and insight by recognizing the dynamism and complexity of your organization

2. Recognize that people’s perceptions are critical. The perception of benefits, costs, and risks determine a person’s reaction to change

3. Understand that your perception is only one of many

4. Gather people as you go

5. Pull people with a powerful change vision. Push people through argument and rewards when you need to, but gaining support through their hearts is often the better way

Orienting Yourself to Organizational Change (cont..)

6. Get active in pursuit of your vision. If you do something,

you will get responses and learn

7. Have a plan oriented around your change vision

8. Do things that are positive. Actions that suck energy are

difficult to sustain. Growing your energy as change agent

is important

9. To start meaningful change you need only a few believers.

To continue, you need to develop momentum until a critical

mass of key participants are on side

10. There are many routes to your goal. Find the ones with the

Critical Change Questions 1. What is the environment telling you prior to, during,

and following the implementation of change? a. what is the broader environment telling you about future

economic, social, and technological conditions and trends? b. what are your customers or clients telling you? c. what are your competitors doing and how are they reacting

to you? d. what are the partners within your network doing and how are

they responding to you? e. what do the people who will potentially be the leaders,

managers, and recipients of change want and need?

2. Why is change needed? Who sees this need?

3. What is your purpose and agenda? How does that purpose project to a worthwhile vision that goes to the heart of the matter?

Critical Change Questions (cont..)

4. How will you implement and manage the change? a. how will you resource the change? b. how will you select and work with your change team? c. how will you work with the broader organization? d. how will you monitor progress so that you can steer, alter

speed, and course, if necessary? e. how will you ensure that you act ethically and with integrity?

5. What have you learned about change and how can you remember it in the future? How can you pass on what you learned?

6. Once the change is completed, what comes next? The completion of one change simply serves as the start point for the next.

Summary

• We’ve challenged you to take time to read and think about change.

• Now it’s time to deploy those ideas and act

• Leading change will bring you many things—it will frustrate & invigorate, humble & empower, create doubt & fear while developing courage, fulfillment & joy…

• By leading change, you will change yourself and the lives of those around you!

Chapter 5: Navigating Change Through Formal Structures and Systems

Chapter Overview

• This chapter discusses the basics of how organizations structure themselves.

• It outlines how change leaders can diagnose the strengths and weaknesses of existing systems and structures.

• It examines how the formal structure and systems can foster, impair and facilitate the acceptance of change initiatives.

• It lays out ways to manage systems and structures to gain approval for change initiatives. Formal approval, coalition- building and renegade approaches to change are discussed.

• It reviews ways to develop more adaptive systems and structures to increase the likelihood of continuous improvement.

How Do Structures and Systems Relate to Change Management?

• Existing formal structures and systems need to be understood when assessing the need for change. • Need to understand how Structures and Systems facilitate

or hinder change

• Need to understand how Structures and Systems can be used to gain approval for change

• Need to understand how Structures and Systems can be used to gain acceptance and promote for organizational change

• Need to understand how to create more adaptive Structures and Systems

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

• Making sense of formal systems and structures

• Assessing their weaknesses and strengths

• Leveraging them to gain approval

• Leveraging them to gain acceptance

• Creating more adaptive systems and structures

Making Sense of Organizational Structures and Systems

• To what degree are tasks subdivided into separate jobs?

Work Differentiation

• On what basis are jobs grouped together?

Departmentalizati on or Integration

• To whom do individuals and groups report?

Chain of Command

Making Sense of Organization Structures and Systems (cont.)

• How many individuals report to an individual manager?

Span of Control

• Where does decision- making authority lie?

Degree of Centralization vs. Decentralization

• To what degree are there rules and regulations to direct employees and managers?

Standard Operating

Procedures (SOPs)

Mechanistic vs. Organic Organizational Forms

More Mechanistic More Organic Tasks are broken down into separate parts and rigidly defined/assigned

Flexible tasks that are adjusted & redefined through teamwork and participation

High degree of formalization, strict hierarchy or authority/control, with many rules

Little formalization, low reliance on hierarchical authority, more decentralization

Narrow span of control with reliance on hierarchies of people in specialized roles Wide span of control

Knowledge and control reside with upper management, limited lower-level authority

Highly decentralized decision-making authority located throughout organization

Communication is vertical (boss/worker relationship)

Communication is free-flowing—up, down, and horizontally integrated

Simple, straight-forward planning process Sophisticated environmental scanning, planning and forecasting process

Uncertainty and Complexity and Internal Alignment

Simple Environment Complex Environment

Stable Environment

• Centralized, simple mechanistic structure

• Use of rules, policies, procedures, and hierarchy

• Few departments • Low need for integrating roles • Efficiency and stability

focused, little imitation

• Centralized structure, more sophisticated information and control systems

• Use of rules and policies, procedures and hierarchy, but adapted to the complexity

•Many departments, some boundary spanning •Modest need for integrating roles and systems • Some environmental scanning, imitation and

planning activity

Dynamic Environment

• Decentralized, organic structure, participative and team focused

• Fewer rules, policies, procedures

• Few departments, much boundary spanning

• Few integrating roles •Much environmental

scanning, imitation and a strong planning orientation

• Decentralized, organic structure, participative and team focused, sophisticated information and control systems

• Fewer rules, policies and procedures •Many departments, boundary spanning •Many integrating roles • Extensive environmental scanning, imitation,

sophisticated planning and forecasting systems

Information Processing View of Structure

Mechanistic Methods

A. Rules and Policies

B. Hierarchies C. Goals and Visions

D. Slack Resources

E. Self- Contained

Tasks

F. Vertical Information

Systems

G. Lateral Relations

Methods to Lessen the Need to

Process Information

Methods to Increase the Capacity to

Information Processing View of Structure (cont.)

Strategies to Decrease Information Processing Needs: 1. Addition of Slack Resources 2. Creation of Self-Contained Tasks

Vertical Information Strategies to Increase Processing Capacity: 1. Hierarchical Referral (Ask the Boss) 2. Rules, Policies and Plans, including Vision and Goals 3. Increase the Vertical Communication Capacity of Information Systems

Horizontal Information Strategies to Increase Processing Capacity: 1. Increase the Horizontal Communication Capacity of the Information Systems 2. Create lateral relations: a. Direct Contact b. Liaison Role c. Task Force d. Formal Teams e. Formal Integrating Roles f. Managerial Linking Roles g. Dual-Authority Relationships

Information Processing Capacity of Structural

Design Choices

FIT

Organization’s Information Processing Requirements

Organizational Effectiveness

Formal Structures and Systems (Adapted from Bolman & Deal’s Re-framing Organizations)

• There is no one best way to organize

• Structural decisions should follow strategic decisions

• All structures present leaders with dilemmas they must manage

• Once structural choices are made, formal systems and process need to be aligned

• Structures shape and impact people’s behavior

Toolkit Exercise 5.2—Impact of Existing Structures and Systems on the Change

Think of a change situation you are familiar with.

1. How did the organization use structures and systems to deal with uncertainty and complexity? Was this effective?

2. How did existing structures and systems affect the ability of the change leader to bring about desired change? a) What systems/structures were involved? b) How did these systems/structures influence what happened? Was

this due to how they were formally designed? Or was this related to how they actually came to be used in practice?

c) Who influenced how the systems/structures were used and how did this affect the outcomes that ensued?

How to Develop an Understanding of Structures and Systems?

• Follow the paper trail—search available documents.

• Ask those who know. • Develop process maps. • Attempt to draw the relevant structures and

describe the relevant systems—then check again with those who know to confirm and/or refine

Three Approaches to Change

1. Using systems and structures to obtain formal approval for change—the traditional, hierarchical approval approach

2. Strategies based on creeping commitment and coalition building

3. Strategies involving simply forging ahead without formal approval—the renegade approach

Using Structures and Systems to Increase the Probability of Approval

• Ask if approval is necessary. Don’t initiate activities that trigger unnecessary formal approval systems

• If approval is necessary, show how change is aligned with the organization’s vision and strategy

• Use good processes to legitimize the change. Show how benefits of change exceed the costs and risks of doing nothing

Using Structures and Systems to Increase the Probability of Approval (cont.)

• Show how the change will improve system and structural alignment.

• Frame the change in ways that increase organization comfort. For example, move in increments by positioning it as a trial.

• If time is critical, demonstrate urgency and focus on external pressures for change.

Using Structures and Systems to Increase the Probability of Approval (cont.)

In all cases: • When there is a decision maker you need

to influence, identify her/his attitudes to the change and attempt to work with them.

• Demonstrate how the change project relates to the strategy or vision of the organization.

• Use good existing processes to legitimize the change proposal.

Positioning Change for Formal Approval

Nature of approval process?

Do I need approval?

Time Important?

Need support?

Incremental or

Major?

• Whose approval do I need? • Create awareness of crisis, threat or opportunity with approvers. • Show costs & benefits. • Use existing process to legitimize

• Whose approval do I need? • Engage others explain cost/benefit & ask approval. • Use existing process to legitimize

• Whose approval do I need? • Engage others approach incrementally, studies & pilot tests. • Show costs & benefits and seek approval to proceed • Use process to legitimize

• Involve others who will be affected & influential parties

• Do it yourself

Yes

Small

Big

Toolkit Exercise 5.3—Gaining Approval for the Change Project

Consider a change project in an organization you are familiar with.

1. What is the approval process for minor change initiatives? For more major change initiatives?

a. If the change requires capital approval, how is this obtained? b. If the project needs dedicated staff, what are the processes for

adding people and selecting and developing staff? c. Does the project alter the way work is organized and performed?

What systems are used to define jobs, and assess performance? d. Who approves the change? What approval power do they have?

2. Can perceived risks be reduced by the way the change leader stages the project and manages the approval process?

A Checklist for Change Initiative Approval

ü What does the paper trail say about formal structures and systems that have to be considered when leading the change?

ü What are key points in the process that we need to be conscious of (e.g., timing of meetings, getting on the agenda, cycle time, types of decision made and where decisions are made)?

ü How are the relevant systems and structures interconnected? How do they influence one another?

A Checklist for Change Initiative Approval (cont.)

ü Develop a process map that tracks the change idea from start to finish.

• Where does formal authority and decision making lie? • What decision parameters are normally applied and are

there zones of discretion available to decision makers? • What are the power and influence patterns around

particular systems and structures? Who has direct and indirect influence on how they are applied?

• How should the systems and structures be managed to reduce resistance? Can they can be managed to create leverage that will advance the change?

Mastering the Formal Approval Process

The likelihood of gaining formal approval increases when:

• You have a well placed sponsor.

• You know your audience and their preferences.

• Power and influence patterns and the implications of the project for the firm and those involved in the approval process are understood.

Mastering the Formal Approval Process (cont.)

The likelihood of gaining formal approval increases when: • You do your homework with respect to your detailed

knowledge of the change project, its scope, objectives, costs, benefits, and risk areas.

• Needed approval and support is obtained in advance.

• The change project is effectively presented by appropriate individuals.

• You have a good sense of timing of when its best to bring it forward.

Using Creeping Commitment and Coalition Building

• Use data, pilot programs, and other incremental system-based approaches to acclimatize organizational members to change ideas.

• Know the key stakeholders and their interests.

• Coalition building is valuable because of the role such coalitions might play later, during the formal approval process.

Using Creeping Commitment & Coalition Building (cont.)

• Create opportunities for direct involvement that will build interest and support within key groups.

• Use the above initiatives to build momentum to move the organization towards adoption.

• Coalition building contains risks that need to be managed.

• Avoid tactics that seriously harm relationships, diminish your integrity and/or compromise your long-term objectives.

Bypassing the Formal Approval Process

• Assess how systems and structures can be leveraged to advance change without prior approval

• Understand your power and authority

• Assess whether change is manageable, defensible, and within your scope of authority

• Keep key people sufficiently informed to avoid accusations you acted underhandedly

• Don’t create unnecessary enemies or use tactics that do long-term damage to your reputation

• The renegade approach can be used to generate supportive data, refine the change, and build momentum that is difficult to stop

• It is often easier to gain forgiveness than permission

Using Structures and Systems to Promote Change

1. Look back at the questions raised in Toolkit Exercises 5.2 and 5.3. Could the existing structures and systems have been approached and used differently to advance the desired change?

2. What role could incremental strategies that were nested within existing systems and structures have played?

• Would they have really moved the process forward or simply avoided the real changes that needed to be addressed?

3. What role could more revolutionary strategies have played? • Would they produce issues related to their alignment with

existing systems and structures? • How would you manage the challenges created by this?

Using Alignment to Aid Approval and Acceptance

• Gaining approval is less daunting when you can show how the change aligns with mission, vision and strategy

• Frame changes in ways that show value, and reduce the incongruence with existing structures and systems

• Demonstrate there is little to fear, that the level of disruption can be managed, and benefits outweigh costs

• Reduce perceived risk by breaking a big change into smaller stages

• Don’t assume that approval equals acceptance

Using Alignment to Aid Approval and Acceptance (cont.)

• By minimizing initial incongruence, you can learn, adapt and modify systems and structures as you proceed. Linked incremental changes produce significant long-term effects

• Use existing systems and processes, where appropriate, to advance the changes—the way they are used will influence the way the change is perceived

• Listen carefully and communicate effectively and empathetically, using formal processes to help in this regard

• The involvement of others can facilitate acceptance & approval • Be patient—it takes time to build acceptance and commitment

Developing More Adaptive Structures and Systems

1. Systematically and deliberately scan the external environment

2. Have a shared perception of the gap between the current and desired level of performance

3. Have a concern for measurement of performance

4. Develop an experimental mindset where people try new things

5. Create an organizational climate of openness and accessibility

Developing More Adaptive Structures and Systems (cont.)

6. Engage in continuous education at all organizational levels

7. Use a variety of methods, appreciate diversity and take a pluralistic view of competencies

8. Have multiple individuals who act as advocates for new ideas and methods

9. Have an involved, engaged leadership

10. Recognize the interdependence of units and have a systems’ perspective

Summary

• We investigated formal systems and structures to see how they influence change and how they can be worked to advance change.

• We explored systems and structures related to the approval process and how to work with, through, and around them.

• We explored how formal systems and structures can be used to advance acceptance of the change.

• We addressed the desirability of adaptive change in formal systems and structures.

Chapter 10: Get and Use Data

Throughout the Change Process

Chapter Overview • Measurement and control processes can play critical

roles in guiding change and integrating the initiatives of others throughout the Change Path Model

• Four types of control systems are discussed: Diagnostic/Steering Controls, Belief Systems, Boundary Systems, and Interactive Controls

• Different types of controls are needed at different stages of the change process

• The use of strategy maps as an alignment tool is explored

• Three measurement tools are presented: the Balanced Scorecard, the risk exposure calculator, and the duration, integrity, commitment, and effort (DICE) model

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

• Tracking and measuring the change over time to assess progress, make modifications (as needed), and manage risk

• Institutionalizing the change through aligning related systems and structures

Can Control Processes Facilitate Change?

• Change agents often complain about how control systems and metrics impede change

• BUT when controls and metrics are effectively deployed, they can be powerful aids to change

• First understand the impact of existing controls on the change initiative

• Then tackle the challenge of aligning controls and measures to facilitate change

Toolkit Exercise 10.2—Impact of Measures and Control Processes on Change

Think of a change initiative that you are familiar with:

1. What measures and controls were used to track the change? Were they congruent with the change vision and strategy? Were they viewed as legitimate by users?

2. How was information captured and fed back? Did it arrive in a useful and timely form?

3. Did measures need to evolve and be modified over the life of the change initiative? How was this managed?

4. Were steps taken to ensure measures would be properly used? Were there risks arising from their use that needed to be managed?

Toolkit Exercise 10.2—Impact of Measures and Control Processes on Change

5. Were goals and milestones established, used to plot process, and make midcourse corrections? Were small victories celebrated?

6. Were the end state measures developed for the change consistent with the vision and strategy? Were they viewed as legitimate?

7. How were the end state measures fed back to users?

8. Were steps taken to ensure that end state measures were properly used? Were there risks and potential consequences that needed to be managed?

Choosing Measures

• Focus on key factors • Use measures that lead to challenging but

achievable goals • Use measures and controls that are perceived

as fair and appropriate • Avoid sending mixed signals • Ensure measures deliver accurate and useful

data • Match the precision of the measures with the

ability to measure

The Change Context and the Choice of Measures

Choose Precise, Explicit, Goal-

Focused Measures

Choose Approximate

Measures, Vision Focused, “Learn as You Go” Measures

When Complexity

and Ambiguity

are:

Low High

When Time to Completion

is: Short Long

Types of Control Levers

• Interactive Controls—systems that sense environmental changes crucial to strategic concerns (e.g., market intelligence)

• Boundary Systems—systems that set limits of authority and action and determine acceptable and unacceptable behavior

• Belief Systems—organizational values and beliefs that underpin decisions

• Diagnostic/Steering Controls—traditional control systems, focused on key performance variables

The 4 Levers of Control

Change Strategy

Risks to be

Avoided

Critical Performanc e Variables

Core Values

Strategic Uncertainties

Interactive Control Systems

Belief Systems Boundary Systems

Diagnostic Control Systems

Control System Measures and Stage of the Change

Controls When Planning Change

Controls in Early Stages of Change

Controls in Middle Stages

Controls Toward End of Change

Initiative

Interacti ve

Controls

• Assessing opportunities and threats

• Testing viability of existing vision, mission, and strategy, given the environment

• Affirm that change project is aligned with environmental trends

• Assess how to use trends to increase prospects for success

• Ongoing monitoring

• Confirm that environmental assessment continues to support the change

• Obtain feedback regarding success of the change relative to environmental factors

• Ongoing environmental scanning

Control System Measures and Stage of the Change (cont..)

Controls When Planning Change

Controls in Early Stages of Change

Controls in Middle Stages

Controls Toward End of Change

Initiative

Boundary System

• Limit the change options to those within the boundary conditions

• Test the limits of what is acceptable

• Go/no go guidance on appropriateness of actions

• Reassess risks • Reestablish

boundaries, if needed

• Test new boundaries, where appropriate

• Re-evaluate the boundary limits

Controls When Planning Change

Controls in Early Stages of Change

Controls in Middle Stages

Controls Toward End of Change

Initiative

Belief System

• Assess congruence with purpose

• Congruence assessment

• Appeals to beliefs to overcome resistance

• Congruence assessment

• Re-evaluation of core values

Control System Measures and Stage of the Change (cont..)

Controls When

Planning Change

Controls in Early Stages of Change

Controls in Middle Stages

Controls Toward End of Change

Initiative

Diagnostic and

Steering Controls

• Assess impact of controls on the change project

• Consider what diagnostic controls will need to be developed and/or altered

• Develop milestones, diagnostic measures, and steering controls

• Develop tactics to alter control systems as needed

• Evaluate progress against milestones and measures

• Assess whether things are workings as they should

• Modify milestones and measures as needed

• Determine when project is completed

• Confirm changes are working appropriately

• Evaluate project and pursue learning on improvements for the next time

Control System Focus an Stage of the Change

Early Stage of Change

Middle Stages of Change

Late Stages of Change

Focus on the “what” of change

Focus on the “how” of change

Focus on outcomes and the

“what next” of change

Strategic Analysis: Goals,

Resources, Environment

Measure Progress and

Effectiveness of Processes

Strategic Reanalysis:

Goals, Resources,

Environment

Toolkit Exercise 10.3—Application of Simon’s Control Systems Model

Consider a change you are familiar with:

1. Describe the control processes and measures that were used. What was their impact? a. During the earlier stages of the change initiative b. During the middle stages of the change initiative c. During the later stages of the change initiative

2. Were there forbidden topics, such as questioning strategy or core values? Were those limits appropriate and were limits tested?

3. Were small successes recognized and celebrated along the way?

4. What changes to measures and control processes would have assisted change?

Strategy Maps and Change

• Visual representation can be used to show how the change vision and strategy intend to link with each other.

• They are linked through: • Employee learning and growth targets and

goals • System and process targets and goals • Customer (internal/external) targets and

goals • Desired financial targets and goals

Strategy Maps and Change (cont..)

Human Capital Informational Capital

Organizational Capital

LEARNING AND GROWTH PERSPECTIVE

INTERNAL PROCESS PERSPECTIVE

CUSTOMER PERSPECTIVE

FINANCIAL PERSPECTIVE

VISION FOR CHANGE AND STRATEGYHow Strategy

Links the Perspectives

A Generic Strategy Map Le

ar ni

& G

ro w

th In

te rn

al C

us to

m er

Fi na

nc ia

l W

hat do w e w

ant to accom

plish? H

ow do w

e plan to accom

plish this?

1.Human Capital (staff competencies)

2. Information Capital (technology

infrastructure)

3. Organizational Capital

(climate for action)

Customer mgmt

leadership

Innovation & comm.

supremacy

Internal ops excellence

Effective governance and control

Perception, public

relations

Current Migrated New New offerings

Solution focused

Scalability strategies

Add / retain value customer

Increase revenue/customer

Reduce cost/customer

Revenue Growth Strategy Productivity Strategy Asset Utilization

Maximize Organizational Value

The Balanced Scorecard and Change Management

Vision and

Strategy Customers

Internal Business Process

Financial Shareholders

Employee Learning

and Growth

Generic Balanced Scorecard for Change

Vision & Change Strategy

Customers: To achieve our change vision, how should we appear to our

customers?

Internal Bus. Processes: To

achieve our change vision, what

business processes do we need to excel

at?

Financial: To succeed financially, how should we appear to our

shareholders?

Learning and Growth: How will we sustain our ability to change and

improve?

Objectives Measures Targets Initiatives 1.

O M T I 1.

Toolkit Exercise 10.4—Aligning Change and Building the Balanced Scorecard

Think about a change you are familiar with:

1. State the Mission, Vision, and Strategy for the change.

2. Consider the Mission, Vision, and Strategy of the organization: • Is the proposed change consistent with these? • If not, what needs to be done to bring them into alignment?

3. Financial Component of Scorecard: If you succeed with the change vision, how will it appear to the shareholders or those responsible for funding the change? How will you know (objectives and metrics)?

4. Customer Component of Scorecard: If you succeed with the change, how will it appear to your customers? How will you know (objectives and metrics)?

Toolkit Exercise 10.4—Aligning Change and Building the Balanced Scorecard (cont..)

5. Internal Business Processes Component of Scorecard: If you succeed with the change, how will it appear in your business processes? How will you know (objectives and metrics)?

6. Employee Learning and Growth Component of Scorecard: If you succeed with the change, how will it appear to your employees and demonstrate itself in their actions? How will you and they know (objectives and metrics)?

7. Lay out the scorecard you’ve designed for your change and seek feedback from a classmate.

8. Can you show how the different components are connected to each other by developing a strategy map for the change?

Factors Leading to Increase Risk

• Change Pressure—Risk increases when change leaders feel: • Significant pressures to produce and accomplish the

change • There are high levels of ambiguity • The leaders have little experience with change

• Change Culture—Risk increases when: • The rewards for risk taking are high • Senior executives resist hearing “bad” news • There is internal competition between units

• Information Management—Risk increases when: • The situation is complex and fast changing • Gaps in diagnosis exist • If decision making is decentralized

Toolkit Exercise 10.5—Using the Risk Exposure Calculator

Score

Change Pressure

Pressure to Produce

Low High 1-2-3-4-5

Level of Ambiguity

Low High 1-2-3-4-5

Experience with Change

High Low 1-2-3-4-5

Out of 15 ___

Change Culture

Rewards for Risk-taking

Low High 1-2-3-4-5

Executives Resist Bad

News Low High

1-2-3-4-5

Internal Competition Low High

1-2-3-4-5

Out of 15 ___

Information Situation

Situation is Complex and Fast-changing Low High

1-2-3-4-5

Gaps Exist in Diagnostic Measures

Low High 1-2-3-4-5

Change Decision- Making

Decentralized Low High

1-2-3-4-5

Out of 15 ___

Four Key DICE Factors Duration [D]

• The time until the change program is completed or the amount of time between reviews of milestones

Integrity [I]

• Extent to which companies can rely on teams of managers, supervisors, and staff to execute change projects successfully

Commitment [C] • Dedication and support from top management [C1] and

the employees [C2] to the change initiative

Effort [E] • Additional work that the change initiative demands from

employees

Toolkit Exercise 10.6—Applying the DICE Model

Consider a change initiative that you know is currently being considered for adoption and apply the DICE model to it.

1. Duration Score: 1 — 2 — 3 — 4 Score: ___

• Score of 1 if formal reviews less than 2 months • Score of 2 if formal review every 2–4 months • Score of 3 if formal review every 4–8 months • Score of 4 if formal review more than 8 months

Toolkit Exercise 10.6—Applying the

DICE Model (cont..)

2. Integrity of Performance Score: 1– 2 — 3 — 4 Score: __

• Score of 1 if team leader has the skills needed and the respect of coworkers, team members have the skills and motivation to complete the project on time and at least 50% of the team members’ time has been assigned to the initiative

• Score of 4 if change team and change leader are lacking on all dimensions

• Score of 2 or 3 if the factors lie somewhere in- between

Toolkit Exercise 10.6—Applying the DICE Model (cont..)

3. Commitment Score is a 2-part measure…

a. Senior Management Commitment: 1-2-3- 4 Score: __

• Score of 1 if words and deeds of senior managers regularly reinforce the need for change

• Score of 2 or 3 if senior managers are fairly neutral • Score of 4 if senior managers are perceived as less than

supportive

b. Employee Commitment: 1 –- 2 –- 3 — 4 Score: ___ • Score of 1 if employees are very supportive • Score of 2 if they are willing but not overly eager • Scores of 3 or 4 as reluctance increases

Toolkit Exercise 10.4—Applying the

DICE Model (cont..)

4. Level of Additional Employee Effort and Demands over the Normal Load:

1 –- 2 –- 3 — 4 Score: ___

• Score of 1 if incremental effort less than 10%

• Score of 2 if incremental effort 10% to 20%

• Score of 3 if incremental effort 20% to 40%

• Score of 4 if additional effort more than 40%

Interpreting DICE Change Risk Scores

Calculating the DICE Score: (Duration Score + 2 × Integrity Score + 2 × Senior Management Commitment Score + Local-level Commitment Score + Effort Score)

Interpreting the Score: § Scores between 7 and 14: Win Zone § Scores between 14 and 17: Worry Zone § Scores over 17: Woe Zone

• Do the findings help you to think about sources of risk and how to manage risk?

Summary

• Care taken in the selection of measures and control processes help focus energy and effort

• They can help enhance the efficiency and effectiveness of the change, provide an early warning system, and provide direction to midcourse corrections

• They can help clarify what will be accomplished, what it will take to bring these things to reality and chart progress

• The careful selection and use of metrics can be used to enhance the legitimacy and sense of ownership of the change

Chapter 1: Changing Organizations in Our Complex

World

Chapter Overview • The goal of the book: develop your ability to initiate and

manage change

• Environmental factors affecting change are outlined: social/ demographic, technological, political, and economic forces

• Four types of organizational change are discussed: tuning, adapting, reorienting, and recreating

• Four change roles are described: initiators, implementers, facilitators, and recipients. The terms “change leader” and “change agent” are used interchangeably and could mean any of the four roles.

• The difficulties in creating successful change are highlighted and characteristics of successful change leader are described.

Your Experiences with Change Management

Talk with one another (in small groups) about your experiences with change

management.

What does this suggest organizational change management is about?

Organizational Change: Defined

• The intentional and planned alteration of organizational components to improve organizational effectiveness.

Organization Components

• Organization components include the organization’s: • Mission and vision • Strategy • Goals • Structure • Processes or systems • Technology • People

• When organizations enhance their effectiveness, they increase their ability to generate value for those they serve

The “Knowing−Doing” Gap

• Change capability has become a core managerial competency • But managers’ abilities to deliver on change

are modest at best

• There is a major “knowing−doing” gap • Knowing concepts and theories is not

enough • Managers need to become effective agents

of change, possessing the will and skills to make positive change happen

Orientation of the Book

There is a story of two stone cutters:

The first, when asked what he was doing,

responded: “I am shaping this stone to fit into

that wall.”

The second, however, said: “I am helping to

build a cathedral.”

This book is orientated towards those who want to be builders.

Why is change a Hot Topic? • Environmental Forces Driving Changes (PESTEL

factors): • Political Changes • Economic Changes • Social, Cultural and Demographic • New Technologies • Legal Changes • Ecological/Environmental Factors

• Turbulence and ambiguity define the landscape for both the public and private sectors

Toolkit Exercise 1.2 Analyzing Your Environment

Select an organization you are familiar with. What are the key environmental issues affecting it? List these and their implications for the organization.

Political Factors …………… Implications?

Economic Factors …………… Implications?

Social Factors …………… Implications?

Ecological/Environmental Factors ……… Implications?

Legal Factors …………… Implications?

New Organizational Forms & Management Challenges Due to Environmental Change

Macro Changes and Impact

• Digitization leading to:

• Faster information transmission

• Lower cost information storage and transmission

• Integration of states and opening of markets

• Geographic dispersion of the value chain

• All leading to globalization of markets

New Organizational Forms & Management Challenges (cont.)

New Organizational Forms and Competitive Dynamics • Global small and medium-sized enterprises • Global constellations of organizations (i.e., networks) • Large, focused global firms • All leading to:

• Spread of autonomous, dislocated teams • Digitally enabled structures • Intense global rivalry and running faster while

seeming to stand still

New Organizational Forms & Management Challenges (cont.)

New Management Challenges • Greater diversity • Greater synchronization requirements • Greater time-pacing requirements • Faster decision making, learning and innovation • More frequent environmental discontinuities • Faster industry life-cycles • Faster newness and obsolescence of knowledge • Risk of competency traps where old competencies no

longer produce desired effects • Greater newness and obsolescence of organizations

The Causal Model Driving Change

Macro Changes and Impacts in

the Environment

New Organizational

Forms & Competitive Dynamics

Management Challenges in “A New Time”

Macro Changes and Impact

Digitization

Integration of States and Opening of

Markets

Faster Information Transfer

Lower-cost information storage and transmission

Geographic dispersion of the

value chain

Globalization of Markets

New Org Dynamics

New Organizational Forms and Competitive Dynamics

Rise of global SME’s

Rise of global constellations

Rise of large, focused global

firms

More intense “Red Queen”

More intense competitive rivalry

Spread of digitally enabled structures

Spread of autonomous, dislocated teams

Management Challenges

Management Challenges in “A New Time”

Faster decision making, learning and innovation

Greater Time Pacing Requirements

Greater Synchronization Requirements

Greater Diversity

Faster newness and obsolescence

of knowledge

More frequent environmental discontinuities

Faster industry lifecycles

Greater Risk of competency traps

Faster newness & obsolescence of

organizations

Common Management Responses to Competitive Pressures

• Running hard, but for all purposes standing still

• Called the Red Queen phenomenon (Alice Through the Looking Glass, by Lewis Carroll)

• In global competition, what matters is not the firm’s absolute rate of learning and innovation, but the relative pace of its development compared to its rivals.

Toolkit Exercise What Change Challenges do You See?

Pick an Organization

What are the change challenges you see it facing?

How well are they doing?

Four Types of Organizational Change

Tuning Re-orientation

Adaptation Re-creation

Incremental Strategic

Anticipatory

Reactive

Types of Organizational Change

Incremental/Continuous Discontinuous/Radical A N T I C I P A T O R Y

Tuning • Incremental and anticipatory • Need is for internal alignment • Focuses on individual

components or sub-systems • Middle management role • Implementation is the major task

Redirecting or Reorienting • Strategic proactive changes based on

predicted major changes in the environment

• Need is for positioning the whole organization to a new reality

• Focuses on all organizational components

• Senior management create sense of urgency and motivate the change

R E A C T I V E

Adapting • Incremental changes made in

response to environmental changes

• Need is for internal alignment • Focuses on individual

components or sub-systems • Middle management role • Implementation is the major task

Overhauling or Recreating • Response to a significant

performance crisis • Need to reevaluate the whole

organization, including its core values • Focuses on all org. components to

achieve rapid, system-wide change • Senior management create vision

and motivate optimism

Nature of the Impact of Change

• Short-term impact/consequences • Direct and indirect effects • Moderating factors

• Intermediate impact/consequences

• Long-term impact/consequences

THE LESSON: Planned changes don’t always produce the intended results

Common Causes of Difficulty with Organizational Change

• Managers don’t do their analytic homework • Managers are action oriented and assume others will

see the inherent wisdom in the proposed change • Managers under or overestimate their own power

and influence (and that of others) • Managers see transition periods as a cost, not an

investment • They underestimate the resources & commitment

needed to integrate the human dimensions with other aspects of the change

Common Causes of Difficulty with Change (cont.)

• Managers are unaware their actions (and those of other key managers) may be sending conflicting messages

• Managers find human processes unsettling or threatening

• Managers lack capacity (attitudes, skills, and abilities) to manage complex changes that involve people

• Managers' critical judgment is impaired due to overconfidence, under confidence, and/or group think

• Unanticipated external factors can play a huge role

Four Organization Change Roles 1. Change Initiators

• Identify need and vision • Act as a champion

2. Change Implementers • Chart the detailed path forward & make it happen • Nurture support and alleviate resistance

3. Change Facilitators • Aids in analysis and issue management along the way • Provides advice and council • Sometimes helps smooth the way through helping

resolve issues, alleviate resistance and nurture support

4. Change Recipients • Those affected by the change who have little input to the

process or content of the organizational change • Have to alter behaviors to ensure change success

Toolkit Exercise 1.3 Change Roles in Organizations

Think of a time when you have been involved in change. What roles did you play? How comfortable were you with each of those roles?

1. Change Initiator

2. Change Implementer

3. Change Facilitator

4. Change Recipient

How did each of these roles feel? What did you accomplish in each role?

Characteristics and Skills of the Change Leader

• Formal change leaders (or agents) spearhead the change, and may play any or all of the change roles.

• Informal change leaders can emerge anytime throughout the change process

• What are the key characteristics and skills of the change leader?

What’s Required to be a Successful Change Leader?

• Keen insight into the external environment and skilled anticipator of what is evolving

• Rich understanding of organizational systems and processes, power structures and stakeholder networks

• Excellent analytic, interpersonal and communication skills

• Driving passion for action, yet patient and persistent • Well-developed sense of timing and tactics • Ability to assess and manage risk

• An ability to focus on outcomes while also paying very close attention to process

What’s Required to be a Successful Change Leader? (cont.)

• Tolerance for ambiguity and risk taking

• Emotional maturity and courage

• Self-confidence and optimism

• Honest and trustworthy

• Capacity to engage others and inspire confidence

• Deep understanding of themselves and their impact

• Curiosity and strong desire to learn

Change Leaders Embrace Change Paradoxes

• Recognize that change leaders sometimes drive change from the front, while at other times they empower others and stay out of the way

• Recognize resistance to change is both a problem and an opportunity

• Focus on the outcomes of change, but are very careful about the management of the process

• Recognize the tension between “getting on with it” and reassessing and changing direction

• Capacity to balance patience and impatience

• Recognize the absolute rate of learning is less important than the relative rate of learning in comparison to competitors

Critical Questions when Considering Change

1. What is the environment telling you prior to, at the beginning, during and following the implementation of the change? In particular: a.What is the broader environment telling you about

future economic, social and technological conditions and trends?

b.What are your customers or clients (both inside and outside the organization) telling you?

c. What are your competitors doing and how are they responding to you?

d.What are the partners within your network doing and how are they responding to you?

e.What do the people who will potentially be the leaders, managers and recipients of change want and need?

Critical Questions when Considering Change (cont.)

2. Why is change needed? Who sees this need?

3. What is your purpose and agenda? • How does that purpose project to a

worthwhile vision that goes to the heart of the matter?

Critical Questions when Considering Change (cont.)

4. How will you implement and manage the change? a.How will you resource the change initiative? b.How will you select and work with your change

team? c.How will you work with the broader

organization? d.How will you monitor progress so that you can

steer, alter speed and course, if necessary?

Critical Questions when Considering Change (con’t.)

5. How will you ensure that you act (and are seen to act) ethically and with integrity? What have I learned about change and how can I remember it for the future? How can I pass on what I learned?

6. Once the change is completed, what comes next? The completion of one change simply serves as the starting point for the next.

Summary

• Need for change often originates in the external environment.

• Change upsets the internal equilibrium in an organization and thus may be resisted.

• People can play many different change roles.

• How they play these roles makes a significant difference!

Appendix 1: Roots of Organizational Development

• Small group training: • Focused on creating change by improving self-awareness

and the group’s dynamics • Survey research and feedback:

• Intervened with sophisticated surveys and analysis to create the need for change

• Action research: • Encouraged the use of action, based on research, in

continuous cycles (in essence, learning by doing, followed by observation, doing and more learning)

• Socio-technical systems: • Focused on the interaction between the sociological and

technical subsystems of the organization and described change in more holistic terms

Organizational Development vs. Organizational Change

Organizational Development Change Management

Underlying Theory & Analytical framework

Based primarily on psychology

Individual/group functioning

Includes principles and tools from sociology, information technology and strategic change theories

Individual/group functioning AND systems, structures, work processes (congruence model)

Role of Change Agent

Facilitator or process consultant

Content expert (organization design and human performance) AND process consultant

Member of cross-functional team, which includes strategists and technologists

Part of project organization, which includes client managers/employees

Organizational Development vs. Organizational Change

Organizational Development Change Management

Intervention Strategies

Not directly linked to strategy

Focus on one component at a time

Normative-re-educative (change attitudes to change behavior)

Driven by strategy

Simultaneous focus on several components (strategy, human resources, organization design, technology)

Action-oriented (change behavior before attitudes)

Positioning the Course

Management Focused Change

OD / HR Focused Change

• Re-Structuring • Re-Engineering • Re-Design

• Surveys • QWL Programs • Hi-Perf Systems

• Visioning • Stakeholder • Analysis • Action Planning

• Process Skills • Team Building • Third Party • Intervention

This Course

Chapter 8: Becoming a Master Change Agent

Chapter Overview • Change agents are key to the entire change

process

• Change success is a function of the person, a vision, and the situation

• The chapter describes traits and competencies that contribute to change agent effectiveness

• Experience plays a big role in skill development

• Four change agent types are described: the Emotional Champion, the Intuitive Adapter, the Developmental Strategist, and the Continuous Improver

• Internal and external change agents and change teams are discussed

The Change Path Model

Awakening Chapter 4

Mobilization Chapter 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

Becoming a Master Change Agent • Factors influencing

change agent success • Change leader

characteristics • Change leader

development • Types of change leaders • External change agents • Effective change teams

Being a Change Agent

Person Vision Situatio n

The Change Agent Role— Is It Worth the Risk?

• Being a change agent can be professionally hazardous

• It can also prove energizing, exciting, educational, and enriching

• You are likely to improve your understanding of the organization, develop special skills, and increase your network of contacts and visibility

• Failure experiences, though painful, are seldom terminal—change agents tend to be resilient

Endothermic and Exothermic Change

• Exothermic Change • More energy is liberated than is

consumed, by the actions undertaken to promote change

• Endothermic Change • The change program consumes more

energy than it generates

The Interaction of Vision and Situation with Who You Are

Later in this chapter, we explore behaviors and attributes common to change agents. Here we ask you to consider why, where, and when you might become more of a change agent.

1. What purposes do you consider vital? What visions do you follow for which you would make significant personal sacrifices?

2. What would be a vision that could catapult you into persistent, committed, and even sacrificial (by normal standards) action?

3. How does the situation you find yourself in affect your desire to become a change agent?

Essential Change Agent Characteristics

• Commitment to improvement

• Communication and interpersonal skills

• Determination

• Eyes on the prize and flexibility

• Experience and networks

• Intelligence

Attributes of Change Leaders

Inspiring vision 92*

Entrepreneurship 87

Integrity and honesty 76

Learning from others 72

Openness to new ideas 66

Risk-taking 56

Adaptability and flexibility 49

Creativity 42

Experimentation 38

Using power 29

Attributes of Change Managers

Empowering others 88

Team building 82

Learning from others 79

Adaptability and flexibility 69

Openness to new ideas 64

Managing resistance 58

Conflict resolution 53

Networking 52

Knowledge of the business 37

Problem solving 29

Another Way to Think of Change Agent Actions

Consider their use of:

• Framing behaviors

• Capacity-creating behaviors

• Shaping behaviors

Toolkit Exercise 8.2—Attributes of Change Leaders from Caldwell

LOW 1 2 3 4 5 6 7 HIGH

1. Inspiring Vision 1 2 3 4 5 6 7

2. Entrepreneurship 1 2 3 4 5 6 7

3. Integrity and Honesty 1 2 3 4 5 6 7

4. Learning from Others 1 2 3 4 5 6 7

5. Openness to New Ideas 1 2 3 4 5 6 7

6. Risk-Taking 1 2 3 4 5 6 7

7. Adaptability and Flexibility 1 2 3 4 5 6 7

8. Creativity 1 2 3 4 5 6 7

9. Experimentation 1 2 3 4 5 6 7

10. Using Power 1 2 3 4 5 6 7

Toolkit Exercise 8.2—Attributes of Change Managers from Caldwell

LOW 1 2 3 4 5 6 7 HIGH

1. Empowering Others 1 2 3 4 5 6 7

2. Team Building 1 2 3 4 5 6 7

3. Learning from Others 1 2 3 4 5 6 7

4. Adaptability and Flexibility 1 2 3 4 5 6 7

5. Openness to New Ideas 1 2 3 4 5 6 7

6. Conflict Resolution 1 2 3 4 5 6 7

7. Adaptability and Flexibility 1 2 3 4 5 6 7

8. Networking Skills 1 2 3 4 5 6 7

9. Knowledge of the Business 1 2 3 4 5 6 7

10. Problem Solving 1 2 3 4 5 6 7

Toolkit Exercise 8.2—Change Agent Attributes Suggested by Others

LOW 1 2 3 4 5 6 7 HIGH

1. Interpersonal Skills 1 2 3 4 5 6 7 2. Communication Skills 1 2 3 4 5 6 7 3. Emotional Resilience 1 2 3 4 5 6 7 4. Tolerance for Ambiguity 1 2 3 4 5 6 7 5. Tolerance for Ethical Conflict 1 2 3 4 5 6 7 6. Political Skill 1 2 3 4 5 6 7 7. Persistence 1 2 3 4 5 6 7 8. Determination 1 2 3 4 5 6 7 9. Pragmatism 1 2 3 4 5 6 7 10. Dissatisfaction with the Status Quo 1 2 3 4 5 6 7 11. Openness to Information 1 2 3 4 5 6 7 12. Flexibility and Adaptability 1 2 3 4 5 6 7 13. Capacity to Build Trust 1 2 3 4 5 6 7 14. Intelligence 1 2 3 4 5 6 7

Toolkit Exercise 8.2—How Did You Rate Yourself?

1. How would you assess yourself on the scales that proceed? What areas of development are suggested?

2. Are you more likely to be comfortable in a change leadership role at this time, or does the role of change manager or implementer seem more suited to who you are?

3. Ask a mentor or friend to provide you feedback on the same dimensions. Does the feedback confirm your self-assessment? If not, why not?

Developing Yourself as a Change Agent

• Formal study helps develop the awareness and skills of change agents, but experience is invaluable

• You are your own best teacher—learn by doing

• Accept responsibility and blame no one

• True understanding comes from reflection on your experience

• Reflection and Appreciative Inquiry are powerful developmental tools for both yourself and those you are working with

Miller’s Stages of Change Beliefs

Stage 1: Beliefs: People will change once they understand the logic of the change. People can be told to change. As a result, clear communication is key.

Underlying is the assumption that people are rational and will follow their self-interest once it is revealed to them. Alternately, power and sanctions will ensure compliance.

Miller’s Stages of Change Beliefs (cont.)

Stage 2: Beliefs: People change through powerful communication and symbolism. Change planning will include the use of symbols and group meetings.

Underlying is the assumption that people will change if they are “sold” on the beliefs. Again, failing this, the organization can use power and/or sanctions.

Miller’s Stages of Change Beliefs (cont.)

Stage 3: Beliefs: People may not be willing or able or ready to change. As a result, change leaders will enlist specialists to design a change plan and the leaders will work at change but resist changing themselves.

Underlying is the assumption that the ideal state is where people will become committed to change. Otherwise, power and sanctions must be used.

Miller’s Stages of Change Beliefs (cont.)

Stage 4: Beliefs: People have a limited capacity to absorb change and may not be as willing, able, or ready to change as you wish. Thinking through how to change the people is central to the implementation of change.

Underlying is the assumption that commitment for change must be built and that power or sanctions have major limitations in achieving change and building organizational capacity.

Toolkit Exercise 8.3—Your Development as a Change Agent

1. Think of a situation where someone’s viewpoint was quite different from yours. What were your assumptions about that person?

2. Did you ask yourself, why would they hold the position they have? Are you at Miller’s stage one, two, three, or four?

3. Are you able to put yourself into the shoes of the resister?

4. What are the implications of your self-assessment with respect to what you need to do to develop yourself as a change agent?

Change Agent Types

Incremental Change

Strategic Change

Vision Pull

Analysis Push

Emotional Champion

Intuitive Adapter

Developmental Strategist

Continuous Improver

Change Agent Types (cont.) • Emotional Champion

• Has a clear and powerful vision of what the organization needs and uses that vision to capture the hearts and motivations of organization members

• Intuitive Adapter • Has the clear vision for the organization and uses that

vision to reinforce a culture of learning and adaptation

• Developmental Strategist • Applies rational analysis to understanding the competitive

logic of the organization and how it no longer fits the organization’s existing strategy and the environment. Seeks to alter structures and processes and shifts the organization to the new alignment

• Continuous Improver • Analyzes micro-environments and seeks changes such as

re-engineering to systems and processes looking for smaller gains instead of giant leaps

Are You an Adaptor or Innovator?

• Are your preferences more aligned with those of an Adaptor? • These individuals are more conservative in

their approach and more oriented toward incremental change

• Are your preferences more in line with those of an Innovator? • These risk-takers prefer more radical or

transformational change

Toolkit Exercise 8.4—What Is Your Change Agent Preference?

1. How comfortable are you with risk and ambiguity? Do you seek order and stability or change and uncertainty?

2. How intuitive are you? Do you use feelings and emotion to influence others? Or are you logical and systematic, persuading through facts and arguments?

3. Given your responses to the above, how would you classify yourself? Are you: q An emotional champion? q An intuitive adapter? q A developmental strategist? q A continuous improver?

4. How flexible or adaptive with the approaches you use?

The Inside Change Agent Roles

• The Catalyst overcomes inertia and focuses the organization.

• The Solution Giver knows how to solve the problem.

• The Process Helper facilitates the “how to” of change playing the role of third-party intervener.

• The Resource Linker brings people and resources together to solve problems.

Benefits of Using External Change Agents / Consultants

• Provide subject-matter expertise

• Bring fresh perspectives

• Provide independent, trustworthy support

• Provide third-party expertise to help facilitate discussions and manage the process

• Extra assistance when talent is in short supply and/or time is of the essence

Selecting a Consultant

• Ensure you have a clear understanding of what you want from the consultant

• Talk with multiple (up to 5) consultants and/or consulting organizations

• Issue a request for proposal (RFP)

• Make your decision and communicate expectations

Characteristics of a Good Change Team Member

1. Knowledgeable about the business and enthusiastic about the change

2. Possesses excellent communications skills, willing to listen, and share

3. Totally committed to the project, the process, and the results

4. Able to remain open-minded and visionary

5. Respected within the organization as an apolitical catalyst for strategic change

Developing a Change Team

1. Clear, engaging direction 2. A real team task 3. Rewards for team excellence 4. Availability of basic material resources to do the job,

including the abilities of individual team members 5. Authority vested in the team to manage the work 6. Team goals 7. The development of team norms that promote strategic

thinking 8. Careful consideration of the personalities and skills of

team members, when designing the team 9. Selection of dedicated individuals willing to give it their “all”

Design Rules for Top Change Teams

1. Keep it small—10 or fewer members 2. Meet at least bi-weekly and require full attendance

Ø Meeting less often breaks rhythm of cooperation and coordination

Ø Frequency is more important than how you meet (e.g., virtual vs. face-to-face)

3. Everything is your business—no team-related information is off-limits to other team members

4. Each of you is accountable for your business 5. No secrets and no surprises within the team 6. Straight talk, modeled by the leader 7. Fast decisions, modeled by the leader 8. Everyone rewarded partly on the total results

Creating Structures for Team Projects

Consider a change challenge you are familiar with

1. To create needed structures when forming a change team, consider how you would manage discussions about and gain agreement on the following topics: a) Tasks to be completed b) Authority—scope of decision-making responsibilities c) Roles d) Boundaries

2. How would you use these to help manage the team as you move forward?

Toolkit Exercise 8.5—Your Skills as a Change Team Member

1. Think of a time when you participated in a team. How well did the team perform?

2. Review the characteristics listed by Prosci in Exercise 8.5, Qn 2. Did the team members exhibit the listed characteristics? Did you?

3. What personal focus do you have? Do you tend to concentrate on getting the job done—a task focus? Or do you worry about bringing people along—a process focus?

4. How could you improve your skills in this area?

FedEx’s Change Team Checklist

1. Ensure that everybody who has a contribution to make is fully involved, and those who will have to make any change are identified and included.

2. Convince people that their involvement is serious and not a management ploy, all ideas from management are presented as “rough ideas.”

3. Ensure commitment to making any change work, the team members identify and develop “what is in it for them” when they move to make the idea work.

4. Increase the success rate for new ideas, potential, and actual problems that have to be solved are identified in a problem-solving, not blame-fixing culture.

FedEx’s Change Team Checklist (cont.)

5. Deliver the best solutions, problem-solving teams self- select to find answers to the barriers to successful implementation.

6. Maintain momentum and enthusiasm, the remainder of the team continue to work on refining the basic idea.

7. Present problem solutions, improve where necessary, approve, and implement immediately.

8. Refine idea, agree upon it, and plan the implementation process.

Roles for Middle Management

• Linking—with Above, Bottom, Others

• Offering advice/help—as a Top, Bottom, a Link

• Influence Up • Championing Strategic Alternatives • Synthesizing Information

• Influence Down • Facilitating Adaptability • Implementing Strategy

Advice to Those in “The Middle”

v Be the top when you can and take responsibility for being top

v Be the bottom when you should. Don’t let problems just flow through you to the subordinates

v Be the coach to help others solve their problems so they don’t become yours

v Facilitate rather than “carry messages” when you are between parties in conflict

v Integrate with one another, so that you develop a strong peer group you can turn to for advice and support

Rules of Thumb for Change Agents

1. Stay alive—no self-sacrifice

2. Start where the system is—diagnose and understand

3. Work uphill

4. Don’t over-organize

5. Don’t argue if you can’t win—win/lose strategies deepen conflict and should be avoided

6. Load experiments for success

7. Light many fires—don’t work in just one subsystem. Understand patterns of interdependency

Rules of Thumb for Change Agents (cont.)

8. Just enough is good enough—don’t wait for perfection

9. You can’t make a difference without doing things differently

10. Reflect on experiences

11. Want to change

12. Think fast and act fast

13. Create a coalition—lone rangers are easily dismissed

Rules of Thumb for Change Agents (cont.)

…and remember:

Ø Keep your optimistic bias

Ø Be patient

Ø Be ready to seize the moment!

Summary

• Change management is an essential part of the role of those who want to manage and lead

• Becoming a change agent is a function of who you are + the situation + the vision

• Change managers and change leaders are differentiated and the stages of development outlined

• Four types of change leaders are described: the Emotional Champion, the Intuitive Adapter, the Continuous Improver, and the Developmental Strategist

• The use of external change consultants and change teams are discussed. Rules of thumb for change agents are reviewed

Chapter 7: Managing Recipients of Change and Influencing Internal

Stakeholders

Chapter Overview

• This chapter deals with those on the receiving end of change

• View recipients as stakeholders and revisit assumptions and approaches to ambivalence and resistance if or when it occurs

• Changes that alter people’s sense of their psychological contract need to be approached with care

• When disruptive change occurs, recipient stakeholders go through a predictable series of reactions to change

• Recipients often respond emotionally to change and their view of change are influenced by their personalities, experiences, their peers, and by the change leaders

• The present-day challenge is to make change the norm and encourage recipients to be change leaders and implementers

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

Recipients and Internal Stakeholders • Responses to change: +ve,

ambivalence, and –ve • Psychological contract • Stages of reaction to change • Impact of personality, experience

on change • Managing forward with recipients

and internal stakeholders

Recipients

• Reactions vary from positive to negative, and ambivalence often comes first • Recipients do not always react negatively—it

depends on how they perceive the change • Recipients will have questions and concerns, as they

attempt to make sense of the change

• Resistance is not inevitable—listen, work to understand and respond in ways that build understanding and support • Do this early and often—don’t wait for ambivalence

to become resistance

Channeling Feelings for the Change

• Channel energy in positive ways, not letting enthusiasm overwhelm legitimate concerns

• Recognize mixed feelings and seek to understand them

• Use respected, positively oriented individuals in positions of influence concerning the change

• Pace the change. Remember that going too slow can lose enthusiastic support and going too fast will choke those who are doubtful.

Ambivalence to Change Is No Surprise

• Mixed feelings are common as recipients try to make sense of the change

• Ambivalence generates discomfort as they seek to resolve a multitude of issues about the change: • People find it easier to voice concerns about

conflicting beliefs than about conflicting emotions

• Once they resolve their ambivalence, feelings solidify and subsequent change to attitudes become more difficult to change again • Invest the time needed at the front end of the

change to respond to ambivalence positively—or prepare to face a more difficult task later, when it turns to resistance

Responding to Mixed Feelings About the Change

• Focus on helping people make sense of the proposed organizational change

• Listen for information that may be helpful in achieving the change

• Constructively reconcile their ambivalence

• Sort out what actions are now needed

Common Causes of Negative Reactions

1. Negative consequences perceived to outweigh the benefits 2. Flawed communication process 3. Concern that the change has been ill conceived 4. Lack of experience with change or locked into old habits 5. Prior negative experience with a similar change 6. Prior negative experience with those advocating change

7. The negative reactions of others that recipients trust and/or with whom they will have to work in the future

8. The change process seen to lack procedural or distributive justice and breaching their “contract”

9. Fear that they lack skills they’ll need to perform well

Perceptions of Fairness & Justice

• Perceptions of Fairness & Justice • Will influence how recipients view and react

to the change

• Procedural Justice • Was the process managed in a fair and

equitable way?

• Distributive Justice • Was the end decision a fair one?

Is It Resistance… or Is Something Else Going On?

• We often misinterpret impediments to change as caused by resistant recipients

• Impediments are much more likely to come from problems related to the misalignment of structures and systems than from individuals engaged in resistance

• Blaming individuals rather than addressing misaligned structures and systems will worsen the situation

Managers as Recipients

• Recipients of change are not just those in front-line roles

• Supervisors, middle, and even senior managers are often recipients of the organizational change

• Managers often try to manage up, down, and laterally to cope with change; they try to shape it and deal with implementation on their own terms

• Coping with change while trying to link, influence, and implement is difficult

• If you are a change recipient in these middle roles, be aware of how this can affect your judgment

Toolkit Exercise 7.3 Personal Reactions to Change

1. Think about times when you have been a recipient of change: a. What was the change and how was it introduced? b. What was the impact on you? c. What was your initial reaction? d. Did your attitudes change over time? Why or why not?

2. Was there a pattern to your response? a. Under what circumstances did you support the change? When did

you resist? What can you generalize from your reactions? b. If you experienced ambivalence, how did you resolve it and what

happened to your attitudes toward the change?

3. Have your experiences with change been largely positive, negative, or mixed? Have they colored your expectations about the future?

Psychological Contract

• The psychological contract represents the sum of the implicit and explicit agreements we believe we have with our organization

• It defines our perceptions of the terms of our employment relationship and includes our expectations for ourselves and for the organization, including organizational norms, rights, rewards, and obligations

• Changes often disrupt recipients’ psychological contracts

• When unilateral changes are made to psychological contracts, negative reactions can be expected

Toolkit Exercise 7.5—Disruption of the Psychological Contract

Think about a change initiative that you are aware of:

1. What was the psychological contract?

2. How did the change disrupt the psychological contract?

3. What were the reactions to these disruptions to the contract?

4. What steps could have reduced the negative effects stemming from the disruption?

5. How should a new psychological contract have been developed with affected individuals?

6. If you were a recipient, what steps could you take to better manage your way through the development of a new contract?

Stages of Reaction to Change Before the Change During the Change After the Change

Anticipation & Anxiety Phase

Shock, Denial, & Retreat Phase

Acceptance Phase

Issues: Coping with uncertainty and rumors

1. Pre-change Anxiety

Issues: Coping with the announcement and associated fallout, reacting to the new “reality”

2.Shock

3.Defensive Retreat

4.Bargaining

5.Depression, Guilt, and/or Alienation

Issues: Putting effects of change behind you, acknowledging the change, achieving closure, and moving on to new beginnings— adaptation and change

6.Acknowledgment

7.Adaptation & Change

In the Midst of Change, Change Is About…

• Ambiguity • Risk • Denial • Anger • Fear • Resentment • Excitement • Exploration

• Determination & Commitment

• Tension • Satisfaction • Pride • Lots of Other

Potentially Conflicting Emotions

Toolkit Exercise 7.4—Your Normal Reaction to Innovation & Change

When you find yourself dealing with matters of innovation and change, how do you typically react?

1. Do you fall into the category of innovator or early adopter?

2. Or do you generally fit into the early majority category? If the experiences of early adopters are positive, you take the risk.

3. Or are you in the category of the late majority? You wait until the innovation has been tried and tested by many before adopting.

4. Or do you avoid adopting until the vast majority have done so? In other words are you a late adopter or even a non-adopter, until forced to do so?

Degree of Perceived

Risk Associated

with the Particular Change

High

Low Long Period of Minimal

Change

Moderate Rates of Change

Prolonged Periods of Upheaval or Extreme Change

Normal Rate of Change in the Organization

Recipient’s Past Experience with Change & Perceived Risk

Personality and the Change Experience

Change Experience Little Some Frequent Chaos

Individuals with High Tolerance

for Ambiguity and Change

Individuals with Low Tolerance

for Ambiguity and Change

Boredom Energized Negative

Stress Effects

Comfort Stress

Discomfort Rises

Severe Distress

Personality & Change

P E R F O R M A N C E

Low AMOUNT OF CHANGE High High Need for Change Individuals Low Need for Change Individuals

What Is Your Tolerance for Change?

1. What is your tolerance for change? What level of turbulence and ambiguity at work do you find most stimulating and satisfying?

2. How do you react when the rate of change is likely to remain quite low?

3. How do you react when the rate of change is moderate? What constitutes a moderate for you? Are your tolerance levels lower or higher than others you know?

4. What price do you find you pay when the rate of turbulence and ambiguity exceed what you are comfortable with?

5. Have you had to cope with prolonged periods of serious upheaval? Have these affected your acceptance of change?

Influence of Coworkers on Change Recipients

• Coworkers and Work Teams will greatly influence Change Recipients’ views toward the organizational change.

• Coworkers who are trusted will have greater influence.

• Cohesive teams will tend to become more cohesive when threatened.

• Cohesive teams will be influential.

How Trusted Peers Influence Recipients

Opinions of Those Trusted by Recipients*

Recipients' Initial Attitude to the

Change Possible Implication

Positive Toward the Change

Very motivated to support

Negative Toward the Change

Initially opposed but may move to support due to new information from trusted others + peer pressure

Negative Toward the Change

Positive Toward the Change

Support of the change may be weakened or silenced due to information offered by trusted peers + peer pressure

Negative Toward the Change

Opposition to the change is reinforced by the views of trusted peers

* As the cohesion of coworkers increases, so too does their influence

Feelings About Change Leaders Matter

• How people react to change is also influenced by their perceptions of the change leader

• They are more likely to respond positively to the change if: • they trust and respect these leaders • they believe their perspectives and

interests are recognized

Minimizing Cynicism Toward Change

1. Meaningful engagement of recipients with decisions that affect them

2. Emphasize and reward supervisors who foster two-way communications, good working relationships, and show consideration and respect for employees

3. Timely, authentic communications—keep people informed and include honest appraisals of risks, costs, benefits, and consequences

4. Keep surprises to a minimum via regular communications about changes, anticipating questions and concerns

Minimizing Cynicism Toward Change (cont..)

5. Enhance credibility by: a. using credible spokespersons who are liked and trusted b. using positive messages that appeal to logic and

consistency c. using multiple channels and repetition

6. Acknowledge mistakes and make amends

7. Publicize successful changes and progress

8. Use 2-way communications to see change from employees’ perspective—this will aid planning & future communications

9. Provide opportunities for employees to express feelings, receive validation and reassurance. Address their concerns

Toolkit Exercise 7.6—Leadership & Change Recipients

Think of an example of change leadership:

1. How was leadership exercised?

2. Was the leader trusted?

3. Did he/she deserve the trust given?

4. What kind of power did the leader use?

5. How were change messages conveyed? Were they believable?

Toolkit Exercise 7.6—Leadership & Change Recipients (cont..)

6. Did systems and processes support, or at minimum, not impair the change leader’s messages?

7. Was there a sense of continuity between the past and anticipated future? How was this developed and communicated? Impact?

8. What can you learn about the impact of the leader on people and stakeholders as a result of your responses to the above?

9. What can you learn about the impact of organizational systems and processes on the people and stakeholders?

10. Talk to others about their experiences. Can you generalize? In what way? What cannot be generalized?

Strategies for Coping with Change

Recipients’ Strategies Change Leaders’ Strategies

• Accepting Feelings as Natural

§ Managing Stress

§ Exercising Responsibility

• Rethinking Resistance

§ Giving First Aid

§ Creating Capability for Change

Strategies for Coping with Change (cont..) Recipients’ Strategies Change Leaders’ Strategies

Accepting Feelings as Natural § Self-permission to feel and

mourn § Taking time to work through

feelings § Tolerating ambiguity

Rethinking Resistance § As natural as self-protection § As a positive step toward

change § As energy to work with § As information critical to the

change process

Managing Stress § Maintaining physical well-being § Seeking information about the

change § Limiting extraneous stressors § Taking regular breaks § Seeking support

Giving First Aid § Accepting emotions § Listening § Providing safety § Marking endings § Providing resources and

support

Strategies for Coping with Change (cont..)

Recipients’ Strategies Change Leaders’ Strategies Exercising Responsibility § Identifying options and gains § Learning from losses § Participating in the change § Inventorying strengths § Learning new skills § Diversifying emotional

investing

Creating Capability for Change § Making organizational support of

risks clear § Providing a continuing safety net § Emphasizing continuities, gains of

change § Helping employees explore risks,

options § Suspending judgment § Involving people in decision

making § Teamwork § Providing opportunities for

individual growth

Roles for Middle Managers

• Linking—with Above, Below, and Across

• Offering—as a Top, Bottom, and a Link

• Influence Up • Championing Strategic Alternatives • Synthesizing Information

• Influence Down • Facilitating Adaptability • Implementing Strategy

Working Through the Phases of Change

1. Consider a significant and disruptive change situation. Can you identify the different phases of change? What phases are you aware of?

2. Can you identify strategies that recipients used or could have used to help them work their way through the different phases?

3. Can you identify strategies that change leaders used or could have used to help recipients work their way through the different phases?

Working Through the Phases of Change (cont..)

Aware Strategies Strategies Change Yes/No Recipients Can Use Leaders Can Use

Pre-change Anxiety Shock Defensive Retreat Bargaining Depression, Guilt, and Alienation Acknowledgment Adaptation and Change

• Does the model hold? Why or why not? • What other consequences of change can you identify?

Closing Advice for Change Leaders Thinking About Recipients

• Avoid coercion as a change strategy, if at all possible

• Align systems & processes with the change— when not aligned they can send conflicting signals

• Reduce the intensity of change by making change the norm

• Work to increase your tolerance for change, become a change agent yourself, and avoid the recipient traps

Walking the Talk—Why?

• It’s all about trust and authenticity in the person’s competence and character!

• Trust in change leaders creates confidence in the proposed path

• Trust provides an environment for others to take risks

• Remember—every change is a risk!

Walking the Talk – How?

• Get out there—don’t hide!

• Act as if you’re always on display • Communicate clearly the why, what, how, when

& who of the change

• Talk about your personal responses to the changes • It’s ok to be excited, uncertain, determined,

frustrated, relieved • Acknowledge missteps & mistakes—they will

happen

• Be empathetic—actively support and coach others, show your willingness to listen and learn

Assessing Recipient Openness to Change

Think of change you know of or are involved with. How are the recipients likely to rate the following factors?

Score

1. Past experience with change, particularly changes similar to that advocated

Very -10 -5 0 +5 +10 Very ___ -ve +ve

2. Normal rate of change that has been experienced by the organization

Very Low -10 -5 0 +5 +10 Mod ___ or Very High High

3. Recipients' general predisposition to change as reflected in their personality

Late -10 -5 0 +5 +10 Early ___ Adopter Adopter

4. Recipients believe they understand nature of the change and the reasons for it

Low -10 -5 0 +5 +10 High ___

Assessing Recipient Openness to Change (cont..)

Score 5. Recipient’s personal belief about

the need for this particular change

Very -10 -5 0 +5 +10 Very ___ -ve +ve

6. (a) Reactions of coworkers to the change

(b) Strength of coworker relations

(norms)

Very -10 -5 0 +5 +10 Very -ve +ve

Multiply #6a by #6b

Weak 0.1 0.3 0.5 0.7 1.0 Strong ___

7. Leader credibility Low -10 -5 0 +5 +10 High ___

8. Leader gains compliance through fear versus gains commitment through understanding & empathy

Fear -10 -5 0 +5 +10 Support ___

Assessing Recipient Openness to Change (cont..)

Score

9. Organizational credibility (i.e., will it follow through on commitments related to change)

Low -10 -5 0 +5 +10 High ___

10.Congruence of systems and processes with the proposed change (or confidence that they will be brought into congruence)

Very -10 -5 0 +5 +10 Very ___ Incongruent Congruent

Predisposition to Change Index: Scores can range from -100 to +100

Overall Score ___

Summary

• This chapter deals with how recipients respond to change.

• Resistance isn’t inevitable —don’t assume as much

• Ambivalence often precedes resistance & influence is easier at this point

• Understand reasons for resistance & put knowledge to work (e.g., the impact of change on the psychological contract)

• Factors affecting how recipients view change & their change reaction to disruptive change are discussed

• The chapter considers how recipients & change leaders can better manage the process & minimize the negative effects

Chapter 4: Building and Energizing the Need for Change

Chapter Overview

• This chapter asks the question “Why change?”

• A framework for assessing and understanding the need

for change from multiple perspectives is developed

• It describes what makes organizations ready for change • It outlines how change leaders can create an awareness

for change • The importance of developing the vision for change is

addressed. It can be a powerful aid in energizing and

focusing action

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

• Identify the need for change

• Articulate the gap between current situation and desired future state and develop awareness of need for change

• Develop and disseminate a powerful vision for change

• Disseminate the vision through multiple channels

Recognizing the Need for Change Is Not Enough!

• There is no shortage of things needing change • Recognizing the need for change is not sufficient

• “Why change” is aided by solid analysis of what needs to change and why its important to expend resources on this area, but…

• We need to be able to craft a compelling vision of: • Where we want to go (the desired change) • Why it is worth the effort

The Need for Change: Have You Done Your Homework?

• What is your assessment of the need for change and the important dimensions and issues that underpin it?

• Have you investigated fully the perspectives of internal and external stakeholders?

• Can the different perspectives be integrated in ways that offer the possibility for collaborative solutions?

• Have you developed and communicated the need for change in ways that will heighten readiness and willingness to change?

Develop Your Understanding of the Need for Change

Develop Your Understanding of the Need for Change and Create Awareness and Legitimacy for it

Seek Out & Make Sense of External

Data

Seek Out & Make Sense

of the Perspectives

of Other Stakeholders

Seek Out & Assess Your

Personal Concerns & Perspectives

Seek out & Make

Sense of Internal Data

Readying an Organization for Change

• Need for change is identified in terms of the gap between the current state and the desired state

• People must believe that the proposed change is the right change

• People must believe they can accomplish the change

• The change is supported by key individuals that organizational members look to

• “What’s in it for me?” has been addressed

A Second Look at Readiness

1. Leadership viewed as trustworthy by followers

2. Followers viewed as trustworthy and able to dissent by leaders

3. Have capable Champions of Change

4. Involved middle management

5. Innovative culture

6. Accountable culture

7. Effective communications

8. Systems thinking

Rate the Organization’s Readiness for Change

Readiness Dimensions:

Previous Change Experience Score Range (−8 to +4) Score? _________ Executive Support Score Range (−3 to +7) Score? _________

Credible Leadership & Change Agents Score Range (0 to +11) Score? _________

Openness to Change Score Range (−9 to +22) Score? _________

Rewards for Change Score Range (−5 to +2) Score? _________

Measures for Change & Accountability Score Range (0 to +4) Score? _________

Rate the Organization’s Readiness for Change (cont.)

• Total scores can range from −25 to +50

• The higher the score, the more ready the organization is for change • Organizations that score below +10 are likely not ready for

change, making change very difficult

• Use scores from each area as a guide to focus your attention on those low-scoring sections. What could be done to increase readiness?

• This tool’s purpose is to raise awareness of the organization’s readiness for change. It is not meant to be used as a formal research tool!

Creating Awareness of the Need for Change

• Create awareness that a crisis is near, or create a crisis that needs to be addressed

• Develop a transformational vision for the change based on compelling values

• Find a transformational leader to champion the change

• Focus on common or shared goals and work out ways to achieve them

• Create dissatisfaction with status quo through information and education

Barriers to Recognizing the Need for Change (“Active Inertia”)

• Mental models about the world become blinders

• Past successes reinforce existing practices

• Existing values and corporate culture may harden into dogma

• Leadership practices may impede recognition of need for change

• Embedded systems and processes can harden into unquestioned routines and habits

• Existing relationships can become shackles that impede the ability to respond to a changing environment

Groupthink

• Illusion of invulnerability

• Construct rationalizations

• Morality of position is unquestioned

• Stereotypes—distort image of other parties

• Pressure applied to those who express doubts about the group’s position

• Self-censorship— deviations from consensus are avoided

• Illusion of unanimity

• Mind-guards: leaders and fellow members protected from adverse information

Overcoming Groupthink

• Have the leader play an impartial role • Actively seek dissenting views. Have members

play the role of devil’s advocate • Actively discuss and assess the costs, benefits

and risks of diverse alternatives • Establish a methodical decision-making process

at the beginning • Ensure an open climate and solicit input from

informed outsiders and experts • Allow time for reflection and do not mistake silence

for consent

Value of a Vision for Change

What is Your Experience with Vision Statements?

• What makes for a good vision statement?

• What is the difference between a vision for the organization and one for change?

• What does the organization and senior management want from the vision?

• How much time, energy and resources should be devoted to creating a vision? Who should be involved?

What is a Vision Statement?

It is an attempt to articulate what a desired

future for a company would look like… an organizational dream. Visions are big

pictures.—Todd Jick

What is a Vision Statement? (cont.)

According to Tichy and Devanna:

It provides a conceptual framework for understanding the organization’s purpose—the vision includes a road map

It has emotional appeal with which people can identify

A vision’s value lies in its ability to guide behavior

What is a Vision Statement? (cont.)

According to Simons:

A vision without task is a dream world, and task without vision is drudgery.

Approaches to Visions for Change

• Leader-developed vision

• Leader-senior team-developed vision

• Bottom-up visioning

Your Thoughts on Organizational Vision

• How do you think an organization should go about developing a vision? Bottom up? Top down?

• To whom should it be communicated? How should it be communicated?

• When does an organization need to consider or revisit its vision?

Value of a Vision Is to Guide Behaviour

Good visions are:

• Clear, concise, easily understandable

• Memorable

• Exciting and inspiring

• Challenging

• Excellence-centered

• Stable but flexible

• Implementable and tangible

Why Is It Necessary to Have a Vision?

• A vision enhances performance measures

• It promotes change and provides a basis for a strategic plan

• It motivates individuals and facilitates recruitment

• It establishes a context for decision making

What Is a Useful Vision?

• A useful vision focuses on the future • Vision integrates three factors:

• Mission: What business are we in? What’s our reason for being and our fundamental values?

• Strategy: How are we to achieve our mission and our competitive advantage?

• Culture: The enactment of who we are in our values, beliefs, rituals, etc., relative to ourselves, our coworkers and our clients

Why Do Visions Fail?

• Senior management’s walk doesn’t match the talk

• Ignores needs of those putting it into practice

• Unrealistic expectations develop that can’t be met

• Lacks grounding in the reality of the present

• Either too abstract or too concrete

• Lack of creative input

• Poor management of participation

• Complacency—no sense of urgency

The Vision Trap

• Watch for vision creep

• Get back to basics:

• Language people can identify with

• Language people can do something with and focus upon

• Vision that engages and energizes and is not abstract and ambiguous

“Handy-Dandy Vision Crafter” We Strive to be the… ________________________________________________ (Premier, Leading, Pre-eminent, World-class, Dominant, Best of Class)

Organization in Our Industry. We Provide the Best… _______________________________________________ (Committed, Caring, Innovative, Expert, Environmentally friendly, Reliable, Cost-effective, Focused, Diversified, High-Quality, On Time, Ethical, High value added)

________________________________________________ (Products, Services, Business Solutions, Customer-Oriented Solutions)

“Handy-Dandy Vision Crafter” (cont.)

To… ________________________________________________ (Serve Our Global Marketplace; Create Customer, Employee and Shareholder Value; Fulfill Our Covenants to Our Stakeholders; Exceed Our Customers’ Needs; Delight our Customers)

Through… _______________________________________________ (Committed, Caring, Continuously Developed, Knowledgeable, Customer focused)

Employees in this Rapidly Changing & Dynamic… ________________________________________________ (Industry, Society, World)

Organizational Vision and Change Vision

• The approach to vision crafting remains the same but the focus shifts and becomes more specific around the particular change you have in mind

• The change leader’s goals are advanced when they develop or facilitate the development of a compelling change vision that appeals to groups critical to the change initiative and effectively communicate it to them

Save the Children

Vision for Its “Survive to 5” Program

We believe all children should live to celebrate their fifth birthday.

The Survive to 5 campaign supports Millennium Development Goal 4:

• To reduce child mortality by two-thirds by 2015 and save the lives of over 5 million children under 5 who are dying of preventable and treatable diseases.

Tata’s Vision for the Nano • Create a $2,000 “people’s car.” It has to be safe,

affordable, all weather transportation for a family. It should adhere to regulatory requirements, and

• achieve performance targets such as fuel efficiency and acceleration.

The Result: The Nano. 50 miles per gallon and seats five. At $2,500—least expensive car in the world when launched.

Change Vision for the Procurement System in a Midsize South African Manufacturer

• We believe providing reliable and cost-effective procurement services is critical to the future survival and success of our organization.

• We will develop and deploy a computer-based process that provides accurate and repeatable information to procurement so that those involved will be able to eliminate purchasing errors, and make more knowledgeable purchasing decisions.

• Through these actions we will reduce costs and increase the profitability and effectiveness of the organization.

• This change will completely eliminate rework on the bill of material, and will enhance the effectiveness and efficiency of the procurement process, quoting and planning phases.

• We will know we have succeeded in bringing this change to life by the measures we use to track progress, including error rates, costs, time savings, and user satisfaction.

Toolkit Exercise 4.2 Developing the Background to Understand the

Need for Change

1. Consider an organizational change that you are familiar with. What data could help you understand the need for change?

2. Have you: a) Made sense of external data? b) Made sense of the perspectives of other stakeholders? c) Assessed your personal concerns and perspectives that might

affect your judgment concerning the change? d) Understood and made sense of the internal data? e) What else would you like to know?

3. What does your analysis suggest to you about the need for change?

Toolkit Exercise 4.3 Writing a Vision for Change Statement Think of an organization you are familiar with that is in need of change. If you were the change leader, what would be your vision statement for change?

1. Write your vision statement for the change you are striving for.

2. Evaluate your vision. Is it: • Clear, concise, and easily understood? • Memorable? • Exciting and inspiring? • Challenging? • Excellence-centered? • Stable and flexible? • Implementable and tangible?

Toolkit Exercise 4.3 Writing a Vision Statement (cont.)

3. Does the vision promote change and a sense of direction? 4. Does the vision provide the basis from which you can develop

the implementation strategy and plan? 5. Does the vision provide focus and direction to those who must

make on-going decisions? 6. Does the vision embrace the critical performance factors that

organizational members should be concerned about? 7. Does the vision engage and energize, as well as clarify? What is

the emotional impact of the vision? 8. Does the vision promote commitment? Are individuals likely to

be opposed to the vision, passive (let it happen), moderately supportive (help it happen), or actively supportive (make it happen)?

Toolkit Exercise 4.3 Increasing the Value of a Vision Statement

Assess the vision against the following:

1. Is there consistency between the words and actions of senior management and the vision?

2. Does it pay attention to the needs of those who will put it into practice?

3. Are expectations related to it challenging but realistic? 4. Is it grounded in the reality of the present? 5. Is it neither too abstract or too concrete? 6. Was it forged through an appropriate combination of

synthesis and imagination? 7. Was there sufficient participation and involvement of others? 8. Does implementation contain a sense of urgency and

measurable milestones?

Toolkit Exercise 4.4 Combining the Need for Change and Vision for Change

Think of an organization in need of change:

1. What is the gap between the present state and the desired future state?

2. How strong is the need for change?

3. What is the source of this need? Is it external to the organization?

4. Is there tangible evidence (e.g., crisis) of the need for change?

Toolkit Exercise 4.4 Combining Need for Change and Vision for Change (cont.)

5. If the change does not occur, what will be the impact on the organization in the next two to six years?

6. What is the objective, long range need to change?

7. Return to the change vision statement developed in Exercise 4.3. Does it capture a sense of higher order purpose or values that underpin the change and communicate what the project is about.

8. Explain how the vision links to the need for change.

A Checklist for Creating the Readiness for Change

ü What is the objective need for change? What are the consequences to the organization of changing or not changing? Are people aware of these risks?

ü Are members aware of the need for change? Do they feel the need for change or do they deny its need? How can they be informed?

ü Individuals are motivated toward change when they perceive the benefits as outweighing the costs. Do they see the benefits as outweighing the costs? What can you do to ensure this is the case?

A Checklist for Creating the Readiness for Change (cont.)

ü If individuals believe the benefits outweigh the costs, do they also believe the probability of success is great enough to warrant the risk taking and needed investment of time and energy?

ü Are there other alternatives that are more attractive to them? What is it about their costs, benefits, and risks? How should these alternatives be addressed by the change leader?

Summary • Change occurs when there is an understanding of the

need for change, the vision of where the organization should go, and a commitment to action

• Change leaders need to address the question “Why change?” and develop both a sound rationale for the change and a compelling vision of a possible future.

• To develop the rationale, you need to do your homework! Careful assessment is used to understand and communicate the need for change and the organization’s readiness for change. The motives and interests of key stakeholders forms part of this assessment.

Chapter 6: Navigating Organizational Politics and Culture

Chapter Overview

• Change leaders need to understand the informal components of organizations—culture and power

• Understanding the cultural and power dynamics in an organization is critical to a successful change

• Force Field Analysis and Stakeholder Analysis are two key tools to analyze the informal organizational system and how to change it

• Change leaders need to know themselves. They are both stakeholder and key actors in the process

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

Navigating Organizational Politics and Culture • Power Dynamics • Perception of change and

the change equation • Force field analysis • Stakeholder analysis

Power Dynamics: Sources of Individual Power

• Position or authority power

• Network power

• Knowledge power • Expert power • Information power

• Personality power

Power Dynamics: Other Sources of Power

• Ability to cope with and absorb environmental uncertainty

• Low Substitutability • What you have to offer is scarce and not easy

substituted for

• Centrality to decision making, resources critical to strategy or survival, or to work that others rely on

Resource, Process & Meaning Power

• Resource Power • The access to valued resources in an organization

• Process Power • The control over formal decision making arenas

and agendas

• Meaning Power • The ability to define the meaning of things. Thus,

the meaning of symbols and rituals and the use of language provide meaning power

Usage Frequency of Different Power Tactics

When Managers Influence Superiors

When Managers Influence

Subordinates

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