Socratic view of the world in constant state of flux - no original substances C20 Quantum Physics and Relativity discovery of atomic levels and constant flux and movement centrality of time and sequencing of events into patterns or types
limit to how far an organisation can change - history and culture cannot be jettisoned as is therefore path dependant
what appears as a fixed state can be unpacked into a temporary pattern of relationships
adaptive change is the norm and transformational change is limited punctuated equilibrium - organizations alter their systems and structures through short bursts of change
Philosophical Views of Change Path Dependency Process Theory
organisation is tendency rather than state
Path Dependency and Tipping Points
idea of small changes leading to transformative change - reference to communications and the web principle of network externalities - a tipping point when system moves from one equilibrium to another
impact of model on organizational theory instead of organizational study it should consider process of organizing Linstead 2002 time as central variable in understanding change -through participation and intervention humans change their conditions of existence
Tipping Point - Gladwell 2000
change is achieved by a small addition and stands in contrast of punctuated equilibrium
sociological interest in unintended effects of action high levels of domestic lending led to significant debt and poor regulation increasing of interest rates led to higher debt levels and widespread bankruptcy
Japanese Economic Bubble 1991
organizational routines can be formalised or passed informally through tacit knowledge
consumers moved en masse into savings creating stagnant lost decade many actions have unexpected consequences and many unexpected factors have the most significant affect on change processes - Black Swans
Sociological Impact of Unintended Effects of Change
Perrow 1986 - Interdependencies - loose and tight linkages allow for prediction of some causal changes
however some are complex and difficult to project
The Meaning of Change: Contrasting Perspectives on the Impact of Change
routines are exemplified as tacit as they are not regularly scrutinized routines have processual dimension and are therefore evolving over time Feldman 2000 change in routine comes out of small differences in circumstances - do individuals follow rules or bend them to fit circumstances
change situation have analogous processes - difficult to predict how events are to be perceived magnification effects can occur from confluence of independent factors creating unintended impacts
people follow the rules rather than risk challenging them and being scape goated
Dysfunctions of Bureaucracy
classic US case studies identify bureaucratic ritualism, red tape and the bureaucratic personality emphasis of inertia and resistance Nelson and Winter 1982 - Evolutionary Theory of the Firm firm engages in change at the incremental level through relations between riles routines and outcomes inventiveness of individuals and incremental adaptive change
Views from Evolutionary Economics on Routines and Change
much analysis of change is based on principle of planning
Weick 2000 individuals respond positively to the goals of the organisation - accommodations and experiments are repeated and shared which over time present significant changes
Tsoukas 1994 - engineering model of causality pulling of lever not important but how people react to it
cause an effect theory of organizational planning - however undone by introduction of people to the process
emergent change likely when corporate culture encourages experimentation and innovation as well as speak up when things arent working emergent change builds on existing practice and expertise
form of scenario analysis looking at alternative historical outcomes of processes - emphasize uncertainty of historically determined outcomes useful analysis where historian is taken back to hinge of history - Cleopatra's nose/battle of Britain
Evolutionary Economics
Historical Perspectives on Uncertainty and Causality Virtual History
general lesson - achievement of a particular set of outcomes cannot be determined in advance
responds by devolving power to those closest to organizational boundaries role of senior management to scan boundaries and determine how changes can be built into new routines management of change as facilitative function determining what is worth changing
management of change can fall victim to events outside of organizational control
main challenge is not role of staff but management obstruction introduction of new ideas and values into firm undermines existing ideas and creates resentment
nobody can be certain how a change process will end Critique of Top Down Approach
ambiguity around management of change being facilitation of continuing adaptation or larges scale top down change programmes?
managers unlikely to allow incremental change due to pressing environmental factors and the central leadership role around change of modern managers
Lesson 1 Mindmap.mmap - 06/04/2009 -
associated with the idea of knowledge as finite achieved through scientific approaches scientific approach within an organisation creates a meta narrative which is singular and doesn't allow for any challenge
perceptions of change will differ with standpoints - modern world is full of a majority of people who are still poor and uneducated
Modernism
In modern organisations key decisions a still made by a small minority and activities are largely formalised
emphasis of uncertainty and unpredictability in human activity
each period in history perceives itself as subject to significant change with C16 ideas of change influencing our thoughts on advancement and progress
linkage of order and predictability to Nazism
The Age of Transformations
value of multiple voices and the spirit of doubt rather than certainty
subaltern groups and post colonial studies
multiple voices allows for people at the bottom of society and the organisation to be heard
Grey & Sturdy 2003
Modernism and Postmodernism Bauman 1989
in organisational studies a negative image of change is rarely used currently organisational change is seen as a good thing and lack of change associated with negative factors such as laziness and myopia
Postmodernism development of open source software i.e. Linux Wikipedia and development of knowledge through participation and interaction
recent events including terrorism suggest that changes may not necessarily relate to progress
challenge of postmodernism advocates diversity which impacts on the modern organisation can organisations develop this open model of learning and change - can the idea of a single logic be imposed?
1980s view of the changing nature of organisations and shift away from large bureaucracies
characterised by division of knowledge and execution
Fordism associated with system of mass production with standardised products made on large scales by low skilled employees considered US automobile industry and associated suppliers and their linkages to national economies
Organisations in an Age of Uncertainty and Change
Post Fordist Debate
post war economic stability in 1950s and 1960s following pre war fluctuations and wall street crash extremism and WW2
post-Fordism also described as Flexible Specialisation three alternative approaches flexibility/specialisation/innovation
modern organisations are now measured by these three variables
evolution of Keynesian consensus - stability of national economies through management of demand via public works, social security and active fiscal policy establishment of public sector characterised by bureaucracy and provision of global services on basis of citizenship
post Fordist organisations should be more response to changes in the environment, reduce layers of bureaucracy delayering reduced decision making times and extension of job roles providing more empowerment
problematic in highly unionised sectors
workforces would be differentiated according to need skill and commitment - workforces would be reduced to include more temporary work increasing when necessary
Economic Developments post 1945
firms were large and bureaucratic with strong sense of managerialism - markets were dominated by big players with no significant competition - GM, Ford Chrysler - market oligopoly
Flexibility
led to global market dominance with significant levels of exports to European markets
would allow for reduced cost pressure on the firm and allow for concentration on core competencies
post-Fordist organisations would also develop better networks with suppliers as was done in Japan
brief period of international economic stability characterised by large hierarchical and standardised organisations
Economic Changes in the late C20
growth of foreign competition from Japan and Asia in areas of electronics began to undermine power of Western firms
founding principle of capitalism but not the case on Fordist economy with high levels of vertical integration
greater structural flexibility in places such as Japan and Germany overtook the slower US companies with longer hierarchical chains and lower levels of product and service innovation
view that diversification needed to be related and many post Fordist firms were taking specialisation forward at significant levels subcontracting of unnecessary activities to the supply chain to increase cost management and efficiency - outsourcing
growth of inflation, declining overseas earnings and increased international demand increased import prices Specialisation
Post industrial forms of economic organisation Two approaches to understanding this change Innovation
low levels of fixed assets/continuity of existence on the web/flexibility of required skills Virtual Organisations organised through contracting/stronger links with suppliers/strong on flexibility Network Organisations remove traditional organisational structures allowing resources and ideas to flow according to need Boundary-less Organisations Organisational Models temporary body assembled for specific task - Hollywood studio system Project based Organisations organisations split into discrete units that can be assembled into combinations or transferred outside Modular Organisations result of 1990s fad of BPR building process from bottom upward and discarding organisational boundaries Process based Organisations
Lesson 2 mindmap.mmap - 10/04/2009 -
growing public sector required significant cuts to reduce inflationary pressures led these organisations to reconsider size and function and reduce labour forces general sense of crisis with belief that fundamental changes were needed in organisation of economy and firms
post Fordist approach considered incremental improvement achieved by employees on the job rather than big lab model development of networks of cooperative organisations drawing in suppliers and customers as well as linking up with academia
Fordism to Post-Fordism Economic Developments since 1970s
similar discussions during 1980s within public sector around inflexibility and need to outsource functions and introduce private sector philosophy and entrepreneurial spirit
Silicon Valley networks of universities and venture capital
private sector was characterised by large firms that became dominant actors in the economy
post modernist approach to linear models of rational planning
image of control and achievable outcomes with change manager to direct organisation in particular way change as a strategic choice and organizational survival depends on it Change Manager as Director
shared assumption with contingency theory that change unfolds differently over time according to organizational context Images of Managing Change Manager as Navigator
dominant assumption in CM literature that intended outcomes are achievable
normative/re educative - when people dispense with old orientations and gain commitment to new ones
change not a series of linear events over a given time but rather a continuous process role of change managers to navigate their way through this complexity by identifying options available and monitoring the environment
change as realization of prior intent through action of change managers empirical rational - change demonstrated as aligned with group interests
management image still of control but ability to exercise control constrained by internal and external forces
Images of Managing Change
Chin & Benne 1976 - 3 Strategies for intentional change
i.e. desire to introduce entrepreneurial thinking undermined by forces of bureaucratization
Images of Change Outcomes
managers as caretakers of organisation as it passes through various lifecycle stages Images of Change Outcomes
some but not all changes are achievable
natural process of development with underlying trajectory that cannot be changed
Lifecycle Theory
different managerial skill levels will affect application of change outcomes consequences may be intended and unintended
using neo-Darwinist logic to argue how environment selects organisation for survival or extinction
Partially Intended Change Manager as Caretaker
system wide changes do not always achieve main outcomes
externally - industrial relations/regulation/legeslation/industry trends
Images of Managing Controlling (activities) Shaping (capabilities)
change courses will need plotting and changing depending on these complexities Intended
power coercive - intentional change by those with greater power of others
internally - politics/past practices/deep seated values/perceptions
number of different models depending on confluence of factors which if aligned to problems will achieve desired outcomes
control still at heart of management action but range of factors will mean not all objectives are met
Management as Control - historically dominant/planning, organizing, commanding and controlling/top-down hierarchical view/organisation as machine driven by management Management as Shaping - participative management style/inclusion of others in decision making/shaping behavior/organisation as organism - shaped not controlled/creation of organizational capabilities - strong platform for responding to external changes
number of n-step models assume that manager can implement change following a number of steps
Population Ecology
difficulty in implementing desired change outcomes due to a range of variables that inhibit implementation
limited power of CM - interaction and partnerships or reposition/reinvention
similar CM activity undertaken across whole populations of organizations - due to interconnectedness
Six Images of Managing Change
Unintended
organizational variation, selection and retention
Institutional Theory
all organisations subject to three types of pressure - Coercive/Mimetic/Normative
change managers are able to intentionally shape organizational capabilities allowing for competitive success
Change Manager as Coach
change manager relies upon building right set of values and skills that staff can draw on to meet organizational goals Reinforced by traditional OD theory where change manager helps structure activities to help staff solve their own problems change manager in position of creating meaning for other organizational members - making sense of events and actions likelihood of alternative meanings and therefore only some will be realized with others emerging from alternative interpretations change manager needs to present legitimate arguments and are akin to strategists creating imaginary links between events and situations to create meaning
Change Manager as Interpreter
Images of Managing Change
organisations in ongoing state of accomplishment and re accomplishment 4 drivers of organizational change
animation direction paying attention and updating candid interaction
assumption that small changes might have impact on an organisation and managers cannot directly control their outcomes managers may nurture these organisation facilitating qualities that allow for self organisation to occur non linear organizational change fundamental rather than incremental
framework reflects a range of pure forms that may not exist in reality images have blurred boundaries and will overlap and intermingle
Change Manager as Nurturer
allows for reflection of images and assumptions we hold about CM
Chaos Theory
change managers can nature capacity for self organisation but not manage outcomes
being aware of mental models allows us to consider their relevance allows change managers to assess the assumptions of others they are working with
Taoist Theory
Using the Six Images Framework Assessing Dominant Images of Change
exposure to a range of images reduces likelihood of change manager using a single image image in use dependant on type of change image in use depends on context of change image in use depends on the phase of change
change as cyclical, processional and based on maintaining equilibrium
Surfacing our Assumptions about Change
encourages change managers to reflect on whether they are dominated by a particular view of change helps identify whether the organisation subject to change is dominated by a particular view - is it encoded genetically?
companies regenerate themselves through learning and interactive change resulting in new dynamic order
Using Multiple Images and Perspectives of Change
image in use depends on simultaneous involvement in multiple changes
Lesson 3 Mindmap 1.mmap - 10/04/2009 -
change outcomes are produced through nurturing yin-yang philosophy with new order containing its own negation
Intended Partially Intended Unintended
DIRECTOR NAVIGATOR CARETAKER
COACH INTERPRETER NURTURER
organisations understood as self-regulating system principle of managers as designers who determine the work and frame of reference for the output of the machine most potential interactions and impacts of processes are predetermined based on existing information - change can then be planned in detail Machine
change is treated as specific project with defined and controlled processes and outcomes machine based metaphors assume all parts of process work as expected conscious ability to change work patterns is not considered smaller scale change activities are associated with this model where fix and maintain are dominant approaches
Organisation as Brain or Machine
organisation conceived as decision making entity processing external information which in turn becomes outputs linked to principle of rational decision making and organisation as information processing system information on external environment is collected through boundary spanning activities causes significant confusion and conflict within organisations
a number of tensions between theories E and O interpretive/authoritative - some organisations will have a mixture of both
Brain
Bounded Rationality - limit to amount of relevant information and organisation can collect satisficing rather than maximising
4 main metaphors about organisational change and change agents
suggest that the model of a brain is limited, however technological advances have meant that access to data is now a lot more sophisticated
Fix and Maintain Build and Develop Move and Relocate
Morgan 2006 - Examination of Organisations through Images
organisations consist of cultures languages and symbols organising is an interpretive activity where cooperation emerges out of shared norms and values
Marshak 1993 - Managing Metaphors of Change
listen to images you and other use to describe change
Images and Approaches to Managing Change
ensure metaphor and literal meaning are the same describe change situation using all 4 metaphors to gain new insights
Images of Organisations
Mixing Metaphors
Liberate and Relocate language and metaphors describing change process must reflect movement of process to avoid confusion
information is processed through the organisation which maintains the existing system or modifies to respond to environmental changes
Key Lessons
values and norms merge with other processes such as symbols and stories to create a common set of images as a resource to explain the current environment Organisation as a Culture
emergence of a specific language in the organisation - iceberg model where majority of body sits below the surface organisational change is therefore about changes organisational levels and the built in culture
align symbolic language system to get people to fix, build or move in unison when stuck deliberately change prevailing metaphors tog et out of the box
change can be dangerous with high levels of uncertainty - black box groups and individuals pursue their own interests in conflict with each other relationship between legitimacy, authority and power - often ambiguous employees accepted imposition of management control subject to agreed terms and conditions problem for management when zone was not recognised or didn't renegotiate the zone organisations create mini-constitutional orders based on shared principles
Organisation as a Political System Barnard 1938 - Zone of Indifference
organisations as non linear dynamic systems with many unintended consequences when linear action is taken
Beer & Nohira 2000
reflection of the machine and engineering based approaches requiring the exercise of power within the organisation focus towards top-down program driven change with leaders setting goals based on expectations of financial markets
Lesson 3 Mindmap 2.mmap - 11/04/2009 -
all change process should consider the impact on the constitutional order and impact on zone of indifference
Theory O
builds on principle of emergent change ensure adaptations are made at appropriate points to environmental pressures
Leaders focus on strategies and structures focusing on the hardware of the system
successful organisations have constitutional order or system of rules to which both managers and staff consent in terms of change management managers should place emphasis on maintaining legitimacy
cultural approach to change with purpose to develop organisational capabilities especially employees to become involved in identifying and solving work related problems
Theory E
Theories E and O of Change
different types of organizational change First Order Incremental Change adjustments in systems and process Second Order Discontinuous Change transformational radical change at organizational core Fine Tuning - anticipatory changes to external environment Adaptive - incremental changes in response to competitors
Nadler & Tushman 1995 - 4 categories of distinction between first and second order change
Reorientation - anticipatory major organizational modification based on previous strengths Recreation - frame breaking change with past practices and directions considers impact on organizational change of individual innovations and actions
intentional process of reducing staff numbers commonly used since 1970s
people at local levels are able to identify innovative changes
different approaches include retrenchment/downscaling/downscoping can be financially costly and not always used for cost reduction purposes - faces a number of key challenges
these innovators are those that go beyond the basics of their jobs and focus less on teamwork and more on results
Frohman 1997 - Change as individual initiatives First Order Incremental Change
often remain unseen by organisations and are undermined by different structures
Employee Retention
routines can be a source of change in organisations when enacted by different people with different interpretations
Avoiding Hard Landings - loss of skills and competencies Downsizing
Survivor syndrome
Delayering Networks/alliances
Poor communication
Outsourcing Empowerment
Due diligence Palmer & Dunford 1997 - 8 models of change Cultural adjustment
Flexible Working Groups Short Term Staffing Reduction of internal and external boundaries
common source of change management in modern organisations
Second Order Discontinuous Change
Disaggregation
number types of change including ERP/CRM/wireless/BPR/6 Sigma
number of commentators have warned caution on radical organizational changes and suggest integration of old and new system -i.e. Disaggregation with hierarchy
technology often used to address short term problems and raises a number of challenges
Type 1 - transition of organisation from entrepreneurial to professional management structure
Types of Change goal synthesis - position within the organisation of IT Transformational Types
Type 2 - revitalization of established company to focus on new markets and operate effectively Type 3 - visionary change
choice of technology identifying political barriers
routines are changed when past outcomes fail to be met and when outcomes open up new possibilities
Feldman 2000 - Change as development of local routines
Minimization of political behavior
Technological Change
Types of Change - Lessons from the Front Line
What Changes in Organisations
tectonic movements within an organisation to overcome inertia Midrange Organizational Change
Role of the IT team
moderate earthquakes destroy outdated aspects of the organisation while building on other relevant ones
communication of technological change Beyond First and Second Order timeframe
evolution of organisations through long periods of stability punctuated by short bursts of change Change as Punctuated Equilibrium limitation of assuming that firms should be brought into equilibrium with environmental changes that may only be temporary
contingency planning common activity over the last 100 years and remain entrenched change management activity
Change as Robust Transformation
producing successful M&A is a large challenge for firms with many M&A processes failing - number of key challenges
critical to identify what is required to engage with change
critique dominant view of linear change large groups of orgs undergo discontinuous changes - 3 forms Jolts - passing shocks causing temporary disruption
Cost savings - often overvalued Myer etal 1990 - Rethinking Linear Assumptions of Change
impact of Cultural Adjustment
Step Functions - emerging permanent conditions that require organizational movement Oscillation - cycles of discontinuity expansion and contraction of market
Balancing Change and Continuity
M&A
important to not assume types of change can be easily categorized as small and adaptive compared to large and transformational
Due Diligence Employee Retention Contingency Planning Power Structure Communication Key Implications for Change Managers
important to consider the impact of multiple organizational changes and their interrelationships
Navigator
important to remember impact of smaller level changes on larger organisation
Nurturer
managers may assume that as long as people are coached they will take the initiative to address problems Change may mean adding and integrating rather than replacing and removing change may be needed to remain stable implicit assumption that incremental changes are less risky
Lesson 4 mindmap 1.mmap - 14/04/2009 -
Director
importance of perception and mental frameworks - Interpreter
Coach
diagnosis exists within our heads as managers regardless of specific models
those individuals within or without the organisation who have a capacity to influence the success of change - multilayed approach
implicit models have a powerful impact on thought processes and approaches to change
identify stakeholders who can influence the organisation
fundamental propositions of models
asses capacity to influence change at hand
key choice is whether we use explicit or implicit models implicit models have a range of limitations - often based on limited experiences
check out track record of approach to change
Stakeholder Analysis
Models: Why Bother
Diagnosing Rediness for Change
assess individual interest in each change process
managing complexity of situations helping identify areas of most need
identify most influential stakeholders
highlighting interconnectedness of organisational properties
try to determine individual position on the change process Burke 2008 - 5 key uses of models another model which allows for a consideration of those variables that are driving and resisting change
providing a common language to discuss organisational characteristics providing a guide to sequence of actions to take in a change situation
Force field Analysis
model attempts to provide rader screen of key variables Purposes - what is our business? Structure - how is work divided? Rewards - do all tasks have incentives? The Six-Box Organisational Model
Mechanisms - are there helpful coordinating mechanisms? Relationships - How is conflict managed? Leadership - are all the boxes kept in balance?
Diagnosis for Change
helpful process when analysing elements and components of the models helpful for those companies who haven't fully considered the impact of broad trends on the future
developed by McKinsey based on 2 key principles 1. - organisational effectiveness is a consequence of interaction between multiple factors
PESTLE analysis The 7 S Framework
2. - successful change requires attention to the interconnectedness of these variables
allows for understanding of impact to a firm of different events and scenarios Scenario Analysis
used extensively by Royal Dutch Shell
Galbraith argues that the organisation is at its most effective when 5 major components of OD are aligned
analysis of 3 questions - where are we now? where do we want to get to? how can we get there?
The Star Model
generality allows for most managers to participate high consensus allows for immediate action to be taken while low consensus allows for closer attention to the organisations objectives
Gap Analysis
prominence given to strategy as cornerstone of OD - misalignment will lead to sub optimal performance
Modelling Organisations
Nadler & Tushman development of open systems model proposition argues that organisational effectiveness determined by consistency between each element
The Strategic Inventory Newsflash Exercise The Congruence Model
allows for a detailed understanding of an organisation and can help outline barriers to change mapping out what is ormally taken for granted can start to question what is normally ignored
Component Analysis
views the entire organisation as a transformation process contextualised by its environment
Cultural Web
12 factor model that differentiates between elements which are source of major transformational change and those that are incremental
Bolman & Deal identify 6 dilemmas around getting OD structures accurate differentiation vs integration gap vs overlap- are key tasks left out of new structure? under use vs overload of staff
The Burke Litwin Model Structural Dilemmas
lack of clarity vs lack of creativity
human resources frame - relations between the organisation and its staff
too loose vs too tight
to meet these success factors organisations need to reduce 4 boundary types - vertical, horizontal, external,international
Lesson 4 Mindmap 2.mmap - 20/04/2009 -
a planned organisational change should flow from the top and influence the lower levels
structural frame - organisations as machines turning inputs into outputs
excessive autonomy vs excessive independence
shifting paradigm for organisational success - new success factors of flexibility/integration/innovation
views organisation as comprising 4 key elements - task/individual/informal organisation/formal organisation
The 4 Frame Model
political frame -organisations as places of political conflict symbolic frame - essence of organisation in culutre and symbols
The Boundaryless Organisation
Market Advantage Test Why of Change - context of change process both external and internal
Parenting Advantage Test does the change reflect strengths,weaknesses and motivations of people in the organisation?
What of Change- content of change what is being implemented How of Change - process of change and how is it managed?
People Test
Orientating Perspectives
constraints in implementation Feasibility Test
Ashridge Model of Change Analysis
Pettigrew 1987- Framework for distinguishing aspects of change
model suggests that any change process is a combination of these elements and requires consistency
Specialist Cultures Test
Congruency models of changeconcern themselves with linkages in change processes i.e. if content of change was to encourage participatory activity the process should not be managed in a coercive way
does the change bridge difficult internal links? Difficult Links Test Redundant Hierarchy Test Accountability Test
comparative measure concerned with outward organizational performance
Flexibility Test
focus on market share, revenue growth and cost management
is the change pressure localized and confined to particular activities or is it more general? 4 types of change that organisations undergo - role of change agent is to identify appropriate type and follow through
Market Performance
other indicators include comparison with peer groups (public sector) and customer surveys difficulty around improvement on existing ranking - is 2nd place good or bad?
need for localized changes in spirit of existing model - Caretaker Fine Tuning
key factor is interpretive process and accurate analysis of key statistics
recognized need for something to occur but incrementally - Interpreter Incremental Adjustment
stimulation of change through perceptions of change in the environment - even if it hasn't happened yet!
Dunphy & Stace - Contingency Approach to Change
importance of getting ahead of the curve - scoping and scenario analysis
more radical change but limited to one part of an organisation - processes include redrawing forms and boundaries of activities - outsourcing
Changing Environmental Conditions Signals for Change
most radical form of change with whole organisation subject to critique and restructure
most reliable indicator come from within the organisation around deteriorating performance Corporate Transformation
slower turnaround times, gaining consensus across functional areas etc
The 'What and How' of Change Contingency and Congruence
Dunford and Stace have identified 4 processes of change
these problems can by symptomatic of deeper structural issues as well as increased tensions between groups
nature of change needs determining by those most close to it Organizational Performance
no existing blueprint and dependant on knowledge and skills of those involved
important that signals are interpreted properly
Collaborative Change Techniques
will be time intensive and requires trust amongst all parties initial closing down of options by management then engaging with those affected feedback may influence final structure/proposals
Performance Gap Model- allows firms to measure themselves against own objectives and determine whether changes are needed and introduces a range of interpretations
Identifying and Diagnosing Change: Contingency Models
Consultative Change Techniques
key paradox of change management when should change occur rather than when it does occur?
driven by top managers with main emphasis on communication explaining why the change is necessary will impact differently on individuals whose employment status will change
best time for change is during period of success as it brings resources, confidence and reputation
C19 factories and some military organisations
The 'Why' of Change Understanding the Environment
Directive Change
those inside organisation are given no option but to comply - no attempt to persuade or incentivise
paradox is that people feel little urge to change as this point and managers don't wish to rock the boat Handy 1994 - The S-Curve Problem
The How of Change - Process Issues Coercive Change
Churchill or GE's Jack Welch
decision escalation - people and organisations recognize a problem but believe that it will improve with more resource and time
Problems of Perception
more attached people become to a commitment the less willing they are to see its problems - millennium dome and Concorde
Charismatic Transformation corporate transformations follow two types of change strategy
associated with strong sense of imminent crisis and collapse - Lufthansa in 1990s highly directive and veer towards coercive approach and can include significant impacts on staffing structures and levels
opportunities are missed and decline begins - people are now less likely to support change model anticipates there will be a dip in performance because of uncertainties around change - dip will be smaller if it happens earlier
most change efforts in the modern world straddle consultative/directive approaches change based around one strong figurehead with force of personality and presence - rallying point much less common now as external forces make it difficult for one leader to maintain a presence for any significant time frame
impact of major uncertainty - supply, technology, demand, politics and price volatility most orgs undertake some form of environmental analysis - PEST and SWOT analysis
Modular Transformation
The Escalation Problem
in military decisions there is greater reluctance to back down decision escalation can profoundly influence change programmes- it can disincline people to interpret signals from the environment
Turnaround Change
individuals take on consensus view to avoid challenging it - often common when there are individuals with strong personalities
Groupthink
extreme cases can include risk of bullying or serial violence - communism and Robert Maxwell - Milgram experiments suggests that organisations need to ensure perceptions are opened up prior to working on change
developing a board with NED's with diverse experiences
Generating Alternative Perceptions
mentoring and coaching - use of consultants to act as sounding boards for issues of uncertainty that are complicated to discuss in public developing ongoing relationships with investors and analysts - can have an impact on change process but risk is of herd mentality
Subtopic
Lesson 4 Mindmap 3.mmap - 21/04/2009 -
what can be done to ensure that change initiatives do not falter and become embedded as normal practice? for a change to stick it must become an integral part or organizational culture
Signs of Sustained Change
to be sustained it is important for people to note new practices as normal rather than change unless change seeps into organizational bloodstream it may be a passing diversion don't miss key opportunities connect change initiatives to core business Reisner 2002 - Lessons from Change at US Postal
may include reinforcing outcomes such as increased commitment or counteracting outcomes such as lack of commitment no amount of planning and procedure can ever remove unexpected outcomes
be realistic about limits and pace of change role changes may be significant element of change process not just outcome
Expect Unanticipated Outcomes Redesign Roles
assessing success of innovative practice can be complex and ambiguous risk of premature measurement and not recognizing the benefits of change over time
too much emphasis placed on changing people's attitudes - changes in roles will impact on behaviour no fundamental changes that don't involve amendment to reward system
Measurement Limitations
change doesn't always follow a linear pattern and will therefore provide different outcomes at different times
Redesign Reward Systems
celebrating a win is fine but don't declare total victory until total change is embedded within the organisation
rewards should include public recognition of those whose behaviour are consistent with desired change - reinforcement of behaviour who gets appointed to key positions can had symbolic role in reinforcing change
Don't Declare Early Victory
Link Change to Selection Criteria
Some Words of Caution
Sustaining Change
organizational members often await signals from senior management proving they walk the walk
recognition that not all changes are positive and that they can be fixed by throwing more resources at them Project Determinants - lack of progress perceived as temporary problem Psychological Determinants - self justification bias
Actions to Sustain Change Straw & Ross 2004 - 4 Determinants of Escalation
key indicator of success in this area is whether management practices have been aligned with new priorities Act Consistently with Advocated Actions
Escalation of Commitment
Social Determinants - saving face and hero effect Organizational Determinants resistance from internal departments
credible commitments - allocation of resources to a project which in real terms would be a sunk cost - shows commitment by management
most effective senior managers have been those who specify general direction of change but leave specific details to the operational level
learning from a failed change project adds to corporate store of knowledge learning organisations see failure as a natural state and opportunity for future enhancement
don't mistake incremental improvements for strategic transformation
Encourage Voluntary Initiative measurement acts as means of monitoring progress of change and will have impact on people's behaviour
Recognise Productive Failure
Measure Progress
getting metrics will be right - PWC considers leading and lagging measures/internal and external measures and costs and non-cost measures outcome of change process can take time - need for quick results to keep hope alive
Celebrate En Route
no better motivator than frequent success which can be used as catalyst for future change and allocation of resources for priority areas
key challenge around refining elements of change program with being interpreted as a failure Fine Tune
Lesson 5 Mindmap 2 - Chapter 12.mmap - 22/04/2009 -
7 stage systematic model requiring all steps to be followed KirkPatrick 2001 12 step model not be regarded only sequentially but as part of integrated process Mento, Jones and Dirndorfer 2002 10 keys model can be adapted to suit particular circumstances omissions will lead to failure Pendlebury, Grouard & Meston 1998 12 action steps can be applied at every level of the organisation providing useful tools for initiating and leading change Nadler 1998
during transformational process three key elements need managing - organizational power/motivation and process of transition
Change Management Approaches - see pp223
importance of sequencing and implementation of activities in a change process - 3 key phases
rationalization/revitalization and regeneration
Ghoshal & Bartlett 8 step model Establish need for urgency process approach shares assumption of contingency theory that changes evolves differently over time according to context
Ensure there is a powerful change group to guide the process Develop a vision
part company in assuming that change should not or cannot be solidified as a series of events within a given time
Kotter 1995
Ensure short term wins consolidate gains
political and contextual approach to change - change as complex interplay between content, process and context
embed change in culture preliminary research has shown that CM research has dominated discussions in recent years
intervening in an organisation to create strategic change will be a challenge to ideology, culture and systems of interpretation
Is CM Supplanting OD?
creating strategic change is a long term process of conditioning educating and influencing
although attention to CM seems to be growing its important to note that OD has been around significantly longer and remains a staple part of the change repertoire theoretically CM has a broader scope considering human performance and development
change managers need to examine external and internal context of change to determine sources of continuity as well as gaps
number of ongoing debates in this area including the case that CM has supplanted OD in 3 key ways
key question - is it possible to codify tasks and skills appropriate for such a sensitive activity without making it over deterministic?
Navigator Images of Managing Change - Processual Approaches
Problem Sensing - spreading legitimacy of organizational problems Development of Concern - about specific problem - establishing buy in Acknowledgement of Problem Importance
Johnston 1975
Implementing Change: Change Management, Contingency and Processual Approaches
OD-CM Debates
Director Image of Managing Change Change Management and Contingency Approaches
role of CM practitioner is wider operating within a team rather than as an advisor OD looks at changing attitudes prior to change while CM changes structures to affect behaviour
defenders of OD cite limitations within the field but also note alignment of CM with consulting and other fads CM practitioners critique OD for being too dominated by practitioner perspectives constant change as organisation adapts to external environment
Planning and Acting - clarification of future direction - senior management establishing a tension within the organisation Stabilsing Change - making things which happen stick
Communicate the vision Empower staff
Pettigrew's work on ICI initially considers change as an understanding of variety and mixture of causes and juxtaposition of rational and political
Developmental Transitions
directive style with leader acting as captain seeking compliance of staff
simple linear change recipes should be challenged change strategies will need adaptation due to the impact of reactions to them
Task Focused Transitions
change takes time and is unlikely to entail continuous improvements
training needs to be aligned with change outcomes
overall change managed from the top but consultation may take place lower down the line recognition that organisation is out of step with market and there is need for a radical change
Dunphy & Stace 1990 - Change Contingency Approach Model
assumptions should always be questioned managers need to learn from experienced stories of change
consultative leadership style with leader acting as coach aiming of commitment by staff
Processual Change Management
Charismatic Transformation Dawson 2003 - 10 Lessons of Processual Change
aimed towards framebreaking changes leaders operate at commanders forcing changes through the organisation
communications need to be contextualised sensitive to competing narratives
Turnarounds
substance of change is likely to alter over time political processes will be central to how changes occur
fine tuning paternalism Contingency Approaches
Taylorism approaches to change can be possibly viewed as differing paths that the firm might adopt at different stages
change involves interwoven contradictory processes
short time period abrupt and rapid implemented by senior management demanding compliance Commanding Change medium term fast change perspective undertaken by design analysts changing systems Engineering Change Huy 2001 - 4 Ideal Types of Change gradual long term approach OD perspective assisted by outside consultants Teaching Intervention change developing through participative experiential learning based on self monitoring Socializing Intervention fitting an organizational change program to required change may be easier in theory than practice contingency models are more ambiguous and require greater management choice
Why Contingency Approaches are not Dominant
contingency focus is on specific leadership style - may pose a challenge to managers who cannot adopt different styles what is contingent to management of change - are there any universal variables?
Lesson 5 Mindmap 1 - Chapter 8.mmap - 21/04/2009 -
model considers change as three stage process of unfreezing, movement and refreezing Nadler stage approach model suggests that there are 4 different aspects of the organisation that must be focused on and engaged with as part of the change process
model argues the need to return to idea of change as a process to bring together its different aspects
if these aspects are not reinforcing and complimentary then the change cannot succeed - concept of congruence
as the organisation pursues a more systematic change program routes can be carefully analyzed and subject to scrutiny
what are specific work activities that need change in the organisation? requires specific analysis of work organisation and how processes are lined up
focus on breaking with the past and slaughtering sacred cows Task Environment Unfreezing
if there is no skill-need fit then change will struggle
can include new office locations, different images or a model of frugality this has its limits and a line must be balanced on how far to criticize the past
what people will be needed for new tasks - does the skill profile of existing employees match to this need?
past traditions need substitution - creation of vision is complex task of research, articulation, stabilization and communication
Individuals
structures procedures and processes how activities are grouped together and significance for monitoring
Creating a New Vision
issues concerned with implementing new procedures linked to new objectives in the change process
Formal Organizational Arrangements
research suggests that intensive communication can mobilise staff but can also de motivate when linked to issues of uncertainty
Lewin and the Freeze Metaphor
issues of culture and beliefs - how is managed viewed across the organisation is the culture supportive of the change process?
re branding can be risky - BA and tail fins or restructure of Post Office
Mobilise and Energise Informal Organizational Arrangements
key danger of change management is that the most talented will leave leaving further de motivation amongst existing staff
Nadler also considers pairings of these factors to better identify problems for the change process mismatch between skills knowledge and expectations of existing workforce and new tasks limited number of possibilities including retraining but will not be universal
Individual/Task - Resistance Problem
do formal arrangement support the new tasks? does reporting and responsibility ensure that the environment is properly monitored?
appropriate incentivisation and reward systems - communicating symbolic rewards identifying those who have achieved under the new regime
Nadler - Systematizing the Model of the Organisation and Identifying Key Stages
Models for Managing Change: Process, Organisation and Communication
Support and Reward New Behaviour change is a complex game requiring the management of multiple interests recognition that power may need to be asserted over particular individuals
Task Environment/Formal Organisation - Control Problem
Be Political
alliances shift over time and are only sustained when useful
informal arrangements can develop cooperation in order to achieve tasks new structure may undermine this may reduce variety and lead to passive resistance followed by conflict
developing alliances with other groups to implement the change
broader model that develops long term perspective on change - receptive contexts of change
Formal/Informal Organisation
coherence of change program
commitment to shared participation Recognising the Change Imperative
strategic and operational change achieved through positive interaction of 5 CSF:
creating a general vision of change that encompasses critical areas of need Developing a Shared Direction Redesign organizational hardware structure and sequencing of activities
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Redesign of organizational software managerial behaviour and reward and appraisal
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close attention to HR dimension quality and coherence of operational objectives Implementing Change
5 Stage Model
availability of change leaders
Pettigrew Model of Congruence
long term environmental pressures Receptive Contexts for Change
supportive culture cooperative inter-org networks
baking in of changes and continued commitment to communication and information
Lesson 5 Mindmap 3.mmap - 22/04/2009 -
consistent and committed approach to change leadership ability to link operational and strategic change
Redesign of strategic selection processes
consolidation through measuring progress/celebrating wins/not declaring victory too soon
clear environmental assessment
simplicity and clarity of goals fitting change agenda to the locale Consolidating and Sustaining Change
innovative firms are doing more things together and not leaving anything out - emphasis on congruence and complementarities between change types
two perspectives of employee engagement
Main Principles
Persuasion - collaborative/consultative change processes with emphasis on changing how people think Direction/Coercion - overcoming resistance model used to explain pressures that move as well as inhibit change
games and tactics are used within conflict which can create advantages decide goals
preliminary battle is between these 2 variables and would lead to stasis if not addressed
Force field Analysis - Lewin
diagnose patterns of dependence and independence within the org
Overt
establish their views of your goals identify their power bases
Pfieffer 1993 - 7 stage process to enter politics game
Covert - concealed activities and industrial sabotage/whistle blowing
Types of Resistance to Change
identify the bases of your own power and influence
Unintended - decline in moral
determine strategies and tactics
Dealing with Collective Resistance
Resistance to Change - Initial Perspectives
chose course of action
Cynicism Unitary Perspective - organisation as single entity with goals articulated by management opposition is illegitimate and will resist unionisation
convince critics of validity of your strategy demonstrate that new behaviour will take them forward buy support or flatter marginalise critics
Eccles 1999 - recommendations for dealing with resistance
Dealing with Resistance to Change Approaches to Resistance
neutralize or exit critics
Power Politics and Resistance in the Management of Change
Know Yourself - articulation of feelings and get views on what skills need developing - allow people to come to terms with change
Pluralist Perspective - recognition of multiple perspectives within organisation although assumption that groups will commit to consensus Conflict Perspective - no expectation that different groups within the org have shared interests
Know the Situation - individual needs to come to terms with the new environment Know others who can help - talking to others who can help Working on self esteem
overt clashes in change process where there are strong collective actors capable of creating alternative perspectives
Dealing with Individual Resistance Carnell 2007 - Challenges faced by individual in dealing with change Collective Resistance to the Entire Change Process
model requires overcoming individual resistance and requires organizational time and resource
degree of collective organisation of a workgroup as well as informal cohesion within it
Denial - reject what has happened and pretend it isn't necessary - strongest level of resistance Defence - dominant view that something is wrong and change is needed increased negativity of self image and individual resistance Discarding - acceptance of change as positive in some ways
common in highly unionised settings where large groups can bring significant resources to bear - common in UK industrialised areas
groups may be threatened by the change process which may reduce status or conditions - work to gain collective power
Levels of Resistance to Change
Reward Power
The Cycle of Resistance Carnall 2007 - Coping Model of Change
Coercive Power
Workgroup Resistance to Impact of Change on Particular Conditions French & Raven 1960 - Types of Group Power
Adaptation - engagement with the change - process of testing and amending it
Legitimate Power Expert Power
Internalization most difficult to deal with and is often associated with personality issues and personal experience Individual Resistance
Lesson 6 Mindmap 2.mmap - 03/05/2009 -
Referent Power - way in which certain groups emerge as representing key organizational attributes
important role of language in shaping people's world views communism, nazism and control over mass media and reshaping of language Orwell - Newspeak, big brother and thought crime Sensemaking as fundamental activity within orgs - people try to rationalize and understand what is going on to create order and make situations rationally accountable
shifting perceptions and meanings through language - DTI to BERR connotation of name changes and attempts to change perceptions - Gordon Gekko
if conditions of sensmaking are undermined chaos can ensue
reconceptualisation through language changes - friendly fire and collateral damage
key issue is to build and change organisations in orderly way that allow for transition to work properly - developed a range of key questions removal of social anchors and networks undermine change
Hirsch & De Soucey 2006
social context sensmaking on the individual level - does the change allow for people to have a clear position?
non offensive language used to mask and sugarcoat slumps as having positive outcomes
language as non hierarchical phenomenon - people are all free to interpret it individually
Sensemaking and Organizational Change
identity
language continually developing and hard to regulate
Weick 2001 - Sensemaking
ensure that the past is not jettisoned and people don't regret their previous work
impact of 'organizational restructuring' rhetorical tools as linguistic persuasion devices
The Power of Language
new words appear each year and new language developed out of the Internet
Retrospect
language needs to be seen as terrain through which individuals within organisations communicate and shape meaning
can people spot the cues about new behaviours? salient cues resilient in the face of interruptions ongoing projects
Discourse - systems of language in use in specific situations
social building of view about what is being constructed plausibility does the change allow people to to test their assumptions around change, reward satisfaction etc?
language in use is critical part of change management process with actors seeking to enroll support for their own position by using specific words
Language, Discourse and Sensemaking in the Management of Change
enactment
emphasis of story telling and its role in understanding an organisation organisations consist of stories which carry an implicit lesson on how people behave or how the organisation works
opponents of change will seek to undermine discourse through challenging these words looked to determine nature of discourse and how they influenced organizational change different stakeholders within the process understood market in different ways
Language and Discourse
stories survive in corporate netherworld and help explain how the organisation got to a certain position emerge in complex ways within orgs and act as way of exposing an underlying truth of the org what are the unexpressed feelings of staff to the constitutional order?
different interpretations were embedded in language which actors used Heracleous & Barrett 2001 - differing interpretations of languages in change process
Narratives and Organizational Change
conflict between stakeholder groups talking 'past' each other
from a change perspective narratives have 2 key implications
critical to understand deeper values and 'deep structures' - real meaning of discourse
change management narrative needs to link old and new narratives impact of how organizational change is facilitated by involvement in changing societal perceptions of business
how actors construct arguments to achieve particular interpretations of reality while resisting others
whale watching industry and attempts by industry to change public perception of whales and their behaviour
organizational changes are about conflicts over meaning relating to a range of key factors
businesses sought to change the discourse around whales by fostering a humanistic image development of Kodak Moment and role of company in associating product with new lifestyle Kodak developed a particular view of itself as a company - Theory O
key distinction between what people say and underlying assumptions which link the speech acts into a coherent discourse
Munir & Phillips 2005 - Institutional Entrepreneurship
Organizational Change and Institutional Entrepreneurs
where change is implemented and resistance occurs there is battle over legitimacy of resistance
Rhetorical Strategies and Organizational Change
creating identities challenges arise over whether justifications for change are real or are being manipulated
Symons 2005 disputing realness
battle over us and them and role of middle managers setting boundaries resistance using the impact of change on local area drawing on local discourse
Lesson 7 Mindmap.mmap - 05/05/2009 -
key power struggle within capital between management and shareholders shareholder value as dominant discourse with change management implications transparency issues have advanced shareholder decision making with systematic auditing processes SOX developed to more closely bind management to accurate reporting standards problem of low risk to agent unlike shareholder
linkage of management compensation to shareholder value trying to address principle agent theory
power of different participants in the change process will vary between cultures and societies
Shareholders, Managers and Change in the USA and UK
focus of power and politics within and without organisations and change management processes derive from this relationship
in the UK senior managers are more strongly bound to shareholder interest with less protection against M&A activity
impact of divergent capitalism and how different national settings shape the power of managers, shareholders and employees
in the USA a range of regulatory mechanisms help protect management from aggressive shareholder activity managers have more room to move in terms of change processes
how social conflict is settled affects ownership and how authority is divided
Accounting for National Differences
where employees are empowered this often militates against dispersed ownership in favour of blockholding
those societies dominated by strong democratic institutions i.e. Germany will have employees with powerful rights and controls Roe 2004 - Political Determinants of Corporate Governance
shareholders have to undertake high level of monitoring and scrutiny of firm level activities
3 fold set of relationships between actors with different interests Shareholders/Managers/Employees Subtopic
in Germany this has lead to the retention of firms as family interests with capital requirements met from retained earnings of through the national banking system reflected in differences of stock market capitalization as % GDP
Subtopic UK and USA - outcomes of industrial struggles have left employees weaker
changes are slow and incremental often derived from technological upgrading
firms as isolated hierarchies that need to operate in constantly changing market conditions
even in PLC ownership remains concentrated with blockholders aiming for the long term with little exit strategies blockholders forced toward consensual approach reinforcing Theory O development process German system has a number of problems in terms of private benefits of control at the cost of small shareholders and potentially employees major changes therefore take place through the intervention of a core group of shareholders and occasionally the state change is therefore initiated by and negotiated by an inner group of blockholders, managers and employees outside investors are weakly represented as opportunities for lower costs overseas emerge many firms have moved location management challenge of employee power international M&A undermining nationalistic claims against overseas predators internationalization
Shareholders, Managers and Change Processes - CME Germany
Liberal Market Economies
Senior Managers and the Leadership of Change: International Dimensions
reducing employees, shutting down facilities and moving into new areas very little employee power be it institutional or regulatory to slow down change processes Germany and Scandinavia - capital, labour and state act in concert through key associations such as unions employee power reflected in powerful unions and collective bargaining German model of co-determination works councils and 2-tier board system representation of staff and shareholders considerable blocking power through works councils
Power of Employees in MoC Process - International Differences
rights embedded within national context where labour is a social partner Coordinated Market Economies
a number of significant changes have been affect the German model in recent years
German model pursues Theory O approach with incremental and developmental processes of change reinforced by nature of skills in the German system and role of vocational training which in turn influences management structures
changes in tx law have allowed this group to sell shares wthout capital gains implications
corporate governance system built around long term support for firms making long term commitments to staff
diminishing of blockholders transparacy of accounting
Japan - low union membership and low state intervention but focus on long term employment and high investment in skills
Stakeholder Model
model reflects need to develop consensus at all levels within the organisation - long and protracted approach to working changes communicated through broader network of cooperating companies Keiretsu including suppliers
Lesson 8 Mindmap.mmap - 07/05/2009 -
middle managers subjected to much criticism - potential negative influence on change main feature of change in recent years has been impact of delayering
MM's protect their own self interests and are reluctant to implement changes using their position and contacts to gather information for senior management encourage new and developing projects increasing adaptability
20 largest US orgs have seen employment drop from 4.5m to 1.9m people
growing evidence to suggest that MM's are critical in the delivery of change and that they can be positive strategic assets in change delivery
Lazonick 2005
Middle Management and Change: Crisis or Opportunity
use resources to champion innovation and business opportunities developing new working practices and reengineering existing ones
shift from old to new accompanied by focus on existing customers receive good service key indicator on the disruption that change causes to core business
keeping the business going argument that MM's undertook 4 key roles
development of firefighting mentality reviewing the role of the MM and development of their own jobs development of signs and behaviours including informal communications and networking
role of senior management has faded and are no longer seen as experts but rather decision makers or strategists /facilitators redistribution of responsibilities and re organisation of functions between senior and middle managers
implementing needed changes
leading on issues of cost reduction
shift in nature of the corporation from hierarchy to flatter structures with devolved decision making
Organising the Change Process: The Role of Middle Manager
undertaking personal change
acting as role models responsible for formal and informal communication
"...the planned vertical compression of managerial levels of hierarchy involving the wholesale removal of one or more layers of managerial or supervisory staff from the organisation's payroll"
helping others through the change these roles are highly time consuming can be stressful and cause frustration and other serious impacts
more people for individual managers to oversee
Balogun 2003
Increasing span of control
noted that change process is ongoing and managers are faced with constant pressure of changing priorities and will seek out organizational schemata frames of shared reference
no further opportunities for career progression with emphasis on horizontal movement Littler etal 2003 - Consequences of Delayering
perception of organisation was disrupted by big bang of change
role of manager moves from control to mentor Redesign of management jobs
process of unfreezing or de identification distancing from old schema led to ambiguity and loss of meaning future could not be developed from historical interpretation - achieved with experimentation through gossip and behaviour of others
Middle Managers and Change Time 1
Delayering in Organisations
research has shown that frames of reference are built over three key stages in the change process
managers develop new change process schemata which impacts on areas of conflict
Development of Portfolio Employee image - manager with range if skills able to work on a variety of tasks broader changes have had a significant impact on middle managers with research suggesting lowered morale, loyalty, motivation and job security
individuals may be subject to higher levels of anxiety/lower degree of organizational commitment, loss of job satisfaction and higher risks in career progression managerial survivor syndrome
reidentification and coming to terms with the new reality and goals of the business Time 3
Balogun argues that process of delayering which removes hierarchical levels can also impede factors of communication and interaction within the management chain senior management will have limited influence on MM interpretation of change process MM's develop own interpretation of change relying on peers
Development of Project Manager image - offering flexibility, fluidity and constancy of change
evidence from 1980s suggests that work was intensified for middle managers and decreases in job security
Time 2
creates a tension between new decentralized model and older hierarchical model
common schemata are developed between middle managers
increase in outsourcing activities Shifting organizational boundaries
visible indicators of change i.e. new locations
process of negotiation and interpretation with one of the main issues developing around the balance between new ways of working while maintaining the existing system
Compression of managerial career structures
issue of communication gap will have practical implications on the management of change
through negotiation and conversations MM's create change and in turn are changing how they interpret it
Delayering and Communication
within large organisations this will lead to multiple meanings thatd evelop in specific contexts Balogun concludes that during organizational change it is essential to tap into and monitor multiple interpretations
Lesson 9 Mindmap.mmap - 10/05/2009 -
change itself has become the goal of many organisations and have not properly considered the impact of relentless change programmes evidence has shown that large proportions of change programs such as TQM, BPR etc have failed or have been abandoned production of one change after the other reduced levels of enthusiasm and commitment
addiction to change has had a range of broader implications - range of personal, social and community impacts
Initiative Overload
development of the 'disposable American' as the consequence of significant delayering and firm flexibility
Employee Burnout symptoms emerge due to gaps between senior managers and other participants in the organisation
From Change Pressures to Change Consequences
The Change Revolution/Change Fatigue
this can be reduced with senior management being more systematic in terms of collecting data on about impacts on change initiatives pressure for change is beyond a simple and rational response to environmental factors
two key factors that impact on corporate social responsibility firms with strong brands now need to demonstrate fair trade credentials opening up of information sources i.e. Internet and blogging potential damage of firms is significant
Change Related Chaos summary of all symptoms leads to cynicism and burnout people are unhappy with their jobs
as change initiatives become more embedded they impact on how people view themselves - corrosion of character and spectre of uselessness
flexibility and mobility and dual career families have had a growing impact on issues of socialization and family
state of upheaval as wave of changes move across the organisation confuses and disorients people creating anxiety and political infighting
3 key symptoms of excessive change
Abrahamson 2004 - Repetitive Change Syndrome
emergence of employability or portfolio model where individuals become responsible for building their own skills
frequent relocations of management impact on family structures and wider disconnection - decline in civic participation and voluntary activities
difficult to link outcomes to initiatives - fog of rhetoric
many organisations are addicted to change - a number of factors are responsible for creating this addiction
Challenge of Globalization and Fair Trade
growth of shareholder value discourse since 1970s where previously firms could generate growth from internally generated funds the growth of institutional investors in large firms has had huge impact on power of management to control change
reduction of carbon emissions and energy neutrality Environmental Challenges
Shareholder Value and Impact of Capital Markets
investors have undertaken more detailed analysis of short term share price performance which twinned with short term market volatility has lead to pressure on firms to cut cost and reduce staff retained cash within firms has been used to buy back shares rather than used for further investment
limited scope for change by management
Recent discussions about impact of shareholder value by Jack Welch may impact future issues of change the specialist nature of consultancies and specific knowledge that they bring to organisations suggest that they feed uncertainty to clients and then offer solutions for change
Where does pressure for Change come from?
consultants offer a range of options tools and techniques which they continue to sell en masse to clients on a regular basis
The Role of Consultants
consultants also give a perception that the firm has a corporate will to change all change regardless of outcome will raise stock prices organisations seek to reinforce and protect reputation by engaging advisors which they think have a high status Podolny 2005 - Status Signals issue of fashions and fads - firms seek external reassurance by reviewing the work of competitors determining recent fads of business media Isomorphic pressure of conformity to specific models - impact of the halo effect - company X is doing well so we should copy!
Institutional Pressures
particular impact of this pressure in UK public sector and movement towards public sector model - increased marketisation and outsourcing of key activities ongoing change projects and habitual use of consultancies which filter down to NFP sector and other key stakeholders
Lesson 10 Mindmap.mmap - 10/05/2009 -
huge impact of fads leads to confusion and demoralization