Transcript MC -Chapter 3 Managing Change

Managing Change
Lecture 3
Change Strategies and
Interventions
1
Lecture Outline
 Introduction
 Issue
related to change
 Models for change
 Intervention strategies
 Organizational development (OD)
 Business Process Re-engineering (BPR)
 Turnaround strategy
 Action research model of change
2
INTRODUCTION
• The process of change has an impact
on the whole Organization
• The change process influences:
- What the organization does
- The way the organization does things
- The way all the business units
communicate and share information
3
The change process
New Organization
Human Resource Management
Quality Management
Change Management
IT
Project Management
Corporate Development
Old Organization
4
ISSUE RELATED TO CHANGE
• Hard problems – technical or
mechanistic which are usually scientific
or engineering in nature
• Soft problems – that which involves
people in which emotional responses
predominate
• Most problems fall between the two
above
5
Hard Problems VS. Soft Problems
• Quantifiable objectives,
•
•
•
•
•
•
•
•
•
constraints
System orientation
Limited number of
potential solutions
Clear problem definition.
Clear resource req.
Reasonable static
Known time-scales
Bounded problem with
min. ext. interactions
•
•
•
•
•
•
Subjective & at best semi
quantifiable objectives,
constraints
People orientation
Wide range of potential
solutions
Unclear problem
definition.
Unclear resource req.
Dynamic environment
Fuzzy time-scales
Unbounded problem with
many complex ext.
6
interactions
MODELS FOR CHANGE
• Many models have been generated since
change have been recognized as a
mainstream management issue.
• Before proceeding with the more
popular change models, it is useful to go
through the works of earlier change
theorists.
7
Kurt Lewin’s 3 Phase Model
• UNFREEZING – understand the need
• MOVEMENT – the new plan or system introduced
• REFREEZING – New patterns or behavior &
techniques become part of the ongoing
organizational process
Source: Robbins, S.P. and Coulter, M. (2007). Management, 9th Edition. Prentice-Hall, USA.
8
Goodstein & Burke’s 3 Levels
1)
2)
3)
Changing the skills, values, attitudes &
behavior
Changing organisational structures &
systems
Changing the organisational climate or
interpersonal skills eg. The decisionmaking process
9
Rosabeth Moss Kanter
In her book ‘Change Masters’ – she looks
at the conditions necessary to
encourage innovation, such as:
• Creating vision
• Enrichment of skills & knowledge
• Seizing of opportunities
• Skill to put to practice ideas
10
Tom Peters
• The most influential management guru
of the 1990’s
• His vision centered on the shift from
hierarchical bureaucratic management
to team-centered, flexible structures
• Advocated proactive change at every
level involving every employee
• Refer to table on page 91-93
11
INTERVENTION STRATEGIES
• Systems Intervention Strategy –
developed by Open Business School
• Total Project Management model –
developed by Glasgow Business School
• All intervention models , despite their
diff. terminology , follow the same basic
3 phase approach, which are:
12
3 Phases of Intervention Strategy
• Definition phase – involves defining
objectives, collecting data & examining the
problem environment
• Evaluation and design phase –
•
determining which research procedures to use,
analyzing data to produce potential solutions,
evaluating potential solutions against
performance objectives and choosing the best
solution
Implementation phase – implementing
the solution and appraising & monitoring
13
The questions asked when working
through the systems intervention
model:
• Where are we now?
• Where do we want to be?
• How can we get there?
• How will we know when we get there?
• What will it be like? and
• Can we carry the process through?
14
The range of analysis techniques
• Examination & manipulation of systems
diagrams
• Physical or computer simulations
• Investment analysis
• Cost-benefit analysis
• Network analysis
• Cash flow analysis
• Strategy analysis
• Cultural analysis
• Experimental techniques etc
15
3 ways of Implementation
• Pilot studies – chance to test before
implementation
• Parallel running – simultaneous running
of old and new
• Big bang – Immediate takeover
16
ORGANIZATIONAL
DEVELOPMENT (OD)
• A distinct area within the field of organizational
•
science that focuses on the planned and
controlled change of organizations in desired
directions – best suited for soft issues
A planned, systematic process of change that
uses behavioral science knowledge and
techniques to improve an organization’s health
and effectiveness through its ability to adapt to
the environment, improve internal relationships,
and increase learning and problem-solving
capabilities (Daft, 2008)
17
Facts to remember about OD
• Changes all aspects of an Organization
• Based on a belief that change can be
planned
• It is a slow process
• Requires assistance from outside the
Organization
• It is process oriented rather than goaloriented
18
The 7 stages of the OD model
1)
2)
3)
4)
5)
6)
7)
Agree organizational purpose/mission
Assess the outer and inner contents
Gather data
Gain involvement
Set targets and formulate proposals
Implement change and development
activities
Evaluate and reinforce changes
19
Techniques used in OD
• Survey feedback
• Team-building
• Sensitivity training and analysis
• Confrontational meetings
Refer to page 104/5 for a case study on
OD
20
Techniques used in OD
(cont.)
Source: Robbins, S.P. and Coulter, M. (2007). Management, 9th Edition. Prentice-Hall, USA.
21
BUSINESS PROCESS REENGINEERING (BPR)
• Defined as the process consisting of
taking all the activities of a business back
to their basic elements and restructuring
them to create a more efficient and
effective whole, often involving
delayering or reduction in management
layers and in products
22
BPR’s impact on Organizations
• Cover a number of functions
• Supports the Organization's business plan
and contribute to corporate performance
• The fundamental business remains the
same but the structure, rules &
boundaries would be dramatically changed
• The authority and responsibility of staff
may be dramatically changed
23
7 Principles for BPR
1. Organized around outcomes, not tasks.
2. Have those who use the output of the process perform
3.
4.
5.
6.
7.
the process.
Subsume information-processing work into the real
works that produces the information.
Treat geographically dispersed resources as though they
were centralised.
Link parallel activities instead of integrating their results.
Out the decision point where the work is performed and
build control into the process.
Capture the information once and at the source.
24
TURNAROUND STRATEGY
• The most radical of the change models
that would effectively cure or kill an
Organization.
• Would be appropriate for an organization
that is in serious trouble.
25
8 distinct steps of the
Turnaround Strategy
1)
2)
3)
4)
5)
6)
7)
8)
Gain management control – involve seniors
Establish and communicate credibility with
stakeholders
Assess existing managers and replace if necessary
Evaluate the business
Action planning
Implement organisational change if it is
appropriate
Motivate management and employees
Install and improve budgetary systems
26
ACTION RESEARCH MODEL
(ARM) OF CHANGE
• Barbara Senior (1997) describes ARM as:
‘A combination of research and action – this
means collecting data relevant to the situation
of interest, feeding back results to those who
must take action, collaboratively discussing the
data to formulate an action plan and finally
taking the necessary actions’
27
The stages of the ARM
1) Diagnose current situation and develop
2)
3)
4)
5)
vision for change
Gain commitments to the vision
Develop an action plan
Implement the change
Assess and reinforce the change
28
Kotter’s 8 Change Steps
1.
2.
3.
4.
5.
6.
7.
8.
Establish a sense of urgency
Form a powerful guiding coalition
Create a vision
Communicate the vision
Empower others to act out the vision
Create short-term wins
Consolidate and build
Institutionalize the new approaches
29
References
• Daft, R.L. (2008). The New Era of
Management, 2nd Edition. Thomson
South-Western, Ohio.
• Robbins, S.P. and Coulter, M. (2007).
Management, 9th Edition. Prentice-Hall,
USA.
30