Transcript Organizational Change - University of Winnipeg

C H A P T E R: S E V E N T E E N
Organizational
Change
17
McGraw-Hill Ryerson
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Continuous Change at Friesens
Friesens Corporation has
become one of North
America’s best managed
printing firms through an
adaptive culture that
supports continuous
change
Courtesy of Friesens
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Force Field Analysis Model
Restraining
Forces
Desired
Conditions
Restraining
Forces
Driving
Forces
Restraining
Forces
Current
Conditions
Driving
Forces
Driving
Forces
Before
Change
McShane/ Canadian OB 6e
During
Change
3
After
Change
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Resistance to Change
Direct Costs
Saving Face
Fear of the Unknown
Forces for
Change
Breaking Routines
Incongruent Systems
Incongruent Team Dynamics
McShane/ Canadian OB 6e
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Resisting Change at the FBI
The FBI has been slow to shift from
law enforcement to domestic
intelligence due to:
 Incongruent systems -- career
paths, reward system, decentralized
structure
 Breaking routines -- unfamiliar with
intelligence gathering roles
 Saving face -- past turf wars with
CIA created anti-investigation
mindset
AP/ Wide World Photos
McShane/ Canadian OB 6e
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Creating an Urgency for Change
Inform employees about driving forces
Most difficult when organization is doing well
Must be real, not contrived
Customer-driven change
 Adverse consequences for firm
 Human element energizes employees
McShane/ Canadian OB 6e
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Minimizing Resistance to Change
Communication
 Highest priority and first
strategy for change
 Improves urgency to change
 Reduces uncertainty (fear of
unknown)
 Problems -- time consuming
and costly
McShane/ Canadian OB 6e
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Minimizing Resistance to Change
Communication
Learning
 Provides new knowledge
and skills
 Includes coaching and
action learning
 Helps break old routines and
adopt new roles
 Problems -- potentially time
consuming and costly
McShane/ Canadian OB 6e
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Minimizing Resistance to Change
Communication
Learning
Employee
Involvement
 Increases ownership of
change
 Helps saving face and
reducing fear of unknown
 Includes task forces, future
search events
 Problems -- time-consuming,
potential conflict
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Minimizing Resistance to Change
Communication
Learning
Employee
Involvement
Stress
Management
 When communication,
training, and involvement do
not resolve stress
 Potential benefits
More motivation to change
Less fear of unknown
Fewer direct costs
 Problems -- time-consuming,
expensive, doesn’t help
everyone
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Minimizing Resistance to Change
Communication
Learning
Employee
Involvement
Stress
Management
 When people clearly lose
something and won’t
otherwise support change
 Influence by exchange-reduces direct costs
 Problems
Negotiation
• Expensive
• Gains compliance, not
commitment
McShane/ Canadian OB 6e
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Minimizing Resistance to Change
Communication
Learning
 When all else fails
Employee
Involvement
 Assertive influence
Stress
Management
 Firing people -- radical
form of “unlearning”
Negotiation
 Problems
• Reduces trust
• May create more subtle
Coercion
McShane/ Canadian OB 6e
resistance
12
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Refreezing the Desired Conditions
Realigning organizational systems and team
dynamics with the desired changes
 Alter rewards to reinforce new behaviours
 Feedback systems
• Help employees learn how they are doing
• Provide support for the new behaviour patterns
McShane/ Canadian OB 6e
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Strategic Vision & Change
Need a vision of the desired future state
Identifies critical success factors for
change
Minimizes employee fear of the unknown
Clarifies role perceptions
McShane/ Canadian OB 6e
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Change Agents
Change agents apply transformational leadership
 Help develop a vision
 Communicate the vision
 Act consistently with the vision
 Build commitment to the vision
Also requires transactional leadership
 Aligning employee behaviour through rewards,
resources, feedback ,etc.
McShane/ Canadian OB 6e
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Diffusing Change with MARS Model
Motivation


Successful pilot project
Supervisor support and reinforcement
Ability


Competencies to adopt pilot project
Role modeling from people in pilot project
Role perceptions

Translating pilot project practices -- neither too specific nor
too general
Situational factors

Resources and time to implement pilot project elsewhere
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Action Research Approach
Change needs both action and research
focus
Action orientation
 Solve problems and change the
organizational system
Research orientation
 Concepts guide the change
 Data needed to diagnose problem, identify
intervention, evaluate change
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Action Research Process
Establish
ClientConsultant
Relations
Diagnose
Need for
Change
Introduce
Intervention
Evaluate/
Stabilize
Change
Disengage
Consultant’s
Services
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Appreciative Inquiry at Canadian Tire
CP/Toronto Star-Andrew Stawicki
Canadian Tire CEO Wayne Sales (see photo) and his executive
team relied on appreciative inquiry by asking staff to describe
events that have made Canadian Tire successful. The
company’s core values were then rebuilt around those positive
experiences. Store employees were also involved in an
appreciative inquiry exercise to reinforce these values.
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Appreciative Inquiry Approach
CP/Toronto Star-Andrew Stawicki
 Directs participants’ attention away from problems and
towards the group’s potential and positive elements.
 Reframes relationships around the positive rather than
being problem oriented
McShane/ Canadian OB 6e
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Appreciative Inquiry Process
Discovery
Dreaming
Designing
Discovering
the best of
“what is”
Forming
ideas about
“what might
be”
Engaging in
dialogue
about “what
should be”
McShane/ Canadian OB 6e
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Delivering
Developing
objectives
about “what
will be”
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Parallel Learning Structure Approach
Highly participative social structures
Members representative across the formal
hierarchy
Sufficiently free from firm’s constraints
Develop solutions for organizational change
which are then applied back into the larger
organization
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Parallel Learning Structures
Parallel
Structure
McShane/ Canadian OB 6e
Organization
23
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Cross-Cultural and Ethical Concerns
Cross-Cultural Concerns

Linear and open conflict assumptions different from
values in some cultures
Ethical Concerns




Privacy rights of individuals
Management power
Individuals’ self-esteem
Consultant’s role
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Rules for the Road Ahead
Understand your needs and values
Understand your competencies
Set career goals
Maintain networks
Get a mentor
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Organizations are About People
“Take away my people, but leave my
factories, and soon grass will grow on the
factory floors. Take away my factories, but
leave my people, and soon we will have a
new and better factory.”
Andrew Carnegie (1835-1919)
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C H A P T E R: S E V E N T E E N
Organizational
Change
17
McGraw-Hill Ryerson
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
C H A P T E R: S E V E N T E E N
Discussion of
Activity 17.2
Strategic
Change
Incidents
17
McGraw-Hill Ryerson
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Scenario #1: “Greener Telco”
Scenario #1 refers to Bell
Canada’s Zero Waste
program, which
successfully changed
wasteful employee
behaviours by altering the
causes of those
behaviours.
McShane/ Canadian OB 6e
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Courtesy of Bell Canada
© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Bell Canada’s Change Strategy
Relied on the MARS model to alter
behaviour:
Motivation -- employee involvement,
respected steering committee
Ability -- taught paper reduction, email,
food disposal
Role perc. -- communicated importance
of reducing waste
Situation -- Created barriers to wasteful
behaviour, eg. removed garbage bins
Courtesy of Bell Canada
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Scenario #2: “Go Forward
Airline”
Scenario #2 refers to Continental Airline’s
“Go Forward” change strategy, which
catapulted the company “from worst to first”
within a couple of years.
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Continental Airlines’ Change Strategy

Communicate, communicate, communicate

Introduced 15 performance measures

Established stretch goals (repainting planes in 6 months)

Replaced 50 of 61 executives

Rewarded new goals (on-time arrival, stock price)

Customers as drivers of change
McShane/ Canadian OB 6e
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© 2006 The McGraw-Hill Companies, Inc. All rights reserved.