Slide 1

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 2

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 3

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 4

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 5

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 6

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 7

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 8

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 9

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 10

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 11

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 12

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 13

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 14

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 15

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 16

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 17

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 18

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 19

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 20

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 21

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 22

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 23

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 24

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 25

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 26

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 27

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 28

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 29

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 30

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 31

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 32

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 33

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 34

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 35

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 36

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 37

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 38

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 39

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 40

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 41

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009


Slide 42

Slide 11.1

Lecture 3 Learning Outcomes






Managing change / managing choice
The trajectory process and change
The assessment process and change
From Commitment to decision making and
risk

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.2

Organisational change and managerial
choice
( Source Burnes Ch 11)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.3

Managing choice
Managing change
Choice
 What to change
 When to change
 How to change
 Whether to change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.4

Managing change
Managing choice (Continued)






The choice process – which is concerned with
the nature, scope and focus of organisational
decision-making.
The trajectory process – which relates to an
organisation’s past and future direction and is
seen as the outcome of its vision, purpose and
future objectives.
The change process – which covers
approaches to, mechanisms for achieving, and
outcomes of change.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.5

Figure 11.1

The Choice Management–Change Management model
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.6

The choice process




Changing the rules
Playing to the rules
Ignoring the rules.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.7

The choice process (Continued)





Organisational Context
Focus of choice
Organisational Trajectory.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.8

Figure 11.2

The choice process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.9

Figure 11.3

Organisational trajectory

Source: Adapted with permission from Mintzberg, H., Patterns in Strategy Formation, Management Science, 24(9), (1978). Copyright 1978, The Institute for Operations Research and
the Management Sciences , 7240 Parkway Drive, Suite 300, Hanover, Maryland 21076
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.10

SWOT analysis
What is a SWOT analysis?

What does it do?

SWOT stands for :

A SWOT analysis enables
managers to identify the key
internal and external issues
they need to take into
account in order to
understand the context in
which the organisation
operates. Also, by identifying
key issues, it begins to focus
managers on the areas
where they need to make
choices, and helps to identify
some of the constraints and
risks involved.

Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.11

PESTEL framework
(as per lecture 1)
What is the PESTEL
Framework?

PESTEL stands for:

Political
Economic
Sociocultural
Technological
Environmental
Legal

What does it do?
The PESTEL framework is a
rigorous approach to identifying
and understanding the main
external environmental factors
which affect an organisation. As
with the SWOT analysis, it also
plays a role in focus organisations
on the choices open to them and
the constraints and risks involved
in these choices.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.12

Note
Different tools look at different things and
usually give different answers.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.13

Focus of choice


Limited range of issues






Short term
Medium term
Long term.

Style






Passive
Reactive
Proactive
Co-ordinated
Piecemeal.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.14

Hoshin Kanri
The word hoshin can be broken into two parts. The
literal translation of ho is direction. The literal translation
of shin is needle, so the word hoshin could translate
into direction needle or the English equivalent of
compass.

The word kanri can also be broken into two parts. The
first part, kan, translates into control or channeling. The
second part, ri, translates into reason or logic.
Taken altogether, hoshin kanri means management
and control of the organization’s direction needle or
focus.
Total Quality Engineering Inc (2003)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.15

Figure 11.4

Types of decision

Source: Adapted from Rollinson (2002: 254)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.16

The trajectory process
The organisation’s career path:
 Where it has been
 Where it is
 Where it wants to go.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.17

The trajectory process (Continued)




Vision
Strategy
Change.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.18

Figure 11.5

The trajectory process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.19

Trajectory process


Coherence



Past Success



Present Appropriateness



Agreement on Future.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.20

Constructing a vision
The four elements of a vision
1.
Mission. This states the organisation’s major strategic purpose or
reason for existing. It can indicate such factors as products, markets
and core competencies.
2.
Valued outcomes. Visions about desired futures often include
specific performance and human outcomes the organisation would
like to achieve. These can include types of behaviour and levels of
skill as well as more traditional outcomes such as turnover and profit.
3.
Valued conditions. This element of creating a vision involves
specifying what the organisation should look like to achieve the valued
outcomes.
4.
Mid-point goals. Mission and vision statements are by nature quite
general and usually need to be fleshed out by identifying more
concrete mid-point goals. These represent desirable organisational
conditions but lie between the current state and the desired future
state.
Cummings and Huse (1989)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.21

The change process




Objectives and outcomes
Planning the change
People.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.22

Figure 11.6

The change process
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.23

The trigger


Vision/Strategy



Current performance



Opportunities



Threats
Action: Assessment.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.24

The assessment remit









Reasons
Objectives
Consequences
Who to involve
How to involve
Timescale
Resources.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.25

The assessment process








Clarification
Alternatives
Data collection
Data analysis
Feedback
Recommendation
Decision:
– Yes / No / Maybe / Something else /
Somewhere else.
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.26

The five characteristics of an effective
activity plan
1.

2.

3.
4.

5.

Relevance: activities are clearly linked to the
change goals and priorities.
Specificity: activities are clearly identified rather
than broadly generalized.
Integration: the parts are closely connected.
Chronology: there is a logical sequence of
events.
Adaptability: there are contingency plans for
adjusting to unexpected forces.
(Beckhard and Harris, 1987: 72)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.27

A commitment plan
A commitment plan is a strategy, described in a series of action
steps, devised to secure the support of those [individuals and
groups] which are vital to the change effort. The steps in
developing a commitment plan are:
•

•

•
•

Identify target individuals or groups whose commitment is
necessary.
Define the critical mass needed to ensure the effectiveness of
the change.
Develop a plan for getting the commitment of the critical mass.
Develop a monitoring system to assess the progress.
(Beckhard and Harris, 1987: 93)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.28

People


Creating a willingness to change




Involving people




Awareness : Feedback

Communication & Involvement

Sustaining momentum.


Resources : change agents: new competencies

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.29

Choice and change







Choice is constrained but it exists
Change can open up choices
Change can close off choices
Change has to be managed
Choice has to be managed.

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.30

An overview of Decision Making themes

Figure 7.1

Overview of decision making in organisations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.31

How decisions affect value


People make choices about limited resources







Inputs (where to raise capital, who to employ)
Transformation (how to make a product)
Outputs (what price to charge)

These choices affect the value added (if any)
Significant choices are usually opaque,
ambiguous and shaped by subjective
interpretations
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.32

Decision-making conditions


Certainty




Risk




enough info. to estimate (loans example)

Uncertainty




all info. available (interest rates example)

goals clear, but lack info. to decide action
(e.g. competitors’ reactions)

Ambiguity


goals AND how to reach them unclear (e.g. broad
strategic issues where people disagree over mission)
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.33

Degree of uncertainty
and decision-making type

Figure 7.6

Degree of uncertainty and decision-making type

Source: Adapted from Daft (2000), p.271
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.34

Vroom and Yetton’s decision tree

Figure 7.8

Vroom and Yetton’s decision tree

Source: Reprinted from Vroom and Yetton (1973), p. 188 by permission of the University of Pittsburgh of the University of Pittsburgh Press,
copyright © 1973 by University of Pittsburgh Press..
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.35

Case Study

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.36

Supplementary Material

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.37

(Iterative) tasks in making decisions

Figure 7.2

Tasks in making decisions
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.38

Types of decision and
organisational level

Figure 7.4

Types of decision, types of problem and level in the organisation

Source: Robbins, Stephen p., Coulter, Mary, Management, 8th edition, © 2005. Reprinted by permission of Pearson Education, Inc. Upper Saddle River, NJ
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.39

Dependent or independent

Figure 7.5

Possible relationships between decisions

Source: Cooke and Slack (1991), p.24
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.40

Programmed and non-programmed


Programmed decisions (Simon, 1960)





Familiar, structured problems, info. known
Resolve by procedures, rules, policies, quantitative
analysis

Non-programmed decisions




Unfamiliar, unique problem, info. unclear and
open to interpretation
Resolution depends on judgement, intuition,
negotiation, creativity – e.g. Deutsche Bank
Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.41

Biases in making decisions



Complex decisions mean we use shortcuts –
rules which simplify complexity. These lead to
biases:
Prior hypothesis




Representativeness




Generalise from small sample

Illusion of control




Select information which supports previous beliefs

Overestimate chances of favourable outcome

Escalating commitment

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009

Slide 11.42

Participation in decision making


Vroom and Yetton (1973) developed a
contingency model of decision making – i.e.
the extent to which it is wise to involve
subordinates in decision depends on the
circumstances



Section 7.7 outlines the five decision styles,
and eight situational factors – Fig. 7. 8

Bernard Burnes, Managing Change, 5th Edition, © Pearson Education Limited 2009