Change management

Ch. 6. Sustainable change

Dan Lungescu, PhD, assistant professor 2010-2011

Course outline
Change management Ch. 1. Why change? Ch. 2. The conditions for change Ch. 3. A framework for change Ch. 4. Individual change

Ch. 5. Organizational change

Ch. 6. Sustainable change

Chapter 6 outline

6.1. Launch strategies 6.2. Styles of leading change 6.3. Targeting change

6.4. Organizational dynamics

6.1. Launch strategies

The change is effective when people know that the things will not change back again.

A successful launch:
Shows that change is possible Builds momentum for the transition period Shows the possibilities of a better tomorrow
Importance of early success
One reason why change fails is because people tire of their efforts to change, get disappointing early results and revert back to their old mental models. Early success in small ways is important to provide positive reinforcement.
Outline 6.1. Launch strategies

A virtuous circle for change

I can make a difference

Change is possbible

Provide ideas and input

Outline 6.1. Launch strategies A virtuous circle for change

Alternative launch strategies

Any change project should be:
Viable
Subjected to a pilot before going the whole way.

Reversible
The situation could be changed back if the program fails irreversible changes are seen as risky.

Divisible
Many potentially independent aspects of a broader change program.

Outline 6.1. Launch strategies Alternative launch strategies

Alternative launch strategies (2)

Concrete
Make the changes and their outcomes tangible and avoid expressing what will happen in abstract and general terms.

Familiar
Make proposals in terms that other people in the organization can recognize.

Congruent
Should fit the rest of the organization.

Exciting
Have publicity value.
Outline 6.1. Launch strategies Alternative launch strategies (2)

6.2. Styles of leading change

A continuum from democracy to coercion:
I. Democracy II. Collaboration

III. Participation
IV. Direction V. Coercion

Outline 6.2. Styles of leading change

I. Democracy
Meaning
Use small group briefings to provide information and discuss issues.

Objective
To reach a consensus on what is to be done.

Advantage
Ensures equality of availability of information and influence on decisions.

Disadvantage
May not convince everyone of the need to change. Likely to be very time-consuming and support may not be translated into action.
Outline 6.2. Styles of leading change I. Democracy

II. Collaboration
Meaning
Senior management has already decided in outline what is to change. Employees provide input into how change is to be effected and how it is to be achieved.

Objective
To achieve commitment and ownership by the workforce within the framework laid down by management.

Advantage
Spreads support and ownership of change by increasing levels of involvement. Often good when dealing with professionals.

Disadvantage
Time-consuming. Little control over decisions made. May lead to changes which management find unacceptable.
Outline 6.2. Styles of leading change II. Collaboration

III. Participation
Meaning
Employees are consulted on the how of the implementation. They may have limited decision ability on the details of the how.

Objective
To achieve the commitment of the workforce while leaving them limited discretion over what happens.

Advantage
Spreads ownership and support for change, but within a more controlled framework. Easier to shape decisions.

Disadvantage
Can be perceived as manipulation.
Outline 6.2. Styles of leading change III. Participation

IV. Direction
Meaning
Use authority to direct change. Change leaders make the majority of decisions about what to change and how.

Objective
To sell change to the workforce.

Advantage
Less time-consuming. Provides a clear change of direction and focus.

Disadvantage
Potentially less support and commitment, and therefore proposed changes may be resisted.
Outline 6.2. Styles of leading change IV. Direction

V. Coercion
Meaning
Use of power to impose change.

Objective
To use the workforce to achieve the end results.

Advantage
Allows for prompt action.

Disadvantage
Unlikely to achieve buy-in without a crisis.
Outline 6.2. Styles of leading change V. Coercion

6.3. Targeting change

Major issues:
A. Structures
Targeting change in different structures: formal and informal ones.

B. Hierarchical levels
Targeting change on different hierarchical levels: senior management, middle management and workforce.

C. Person
What exactly is to be changed about the employees?
Outline 6.3. Targeting change

A. Targeting in different structures

Organizations are made up of:
1. The formal structure
That laid down in the companys organization chart, procedures and job descriptions.

2. Informal structure (informal groups)

May be very much more powerful in terms of influencing change; it is here that the culture is most firmly embedded, power exercised and control maintained. A change manager should design the detail of the change management process both to: 1. Use the informal structure where it gives the organization potential strength. 2. Change it where it represents a barrier.
Outline 6.3. Targeting change A. Targeting in different structures

B. Targeting on different levels

Different considerations will apply to:

I. Senior management II. Middle management

III. The workforce

Outline 6.3. Targeting change B. Targeting on different levels

I. Senior management
Authority providers
Senior managers provide the change management team with its terms of reference and formal authority.

Champions and protectors

From within the ranks of senior managers must be the champions and protectors of the change process, ready to deal with the political issues, promote the project and help remove barriers to change.

Process masters
Senior managers need to feel that the change manager is representing them, is presenting them in a favorable light to the workforce and is not abusing their trust.
Outline 6.3. Targeting change B. Targeting on different levels I. Senior management

II. Middle management

If a change management process fails, it is most likely to be with middle management: They generally have most to lose and least to gain. They are under pressure and see negatively any change proposal. They are more used to being measured by short-term, internal performance measures and may be unsettled by the more fluid style of management required during the period of flux. Change programs are often about empowering the workforce, but where does this leave middle management? They must be persuaded that there will be plenty of scope for building a career after the program and that proving abilities during the transition process will build their credibility. They need to feel that they are still in control and must be fully involved as members of the steering groups and working parties.
Outline 6.3. Targeting change B. Targeting on different levels II. Middle management

III. The workforce

Sense of identity
They may feel a great sense of liberation: for the first time their views are being noted and they have a contribution to make.

Need for being in charge

The temptation is for middle management to continue managing at the micro-level; this will kill the workforces new-found energy and commitment.

Able to handle
This is a period to take risks and allow the workforce discretion and control.

Hard to unfreeze
What is perhaps most difficult is to maintain this new way of doing things once the change management process is over and it is time to refreeze the organization.
Outline 6.3. Targeting change B. Targeting on different levels III. The workforce

C. Change the person?

What exactly is to be changed about the employees?
Their outputs? Their behavior? Their beliefs and values?

Outputs Behavior Beliefs and values

Outline 6.3. Targeting change C. Change the person?

Employee needs
Beliefs and values: the way people learn to solve their problems to fulfill their needs.

Abraham Maslows Hierarchy of needs:

self-actualization esteem belongingness

safety
physiological
Outline 6.3. Targeting change C. Change the person? Employee needs

Motivating the employee

Frederick Herzbergs Two factor theory:
2 types of factors are able to fulfill the needs:
1. Motivator factors
Factors that increase satisfaction: achievement, recognition, work itself, responsibility, promotion, growth etc.

2. Hygiene factors
Factors that decrease dissatisfaction: pay and benefits, company policy and administration, relationships with co-workers, physical environment, supervision, job security etc.

Outline 6.3. Targeting change C. Change the person? Motivating the employee

Motivating the employee (2)

selfactualization esteem belongingness

motivators
satisfying not satisfying

safety
physiological

hygiene factors

increase motivation decrease motivation

Outline 6.3. Targeting change C. Change the person? Motivating the employee (2)

6.4. Organizational dynamics

Partnership

At the start of the change management program the change management team will need to establish a partnership with the rest of the workforce.

Organizational learning

As time passes and everyone gets further into the change program, so the nature of the partnership will change. A process of organizational learning will be taking place.

Outline 6.4. Organizational dynamics

The evolutionary model

The simplified process of project evolution:
Revised conditions

Re-evaluation Initial conditions

Learning

Outline 6.4. Organizational dynamics The evolutionary model

Initial conditions
Task definition
Definition of the objectives and scope of the change management project teams.

Organizational routines
The procedures, or quality systems, to be used during the program.

Interface structure
How the different groups involved in the change management program will interface.

Expectations
The expectations people have about the performance, behavior and motives of the change management team.
Outline 6.4. Organizational dynamics The evolutionary model Initial conditions

Learning

About the organization and environment. About how to work together to achieve change.

About the respective skills of the different team members.

About each others goals and objectives.

Outline 6.4. Organizational dynamics The evolutionary model Learning

Re-evaluation
Early success
The efficiency with which the early changes are being implemented.

Equity
Whether the contribution to, and the effect upon, all the different stakeholders is equitably distributed.

Individuals
Whether people are genuinely adapting to the changes being made.

Persistency
Whether the effects will be only temporary.
Outline 6.4. Organizational dynamics The evolutionary model Re-evaluation

Static versus evolutionary change

Static

Evolutionary

1. Task definition 2. Organizational routines 3. Interface structure 4. Expectations

Outline 6.4. Organizational dynamics Static versus evolutionary change

1. Task definition
Static Rigidly defined. Evolutionary Generic definition with defined boundaries. Narrow skill base. Complementary and overlapping skill base. Top management led. Autonomous team championing.

Outline 6.4. Organizational dynamics Static vs. evolutionary change 1. Task definition

2. Organizational routines
Static Strong functional alignment. Organizational fragmentation. Major pace differences. Embedded routines, defensive behavior. Evolutionary Cross-functional emphasis. Integrated and quality communication. Similar pace of decision making.
Desire for joint development of more effective routines.

Outline 6.4. Organizational dynamics Static vs. evolutionary change 2. Organizational routines

3. Interface structure
Static Formal or unstructured interfaces. Inconsistent and contrary management decision making. Changes in key personnel. Evolutionary Readiness to allow interfaces to evolve.
Reinforcement of importance of change through management decision making and wider communications. Continuity of key personnel.

Outline 6.4. Organizational dynamics Static vs. evolutionary change 3. Interface structure

4. Expectations
Static Initial optimistic/ambitious expectations. Conflicting terms of reference. Individual-based benefits. Ambiguity and poor information. Evolutionary Realistic and flexible expectations.
Similar/compatible terms of reference. Value creation and team-based benefits. Limited ambiguity and access to timely, relevant information.

Outline 6.4. Organizational dynamics Static vs. evolutionary change 4. Expectations

Enjoyed change (rather than endured)

Personal benefit
What personal benefit will be gained by individuals involved? Active participation in the change process depends on the extent to which the needs, attitudes and beliefs of individual employees are taken into account.

Leaders view
What is the view of the official/unofficial leader(s) of the workgroups involved? The expectations and opinions of those in prestige positions tend to carry more weight than the members of their workgroups and/or the influence of the staff trainer.

Outline 6.4. Organizational dynamics Enjoyed change (rather than endured)

Enjoyed change (2)

Relevant information
What fresh, objective information is available about the need for change? Data centered on ones own organization or group is more meaningful and influential than more generalized information about attitudes and behavior.

Information source
To what extent are facts pertinent to the change process generated from within the workgroup? The planning, gathering, analysis and interpretation of diagnostic data by the individuals and groups involved are more likely to be understood and accepted than those presented by outside experts.

Outline 6.4. Organizational dynamics Enjoyed change (2)

Enjoyed change (3)

Participation
To what degree can those involved in the change influence the change process? Complete participation by all the members of the affected workgroups is likely to be most effective. However, participation by representatives of the group and/or the supervisor only can reduce the amount of overt opposition.

Group cohesiveness
How attractive is the workgroup to its members? When change is being proposed, group cohesiveness (which will be high if the group satisfies the needs of its members) will operate to reduce resistance to change if the group sees the changes as beneficial. This is because strong group membership tends to lead to greater individual conformity to group norms.
Outline 6.4. Organizational dynamics Enjoyed change (3)

Enjoyed change (4)

Workgroup setting
Does the change process involve taking individuals away from their job into temporary groups, or does it involve individuals in their usual workgroup setting? Change programs that involve individuals within the context of their immediate job situation are likely to be more successful because this group has more psychological meaning to an individual than does a group with only temporary membership.

Feedback
How open are the communication channels relating to the need for, plans for and consequence of change? Change processes that provide specific knowledge on the progress to date and specify the criteria against which improvement is to be measured, are most successful in establishing and maintaining change.
Outline 6.4. Organizational dynamics Enjoyed change (4)

Dan Lungescu, PhD, assistant professor 2010-2011