Managing Organisational Change and Innovation Anand Walser 1

2 Alternative Change Management Approaches Managing Change Through Power Managing Change Through Reason Managing Change Through Reeducation

3 Learning Principles in Change Management Unfreezing old learning requires people who want to learn new ways to think and act. Movement to new learning requires training, demonstration, and empowerment. Refreezing the learned behavior occurs through the application of reinforcement and feedback.

4 Change Agents: Forms of Intervention External Change Agents Internal Change Agents Are temporary employees of the organisation, since they’re engaged only for the duration of the change process. Is an individual working for the organisation who knows something about its problems.

5 Change Agents: Forms of Intervention External-Internal Change Agents Some organisations used a combination external- internal change team to intervene and develop programs.

6 A Model for the Management of Organisational Development Forces for Change External - Markets - Technology Internal - Behavior - Process Impediments and Limiting Conditions - Resistance to change - Leadership climate - Formal organization - Organizational culture Implementation of the Method - Timing - Scope - Experimentation Program Evaluation - Feedback - Adjustment - Revision - Reinforcement Performance Outcomes - Organizational - Group - Individual Diagnosis of the Problem - Information - Participation - Change agent Selection of Appropriate Method - Structural - Task and technological - Human asset Affect Focus of Leads to Followed by Provision for Feedback

7 Forces for Change External Forces Economic ForcesTechnological Forces Social and Political Change

8 Forces for Change Internal Forces Process Problems Behavioral Problems

9 Diagnosis of a Problem Questions to Ask in Diagnosing a Problem What is the problem as distinct from the symptoms of the problem? What must be changed to resolve the problem? What outcomes (objectives) are expected from the change, and how will those outcomes be measured?

10 Approaches and Techniques That Facilitate Organisational Change Structural Approaches –Refer to managerial actions that attempt to improve effectiveness by introducing change through formal policies and procedures. Task and Technological Approaches –A task focus emphasises job design change. –A technological approaches emphasises change in the work flow.

11 Approaches and Techniques That Facilitate Organisational Change Human Asset Approaches –Refers to a category of change methods designed to result in a far less specific and much broader outcome of helping individuals learn and grow professionally, and perhaps personally. Team Building –Refers to exercises designed to help work groups improve their performance.

12 Approaches and Techniques that Facilitate Organisational Change The Managerial Grid –Refers to an approach to change based on a theory of leader behavior. According to the managerial grid approach, a balanced concern for production and people is the most effective leadership style. Ethics Training –Programs designed to (1) develop employee awareness of business ethics, and (2) focus on firm specific ethics issues.

13 Approaches and Techniques that Facilitate Organisational Change Mentorship Programs –Mentoring programs help individuals develop by providing specific job instruction, disseminating organizational cultural norms and values, dispelling organizational myths, and generally transferring knowledge gained through years of being part of the organisation. Introspection Development –Refers to any number of approaches to taking time to reflect on the impact of change.

14 Approaches and Techniques that Facilitate Organisational Change Multifacted Approaches –Not all organisational change interventions fit neatly into one of the categories of approaches. –Sometimes techniques from different categories may be used together in a multifaceted approach to development.

15 Impediments and Limiting Conditions Sources of influence on the outcomes of management change programs Leadership Climate Formal Organisation Organisational Culture

16 Implementing the Method Timing –Refers to the selection of the appropriate time at which to initiate the intervention. –Timing depends upon a number of factors, particularly the organisation’s operating cycle and the groundwork preceding the program Scope –Refers to the selection of the appropriate scale.

17 Evaluating Program Effectiveness Controlling extraneous factors, preferably through use of a control groups Determining the objectives of the program Describing the activities undertaken to achieve the objectives Measuring the effects of the program Establishing baseline points against which changes can be compared Detecting unanticipated consequences

Famous Remarks On the Microchip: “But what is it good for?” Engineer at Advanced Computing Systems Division of IBM 1968 Home PC: “There is no reason anyone would want a computer in their home” Ken Olsen, President, Chairman and Founder of Digital Equipment Corp, 1977 Memory “ 640K is ought to be enough for anybody” Bill Gates, 1981

Famous Remarks Telephone: “This telephone has too many shortcomings to be seriously considered as a means of communication. This device is inherently of no value to us” Western Union—Internal memo Radio “The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular” David Sarnoff’s associates in response to his urgings for investments in the Radio in the 1920’s Talking Pictures “Who the hell wants to hear the actors talk?” HM Warner, Warner Brothers,1927

Famous Remarks Beatles “We don’t like their sound, and guitar music is on their way out.” Decca Recording Corporation, rejecting Beatles, 1962 Airplanes “Heavier-than-air Flying machines are impossible” Lord Kelvin, President, Royal Society, 1895 “Airplanes are interesting toys but of no military value” Marechal Ferdinand Foch, Professor of Strategy, Ecole Superieure de Guerre Oil “Drill for Oil ? You mean drill into the ground to try and find oil? You’re crazy” Drillers whom Edwin L Drake tried to enlist to his project