The Changing Organisation Models of Change Session 4

Lewin

Framework for Change (Burnes 2009) p410) Turbulent Environment Large-Scale Transformation Small-Scale Change Stable Environment Rapid Transformation Rapid Change Slow Transformation Slow Change Q1 Q3 Q4 Q2 Level: The Organisation Focus: Culture Approach: Emergent Change Level: Individual/Group Focus: Attitudes/Behaviour Approach: Planned Change Focus: Tasks & Procedures Approach: Tayloristic or Kaizen Focus: Structure & Processes Approach: Bold Stroke

McKinsey 7s How the organisation structures its operations The overall plan of how the organisation will achieve its objectives Business Processes Information flows IT systems What we stand for What we believe in What we value The things that characterise how managers behave The skills & competencies of the organisation & the staff The employees of the organisation

Kotters 8 Step Model

Bridges’ Three phases of transition Endings Neutral Zone New beginnings Beginning to identify with the ‘new way’ Letting go of the ‘old way’ Neither ‘old’ nor ‘new’ Commitment Denial Anxiety Shock Confusion Uncertainty Fear Resentment Sadness The Neutral Zone Do something positive, rather than waiting for outcomes Use the time to your advantage, start establishing a way forward and determine what is required in terms of organisation, roles, skills and required behaviours Devise initiatives, reward programmes or other approaches to help people remain positive Create short term goals and targets for the transition period Make sure all the processes that will be used during the transition actually work in real life as well as on paper and are sensibly sequenced Find ways of ensuring that people continue to feel a sense of belonging to the organisation Gather feedback Make sure that people are being given the opportunity to use their skills and creative thinking in helping to define the future Clear endings Make sure people understand why this is necessary Try to understand how people feel and react accordingly Don’t denigrate the past but recognise its value Encourage people to discuss the changes and any concerns they may have Make sure you are giving people accurate and complete information Make sure there is clarity in respect of what you will no longer be doing Mark the ending of the ‘old’ Frustration Apathy Blame Isolation Discovery Optimism Relief Excitement Sceptical Impatient Accepting Adapted from the work of William Bridges

The Changing Organisation How to change

The Performance Management Cycle (Based on Deming cited in Armstrong and Baron 2005:13) ACT MONITOR REVIEW PLAN 8

Questions whether operating norms are appropriate Double Loop Learning: Learning to Learn “Challenging assumptions, beliefs, norms, routines and decisions” (Buchanan and Huczynski 2004 p133) Single Loop: How can I achieve this? Double Loop: Is this the right thing to achieve? Compare the information acquired with operating norms Initiate appropriate action Scanning and monitoring the environment Questions whether operating norms are appropriate

Steps in the Change Process Source: Hayes and Hyde (1998) External change, problems and opportunities Recognition of the need for change Start of change process Review present state Identify future state Plan & prepare for implem- entation Implement change Review The ‘start’ point Managing change through a process: Hayes and Hyde present a systematic process model for managing change. It includes an analysis of Where we are now: (review present state) Where we want to be – (identify future state) How will we get there (plan and prepare for implementation) The review after implementation should include a review of The outcome ( did you get where you wanted to go) The process ( did we get there the way we intended) The learning ( what would we do different next time. ‘if it ain’t broke don’t fix it’. Diagnosis 10

Diagnosing Change The cultural web of an organisation Stories Symbols Rituals & routines The paradigm Power structures Johnson and Scholes cultural web can be a useful tool for analysing where the originations is now and Hay (1996) suggests as a tool for forecasting where the organisations needs to be. Rather like a SWOT or PESTLE analysis it is a tool which helps guide the user through a structured analysis process. The value added by the web is that it looks at both the formal aspects of the business ( control systems and power and organisational structures) as well as the informal elements (stories, rituals and routines and symbols) which support these elements. From this we can gain an understanding of how work and people are organised and also what drives their behaviour. Control systems Organisational structures Johnson G. & Scholes K. (1998) 11

Kotters (1980) Integrative Model of Organisational Dynamics Employees & other tangible assets Source of potential behaviour & constraint Impact on Social System Formal organisational arrangements Key Organisational Processes Information gathering Communication Decision-making Matter-energy transportation Matter-energy conversion Dominant Coalition Technology External Environment

The Nature of Change Map of Change Methods Micro Change Macro Change Venturing Strategic Learning Political Challenge Map of Change Methods Micro Change Macro Change Planned Change (Programmatic) Driven Change (Guided) Evolved Change (Organic) Quality Improvement Work Reprogramming Strategic Planning (TQM, etc.) (Time Study, Systems Dev., BPR, etc.) Job Enhancement (QWL, etc.) People “Empowerment” Organisation Team Building Development (incl. competencies) Initiative Teams Training Education Indoctrination Rationalizing (Costs) (Downsizing, Delayering, refinancing, Outsourcing, etc.) Restructuring (organisation) (Reorganising, Privatising, etc.) Repositioning (Strategies) (Diversification, M&A, Alliances etc.) Reframing (Mindset) (Visioning etc.) Revitalising (Culture) (Cultural Revolution etc.) Mintzberg plots both the trigger and the impact aspects of change on two axes. © Henry Mintzberg, (1997) Strategy Safari 13