19 Continuous Change

Compare and contrast four continuous change organization development (OD) interventions. Describe the elements and processes associated with the dynamic strategy-making intervention. Define the demands of turbulent environments and describe the self-design intervention. Outline the definition and application of organization learning interventions. Explain the logic and process of developing built- to-change organizations.

Criteria for Effective Strategic Change Speed over delay Breadth over narrowness Flexibility over rigidity Empowerment over autocracy Simplicity over complexity Unity over fragmentation

A Dynamic Strategy System Dynamic and Complex Environments Strategic System Statement of Strategic Direction Strategy Process Evolving Resources and Capabilities

Elements of the Statement of Strategic Direction Competitive Logic A value propositions that connects the firm’s capabilities to market opportunities Goals Unifying target for achievement; financial and a single rallying goal Organization Formal organization design which aligns, work, structure, human resource practices and management processes to the competitive logic and goals Action Plan Initiatives and specific steps required to implement the strategy; sets priorities over a specific timeframe

Dynamic Strategy Application Stages Choosing relevant stakeholders Holding the first retreat Engaging stakeholders between the first and second retreats Holding the second retreat Implementing actions

Self-Designing Organizations Systemic change process altering most features of the organization Process is ongoing, never finished—continuous improvement and change Learning as You Go—on-site innovation Need support of multiple stakeholders All levels of the organization adopt new strategies and change behaviors

The Self-Design Process Strategy CRITERIA Laying the Foundation Valuing Implementation and Assessment Designing Acquiring Knowledge Diagnosing

Learning Organizations Organization Learning interventions emphasize the structures and social processes that enable employees and teams to learn and share knowledge Knowledge Learning focuses on the tools and techniques that enable organizations to collect, organize, and translate information into useful knowledge

How Organization Learning Affects Performance Knowledge Management Competitive Strategy Organization Characteristics Organization Learning Processes Organization Knowledge Organization Performance Structure Information Systems HR Practices Culture Leadership Discovery Invention Production Generalization Tacit Explicit

Characteristics of Learning Organizations Structures emphasize teamwork, information sharing, empowerment Information systems facilitate rapid acquisition and sharing of complex information to manage knowledge for competitive advantage Human resources reinforce new skills and knowledge Organization culture encourages innovation Leaders model openness and freedom to try new things while communicating a compelling vision

Organization Learning Process Single loop learning Most common form of learning Aimed at adapting and improving the status quo Double loop learning Generative learning Questions and changes existing assumptions and conditions Deuterolearning Learning how to learn Learning how to improve single and double loop learning

Organization Learning Activities Discover Theories in Use and Their Consequences Invent and produce more effective theories in use Attend to the knowledge management practices that support learning Continuously monitor and improve the learning process

Discover Theories in Use Dialogue Action Maps Left-Hand, Right-Hand Column The Ladder of Inference

The Ladder of Inference I take ACTIONS based on my beliefs I adopt BELIEFS about the world I draw CONCLUSIONS I make ASSUMPTIONS based on the meanings added I add MEANINGS (cultural and personal) I select DATA from what I observe I OBSERVE data and experiences

Knowledge Management Practices that Support Learning Generating Knowledge Identify knowledge for competitive strategy Develop ways to acquire or create that knowledge Organizing Knowledge Put knowledge into a usable form Codification and Personalization Distributing Knowledge Making knowledge easy to access, use & reuse

Built-to-Change Organizations Organizations are designed with the ability to change constantly to create the best sustainable source of competitive advantage Organizations operate in complex and rapidly changing environments

Design Guidelines for B2C Organizations from Traditional Principles……to Dynamic Principles Strategy Short-term, static environmental scans and industry analyses Pursuit of a sustainable competitive advantage Design Focus on efficiency over effectiveness What do we do well? Alignment is the key to performance Strategizing Long-term, alternative scenarios, and contingency planning Pursuit of a series of momentary advantages Designing Focus on effectiveness over efficiency What do we need to learn? Change is the key to performance

Built-to-Change Application Stages Reframe culture as a facilitator of change Create a change friendly culture Redefine organization design components for flexibility B2C designs emphasize a flat, lean, and flexible organization structure Human resources practices support managing the right talent for change Build an orchestration capability Redefine leadership to be shared throughout the organization