Change Management Tool

The Matrix of Change (MOC) Helps identify critical enforcing and conflicting interactions within an existing organizational system; Helps identify how the existing interactions can transition to a proposed organizational system; Can provide useful insights regarding: change, feasibility, sequence, location, and pace. http://ccs.mit.edu/moc/

The Matrix of Change (MOC)

The Matrix of Change (MOC)

The Matrix of Change (MOC)

First Step: Identify Critical Processes Managers should first list their existing goals, business practices, and ways of creating value for consumers. A process is "a structured, measured set of activities designed to produce a specified output ... a specific ordering of work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs. (Davenport, p. 5)" A second list will describe new or target practices.

Second Step: Interactions The team creates the horizontal triangular matrix to identify complementary and competing practices Complementary processes reinforce one another whereas competing processes work at cross-purposes.

Third Step: Transition Interactions The team constructs the Transition Matrix - a square matrix combining the horizontal and vertical matrices which helps determine the degree of difficulty in shifting from existing to target practices.

Fourth Step: Importance The team needs to determine where various stakeholders stand with respect to retaining current practices and implementing target practices.

Final Matrix

Analysis: Feasibility Is the goal state a coherent and stable system? Is our current set of practices coherent and stable? Is the transition likely to be difficult?

Analysis: Sequence of Execution Where should change begin? How does the sequence of change affect success? Are there reasonable stopping points?

Analysis: Pace and Nature of Change Should the change be slow or fast? Incremental or radical? Which groups of practices, if any, must be changed at the same time?

Analysis: Stakeholder evaluation Have we considered the insights from all stakeholders? Have we overlooked any important practices or interactions? What are the greatest sources of value?

Merril Lynch Old Practices New Practices Example (Adapted from MIT Sloan – Professor:Brynjolfsson (Fundamentals of Digital Business)) Merril Lynch Old Practices Information & Operations Proprietary & Custom Information Retail Front Brokerage Pricing High Fees New Practices Outsourced, generic information Web and e-mail for Interaction Low Fees