IMPLEMENTING ORGANIZATIONAL CHANGE: Understanding the Dynamics of Change IMPLEMENTING ORGANIZATIONAL CHANGE: Understanding the Dynamics of Change MG345 Organization & Environment Fall 2014 Tony Buono

Realities of Change Technical Political Socio-cultural The Art of The Art of Persuasion Diagnosis & Execution The Art of Motivation Financial (Filter) The Art of Reality

KEY CHANGEMAKERS  RECIPIENTS : Users & Adapters Focus on Means-Ends Personal Impact Congruence: (Costs & Benefits)  STRATEGISTS : Visionaries Focus on Ends: Corporate Values & Business Results  IMPLEMENTERS : Translators Focus on Means: Overcoming Resistance & Encouraging Practice

 Directed Change Driven from the top of the organization Relies on authority and compliance Focuses on coping with emotional reactions  Planned Change Supported from the top of the organization Seeks to create involvement and commitment Focuses on factors that increase the chances of successful change  Guided Changing Emerges from within the organization Results from commitment and involvement Focuses on enhancing the effect of changes already underway Basic Approaches to Change Industrial Age Information Age

Unfreezing Changing Refreezing Planned Change Guided Changing Freezing Rebalancing/ Translating Unfreezing/ Improvising Directed Change Present State Desired State Conceptualizing Change Processes

Authority Acceptance Persuasive Communication Clarity Trustworthiness Reliability So that … Directed Change

Unfreezing Changing Refreezing Planned Change Guided Changing Freezing Rebalancing/ Translating Unfreezing/ Improvising Directed Change Present State Desired State Conceptualizing Change Processes

Managing Planned Change Unfreezing  Confirming/Disconfirming Expectations  Coping with Learning Anxiety  Providing Psychological Safety (anxiety  motivation) Changing/Transition  Restructuring & Redefining Jobs & Responsibilities/Introducing New Systems  Changing Expectations (induced v. own)  Creating New Standards Refreezing  Creating a Supportive Infrastructure: Social (Informal) & Organizational (Formal) So that …

Identify the Change Organize the Project Involve & Influence the Stakeholders Implement, Monitor & Sustain the Change Planned Change Road Map

Unfreezing Changing Refreezing Planned Change Guided Changing Freezing Rebalancing/ Translating Unfreezing/ Improvising Directed Change Present State Desired State Conceptualizing Change Processes

Freezing  Making Sequences Visible through Cross-unit Sharing and Envisioning (Cultural Maps) Translating/Reinterpreting  Re-framing & Re-sequencing Patterns to Reduce Blocks (Personal & Organizational)  Applying the Logic of Attraction (Pull) rather than the Logic of Replacement (Push) Unfreezing/Improvising  Guiding Improvisation & Learning in Mindful Ways  Sharing the Learning System-wide Guided Changing

SHARE THE LEARNING SYSTEM-WIDE IMPLEMENT & IMPROVISE HOLD ACCOUNTABLE & LEARN INTERPRET & DESIGN Guided Changing Spiral Guided Changing Spiral

Using the Logic of Attraction: Appreciative Inquiry & Peak Experiences Discover Dream Design Destiny What ideal image(s) of the future do we want? What steps will move us toward our best potential? How do we foster commitment, impact & momentum? What’s best in our history?

Discover Guiding Culture Change & Appreciative Inquiry Dream Design Destiny

Creating a Framework for Thinking about Organizational Change

Key Factors Business Complexity:  Intricacy of the system due to size, interdependencies, geographical dispersion, the number of products and services, array of critical stakeholders, and so forth. Socio-technical Uncertainty:  Amount and nature of information processing and decision-making required for the change, based on the extent to which the task(s) involved is determined, established, or exactly known.

Re-conceptualizing Change Management Low High Planned Guided Business Complexity Directed Socio-Technical Uncertainty

Change Capacity :  Willingness & ability of change makers (recipients, implementers, change leaders/strategists)  Facilitative infrastructure (e.g., communication technology, flexible systems & processes, responsive training)  Appropriate resources (e.g., mind share, time, budget) Urgency :  Risks associated with no or slow change, e.g., customer safety or organizational survival Intervening Factors

Low High Directed Planned Guided Socio-technical Uncertainty Change Capacity Urgency Willingness & Ability Time Business Complexity Intervening Factors

Reframing Change: Leadership Challenges Barriers to Change Loss of clarity & stability, confusion chaos Anxiety, uncertainty, feelings of incompetence, neediness Disempowerment, conflict between winners & losers Loss of meaning & purpose, clinging to the past Essential Strategies Communicating, realigning formal patterns & policies Participation & involvement, training to develop new skills, psychological support Creating arenas where issues can be negotiated & new coalitions formed Creating transition rituals: mourning the past, celebrating the future Human Resource Structural Political Cultural/ Symbolic

Low High Business Complexity Socio-Technical Uncertainty Socio-Technical Uncertainty Authority Acceptance Persuasive Communication A Question of Rhythm?