1. Organizational Change Part the First
Steven E. Phelan
July 2005

2. Images of Managing Controlling… Shaping… Top-down view of management
Fayol’s theory of management: planning, organizing, commanding, coordinating and controlling.
Shaping…
Participative style of management
Improving the capabilities of people within the organization

3. Images of Change Outcomes
Intended Change:
Change is a result of planned action
Partially Intended Change:
Change may need to be re-modified after it is initially implemented
Unintended Change:
Forces beyond the control of the change manager

4. Images of Change Managers
Images of Managing
Controlling (activities)
Shaping . . .
(capabilities)
Images of Change Outcomes
Intended
DIRECTOR
COACH
Partially Intended
NAVIGATOR
INTERPRETER
Unintended
CARETAKER
NURTURER

5. Images of Change Managers
Director
Based on an image of management as control and of change outcomes as being achievable.
Supported by the n-step models and contingency theory.
Coach
Relies upon building in the right set of values, skills and “drills” that are deemed to be the best ones that organizational members will be able to draw on in order to achieve desired organizational outcomes.
Related to organizational development approaches.

6. Images of Change Managers
Navigator
Control is still seen as at the heart of management action, although a variety of factors external to managers mean that while they may achieve some intended change outcomes, others will occur over which they have little control.
Supported by the contextualist and processual theories of change.
Interpreter
The manager creates meaning for other organizational members, helping them to make sense of various organizational events and actions.
Supported by the sense-making theory of organizational change

7. Images of Change Managers
Caretaker
The change manager’s ability to control is severely impeded by a variety of internal and external forces beyond the scope of the manager. The caretaker is seen as shepherding their organizations along as best they can.
Supported by life-cycle, population-ecology and institutional theories.
Nurturer
Even small changes may have a large impact on organizations and managers are not able to control the outcome of these changes. However, they may nurture their organizations, facilitating organizational qualities that enable positive self-organizing to occur.
Related to chaos and Confucian/Taoist theories.

8. Questions
To what extent are you more comfortable with one or other of the six images?
Why is this the case?
What are the strengths and limitations of the images that you have identified as most relevant to you?
What skills do you think are associated with each image?
Are there areas of personal skill development that are needed for you to feel more comfortable in using other images?
Have you ever been in an organization that was dominated by particular images?
What barriers to alternative images existed in this organization? What strategies could overcome these barriers?

9. Green Mountain Case An example of a problem that has been dis-solved
Which frame does it fit?
How does it look through another frame?

10. Why change?
Change is a risky activity – many organizational changes fail or do not realize their intended outcomes. This raises the question of why change is so prevalent?
Pressure to change comes from:
External, environmental pressures
Internal, organizational pressures

11. External, environmental pressures
Examples
Description
Fashion
pressures
Boeing Co.
This is based on mimetic isomorphism – imitating companies that are legitimate and successful
Mandated
Chevron Texaco
This is based on coercive isomorphism – when change is demanded by outside sources.
Geopolitical pressures 3M
This is when global crises greatly impact an organization and change is necessary for survival.

12. External, environmental pressures
Examples
Description
Market decline pressures
AOL Time Warner
When current markets that the organization operates in begin to decline there is pressure to find newer, more viable markets.
Hypercompetition pressures
Gateway
This affects the way organizations respond to their consumers and their competitors to cater for the increasingly rapid pace of business.
Reputation and credibility pressures
Walt Disney Company
In light of recent corporate governance scandals in organizations, the pressure to maintain a good reputation and high level of credibility has increased.

13. Internal organizational pressures
Examples
Description
Growth pressures
Microsoft
Existing systems and processes in a smaller organization may no longer be applicable when the size of the organization increases.
Integration and collaboration pressures
EDS
Integration and creating economies of scale can lead to pressure for change in organizations.
Identity pressures
Forte Hotel
A common organizational identity and the unified commitment of staff in different areas/departments of an organization can be difficult to manage and may encourage change.

14. Internal organizational pressures
Examples
Description
New broom pressures
Bank of America
New authority figures in an organization can herald a new era and often signal significant changes an organization in an organization.
Power and political pressures
Morgan Stanley
Power relationships and politicking can change internal processes and decision making. This has significant flow on effects within the organization.

15. Change Problems – Five Frictions
Distorted perceptions
Hubris, cognitive biases etc.
Dulled motivation
Costs of change, cannibalization costs, cross subsidy comforts
Failed creative response
Speed or complexity or vision is lacking
Political deadlocks
Departmental politics creates blockages
Action disconnects
Leadership inaction
Embedded routines are sticky
Cultural values resist change

16. Questions
To what extent can you identify environmental pressures propelling your organization toward change?
To what extent do you have influence over whether and how to change?
Which of the reasons to avoid change have you experienced or seen?
How easy is it to raise issues in your organization about the rationale for engaging in specific changes? Is there a dominant rationale? Why?
What personal criteria might you adopt for initiating a specific change “for the right reasons”?

17. Diagnostic tools
The image of the change manager impacts the types of tools that may be used.
The different images highlight the range of reasons why tools like these may be utilized – they illustrate the numerous ways change can be interpreted.

18. Advantages of using diagnostic tools1
Simplifies a complex situation.
Identifies priorities for attention.
Highlights interconnectedness of various organizational properties (e.g., strategy and structure).
Provides a common “language” with which to discuss organizational characteristics.
Provides a guide to the sequence of actions to take in a change situation.
1 Source: Burke (2002)

19. Diagnostic models Six-box organizational model 7-S framework
Star model
Congruence model
Burke-Litwin model
Four frame model
Diagnosis by image
PESTEL framework
Scenario analysis
Gap analysis
Elements of strategy
Strategic inventory
Newsflash exercise
Cultural web
Stakeholder analysis
Forcefield analysis

20. Questions
Have you improved your knowledge of available diagnostic tools and models by reading this chapter?
Do you feel that you could apply them when necessary?
If you were to select two or three favourite tools/models, which would they be and why?
To what extent do your images of change influence which diagnostic tools you are most comfortable using or see as most relevant?

21. Dennis Hightower Case What does Hightower need to change at Disney?
Where should he change, when, and how?
What will be the biggest obstacles to change?

22. Peter Browning Case What is Browning’s predicament at White Cap?
What should his change objectives and time frame be?
What should he do with White, Lawson, Stark and Green?
What qualities are most needed to be a successful change agent in this case?