1. Chapter 5 Diagnosis for Change McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Diagnostic Tools
Diagnostic Tools
Images of Managing Change
Advantages
of diagnostic
tools
Diagnostic Models:
Organization
Components
Readiness for Change
The image of the change manager has an impact on 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.
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3. Images of Managing Change
Diagnostic Tools
Images of Managing Change
Advantages
of diagnostic
tools
Diagnostic Models:
Organization
Components
Readiness for Change
Images
Diagnostic Tools
Director
Using diagnostic tools to build up your own knowledge base and confidence about what needs to change by using models that specify relationships among variables and pinpoint where change is needed when things are not going well.
Navigator
You will find the diagnostic tools attractive; models are ways of “mapping” the environment they describe.
Caretaker
You will be less convinced of the capacity of the diagnostic tools to support radical change, but several of the tools (see, e.g., PESTEL and scenario analysis) provide insights into the trends in the external environment that you will have to take into account.
Coach
You will focus on the diagnostic tools that highlight the goals being sought and the competencies needed to attain them
Interpreter
You will be attracted to the diagnostic tools that emphasize images, framing, and cognitive maps
Nurturer
Having an interest in emergent strategy, you may remain unconvinced as to the value of such diagnostic tools.
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4. Advantages of Diagnostic Tools
Images of Managing Change
Advantages
of diagnostic
tools
Diagnostic Models:
Organization
Components
Readiness for Change
Simplify a complex situation.
Identify priorities for attention.
Highlight interconnectedness of various organizational properties (e.g., strategy and structure).
Provide a common “language” with which to discuss organizational characteristics.
Provide a guide to the sequence of actions to take in a change situation.
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5. Diagnostic Models: Organization
Seven Models
Six-box
7-S
Star
Congruence
Burke-Litwin
Four-Frame
Diagnosis by image
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6. Diagnostic Models: Organization
Six-box organizational model:
The key focus here is on six variables – purpose, structure, rewards, helpful mechanisms, relationship and leadership.
This model is useful to maintain awareness of all areas for consideration even though one variable may be identified as the main area for attention.

7. Diagnostic Models: Organization
7-S framework:
The 7-S framework: this focuses on seven key components that affect organizational effectiveness – structure, systems, style, staff, skills, strategy and superordinate goals.
The interconnectedness of these variables is vital to the success of change.

8. Diagnostic Models: Organization
Star model:
An organization is effective when the five components of organizational design – strategy, structure, processes and later capability, reward systems and people practices – are in alignment.

9. Diagnostic Models: Organization
Star model effects of misalignment

10. Diagnostic Models: Organization
Congruence model:
The organization is broken down into four components – task, individuals, formal organizational arrangements and informal organisation.
This is influenced by the context where the strategy is formulated and the output is then the performance of the organization.
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11. Diagnostic Models: Organization
Burke-Litwin
This model identifies the transformational – external environment, mission and strategy, leadership and organizational culture - and transactional sources of change.

12. Diagnostic Models: Organization
Four frames to conceptualize an organization
Structural – formal design. Hierarchy, process, systems, etc
human resource – attention is on the relationship btwn org and its members.
Political – participants interact in pursuit of a range of objectives. Some are in common, some differ.
Symbolic – culture, beliefs, values, rituals, meanings

13. Diagnostic Models: Organization
Diagnosis by image:
This technique allows organizational members to use images to describe the organizations and this can be used as a basis for discussion.
First: describe the organization
Next: keep adding more and more detail

14. Diagnostic Models: Components
Diagnostic Tools
Images of Managing Change
Advantages
of diagnostic
tools
Diagnostic Models:
Organization
Components
Readiness for Change
PESTEL Framework:
This analyses the external environment in terms of six factors – Political, Economic, Social, Technological, Environmental and Legal.
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15. Diagnostic Models: Components
Scenario analysis:
Creating stories of possible future scenarios that are considered to be vital to the future of the organization
“Flight simulator”
Brainstorm all important environmental factors
Out of the factors, everybody identify “key drivers” of performance
Aggregate responses, and rank the key drivers
Using the key drivers, construct 3 scenarios of what will happen to the key drivers over time
Most likely
Pessimistic
Optimistic

16. Diagnostic Models: Components
Gap analysis
This is a tool used for reviewing the organization’s position based on where they are and where they want to get to.
Where are we now?
Where do we want to get to?
How can we get there?
High Consensus?
Either close the gap, or wait for a competitor to the high concesus view
Low consensus?
Pay more attention to the objectives of the org

17. Diagnostic Models: Components
Elements of strategy
These are five elements of strategy that are considered mutually reinforcing – arenas, vehicles, differentiators, staging and lowest costs through scale advantage. Any misalignment of these signifies the need for change.

18. Boundariless Organization
Speed, flexibility, and integration are “new success factors”, which are achieved by reducing boundaries:
Vertical
Horizontal
External
geographic

19. Diagnostic Models: Components
Diagnostic Tools
Images of Managing Change
Advantages
of diagnostic
tools
Diagnostic Models:
Organization
Components
Readiness for Change
The Boundaryless Organization:
Success is arguably achieved only if four types of organizational boundaries are diagnosed and reduced. These are vertical, horizontal, external and geographical boundaries.
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20. Readiness for Change
Diagnostic Tools
Images of Managing Change
Advantages
of diagnostic
tools
Diagnostic Models:
Organization
Components
Readiness for Change
Assessing the organization's readiness to change can be a mediating variable between change management strategies and the outcomes of desired strategies.
A perchance audit of the readiness of an organization for change can provide an indication of the likely outcome of a change initiative at a particular point in time. Some ways of doing this include:
Questionnaires
Stakeholder analysis: This focuses on the position of stakeholders in the change process and allows the manager to be better informed of how to confront potential issues.
Force-field analysis: This identifies factors that are driving forces for change as well as restraining forces.
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21. Looks at factors that can hinder or assist the change
Force Field Analysis
Looks at factors that can hinder or assist the change
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22. Focuses on the position of key stakeholders
Stakeholder Analysis
Focuses on the position of key stakeholders
Who has power
Who will resist the most
How can support be gathered
How can resistance be reduce
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23. Exercise – Boeing Case
You will be given a model, for either conceptualizing the organization, or diagnosing the readiness for change
Make a brief presentation on the model
Apply the model to the case, making assumptions when needed
How did the model give you insight, or increase your understanding of the case?
In what ways would you enhance the model, to improve its suitability for the case?