Module I (6 hours) Introduction to organizational Development: Definition, growth and relevance, historyand evolution. Theories of planned change, general model of planned change, differenttypes of panned change and critique of planned change. OD practitioner role, competenciesand professional ethics.
Module II (6 hours) OD process: Initiating OD relationship, contracting and diagnosing the problem. Diagnosingmodels, open systems, individual level group level and organizational level diagnosis;collection and analysis for diagnostic information, feeding back the diagnosed information.
Module III ( 9 hours) Designing OD interventions: Human process interventions:- coaching, training and development, process consultation, third part intervention, and team building. Organizationconfrontation meeting, intergroup relations intervention, and large group intervention.involvement, work design, socio technical systems approach
Module IV (9 hours) HR and Strategic interventions :HRM interventions:- performance management, goal setting, performance coaching, appraising and rewarding. Career planning, workforce diversity interventions, wellness and work-life balance,Strategic interventions: Competitive strategies, collaborative strategies, organizationaltransformation, culture change, self designing organizations, learning and knowledgemanagement.
Module V (6 hours) Special applications of OD : OD in, health care organizations, family owned organizations,educational institutions, public sector organizations and future directions in OD.
Module VI (8 hours) Introduction to organizational change: Nature of change, forces of change, reinventingKurt Levin, organizational routines and mental models, change need analysis, content ofchange, types and styles of change, building capability for change, providing leadership tochange, action research and dialogue, types of change, organizational vision, culturalchange, strategic planning, creating support systems and managing transition, processoriented strategies and competitor oriented strategies and customer oriented strategies.
Module VII (6 hours) Appreciating change: External environment as drivers of change, business cycles, industrycycles, technology and strategic change, industry evolution and concentration , developing achange agenda. Cognition and organizational change, mental models, Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 2
organizationa l learning, Senges five disciplines, business models and value propositions, refining thechange agenda
Module VIII ( 6hours) Mobilizing support and executing change: Four approaches to change, parallel organization, ownership and involvement in change, dealing with political aspects of change,the psychology of persuasion, communicating to influence, targeting influence efforts,framing change, making difficult choices, negotiating change. Executing change: challenges of execution, execution framework, developing cross functional linkages, aligningpolicies, and removing structural impediments, developing new routines for innovation andimprovement, considering human element.
Module I Introduction to organizational Development: Definition, growth and relevance, history and evolution. Theories of planned change, general model of planned change, different types of panned change and critique of planned change. OD practitioner role, competencies and professional ethics. ************************************************************************* Organization development (OD) is a deliberately planned, organization-wide effort to increase an organization's effectiveness and/or efficiency. OD theorists and practitioners define it in various ways. Its multiplicity of definition reflects the complexity of the discipline and is responsible for its lack of understanding. For example, Vasudevan has referred to OD being about promoting organizational readiness to meet changeand it has been said that OD is a systemic learning and development strategy intended to change the basics of beliefs, attitudes and relevance of values, and structure of the current organization to better absorb disruptive technologies, shrinking or exploding market opportunities and ensuing challenges and chaos. It is worth understanding what OD is not. It is not training, personal development, team development, HRD (human resource development), L&D (learning and development) or a part of HR although it is often mistakenly understood as some or all of these. OD interventions are about change so involve people - but OD also develops processes, systems and structures. The primary purpose of OD is to develop the organization, not to train or develop the staff. Objective of OD The objective of OD is: 1. To increase the level of inter-personal trust among employees. 2. To increase employees' level of satisfaction and commitment. 3. To confront problems instead of neglecting them. 4. To effectively manage conflict. 5. To increase cooperation among the employees. 6. To increase the organization's problem solving. 7. To put in place processes that will help improve the ongoing operation of the organization on a continuous basis. As objectives of organizational development are framed keeping in view specific situations, they vary from one situation to another. In other words, these programs are tailored to meet the requirements of a particular situation. But broadly speaking, all organizational development programs try to achieve the following objectives: Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 5
1. Making individuals in the organization aware of the vision of the organization. Organizational development helps in making employees align with the vision of the organization. 2. Encouraging employees to solve problems instead of avoiding them. 3. Strengthening inter-personnel trust, cooperation, and communication for the successful achievement of organizational goals. 4. Encouraging every individual to participate in the process of planning, thus making them feel responsible for the implementation of the plan. 5. Creating a work atmosphere in which employees are encouraged to work and participate enthusiastically. 6. Replacing formal lines of authority with personal knowledge and skill. 7. Creating an environment of trust so that employees willingly accept change. According to organizational development thinking, organization development provides managers with a vehicle for introducing change systematically by applying a broad selection of management techniques. This, in turn, leads to greater personal, group, and organizational effectiveness. Definition: OD is a top management supported, long range effort to improve an organisations problem-solving & renewal processes, Growth & Relevance: 3 major trends are shaping their relevance of OD in this drastically changing environment: 1. Globalization 2. Information Technology 3. Managerial Innovation History Kurt Lewin (18981947) is widely recognized as the founding father of OD, although he died before the concept became current in the mid-1950s. [1] From Lewin came the ideas of group dynamics and action research which underpin the basic OD process as well as providing its collaborative consultant/client ethos. Institutionally, Lewin founded the "Research Center for Group Dynamics" (RCGD) at MIT, which moved to Michigan after his death. RCGD colleagues were among those who founded the National Training Laboratories (NTL), from which the T- groups and group-based OD emerged. Kurt Lewin played a key role in the evolution of organization development as it is known today. As early as World War II, Lewin experimented with a collaborative change process (involving himself as consultant and a client group) based on a three-step process of planning, taking action, and measuring results. This was the forerunner of action research, an important element of OD, Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 6
which will be discussed later. Lewin then participated in the beginnings of laboratory training, or T-groups, and, after his death in 1947, his close associates helped to develop survey-research methods at the University of Michigan. These procedures became important parts of OD as developments in this field continued at the National Training Laboratories and in growing numbers of universities and private consulting firms across the country. Two of the leading universities offering doctoral level degrees in OD are Benedictine University and the Fielding Graduate University. Douglas McGregor and Richard Beckhard while "consulting together at General Mills in the 1950s, the two coined the term organization development (OD) to describe an innovative bottoms-up change effort that fit no traditional consulting categories" The failure of off-site laboratory training to live up to its early promise was one of the important forces stimulating the development of OD. Laboratory training is learning from a person's "here and now" experience as a member of an ongoing training group. Such groups usually meet without a specific agenda. Their purpose is for the members to learn about themselves from their spontaneous "here and now" responses to an ambiguous hypothetical situation. Problems of leadership, structure, status, communication, and self-serving behavior typically arise in such a group. The members have an opportunity to learn something about themselves and to practice such skills as listening, observing others, and functioning as effective group members. [4]
As formerly practiced (and occasionally still practiced for special purposes), laboratory training was conducted in "stranger groups," or groups composed of individuals from different organizations, situations, and backgrounds. A major difficulty developed, however, in transferring knowledge gained from these "stranger labs" to the actual situation "back home". This required a transfer between two different cultures, the relatively safe and protected environment of the T-group (or training group) and the give-and-take of the organizational environment with its traditional values. This led the early pioneers in this type of learning to begin to apply it to "family groups" that is, groups located within an organization. From this shift in the locale of the training site and the realization that culture was an important factor in influencing group members (along with some other developments in the behavioral sciences) emerged the concept of organization development. Theories of Planned change: Organizational Climate - the mood or unique personality of an organization which can be observed in the attitudes and beliefs about organizational practices create organizational climate and influence members collective behaviour. Climate features and characteristics may be associated with employee satisfaction, stress, service quality and outcomes and successful implementation of new programs. Climate features and characteristics include: Leadership Openness of Communication Participative Management Role Clarity Conflict Resolution Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 7
Leader Support Leader Control Organizational Culture - Deeply seated norms, values and behaviours that members share. The five basic elements of culture in organizations include: Assumptions Values Behavioral norms Behavioral patterns Artifacts General Model of Planned change One of the foundational definitions in the field of organizational development (aka OD) is planned change: Organization Development is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization's 'processes,' using behavioral-science knowledge.-- Richard Beckhard, Organization development: Strategies and Models, To understand the practice of OD, some of the key terms, embedded in Beckhard's formulation, include: Planned - carefully thought through; based on data; documented Effectiveness - as measured by actual organizational performance versus desired organizational performance Health - as measured by the organization's ability to respond, grow and adapt in its environmental context Intervention - the specific action(s) selected for implementation that are intended to bring about the envisioned change Processes - how work gets done in an organization; e.g. delivery of service, billing, repair, etc.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 8
Steps in Planned Change Once managers and an organization commit to planned change, they need to create a logical stepby step approach in order to accomplish the objectives. Planned change requires managers to follow an eightstep process for successful implementations, which is illustrated in Figure 1.
1. Recognize the need for change. Recognition of the need for change may occur at the top management level or in peripheral parts of the organization. The change may be due to either internal or external forces. 2. Develop the goals of the change. Remember that before any action is taken, it is necessary to determine why the change is necessary. Both problems and opportunities must be evaluated. Then it is important to define the needed changes in terms of products, technology, structure, and culture. 3. Select a change agent. The change agent is the person who takes leadership responsibility to implement planned change. The change agent must be alert to things that need revamping, open to good ideas, and supportive of the implementation of those ideas into actual practice. 4. Diagnose the current climate. In this step, the change agent sets about gathering data about the climate of the organization in order to help employees prepare for change. Preparing people for change requires direct and forceful feedback about the negatives of the present situation, as compared to the desired future state, and sensitizing people to the forces of change that exist in their environment. 5. Select an implementation method. This step requires a decision on the best way to bring about the change. Managers can make themselves more sensitive to pressures for change by using networks of people and organizations with different perspectives and Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 9
views, visiting other organizations exposed to new ideas, and using external standards of performance, such as competitor's progress. 6. Develop a plan. This step involves actually putting together the plan, or the what information. This phase also determines the when, where, and how of the plan. The plan is like a road map. It notes specific events and activities that must be timed and integrated to produce the change. It also delegates responsibility for each of the goals and objectives. 7. Implement the plan. After all the questions have been answered, the plan is put into operation. Once a change has begun, initial excitement can dissipate in the face of everyday problems. Managers can maintain the momentum for change by providing resources, developing new competencies and skills, reinforcing new behaviors, and building a support system for those initiating the change. 8. Follow the plan and evaluate it. During this step, managers must compare the actual results to the goals established in Step 4. It is important to determine whether the goals were met; a complete followup and evaluation of the results aids this determination. Change should produce positive results and not be undertaken for its own sake. General Model of Planned Change
From the above picture, you can see that it has the following stages: Entering and Contracting Diagnosing Planning and Implementing Change Evaluating &Institutionalising Change Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 10
Entering and Contracting This first step helps management (and the OD practitioner in certain cases) make a decision to either proceed or not with an OD intervention, and indicates roughly how much resources, time and finances should be committed. The entering and contracting phase has the the following sub-stages: Gathering initial data The OD practitioner and the customer would typically start with a discussion regarding the reason for considering OD in the first place. The OD practitioner would then collect some data to get a high level understanding of the organisation, the reasons for change, the presenting problem and from this make some very preliminary recommendations about possible ways to go forward. He could focus on a problem that has been presented, or on positive areas of enquiry. The OD practitioner will present these initial findings to the customer, and they will jointly do some preliminary work with this data. From this first step, the OD relationship begins to be built. The OD practitioner will seek to build a collaborative relationship with the customer to ensure from this early stage that the relationship is one of the customer owning the intervention, and the consultant assisting and coaching through the process. Based on the initial findings and the discussions with the customer, the OD practitioner will propose a model to be used, which will indicate the types and magnitude of change that could be expected, and propose an agreement of cooperation for working together going forward. At this point, the consultant will estimate the resources that he would need to commit, and the resources that he expects would be needed from the client. Resources can include finances, but probably the resource which is of the greatest concern is employee time. The customer will review this proposal, there might be some negotiation and should they finally come to an agreement, a contract will be drawn up. The contract should be clear about rates, fees and terms and conditions. It should set out the rule of engagement how the two parties will work together, as well as the principles that will guide potential termination. It should clarify the role that the OD practitioner will play, and the roles that different organisation members need to play in the process. Because of the amount of unknowns at this stage, it is impossible to know exactly how the process will play out, but the OD practitioner should make every effort to ensure that there are no surprises for the customer down the line. Many efforts stop at this point, for a variety of reasons, such as a lack of available resources to be able to navigate the change, a incongruence between the values of the OD Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 11
practitioner and the organisation, or because an alternative method of addressing the presenting problem is found. Diagnosing The Diagnosing phase consists of gathering, analysing and feeding back data. The focus is on understanding the organisations problems, what the causes and the effects of those problems are, and / or understanding the positive elements of the organisation. What are the areas of strength on which the organisation can build? Diagnosing can happen at three levels. Organisational level, group level or individual level. Diagnosis becomes increasingly complex as we move from individual to organisational diagnosis. However, because of the integrated nature of an organisation, and the fact that the diagnosis of the larger levels are the inputs for the smaller ones, it is necessary to understand the higher levels, even when diagnosing at a lower level. So, for example, when diagnosing job design at an individual level, you need to understand how the design components of the team impacts on that job design, and how the design components of the organisation impacts on the team.At every level, we consider the design components of the organisation, and the alignment between the various design components, the inputs and the outputs. The analysis and feedback process is collaborative, ensuring continued use and ownership of the data and the results of the diagnosis, by the client. That means that although the OD practitioner would typically design the data analysis process to maximise involvement and skills transfer. The analysis process might include the consultant making some preliminary conclusions, but the real conclusions about the meaning of the data, which will be used to plan the interventions, should be done collaboratively with the client. Planning & Implementing Change Based on the diagnosis, the OD practitioner and organisational members now, together, design the interventions that would drive the change. The interventions should be based on the results of the diagnosis, and should be aimed at resolving the root causes of the problems, or at developing the most prominent strengths of the organisation. Criteria that can affect the way interventions are designed, are the organisations readiness and capability for change, the OD practitioners skills and the organisations power distribution. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 12
Evaluating and Institutionalising Change Finally, the change should be evaluated against two major criteria: Was the implementation successful? Did the implementation have the required results? If the answers to the above two questions are both positive, then it is time to institutionalise the change, through reinforcing knowledge and performance, and continuous reinforcement of the values that underlie the change until normative and value consensus has been reached.
Theories of planned change: 1. Kurt Lewins change model Theory 2. Action oriented model theory 3. Positive model theory Critics of Planned Change: Environmental parameters are highly dynamic in nature. Organisation structure should be flexible enough to incorporate the changes. Circumstances are unpredictable. The OD Practitioner The role of the OD practitioner is varied and dynamic. Descriptions include; helper, advisor, sounding board, navigator, coach, facilitator, designer, developer, leader, consultant, expert, partner, problem solver, diagnostician, process specialist and collaborator. These roles can be practiced as an employee within the organisation or as an external consultant. Whatever descriptor is used to describe the role, the truth is the OD practitioner role is varied and purposed with helping clients to improve the effectiveness of their organisation developing both business processes and people processes within the context of the organisation. OD practitioners are by their very practice humanistic and that makes their practice relational based, and puts the OD practitioner at the centre of change and development efforts; using self as an instrument to drive change and help the organisation develop through each of the phases of the OD cycle; Diagnostic, Intervention and Evaluation. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 13
The OD practitioner is responsible for bringing their whole self to the task in hand, and build their reputation as a trusted advisor with their clients. Not only must the practitioner be an advocate of development, but must focus on continuously improving and developing their own learning and understanding of their practice. Key Competencies & professional ethics of an OD Practitioner 1. Theoretical and Technical expertise which can be applied 2. Influencing Skills 3. Spot and energise engagement in others 4. Innovative, Creative and Critical thinking 5. Ability to tackle difficulties and problems with positivity 6. Self-Confident 7. Credible communicators 8. Interpersonal and Facilitation skills, with an ability to stand back 9. Emotionally Tuned in 10. Ethical, value driven and acts with integrity
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 14
Module 2 OD process: Initiating OD relationship, contracting and diagnosing the problem. Diagnosing models, open systems, individual level group level and organizational level diagnosis; collection and analysis for diagnostic information, feeding back the diagnosed information. *********************************************************************** OD Process: The OD Process is based on the action research model which begins with an identified problem or need for change. The process proceeds through assessment, planning of an intervention, implementing the intervention, gathering data to evaluate the intervention, and determining if satisfactory progress has been made or if there is need for further intervention.
The organizational Diagnostic phase is often integrated within an overall OD process, commonly called 'a consulting process'. An example of such a process is:
The OD process begins when an organization recognizes that a problem exists which impacts the mission or health of the organization and change is desired. It can also begin when leadership has a vision of a better way and wants to improve the organization. An organization does not always have to be in trouble to implement organization development activities. Once the decision is made to change the situation, the next step is to assess the situation to fully understand it. This assessment can be conducted in many ways including documentation review, organizational sensing, focus groups, interviewing, or surveying. The assessment could be conducted by outside experts or by members of the organization. After the situation is assessed, defined, and understood, the next step is to plan an intervention. The type of change desired would determine the nature of the intervention. Interventions could include training and development, team interventions such as team building for management or employees or the establishment of change teams, structural interventions, or individual interventions. Once the intervention is planned, it is implemented. During and after the implementation of the intervention, relevant data is gathered. The data gathered would be determined by the change goals. For example, if the intervention were training and development for individual employees or for work groups, data to be gathered would measure changes in knowledge and competencies. This data is used to determine the effectiveness of the intervention. It is reported to the organizations decision-makers. The decision-makers determine if the intervention met its goals. If the intervention met its goals, the process can end, which is depicted by the raising of the development bar. If it did not, the decision is made whether to continue the cycle and to plan and carry out another intervention or to end it. What is a Diagnosis Diagnosis is a systematic approach to understanding and describing the present state of the organization. The purpose is to specify the nature of the problem requiring solution to identify the underlying the forces, and to provide a basis for selective effective change strategies techniques. Diagnosis involves the systematic analysis of data regarding the organization structure and culture with the intention of discovering problems and areas for improvement.
Critical Issues in Diagnosis Simplicity Visibility Involvement Primary Factors Measure Whats Important Sense of Urgency The Process Diagnosis is a cyclical process involving gathering interpretation, identification of problem areas, and potential action program, Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 16
Steps Step 1- Tentative problems and identified Step 2 Collect data Step 3 Analyze data Step 4 Feedback data Step 5 Is more data needed Step 6 Problems areas are identified Step 7- Is the client motiva ted to work on the problem Step 8 Diagnosis and work on the problem Step 9 Monitor and assess result
Phases in Diagnosis Diagnostic studies typically include several distinct phases (Nadler, 1977). As the following description shows, diagnostic tasks, models, and methods shift within and between phases, as do relations between consultants, clients, and other members of the client organization:
Entry: Clients and consultants explore expectations for the study; the client presents problems and challenges; the consultant assesses the likelihood of cooperation with various types of research and probable receptiveness to feedback; and the consul- tant makes a preliminary reconnaissance of organizational problems and strengths.
Contracting: Consultants and clients negotiate and agree on the nature of the diagnosis and client-consultant relations.
Study design: Methods, measurement procedures, sampling, analysis, and administrative procedures are planned.
Collection & Analysis for Diagnosis: Data are gathered through interviews, observations, questionnaires, analysis of secondary data, group discussions, and workshops.
Analysis: Consultants analyze the data and summarize findings; consultants (and sometimes clients) interpret them and prepare for feedback.
Feeding back the info: Consultants present findings to clients and other members of the client organization; feedback may include explicit recommendations or more general findings to stimulate discussion, decision making, and action planning
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 17
Diagnostic Models In a study of OD practitioners, 70 % reported using a model to assist identifying problems.Diagnostic models may used to analyze the structure, culture, and behavior of the organization. The Analytical Model Used for interdepartmental issues Examines four characteristics of departments Degree of department structure Time orientation of members toward others Interpersonal members orientation toward goals The models objective is to help departments achieve integration. The Management Practice Model Six Basic Factors Basic planning General Business practices Finance Advertising and promotion Market research Personal Asking a few basic questions in each area, it is possible to get an indication of where the clients problems may be located. The Sociotechnical System Model Two systems contained in each organization: Social system, which consists of interpersonal relationships. Technical system, which consists of task, tools, and activities of organization. The systems are interrelated. The diagnosis determines how the systems are interrelated and what types of feedback is required between the subsystems. The Force Field- Analysis Model Organizational behavioral is a balance between forces working in opposite directions. Restraining forces act to keep organization stable. Driving forces act to change organization. When two forces are equal, the organization is in quasi-stationary state of equilibrium. Analysis of forces determines which force to increase or decrease to bring about change.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 18
Module 3
Designing OD interventions: Human process interventions:- coaching, training anddevelopment, process consultation, third part intervention, and team building. Organization Techno structural interventions:- Structural design , downsizing, reengineering, employee involvement, work design, socio technical systems approach,confrontation meeting, intergroup relations intervention, and large group intervention.
************************************************************************* WHAT ARE EFFECTIVE OD INTERVENTIONS?
The term intervention refers to a set of sequenced planned actions or events intended to help an organization increase its effectiveness. Interventions purposely disrupt the status quo; they are deliberate attempts to change an organization or subunit toward a different and more effective state. In OD, three major criteria define an effective intervention: (1) the extent to which it fits the needs of the organization; (2) the degree to which it is based on causal knowledge of intended outcomes; and (3) the extent to which it transfers change management competence to organization members. The first criterion concerns the extent to which the intervention is relevant to the organization and its members. Effective interventions are based on valid information about the organizations functioning; they provide organization members with opportunities to make free and informed choices; and they gain members internal commitment to those choices.
Organisational change programmes are typically designed to: 1. Change the way people behave at work in order to improve performance. 2. Implement a bold new strategy for turning the corporate vision into reality. 3. Rethink corporate structure and redesign jobs. 4. Integrate merged or acquired companies. 5. Re-engineer business processes. 6. Implement new IT systems.. 7. Increase the speed at which new products are developed and brought to market. Even though most change programmes are carefully planned often with the help of experienced consultants between 70% and 90% of them fail to achieve the desired results. Why is the failure rate so high?
The conventional approach to change has ten structural weaknesses
-1 Top management clings to the old model of leadership. Senior managers continue to provide leadership in the form of solutions, instead of working to improve the organisationscapacity to adapt. This improved adaptability can only be achieved if the leaders change themselves before seeking to change the rest of the organisation. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 19
-2Change is imposed and driven by senior management. By and large the planners of the change programme (typically senior management assisted by consultants) have the best of intentions when they insist that people implement their plan without modification. The implementers, on the other hand, usually want to adapt the plan to fit their individual situations. This can lead to an escalating pattern where the more the planners seek compliance, the more the implementers do their own thing, or do nothing ultimately resulting in the failure of the programme.
-3 The change model is based on control and domination. Fearing the unpredictable, chaotic nature of change and the threat of its unwanted consequences, managers employ pseudo-scientific change management techniques in a vain attempt to control the process and create predictable and measurable outcomes. But although managers can control micro-level changes, such as introducing new corporate stationery, at the macro level too many of the variables are beyond human control. Major change can no more be managed than the weather can be managed. Indeed, many major change programmes are little more than ritual rain dances that satisfy mans compelling need to take action in the face of a crisis. But whereas rain dances are harmless, many conventional change programmes have failure designed into them as they make no allowances for unanticipated developments.
-4 Stakeholder involvement is narrow. Planners of conventional change programmes generally exclude the vast majority of internal stakeholders from the planning process. Also, they tend to ignore important external stakeholder groups such as suppliers, customers and the local community. The opportunity to create a more widely-shared vision of the future is therefore lost, and key stakeholders may fail to provide vitally-needed support
5 Awareness of current reality is limited. As a consequence of failing to involve from the outset everyone who will be affected by the change, a dangerously incomplete picture of current reality is created. This is compounded by the fact that certain issues will be considered taboo and therefore undiscussable. Wise strategic decisions are unlikely to be made when informed by such a limited information base.
-6 The focus is on identifying and solving problems. Many models of organisational change are based on an elaboration of the problem solving model. Problem solving is about fi xing things that have gone wrong, and the results tend to be incremental improvements rather than order of magnitude changes. Even if an organisation were to nail every one of its problems, this would not be enough for it to achieve its strategic objectives.
-7 The vision is shaped by an elite group of experts and senior managers. The boss outlines his or her vision through a presentation. (I have shared my vision, so now we have a shared vision.) Employees may buy into the vision but, after giving it more consideration, experience buyers remorse and as a consequence withdraw their support. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 20
-8 Linear thinking is used. Linear thinking usually leads to ineffective change strategies, for two reasons. First, it produces a programme with a predetermined sequence of steps leading the organisation towards a fi xed goal.
-9Change strategy is communicated by transmitting messages. The communication method is one where messages are transmitted from the bosses to the troops. The consequences are low commitment and missed opportunities.
-10 Planning and implementation are sequential. Conventional strategic planning (plan then implement) requires the world to stand still while the planners do their work. Unfortunately the world keeps on turning and the planners never quite catch up.
Types of OD Interventions Broadly OD interventions can be classified into:
1. Technology related interventions
2. Human process interventions
Human Process Interventions:
interventions focus on people within organizations and the processes through which they accomplish organizational goals. These processes include communication, problem solving, group decision making, and leadership. This type of intervention is deeply rooted in the history of OD and represents the earliest change programs characterizing OD. Human process interventions derive mainly from the disciplines of psychology and social psychology and the applied fields of group dynamics and human relations. Practitioners applying these interventions generally value human fulfillment and expect that organizational effectiveness follows from improved functioning of people and organizational processes.Human process interventions related to interpersonal relationships and group dynamics.
These include the following interventions: Coaching, Training & Development: Coaching, is a training or development process via which an individual is supported while achieving a specific personal or professional competence result or goal. The individual receiving coaching may be referred to as coachee. Occasionally, the term coaching may be applied to an informal relationship between two individuals where one has greater experience and expertise than the other and offers advice and guidance as the other goes through a learning process, but coaching differs from mentoring by focusing upon competence specifics, as opposed to general overall development. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 21
The structures, models and methodologies of coaching are numerous, and may be designed to facilitate thinking or learning new behavior for personal growth or professional advancement. There are also forms of coaching that help the coachee improve a physical skill, like in a sport or performing art form. Some coaches use a style in which they ask questions and offer opportunities that will challenge the coachee to find answers from within him/herself. This facilitates the learner to discover answers and new ways of being based on their values, preferences and unique perspective. When coaching is aimed at facilitating psychological or emotional growth it should be differentiated from therapeutic and counseling disciplines, since clients of coaching, in most cases, are considered healthy (i.e. not sick). The purpose of the coaching is to help them move forward in whatever way they want to move, not to 'cure' them. In addition the therapist or counsellor may work from a position of authoritative doubt, but cannot claim the position of ignorance so vital for coaching, because of the assessment knowledge that underpins their work.
Process consultation.
This intervention focuses on interpersonal relations and social dynamics occurring in work groups. Typically, a process consultant helps group members diagnose group functioning and devise appropriate solutions to process problems, such as dysfunctional conflict, poor communication, and ineffective norms. The aim is to help members gain the skills and understanding necessary to identify and solve problems themselves.
Third-party intervention.
This change method is a form of process consultation aimed at dysfunctional interpersonal relations in organizations. Interpersonal conflict may derive from substantive issues, such as disputes over work methods, or from interpersonal issues, such as miscommunication. The third-party intervener helps people resolve conflicts through such methods as problem solving, bargaining, and conciliation.
Team building
This intervention helps work groups become more effective in accomplishing tasks. Like process consultation, team building helps members diagnose group processes and devise solutions to problems. It goes beyond group processes, however, to include examination of the groups task, member roles, and strategies for performing tasks. The consultant also may function as a resource person offering expertise related to the groups task.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 22
1. Organization confrontation meeting. This change method mobilizes organization members to identify problems, set action targets, and begin working on problems. It is usually applied when organizations are experiencing stress and when management needs to organize resources for immediate problem solving. The intervention generally includes various groupings of employees in identifying and solving problems. The confrontation meeting is an intervention designed to mobilize the resources of the entire organization to identify problems, set priorities and action targets, and begin working on identified problems. Originally developed by Beckhard, the intervention can be used at any time but is particularly useful when the organization is in stress and when there is a gap between the top and the rest of the organization.
2. Intergroup relations. These interventions are designed to improve interactions among different groups or departments in organizations. The microcosm groupintervention involves a small group of people whose backgrounds closely match the organizational problems being addressed. This group addresses the problem and develops means to solve it. The intergroup conflict model typically involves a consultant helping two groups understand the causes of their conflict and choose appropriate solutions. It is very important for OD practitioners to diagnose and understand the inter group relations because 1 To achieve the goals of the group they must work with and through other groups. 2 Groups can create problems within the organization 3 The level of the organization effectiveness depend upon the quality of relationship between the groups 3. Large-group interventions. These interventions involve getting a broad variety of stakeholders into a large meeting to clarify important values, to develop new ways of working, to articulate a new vision for the organization, or to solve pressing organizational problems. Such meetings are powerful tools for creating awareness of organizational problems and opportunities and for specifying valued directions for future action. The range and purpose of Large Group Interventions There is now a comprehensive range of LGIs, each coming with their own methodologies and processes. The main Large Group Interventions are listed in this article, with a brief summary of the purpose, methodology and optimum size of each, where applicable. It is possible, using some Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 23
LGIs, to work highly effectively with thousands of people together all at once and there have been some stunning outcomes, that many people would not have thought possible, from many of these events throughout the world. There is a separate page on Appreciative Inquiry, which is not technically classed as one of the original Large Group Interventions but which is a very different approach to change and OD that has fast been gaining popularity and credibility over the last few years. Technostructural Interventions: Interventions related to organizations technology.They include approaches to employee involvement, as well as methods for designing organizations, groups, and jobs. Technostructural interventions are rooted in the disciplines of engineering, sociology, and psychology and in the applied fields of sociotechnical systems and organization design. Practitioners generally stress both productivity and human fulfillment and expect that organization effectiveness will result from appropriate work designs and organization structures. Structural design. This change process concerns the organizations division of laborhow to specialize task performances. Interventions aimed at structural design include moving from more traditional ways of dividing the organizationsoverall work (such as functional, self-contained unit, and matrix structures) to more integrative and flexible forms (such as process-based, customer- centric, and network-based structures). Diagnostic guidelines exist to determine which structure is appropriate for particular organizational environments, technologies, and conditions.
Downsizing. This intervention reduces costs and bureaucracy by decreasing the size of the organization through personnel layoffs, organization redesign, and outsourcing. Each of these downsizing methods must be planned with a clear understanding of the organizations strategy.
Reengineering. This recent intervention radically redesigns the organizations core work processes to create tighter linkage and coordination among the different tasks. This workflow integration results in faster, more responsive task performance. Reengineering is often accomplished with new information technology that permits employees to control and coordinate work processes more effectively. Reengineering often fails if it ignores basic principles and processes of OD. Employee Involvement This type of intervention is of contemporary type where in organisations involve key employees in decision making process. It makes th employee feel attached to the company & also boosts their morale. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 24
Sociotechnical system Approach: Sociotechnical systems (STS) in organizational development is an approach to complex organizational work design that recognizes the interaction between people and technology in workplaces. The term also refers to the interaction between society's complex infrastructures and human behaviour. In this sense, society itself, and most of its substructures, are complex sociotechnical systems. The term sociotechnical systems was coined by Eric Trist, Ken Bamforth and Fred Emery, World War II era, based on their work with workers in English coal minesTavistock Institute in London. Sociotechnical systems pertains to theory regarding the social aspects of people and society and technical aspects of organizational structure and processes. Here, technical does not necessarily imply material technology. The focus is on procedures and related knowledge, i.e. it refers to the ancient Greek term logos. "Technical" is a term used to refer to structure and a broader sense of technicalities. Sociotechnical refers to the interrelatedness of social and technical aspects of an organization or the society as a whole. Sociotechnical theory therefore is about joint optimization, with a shared emphasis on achievement of both excellence in technical performance and quality in people's work lives. Sociotechnical theory, as distinct from sociotechnical systems, proposes a number of different ways of achieving joint optimisation. They are usually based on designing different kinds of organisation, ones in which the relationships between socio and technical elements lead to the emergence of productivity and wellbeing. Principles Some of the central principles of sociotechnical theory were elaborated in a seminal paper by Eric Trist and Ken Bamforth in 1951. This is an interesting case study which, like most of the work in sociotechnical theory, is focused on a form of 'production system' expressive of the era and the contemporary technological systems it contained. The study was based on the paradoxical observation that despite improved technology, productivity was falling, and that despite better pay and amenities, absenteeism was increasing. This particular rational organisation had become irrational. The cause of the problem was hypothesized to be the adoption of a new form of production technology which had created the need for a bureaucratic form of organization (rather like classic command-and-control). In this specific example, technology brought with it a retrograde step in organizational design terms. The analysis that followed introduced the terms "socio" and "technical" and elaborated on many of the core principles that sociotechnical theory subsequently became. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 25
Responsible autonomy Sociotechnical theory was pioneering for its shift in emphasis, a shift towards considering teams or groups as the primary unit of analysis and not the individual. Sociotechnical theory pays particular attention to internal supervision and leadership at the level of the "group" and refers to it as "responsible autonomy".The overriding point seems to be that having the simple ability of individual team members being able to perform their function is not the only predictor of group effectiveness. There are a range of issues in team cohesion research, for example, that are answered by having the regulation and leadership internal to a group or team. These, and other factors, play an integral and parallel role in ensuring successful teamwork which sociotechnical theory exploits. The idea of semi-autonomous groups conveys a number of further advantages. Not least among these, especially in hazardous environments, is the often felt need on the part of people in the organisation for a role in a small primary group. It is argued that such a need arises in cases where the means for effective communication are often somewhat limited. As Carvalho states, this is because "operators use verbal exchanges to produce continuous, redundant and recursive interactions to successfully construct and maintain individual and mutual awareness". The immediacy and proximity of trusted team members makes it possible for this to occur. The coevolution of technology and organizations brings with it an expanding array of new possibilities for novel interaction. Responsible autonomy could become more distributed along with the team(s) themselves. Adaptability Carvajal states that "the rate at which uncertainty overwhelms an organisation is related more to its internal structure than to the amount of environmental uncertainty". Sitter in 1997 offered two solutions for organisations confronted, like the military, with an environment of increased (and increasing) complexity: "The first option is to restore the fit with the external complexity by an increasing internal complexity. ...This usually means the creation of more staff functions or the enlargement of staff-functions and/or the investment in vertical information systems". Vertical information systems are often confused for "network enabled capability" systems (NEC) but an important distinction needs to be made, which Sitter et al. propose as their second option: "the organisation tries to deal with the external complexity by 'reducing' the internal control and coordination needs. ...This option might be called the strategy of 'simple organisations and complex jobs'". This all contributes to a number of unique advantages. Firstly is the issue of "human redundancy" in which "groups of this kind were free to set their own targets, so that aspiration levels with respect to production could be adjusted to the age and stamina of the individuals concerned".Human redundancy speaks towards the flexibility, ubiquity and pervasiveness of resources within NEC. Traditional approaches to change tend to be: Top-down and therefore often misunderstood or resisted by people lower down in the organization Led by a selected working or project group, representative of the workforce. This approach Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 26
often starts off well, but over time, the representatives become distanced and isolated from their colleagues as they gather enthusiasm for their work and are privy to much more information than their colleagues back in the workplace.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 27
Module 4: HR and Strategic interventions : HRM interventions:- performance management, goal setting, performance coaching, appraising and rewarding. Career planning, workforce diversity interventions, wellness and work-life balance, Strategic interventions: Competitive strategies, collaborative strategies, organizational transformation, culture change, self designing organizations, learning and knowledge management.
HRM Intervention
HRM interventions are used to develop, integrate,and support people in the organization.
These practices include those change practicesthat are traditionally associated with the HRfunction of the organization
These interventions look at goal setting andappraisal systems, reward systems, career planning and development, stress management,and diversity. Interventions under HRM Interventions 1. Performance management
2. Go a l S e t t i n g
3. Per f or mance Appr ai s al
4. Rewar d Sys t ems
5. De v e l o p i n g a n d a s s i s t i n g Me mb e r s
6. Ca r e e r P l a n n i n g a n d De v e l o p me n t i n t e r v e n t i o n s
7. Wo r k F o r c e Di v e r s i t y i n t e r v e n t i o n s
8. Em p l o y e e s t r e s s a n d W e l l n e s s i n t e r v e n t i o n s
Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas. PM is also known as a process by which organizations align their resources, systems and employees to strategic objectives and priorities. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 28
Performance management as referenced on this page in a broad term coined by Dr. Aubrey Daniels in the late 1970s to describe a technology (i.e. science imbedded in applications methods) for managing both behavior and results, two critical elements of what is known as performance. Long-cycle Performance Management Long-cycle Performance Management is usually done on an annual, every 6 months, or quarterly basis. From implementations standpoint, this area is the one that has traditionally received the most attention.This is so for historical reasons, as most performance management techniques/styles predate use of computers. Short-cycle Performance Management Short-cycle Performance Management (which overlaps with principles of [Agile Software Development]) is usually done on a weekly, by-weekly, or monthly basis. From the implementation standpoint, this sort of management is industry-specific. Micro Performance Management Micro Performance management is generally done on a by-minute/hour/day basis. Goal Setting:Goal setting involves establishing specific, measurable, achievable, realistic and time-targeted (S.M.A.R.T ) goals. Work on the theory of goal-setting suggests that an effective tool for making progress is to ensure that participants in a group with a common goal are clearly aware of what is expected from them. On a personal level, setting goals helps people work towards their own objectives. Goal setting features as a major component of personal developmentliterature.Organisations should develop a program that helps the employees to align their individual goals with that of organizations. Both should go in tandem with eachother. Performance Coaching, appraising, & rewarding:Once the feedback is collected from the employees about their performance, they are measured for their deviations against standard procedures. If the deviations are on the positive scale , the employee is rewarded for his work. Rewarding is a process with both monetary & non-monetary benefits. They motivate an employee for further commitment. Career Management is the combination of structured planning and the active management choice of one's own professional career. The outcome of successful career management should include personal fulfillment, work/life balance, goal achievement and financial security. Career Planning Career planning is a subset of career management. Career planning applies the concepts of Strategic planning and Marketing to taking charge of one's professional future. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 29
The word career refers to all types of employment ranging from semi-skilled through skilled, and semiprofessional to professional. The term career has often been restricted to suggest an employment commitment to a single trade skill, profession or business firm for the entire working life of a person. In recent years, however, career now refers to changes or modifications in employment during the foreseeable future. There are many definitions by management scholars of the stages in the managerial process. The following classification system with minor variations is widely used: 1. Development of overall goals and objectives, 2. Development of a strategy (a general means to accomplish the selected goals/objectives), 3. Development of the specific means (policies, rules, procedures and activities) to implement the strategy, and 4. Systematic evaluation of the progress toward the achievement of the selected goals/objectives to modify the strategy, if necessary. Workforce Diversity Intervention Researchers suggest and managers confirm that contemporary workforce characteristics are radically different from what they were 20 years ago.Diversity results from people who bring different resources and perspectives to the workplace and who have distinctive needs, preferences, expectations and lifestyles.Organizations must design HR systems to account for these differences. Managing Workforce Diversity: This change program makes human resource practices more responsive to a variety of individual needs.Important trends, such as increasing number of women, ethnic minorities, and physically and mentally challenged people in the workforce, require a more flexible set of policies. Wellness & work-life balance: Protecting or addressing the psychological needs of the employees is the prime duty of any employer. Employee wellness & work-life balance creates stress free work environment & also leverages productivity. Strategic Interventions, is a strategic, results-oriented,management consulting method. Strategic Interventions competes based on its ability toproduce extraordinary "bottom line" results. We achieve those results for our clients by"re-imagining" their business (not their business processes) to reconfigure assets, construct"road maps" for implementation and execute those plans to build sustainable competitiveadvantage in their marketplace. Strategic Interventions, Inc is a "beginning to end"organization that believes our work is complete when the identified returns are realized. Strategic Intervention (also known as SI) is dedicated to extracting the most practical and effective forms of strategic action and communication from a variety of disciplines: Human Needs Psychology, Ericksonian therapy, Strategic Family Therapy, Organisational Psychology, Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 30
Neuro-Linguistic Programming (NLP), Psychology of Influence, Hypno-Therapy, Traditions of Diplomacy and Negotiation, Social Action Therapy, Direct & Indirect Negotiation, the Third Side, Structural Family Therapy, Life-Cycle theory of business organization, mediation and Conflict Resolution Techniques, Logo-Therapy, De-Armouring Process, Bio-Dynamic Bodywork. Strategic Intervention provides simple understanding and solutions that REALLY deliver more benefit to people with less effort in a short space of time. Strategic Intervention allows us to STOP analyzing so much and work with the heart. Not to gain an outcome but to gain INSIGHT. Strategic Intervention allows us the opportunity to take the pressure off our responsibility as therapists, coaches, social workers, caring friends etc and firmly places the responsibility on the PERSON YOU ARE ATTEMPTING TO HELP which is where it has the most profound impact. Strategic Intervention is a method (commonly demonstrated by Tony Robbins) for assisting people to find empowering meanings for their life circumstances, discover why they do what they do and how they meet their needs in positive and negative ways, the understanding of which helps to promote sustainable change. It involves the use of MANY disciplines and provides us as coaches with Highly EFFECTIVE, FLEXIBLE and QUICK ACTING LONG-TERM strategies to deal with a wide range of issues. Competitive Strategies :
Any successful approach to achieving top-line growth must take into account what your competitors are, and are not, doing, and balance those insights with a detailed understanding of where promising market opportunities are to be found. Ignoring either of these activities puts top-line growth at risk. Companies must therefore invest heavily not only to keep pace with competitors, but also to render them irrelevant whenever possible, while simultaneously anticipating and preparing for the next threat or opportunity. COLLABORATIVE STRATEGY It's when multiple people make incremental contributions to a project. "Collaborative Strategy is the synergy between Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 31
the strategy of a Business and the Strategy of its Partners to realize the objectives through collaboration. "This concept is being developed as the new way to grow a Business. ompanies collaborate with their partners, vendors, customers etc., to build synergy at strategic level to grow their business. Classic example of Collaborative Strategy is the business models of Procter & Gamble to collaborate with numerous researchers across the globe. Also, Bharti Airtel. Organisational Tranformation & Culture change:This is the period when the organisation is undergoing change in order to align itself with the changes in the macroenvironment. Ex: Mcdonalds has changed its work & process in order to suit the region of its operations. Self-designing Organisations are those which have a flexi organisation structure so as to incorporate the external changes & modify themselves. Work design In organizational development (OD), SDO is the application of Socio-Technical Systems principles and techniques to the humanization of work. The aims of work design are to improve job satisfaction, to improve through-put, to improve quality and to reduce employee problems (e.g., grievances, absenteeism Learning & Knowledge management System:
Learning & Knowledge management is the process of capturing, developing, sharing, and effectively using organizational knowledge. It refers to a multi-disciplined approach to achieving organizational objectives by making the best use of knowledge. Application This is used most often in the workplace, can apply wherever people interact schools, churches, community meetings, sports teams, health setting, governmental agencies,social events and even political settings - anywhere in the world people interact with their environments to produce desired effects. Armstrong and Baron (1998) defined it as a strategic and integrated approach to increase the effectiveness of companies by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. It may be possible to get all employees to reconcile personal goals with organizational goals and increase productivity and profitability of an organization using this process. [3] It can be applied Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 32
by organizations or a single department or section inside an organization, as well as an individual person. The performance process is appropriately named the self-propelled performance process (SPPP). First, a commitment analysis must be done where a job mission statement is drawn up for each job. The job mission statement is a job definition in terms of purpose, customers, product and scope. The aim with this analysis is to determine the continuous key objectives and performance standards for each job position. Following the commitment analysis is the work analysis of a particular job in terms of the reporting structure and job description. If a job description is not available, then a systems analysis can be done to draw up a job description. The aim with this analysis is to determine the continuous critical objectives and performance standards for each job. Benefits Managing employee or system performance and aligning their objectives facilitates the effective delivery of strategic and operational goals. Some proponents argue that there is a clear and immediate correlation between using performance management programs or software and improved business and organizational results.In the public sector, the effects of performance management systems have differed from positive to negative, suggesting that differences in the characteristics of performance management systems and the contexts into which they are implemented play an important role to the success or failure of performance management.
For employee performance management, using integrated software, rather than a spreadsheet based recording system, may deliver a significant return on investment through a range of direct and indirect sales benefits, operational efficiency benefits and by unlocking the latent potential in every employees work day (i.e. the time they spend not actually doing their job). Benefits may include: Direct financial gain, Grow sales Reduce costs in the organization Stop project overruns Aligns the organization directly behind the CEO's goals Decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goals Motivated workforce Optimizes incentive plans to specific goals for over achievement, not just business as usual Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 33
Create transparency in achievement of goals High confidence in bonus payment process Professional development programs are better aligned directly to achieving business level goals Improved management control Flexible, responsive to management needs Displays data relationships Helps audit / comply with legislative requirement Simplifies communication of strategic goals scenario planning Provides well documented and communicated process documentation Sociotechnical Systems Model Sociotechnical systems (STS) in organizational development is an approach to complex organizational work design that recognizes the interaction between people and technology in workplaces. The term also refers to the interaction between society's complex infrastructures and human behaviour. In this sense, society itself, and most of its substructures, are complex sociotechnical systems. The term sociotechnical systems was coined by Eric Trist, Ken Bamforth and Fred Emery, World War II era, based on their work with workers in English coal minesTavistock Institute in London Goals or objectives development The career management process begins with setting goals/objectives. A relatively specific goal/objective must be formulated. This task may be quite difficult when the individual lacks knowledge of career opportunities and/or is not fully aware of their talents and abilities. However, the entire career management process is based on the establishment of defined goals/objectives whether specific or general in nature. Utilizing career assessments may be a critical step in identifying opportunities and career paths that most resonate with someone. Career assessments can range from quick and informal to more indepth. Regardless of the ones you use, you will need to evaluate them. Most assessments found today for free (although good) do not offer an in-depth evaluation. The time horizon for the achievement of the selected goals or objectives - short term, medium term or long term - will have a major influence on their formulation. 1. Short term goals (one or two years) are usually specific and limited in scope. Short term goals are easier to formulate. Make sure they are achievable and relate to your longer term career goals. 2. Intermediate goals (3 to 20 years) tend to be less specific and more open ended than short term goals. Both intermediate and long term goals are more difficult to formulate than short term goals because there are so many unknowns about the future. 3. Long term goals (Over 20 years), of course, are the most fluid of all. Lack of life experience and knowledge about potential opportunities and pitfalls make the formulation of long term goals/objectives very difficult. Long range goals/objectives, however, may Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 34
be easily modified as additional information is received without a great loss of career efforts because of experience/knowledge transfer from one career to another. 4. Making career choices and decisions the traditional focus of careers interventions. The changed nature of work means that individuals may now have to revisit this process more frequently now and in the future, more than in the past. 5. Managing the organizational career concerns the career management tasks of individuals within the workplace, such as decision-making, life-stage transitions, dealing with stress etc. 6. Managing 'boundaryless' careers refers to skills needed by workers whose employment is beyond the boundaries of a single organization, a workstyle common among, for example, artists and designers. 7. Taking control of one's personal development as employers take less responsibility, employees need to take control of their own development in order to maintain and enhance their employability. The Learning Organization and Strategic Change Business environments are too chaotic and organizational change too complex to establish firm objectives, fixed plans, and concrete programs of change. Amid sometimes unpredictable, always uncertain, and highly turbulent business conditions, an organization's capacity to learn as it goes may be the only true source of competitive advantage. No longer able to forecast the future, many leading organizations are constructing arks comprised of their inherent capacity to adapt to unforeseen situations, to learn from their own experiences, to shift their shared mindsets, and to change more quickly, broadly, and deeply than ever before. In other words, to become learning organizations. According to Kiechel, the notion of the learning organization is... a very big conceptual catchall to help us make sense of a set of values and ideas we've been wrestling with, everything from customer service to corporate responsiveness and speed
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 35
Module 5 : Special applications of OD : OD in health care organizations, family owned organizations, educational institutions, public sector organizations and future directions in OD. ******************************************************************************
Special applications of OD : OD inhealth care organizations Health Care Reform expands coverage but adds new administrative expenses and taxes The ten essential services in health care organisations where change can be brought are: 1. Monitor health status to identify and solve community health problems. 2. Diagnose and investigate health problems and health hazards in the community. 3. Inform, educate, and empower people about health issues. 4. Mobilize community partnerships to identify and solve health problems. 5. Develop policies and plans that support individual and community health efforts. 6. Enforce laws and regulations that protect health and ensure safety. 7. Link people to needed personal health services and assure the provision of health care when otherwise unavailable. 8. Assure a competent public and personal health care workforce. 9. Evaluate effectiveness, accessibility, and quality of personal and population-based health services. 10. Research for new insights and innovative solutions to health problems These are the foundation of any public health activity. For example, any public health program needs data to operate. Essential Service #1 includes activities such as data collection, community health assessments and the maintenance of population health registries. As another example, Essential Service #7 includes personal health care services, transportation and other enabling services such as assuring the availability of culturally appropriate personnel and materials. Since the Ten Essential Services were released, numerous initiatives have explored the utility and feasibility of these services and have found them to be a good descriptor of public health practice.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 36
Monitor Health Status to Identify and Solve Community Health Problems Now lets look at each of the services in more detail. This service includes accurate diagnosis of the communitys health status; identification of threats to health and assessment of health service needs; timely collection, analysis, and publication of information on healthcare access, utilization, costs, and outcomes of personal health services; and attention to the vital statistics. Motoring conditions that influence health are decentralized across the community. Data is maintained by police on crime, drug use, and traffic-related injuries. Fire departments collect information on smoke detectors, fire-related injuries, and location of toxic chemical in the community. Hospitals have discharge and emergency services data. Schools have attendance data, student immunizations data, and graduation rates. Many other system partners have important data as well. All of this data when brought together helps describe health in the community. This service informs decision-makers on health matters and supports selection of effective policy, plans and interventions to improve health. Efficient and effective use of computer and communication technology is needed to assure information is timely. Diagnose and Investigate Community Health Problems and Hazards This service includes epidemiological identification of emerging health threats; public health laboratory capability using modern technology to conduct rapid screening and high volume testing; active infectious disease epidemiology programs; and technical capacity for epidemiological investigation of disease outbreaks and patterns of chronic disease and injury. Inform, Educate and Empower People About Health Issues This service involves: Making health information and educational resources accessible; Providing health information and education activities that shape attitudes and build knowledge necessary to reduce health risk and promote better health; Establishing health communication plans and activities that use media advocacy and social marketing approaches to shape attitudes and build knowledge; Enabling informed decision-making among individuals in making health choices and among leaders establishing health policies for the community. Maintaining health education and promotion program partnerships with schools, faith communities, work sites, personal care providers, and others to implement and reinforce health promotion programs that shape attitudes, knowledge, skills, and behaviors needed in a healthy community populations. These activities assist to empower people to make informed decisions regarding individual and community health matters. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 37
Mobilize Communities to Identify and Solve Community Health Problems Community health improvement is a collaborative effort requiring: Skilled conveners and organizers, Social responsiveness (above self-interest) from community members, and System structures that link community assets and the publics will to act. Develop Policies and Plans That Support Community Health Efforts Policies addressing specific health-related issues are public statements establishing directions individuals, organizations, or governments follow to protect and promote health. Policies are established by organizations and governments to identify consistent behaviors that are expected. Community and organization leaders have responsibility to articulate policies built on proven scientific finding and shaped by community values. Policies having negative or positive influences on health touch every aspect of community life. Safety standards that makers of automobiles and producers of electrical materials follow demonstrate policies that protect people from injury. Food handling guidelines protect people from illness. Other policy examples designed to encourage or support healthy behaviors can be identified in zoning rules. For example, zoning that requires sidewalks in new residential developments. This type of policy has influence on health by supporting the opportunity for physical activity as well as improving pedestrian safety. In addition, organizational leaders can influence health with policies that govern use of tobacco at company facilities, the availability of health insurance for employees, or facilities and time that allow for and promote physical activity. These are all examples of health-related policies that are important for community leaders to understand and apply. How well is health-related policy used to improve health in our community? Enforce Laws, Regulations, and Rules That Protect Health and Ensure Safety Governmental officials form public health and other regulatory officials have responsibility to assess legal authority and effectiveness of regulations. If regulations are not based on appropriate public health science and contemporary practice standards or if there are new regulations needed to properly protect health, public health leaders should advocate for needed regulator change. The primary purpose of health-related regulation is not punishment but compliance. Public health should employ the use of education and other methods to enable individuals and organizations to comply with health and safety regulations. If there is failure to comply, it is essential that public health use its enforcement authority to protect the public. Link People to Personal Health Services This service (often referred to as the "outreach" or "enabling" service) includes assuring effective entry of people into a coordinated system of clinical care, especially Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 38
the socially disadvantaged. This may involve identifying and addressing potential barriers related to cultural, language of materials, or staff serving special population groups. It most certainly involves providing people access and linkage to a coordinated system of personal healthcare that provides ongoing "care management," transportation services, and targeted health information to high risk population groups. The system should also ensure delivery of effective health promotion and disease prevention services within the community as well as provision of technical assistance to community providers who wish to improve or offer health promotion services. Assure a Competent Public and Personal Health Care Workforce This service includes: Education and training for personnel to meet the needs for public and personal health service; Efficient processes for licensure of professionals and certification of facilities with regular verification and inspection follow-up; Adoption of continuous quality improvement and life-long learning within all licensure and certification programs; Active partnerships with professional training programs to assure community-relevant learning experiences for all students; and Continuing education in management and leadership development programs for those charged with administrative or executive roles. Evaluate Effectiveness, Accessibility, and Quality of Health Services This service calls for ongoing evaluation of health programs, based on analysis of health status and service utilization data, to assess program effectiveness and to provide information necessary for allocating resources and reshaping programs. Its through this service we should answer the questions Are we doing things right? and Are we doing the right things to effectively improve health? Evaluation must be seen as a consistent part of all public health work. Evaluation can be identified in many forms such as customer service feedback, quality improvement programs that examine the process of service delivery, or rigorous case control evaluation. All levels of evaluation are needed. Evaluation is needed for effective decision-making and resource allocation. It is through evaluation that we understand our improvements. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 39
Research for New Insights and Innovative Solutions to Health Problems This service includes continuous linkage with appropriate institutions of higher learning and research and an internal capacity to mount timely epidemiological and economic analyses and conduct needed health services research. Telecommunications applications: Technology is helping healthcare professionals work more efficiently. Care can be provided in real time over great distances. Physicians can consult with one another around the globe. Patients can use the Internet or e-mail to learn more about health conditions and educate themselves. Surveillance systems can enhance emergency response efforts by monitoring for signals in communities. How Healthcare Informatics is changing professional practice. Using the Internet to: Obtain information on practice guidelines, continuing education, long-distance learning for academic degrees. Deliver interactive training simultaneously to multiple sites. How Healthcare Informatics is changing professional practice. Time distribution of work: Increase frequency of interacting among staff nurses, allied professionals and physicians. Reduce the time for information transmission. How Healthcare Informatics is changing professional practice. POE implementation issues: Need long-term commitment; usually several years. During transition, both paper and e-systems exist, duplicating documentation and increasing time commitments. Can frustrate clinical staff. Many interpersonal barriers exist. Technology cannot solve these. Only faith and shift in philosophy can do that. How Healthcare Informatics is changing professional practice.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 40
Acceptance of Healthcare Informatics: Varied from refusal to requests for additional applications. Access to hardware and downtime for re-programming as well as on-going training of staff are noted as barriers to successful implementation. How Healthcare Informatics is changing management roles. Support rapid response to change: Informatics supports localization of decision making by being responsive to changes and needs in specialized service areas. How Healthcare Informatics is changing management roles. Leaders need IS skills: Administrators need information about trends. Information Systems need to create faster, condensed, organized, and more accurate feedback that supports decision making without overloading the users with information. Do not allow previous experiences to bias view of how IT might help to resolve a new challenge. As IT systems provide more information to managers and clinicians, they will be expected to interpret information and act on their analysis to benefit the organization and its customers. How Healthcare Informatics is changing management roles. Danger of cascade effect: When implementing major IT project, such as EMR or scheduling system, balance financial, quality and personnel factors and respond to problems quickly. Otherwise, users may not adapt and respond quickly to changes and that could lead to failure of the project. How Healthcare Informatics is changing management roles. Changing Workgroup Culture: Managers must encourage persons in the workgroup to make decisions about what information is relevant to improve overall care. Clinicians must be encouraged to use IT and to move past initial reservations that they feel. They may feel embarrassed because they do not have the technical skills, but this will pass as they become more proficient. How Healthcare Informatics is changing management roles. Short-term vs. Long-term performance measures: Move away from short-term goals. In this view, employees are costs. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 41
Employees are assets and their long-term achievement approach will provide financial gains to the organization. How Healthcare Informatics is changing management roles. Paradox of Increased Efficiency: IT systems make administrators and clinicians more efficient. Now they both are expected to do multitasking, or simultaneous processing of multiple sources of information for multiple issues and customers. Organizations should provide checkpoints for administrators, allowing them to make sure that information is being used effectively. Organizational Change in educational institutions: Educational organizations are expected to be vehicles for social change, as well as preserving and transmitting values.To change schools, we must change the power relationships in schools. Aims of Educational Reform Sarason listed five aims that would constitute major change in the inner core of assumptions that are difficult to bring about: To reduce the achievement gap among social classes and racial groups. To get students to enjoy school. To enable students to acquire knowledge and skills in ways that relate learning and give purpose to each student. To engender interest in human accomplishments, past and present, and to enlarge their own identities: personal, social, and as citizens. To acquaint students with the domain of career options and how schooling relates to the fast-changing world of work. Three Strategies of Planned Change Robert Chins taxonomy of change strategies is used in this book. I. Empirical-rational strategies. II. Power-coercive strategies. III. Normative-reeducative strategies. Development Phase: Research and development, or R & D, includes translating research into products that are practical. Diffusion Phase: RD& D includes marketing the new products and making them attractive at a reasonable cost. Adoption Phase: RDDA, which usually includes Dick Clark and EgonGubas three-stage process: a trial, installation of the program, the institutionalization of the program as part of the system. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 42
II. Power-Coercive Strategies for Change One Power-Coercive strategy uses the behavioral psychology concept of the carrot and stick approach: Both rewards (financial) and sanctions (political, financial, moral) are used to obtain compliance from adopters. Example: minority group efforts to gain representation in decision making. Example: coalitions of disabled who lobbied for series of laws and judicial decisions in their favor. III. Normative-Reeducative or Organizational Self-Renewal Strategies
Empirical-rational and Power-coercive strategies share two assumptions: (a) good ideas are developed outside the organization; (b) the organization is the target of external forces for change. Normative-reeducative differs. As Chris Argyris noted, a healthy organization performs three core activities over time: Achieves its goals. Maintains itself internally. Adapts to its environment. Organizational Health Indicators of organizational health from Matthew Miles: Goal focus. Communication adequacy. Optimal power equalization. Human resources utilization. Cohesiveness. Morale. Innovativeness. Autonomy. Adaptation. Problem-solving adequacy. The Learning Organization A Learning Organization adapts to unfolding changes in the environment. This process is often called organizational development (OD). Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 43
OD is an approach to increasing the self-renewal capability of school districts and schools. OD Involves at Least 10 Concepts The goal of OD. System renewal. A systems approach. A focus on people. An educational strategy. Learning through experience. Dealing with real problems. A planned strategy. Change agent. Involvement of top-level administration. The Sociotechnical View What OD strives to do is to seek a new and more functional basis for: Task analysis. Structural arrangements. Selection and use of technology. Selection and professional development of people and groups. Force-Field Analysis This is a technique to analyze the sociotechnical aspects of the organization. Kurt Lewin indicated that an organization can analyze its ability to change by the following: The Key to change is to analyze the forces for and the forces against change. If they are in balance, then we have equilibriumno change When one or the other is removed or weakened, then equilibrium is upset and change occurs A family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments toward the business overall well- being. In some countries, many of the largest publicly listed firms are family-owned. A firm is said to be family-owned if a person is the controlling shareholder; that is, a person (rather than a state, corporation, management trust, or mutual fund) can garner enough shares to assure at least 20% of the voting rights and the highest percentage of voting rights in comparison to other Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 44
shareholders.Some of the world's largest family-run-businesses are Walmart (United States), Samsung Group (Korea), Tata Group (India) and Foxconn (Taiwan). Family owned businesses account for over 30% of companies with sales over $1 billion.
Problems The interests of a family member may not be aligned with the interest of the business. For example, if a family member wants to be president but is not as competent as a non-family member, the personal interest of the family member and the well being of the business may be in conflict. Or, the interests of the entire family may not be balanced with the interests of their business. For example, if a family needs its business to distribute funds for living expenses and retirement but the business requires those to stay competitive, the interests of the entire family and the business are not aligned. [3]
Finally, the interest of one family member may not be aligned with another family member. For example, a family member who is an owner may want to sell the business to maximize their return, but a family member who is an owner and also a manager may want to keep the company because it represents their career and they want their children to have the opportunity to work in the company. Structuring When the family business is basically owned and operated by one person, that person usually does the necessary balancing automatically. For example, the founder may decide the business needs to build a new plant and take less money out of the business for a period so the business can accumulate cash needed to expand. In making this decision, the founder is balancing his personal interests (taking cash out) with the needs of the business (expansion). Most first generation owner/managers make the majority of the decisions. When the second generation (sibling partnership) is in control, the decision making becomes more consultative. When the larger third generation (cousin consortium) is in control, the decision making becomes more consensual, the family members often take a vote. In this manner, the decision making throughout generations becomes more rational. The assets that are owned by the family, in most family businesses, are hard to separate from the assets that belong to the business.
Examples of family businesses Aditya Birla Group Avantha Group Bombardier Inc. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 45
Dillard's Ford Gernatt Family of Companies Jolly Time Lundberg Family Farms Mango Mittal Steel Panda Energy International Pete's RV Center Raymond Group Samsung Tata Group Toyota OD in public sector organisations: There are a number of profound differences between public sector organizations and private sector organizations when it comes to organizational changeIn many cases not only are the reasonsdifferent for initiating change but also change concepts and approaches that aretransferred from the private sector to the public sector can lead to contradictoryresults. In comparison to private organizations, public organizations are morecharacterized by a multitude of decision-makers, by a larger diversity of stakeholders, by more intensive organizational dynamics and by a more bureaucraticorganizational design. Or as Patchett (2005: 598 9) puts it: The politicalnature of the legislative and representation process and the functional expertand efficiency orientation of the administrative process produce important tensionsin a public-sector organization. The particular context of a public organizationputs specific demands on the management of change, for instance, with regardto working with different authorities and handling the influence of legislationand the political field of force effectively. OD in Educational Organisations: Education in its general sense is a form of learning in which the knowledge, skills, and habits of a group of people are transferred from one generation to the next through teaching, training, or research. Education frequently takes place under the guidance of others, but may also be autodidactic.Any experience that has a formative effect on the way one thinks, feels, or acts may be considered educational. Education is commonly divided into stages such as preschool, primary school, secondary school and then college, university or apprenticeship. Future of OD: organization development (OD) is a complex strategy intended to change the beliefs, attitudes, values, and structure of organizations so that they can better adapt to new technologies, markets, and challenges. Within business, strategic planning may provide overall direction (called strategic management) to a company or give specific direction in such areas as:
* Financial strategies * Human resource/organizational development strategies * Information technology deployments * Marketing strategy Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 46
Module 6 : Introduction to organizational change: Nature of change, forces of change, reinventing Kurt Levin, organizational routines and mental models, change need analysis, content ofchange, types and styles of change, building capability for change, providing leadership tochange, action research and dialogue, types of change, organizational vision, culturalchange, strategic planning, creating support systems and managing transition, processoriented strategies and competitor oriented strategies and customer oriented strategies. ***************************************************************************** DEFINITION:
Organisational Change can be defined as, a concerted, planned effort toIncrease organisational effectiveness &health through changes in the organization's dynamics using behavioral science knowledge.
Basic context of organizational change: The concept of organisational change is in regard to organization-wide Change, such as adding a new person, modifying a program, etc. Ex of Organization wide change are: 1. Change in mission 2. New Technologies. 3. Mergers. 4. Major collaborations. 5. Total Quality Management 6. Re Engineering The Nature of Organization Change Organization Change Any substantive modification to some part of the organization (e.g., work schedules, machinery, employees).
Forces for Change External forcesin the organizations general and task environments that force the organization to alter the way in which it competes. I nternal forces inside the organization that cause it to change its structure and strategy; some internal forces are responses to external pressures.
Planned Change Change that is designed and implemented in an orderly and timely fashion in anticipation offuture events. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 47
Reactive Change Change that is a piecemeal response to events and circumstances as they develop. FORCES of change: 1.External forces. 2.Internal Forces.
External Forces
Demographic Characteristics Market Changes. Technological Advancements Social Pressures. Political Events.
Internal Forces Human resource Problems. Managerial Behavior & Problems.
External Forces: 1.External forces for change originate outside the org Demographic characteristics 1.They work force is more diverse 2.There is a business imperative to effectively manage diversity. Organisations need to effectively manage diversity if they are to receive maximum contribution & commitment from employees 2.Technological Advancements. Both manufacturing & service orgs are increasingly using technology as a means to improve productivity & market competitiveness.
INTERNAL CHANGES Internal forces for change come from inside the org. These forces may be low morale, low productivity & conflict. Internal forces for change come from both human resource problems &managerial behavior/decisions.
1.HUMAN RESOURCE PROBLEMS These problems stem from employee perceptions about how they are treated at work & the match b/w people & org needs & desires. Dissatisfaction at work is a symptom. High level of absenteeism & turnover also represent the forces for change. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 48
Organisations might respond to these problems by using the various approaches. Job Design. By reducing employees role conflict. Work overload by removing the different stressors. 2.Managerial Behavior an Decisions. Excessive interpersonal conflict between managers & their subordinates is a sign that change is needed. Both the manager & the employee may need interpersonal skills training, or the two people may simply need to be separated. Inappropriate behaviors such as inadequate direction or support may result in human resource problems which requiring change Kurt Lewin change theory and Lewin's three step model is very much a significant part of change management strategies for managing change in the workplace in the 21st century. This change management model was developed during the 1940's and the concept of 'Unfreezing- Transition-Freezing' still remains very relevant today.
Below, from the perspective of a change management consultant I explain this change management model, 'the 3 phases model', and how it works today as a key part of business improvement and successful organizational change initiatives.
Kurt Lewin 3 Phases Change Management Model Kurt Lewin's change management model is a fantastic change model for understanding the basic concepts of a straight-forward change management process.
Lewin's Three Step Change Model Phases are:
Unfreeze: Reducing the forces that are striving to maintain the status quo, and dismantling the current mind set. Usually by presenting a provocative problem or event to get people to recognize the need for change and to search for new solutions.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 49
Transition: Developing new behaviors, values, and attitudes, sometimes through organizational structure and process changes and development techniques. There may be a period of some confusion as we move from the old ways of doing things to the new.
Freeze: The final stage of crystallizing and the adaptation of ownership of the new 'as is'. The organization may revert to former ways of doing things at this point unless the changes are reinforced through freezing.
Use Kurt Lewin's Change Model in Change Management Implementations
The challenge when reviewing a change management model like this is being able to picture yourself implementing it a real world situation, using the change model in your business today.
Two examples are:
By doing attitude surveys of all staff, it may show management that moral is quite low and that as a result of this low morale the risk to safety is quite high. This may influence a manager who has been resisting change to begin to take action.
Similarly when information is being delivered to the field, but then negative events in the field are continuing to occur, this may convince management that the message is not being heard and some required changes are in order.
During the unfreezing step generally most staff and management are willing to change. Those that are not usually require something meaningful to provoke them to change their attitude. These two examples above demonstrate that there are many positive and constructive ways to do that.
Kurt Lewin's model suggests that one of the best ways to motivate people to change is to first get people to see the need for change. Even when a change if for the persons long term health benefits such a ceasing a bad destructive habit, few people ever change because someone else tells them to. People generally need to see for themselves the need for change, for the catalyst to occur, to provoke them to "unfreeze".
Educating employees in regards the pressures for change is a first step.
Following on from that leaders can begin to highlight gaps between the current and desired states and present a vision as it needs to be. Then further begin to convey the change in terms of specific outcomes that the company expects from the operation and employees and their confidence and belief that these changes are possible.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 50
Organisational Routines for change:
During the transition phase we aim to shift or alter the behavior of the individual, departments, or organization in which the changes are taking place.
People are at this stage looking for new and better ways to do things. The behavior may initially be mechanical but they are starting to perform and behave in ways that support the new direction.
This process can be lengthy and almost certainly will not happen in a matter of just a few days. It will take time for people to feel comfortable and start to act in ways that are supporting the change initiative. There may be some mayhem and confusion at this point though with a properly structured approach to the change this can be managed well.
During this transition phase be prepared to deal with people who benefit from not changing. For them the best situation is the status quo.
Have plenty of time and plenty of communication. People need time to take things in and through the continual communication they will feel more involved and connected to the process.
It will benefit the project and is great for leaders and the change initiators to get out in the field and talk and be apart of the people's approach. This aspect is part of what makes a good leader.
Dialogues of change:
address any barriers of negative people, and keep things real and coming back to how it relates to the business and the need for change. change. tones and measurements.
Creating Support Systems
When the people, structure, and strategy elements all seem okay, when things are looking well, it is time to lock things in. We act here to make sure that the improvements stick and this is the freezing phase. We continue here until the changes become the 'way we do things around here'.
Kurt Lewin's three step model assumes that organizations tend to revert to there former ways of doing things unless the changes are reinforced. Kurt Lewin's model requires a process be in place that supports and maintains the changes. This may include things such as new employee performance appraisal systems and reward systems to influence those to adhere to the firm's new values. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 51
These aspects are also referred to and supported in John Kotter's leading change model such as in "John Kotter Error 5, not removing obstacles to the new vision". This is very important point because it reinforces that to sustain change, to freeze, something has to be in place to maintain it. This may mean removing existing business systems and structures, etc that are now clearly inconsistent with the new 'as is'.
Mental Models: One key to change success is in surfacing deep-seated mental models - beliefs, values, mind-sets and assumptions that determine the way people think and act. Getting in touch with the thinking going on about change in your workplace, challenging or clarifying assumptions and encouraging people to reframe is essential. Leaders learn to use tools like the 'Ladder of Inference' and 'Reflective Inquiry' to practise making their mental models clearer for each other and challenging each others' assumptions in order to build shared understanding. Change Need Analysis:
-field analysis to identify and eliminate barriers to the change sticking, whilst maintaining a forward looking focus on the new installations. consistency. and agenda's to support the improved status and processes.
Content of change: Force Field Analysis One of the great instruments of implementation success, the Kurt Lewin Change Management Tool that helps bring it all together. Force field analysis (Kurt Lewin force field analysis) is used in project implementations for positioning. To help determine what aspects of the business are supporting the project, and what are the issues and forces working against it. It's also great for using is actions-output focused meetings. TYPES OF ORGANISATIONAL CHANGE:
To change is to move, from the present future, from a known state to a relatively unknown state. Types of changes are as follows:
Directional Change. Fundamental Change. Total Change. Transformational Change 1.Happened Change This is change that is rather unpredictable. It takes place naturally due to external factors. It is out of direct control and produces a future state that is largelyunknown. Ex: Currency devaluation, over whichit has no control adversely affects the business of a company that has toimport its basic raw material
2.Reactive Change Definition: Changes that are in response to an event or a series of events are termed reactive. Generally most f the companies are engaged in reactive often incrementalchange. These changes are attempted when the demand for a companysproduct service registers an increase or decrease ,or a problem of crisisoccurs. Eg:1.Technological changes forces organisations to invest in moderntechnologies. The incorporation of the latest technology may be due to theincreased demand for the product. Recreation is also a reactive change ,but it involves the org in its entirety &occurs when the org under severe crisis
3.Anticipatory change Change carried out in expectation of an event or series of events is calledanticipatory change. Reorienting themselves to future demand would involve making incrementalchanges Re-orientation is moving from here' to there in anticipation of a changingenvironment. It involves changing the org fro the existing state towards a designed futurestate & managing the transition process.
4.Planned Change
Planned Change is also called as Developmental change because it is undertaken to improve upon the current ways of operating. It is calculated change-initiated to achieve a certain desirable output/performance 7 to make the organisation more responsive to internal & external demands. Examples of Planned change are: 1.Enhancing communication skills & technical expertise. 2.Building teams. 3.Restructuring the organisation. 4.Introducing new technology. 5.Introducing new products and services. 6.Changing the incentive system. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 53
5.Incremental Change
Def: Changes directed at the micro level & focused on units/subunits/componentswithin an org are termedincremental changes. Changes are brought in gradually & are adaptive in nature. It also provides the organisation an opportunity to learn from its ownexperiences.
6.Operational Change Operational change is required when an org needs to improve the quality ofits products or services due to external competition, customers, changingrequirements & demands, or internal organisational dynamics. The organization's goals remaining the same .the focus of change is how toimprove the existing operations to perform better. Operational changes include: 1.Bringing in new technology. 2.Re-engineering the work processes. 3.Quality Management. 4.Betterdist& delivery of products. 5.Enhancing the interdepartmental co-ordination. . 7.Strategic Change Change that is addressed to the organisation as a whole or to most of theorgs components, including strategy ,may be called as strategic change. Ex: Change in the org management style It can attempt to create an org which is less hierarchical, linear, flexible,decentralised&which allows itself a considerable degree of autonomy This may affect the entire org & will influence its performance. 8.Directional Change
A change in direction may become imperative for an organisational due tosevere competition or regulatory shifts in government policy & control. Eg: Pricing, Import/export restrictions. Directional Change is also critical when the org is developing a new strategyor incapable of executing effectively its current strategy.
9.Fundamental Change. This includes the redefinition of the current purpose or mission of the org. It may be necessitated by the drastic change in the business environment,failure of current corporate leadership, problems with employee morale, or alow turnover. 10.Total Change The org is constrained to develop a new vision,& strong link b/w its strategy ,employees& business performance.
11.Transformational Change Transformational Change is, A change in what drives the org Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 54
Eg: The org could shift from product driven to being technology or customer driven. A fundamental change in the relationship among organisational subsystems Eg: Changing to a greater degree of decentralization or moving to a strategic from a bureaucratic management. A major departure in the manufacturing process or the way of working. Eg. Introducing automation, robotics & other advanced technologies. A change in organizational norms & culture. Eg: The cultural revolution at siemens AG of Germany. Such a change involves the entire or greater part of the org. It could be a change in the shape(size & complexity),structure(systems,ownership),or nature(basic assumptions, culture, technology) of the org.
Providing leadership to change: Good leadership matters the most in the change process. Ex: Infosys: during its recent leadership change , the company effectively handled change as it has very unique & strong leadership skills & very qualified resources.
ACTION RESEARCH Definition: Action Research refers to a change process based on the systematic collection of data & then selection of a change action based on what the analyzed data indicate. It provides scientific methodology for managing the planned change.
PROCESS OF ACTION RESEARCH The Process consists of 5 steps: 1.Diagnosis. 2.Analysis. 3.Feedback. 4 Action. 5.Evaluation. Organisational Vision: is the binding force which reveals the direction in which the organisation is proceeding ahead. It gives the clear direction to the organizational components about their goal & objectives. Strategic Planning: Most organisations have vision and or mission statements. Many also have values which underpin these. However, few organisations: 1. base their values on customer feedback Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 55
2. involve their employees in the development of values 3. link these values to their brand 4. encourage their employees to align their behaviours to the values reward their employees for living the brand Process oriented Strategies: Customer oriented strategies: To gain a competitive edge in the market, a company can rely on things like pricing, innovation or image. But one of of the most effective ways of standing out from the rest is to offer quality service that meets customer expectations. This will also contribute to boosting the image of the company. Being customer-oriented requires a long term strategy that should involve the whole company, from top management to grassroots staff. It also means a change of mentality and an internal organisation that trains its sights on a new target: satisfying customer expectations. What is Quality Client Service? Providing a service that meets the customers expectations Managing client dissatisfaction Management that encourages staff to be client-oriented Improving your staff's skills through mentoring Treating your staff like your clients Evaluating the quality of customer service Identifying customer expectations and satisfaction Managing customer complaints Planning training for your staff
Business Review/ Competitor oriented Strategies: Customer Input: Incorporating Perceived Value into Marketing Strategy Promoting Ownership: Bringing Customers and Employees into the Value Creation Process How to win customer trust Managing CVA to Optimize Your Marketing Activities Tailoring Marketing Strategies to New Consumers How to build a mobile marketing strategy How Cisco went from a sales model to a listening model Putting the Ownership Quotient to Practice at TBWA\Helsinki Ownership Quotient at Cisco Hindustan Unilever Ltd.: Applying a CVA Perspective to Marketing Decisions Zappos Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 56
5. As a consequence organisational values such as honesty, teamwork, partnering, creativity although espoused by businesses, become no more than empty words: meaningless to both the customer and the employee. If this is the case, how can a company build culture change around customers? Heskitt et al have researched and developed the service-profit chain which shows the inter- connectivity between internal and external service and profitability. Research is not new but many organisations still do not recognise that employees need to live the brand promise in order to both attract and retain profitable customers and create a customer culture. Organisations such as Virgin, Nike and US retailer Nordstorm, have succeeded in creating strong brands with powerful brand promises. Through listening to customer needs and via consultation with employees they have been able to identify brand values which form the backbone of how they do business with the customer and how employees are managed in short they create a customer focus culture that realises the customer vision. Top team clarity The inside out and believing that the customer is king concept starts at the top of the organisation. Employees look to the top team to model the desired behaviours in all areas and in creating a customer focus culture no less. The authors have worked with many Boards who have encouraged employees to live the brand. Yet their own behaviour has been far from consistent with the desired brand values. Little wonder that the values are not adopted on a wide spread basis and converting customer strategy to customer culture remains a pipe dream. Organisations such as Barclays and AT&T have developed leadership behaviours and employee competencies which directly reflect brand values. These in turn are linked to customer needs and are surely the only way to ensure that culture change around customers is successful. Members of top teams need to regularly assess to what extent their behaviours in relation to customer culture are aligned to the brand and the commitment to the customer vision. They need to also encourage this process across the organisation if a truly customer oriented culture is to emerge. Feedback instruments such as 360 can help in identifying how well an individuals behaviours match the desired organisational customer focus culture. 360 provides a fully rounded picture of the perceptions of a persons behaviour based on manager, colleagues, customers and team members feedback. Experience shows that in order to set a positive role model, leaders in the business need to receive, act on and communicate the findings of their own 360. Round tables of senior managers and staff as well as town hall meetings and open forums also encourage a climate of openness and listening and genuinely converting customer strategy to a customer focus culture. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 57
Listen to customers both internal and external Many companies today particularly in the service sector carry out some form of customer satisfaction measurement. When it comes to budget setting, the vast majority of organisations approve the budget for asking their customers for feedback on how they perceive the organisations performance. However, very few companies develop budgets around what should be done as a result of the survey findings. It is this lack of resources that prevents the vast majority of companies successfully implementing countermeasures based around the customer feedback and is the major reason for lack of service improvements and building culture change around customers. This problem is not caused by a lack of desire by companies to improve things for customers, but a lack of alignment between a desire to listen to customers and their organisations customer oriented culture. Although many companies do have a strategic vision of being customer focused, or customer led they struggle to implement this through functional strategies such as the Marketing and Customer Care strategies leading to a failure to implement a genuine customer culture. One of the trends over recent years has been to believe that the implementation of a Customer Relationship Management (CRM) system will deliver the corporate vision in relation to building a customer culture. Yet many CRM systems have failed to deliver why? Findings on the progress of CRM programmes include: CRM is a fantasy in most organisations . Over 60% of CRM projects end in some form of failure Gartner Group 80% of all CRM initiatives fail, and provide no reasonable ROI vSente Consultancy More than 90% of Meta clients are examining the financial justifications for CRM many are taking a step back Meta Group Fundamentally CRM is a software package that will manipulate data to provide one view of the customer and further guidance on how to: segment their customers how to target their customers how to package their products to the customer how to sell their customer base how to bill their customer CRM does have some success with this, but the crucial element that gets overlooked with CRM, is that on its own it does not help you understand your customer needs or build a customer culture. It is always about what you as a supplier can do to your customers, and not what you can do with or for your customers.. To be customer focused and to develop culture change around customers you need to work in partnership with your customer and allow them to opt into the relationship. Once customers have opted in, trust and co-operation can be developed which in return brings mutual benefits. In addition for CRM to be successful employees need to buy-in Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 58
to the process and to want to make it work. Again, a high degree of trust and co-operation are required here too if you want to be truly customer oriented. Building trust So how do you gain customers and employees trust and build a customer oriented culture? You have to start with looking at what are the key elements of any relationship, and these are true for both the customer / supplier and employee / employer relationship: accessibility responsiveness kept informed knowledgeable people promptness promises kept follow up no surprises do it right first time This list essentially provides a checklist for any customer or employee satisfaction measurement, as only when you are performing well against these will your customer / employee start to trust the relationship. The actual words of the questionnaire would be developed around talking to both employees and customers to ensure that the questions are phrased in a way that is meaningful to the customer, and actionable by the company. Maximise the value of customer feedback So what are companies doing today? Research by Customer Champions into companies across Europe indicates that the vast majority are gaining customer feedback, but as the diagram below illustrates, it is what happens after that data has been collected where the real challenges start.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 59
MODULE 7: Appreciating change: External environment as drivers of change, business cycles, industry cycles, technology and strategic change, industry evolution and concentration, developing a change agenda. Cognition and organizational change, mental models, organizational learning, Senges five disciplines, business models and value propositions, refining the o change agenda **************************************************************************** Managers must recognize and respond to all factors that affect their organizations. This lesson describes how the internal and external environments of an organization drive change within the company. Navigating Change in Organizations Navigating in today's chaotic business environments is much like trying to steer a tiny boat back to shore while caught in the center of a hurricane. There are many forces at work that a person will need to respond to in order to make it safely back to port. Just like this tiny ship, today's organizations and their managers are faced with a significant amount of factors that require an immediate response, often in the form of organizational change. The forces that drive this change in business are known as the internal and external environments. This lesson will discuss how both the internal and external environments of an organization induce change. The Internal Environment The internal environment of an organization refers to events, factors, people, systems, structures and conditions inside the organization that are generally under the control of the company. The company's mission statement, organizational culture and style of leadership are factors typically associated with the internal environment of an organization. As such, it is the internal environment that will influence organizational activities, decisions and employee behavior and attitudes. Changes in the leadership style, the organization's mission or culture can have a considerable impact on the organization. The External Environment as drivers of change: The external environment are those factors that occur outside of the company that cause change inside organizations and are, for the most part, beyond the control of the company. Customers, competition, the economy, technology, political and social conditions and resources are common external factors that influence the organization. Even though the external environment occurs outside of an organization, it can have a significant influence on its current operations, growth and long-term sustainability. Ignoring external forces can be a detrimental mistake for managers to make. As such, it is imperative that managers continually monitor and adapt to the external environment, working to make proactive changes earlier on rather than having to take a reactive approach, which can lead to a vastly different outcome. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 60
Changing for the Internal Environment To better understand changes in the internal environment, let's look at the following example. After graduating from college, Cassandra decided to buy an existing tanning salon in her community. Before Cassandra purchased the salon, it was in terrible financial trouble. Many of the employees complained about the general manager's leadership style, and the staff were often confused about what products and services they offered at the salon because the manager continuously implemented his next 'bright idea' with little warning, most of which were complete failures. Cassandra knew that if she was ever going to be able to bring any level of success to the salon, she needed to make several changes to the internal environment of the tanning salon. The first thing Cassandra did was to fire the existing manager because of his ineffective leadership style. She replaced the manager with someone who practiced a leadership style that was better aligned with the company and its employees. Next, Cassandra spent time developing a clear mission of the company and communicated the new mission to all employees. Over the next several months, Cassandra spent time getting to know her employees and worked hard to foster a culture that was positive and rewarding. All of these changes made by Cassandra were necessary due to the internal forces that were pushing for change, and with the help of her employees, Cassandra was able to bring the much needed changes to the internal environment of the company. Changing for the External Environment If we return to the example of Cassandra's tanning salon, we can also find some external forces that required additional change at the tanning salon. If you remember, one of the major issues the staff was having with the previous general manager was his continuous changing of products and services at the salon. What his staff did not know was that he was trying to respond to external factors relating to changing customer demands. As a result, Cassandra spent time talking to her customers to find out what they really want in a tanning salon and was sure to make any changes necessary to accommodate those demands. Additionally, because of the struggling economy, Cassandra needed to ensure her pricing was affordable to her clients and comparable to what her competition was offering for similar tanning services and products at their salons. Thinking strategically about a company's external situation involves probing for answers to the following seven questions: 1. What are the industry's dominant economic features? Industries differ significantly on such factors as market size and growth rate, the number and relative sizes of both buyers and sellers, the geographic scope of competitive rivalry, the degree of product differentiation, the speed of product innovation, demandsupply conditions, the extent of vertical integration, and the extent of scale economies and experience/learning curve effects. In addition to setting the stage for the analysis to come, identifying an industry's economic features also promotes understanding of the kinds of strategic moves that industry members are likely to employ.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 61
2. What kinds of competitive forces are industry members facing, and how strong is each force? The strength of competition is a composite of five forces: (1) competitive pressures stemming from the competitive maneuvering among industry rivals, (2) competitive pressures associated with the market inroads being made by the sellers of substitutes, (3) competitive pressures associated with the threat of new entrants into the market, (4) competitive pressures stemming from supplier bargaining power and supplierseller collaboration, and (5) competitive pressures stemming from buyer bargaining power and sellerbuyer collaboration. The nature and strength of the competitive pressures associated with these five forces have to be examined force by force to identify the specific competitive pressures they each comprise and to decide whether these pressures constitute a strong or weak competitive force. What forces are driving changes in the industry, and what impact will these changes have on competitive intensity and industry profitability? Industry and competitive conditions change because forces are in motion that create incentives or pressures for change. The first phase is to identify the forces that are driving change in the industry; the most common driving forces include changes in the long-term industry growth rate, globalization of competition in the industry, emerging Internet capabilities and applications, changes in buyer composition, product innovation, technological change and manufacturing process innovation, marketing innovation, entry or exit of major firms, diffusion of technical know-how, changes in cost and efficiency, growing buyer preferences for differentiated versus standardized products (or vice versa), reductions in uncertainty and business risk, regulatory influences and government policy changes, and changing societal and lifestyle factors. The second phase of driving-forces analysis is to determine whether the driving forces, taken together, are acting to make the industry environment more or less attractive. 3. What market positions do industry rivals occupywho is strongly positioned and who is not? Strategic group mapping is a valuable tool for understanding the similarities, differences, strengths, and weaknesses inherent in the market positions of rival companies. Rivals in the same or nearby strategic groups are close competitors, whereas companies in distant strategic groups usually pose little or no immediate threat. 4. What strategic moves are rivals likely to make next? This analytical step involves identifying competitors' strategies, deciding which rivals are likely to be strong contenders and which are likely to be weak, evaluating rivals' competitive options, and predicting their next moves. 5. What are the key factors for competitive success? An industry's key success factors (KSFs) are the particular strategy elements, product attributes, competitive capabilities, and business outcomes that spell the difference between being a strong competitor and a weak competitorand sometimes between profit and loss. KSFs by their very nature are so important to competitive success that all firms in the industry must pay close attention to them or risk becoming an industry also-ran. 6. Does the outlook for the industry present the company with sufficiently attractive prospects for profitability? If an industry's overall profit prospects are above average, the Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 62
industry environment is basically attractive; if industry profit prospects are below average, conditions are unattractive. Five Learning Disciplines... Business cycles: The term business cycle (or economic cycle or boom-bust cycle) refers to economy-wide fluctuations in production, trade and economic activity in general over several months or years in an economy organized on free-enterprise principles. The business cycle is the upward and downward movements of levels of GDP (gross domestic product) and refers to the period of expansions and contractions in the level of economic activities (business fluctuations) around its long-term growth trend. These fluctuations occur around a long-term growth trend, and typically involve shifts over time between periods of relatively rapid economic growth (an expansion or boom), and periods of relative stagnation or decline (a contraction or recession). Business cycles are usually measured by considering the growth rate of real gross domestic product.
Industrial cycle is the study of the means and processes through which industries change over time, through their own processes of evolution as first analyzed by Joseph Schumpeter. It is the complementary study to that of an industrys comparative statics, which still dominates economic analysis. Industrial dynamics, as studied by scholars. Industry life cycle: Definition of 'Industry Lifecycle'
A concept relating to the different stages an industry will go through, from the first product entry to its eventual decline. There are typically five stages in the industry lifecycle. They are defined as:
i. Early Stages Phase - alternative product design and positioning, establishing the range and boundaries of the industry itself.
ii. Innovation Phase - Product innovation declines, process innovation begins and a "dominant design" will arrive.
iii. Cost or Shakeout Phase - Companies settle on the "dominant design"; economies of scale are achieved, forcing smaller players to be acquired or exit altogether. Barriers to entry become very high, as large-scale consolidation occurs.
iv. Maturity - Growth is no longer the main focus, market share and cash flow become the primary goals of the companies left in the space. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 63
v. Decline - Revenues declining; the industry as a whole may be supplanted by a new one.
Industry evolution started with industrial revolution in the british collonnial period.
In 1990, Peter Senge published "The Fifth Discipline" (later followed by "The Fifth Discipline Fieldbook: Strategies and Tools for Building a Learning Organization" in 1994). His books pulled together his extensive research into what different organisations do to build learning capacity and why some organisations use learning better than others. Senge codified these practices into what he called 'The 5 Learning Disciplines' as well as coming up with the concept-label of 'learning organisations'. Developing an Agenda for Change Drive change within your organization, adapting it to a dynamic environment and controlling how it evolves. The many economic, competitive, and global factors that influence how organizations conduct business are constantly changing and evolving. The ability of organizations to understand these influences on their organizations and to respond to and adapt to these changes is critical for long- term growth and survival. It explains that population, consumption and technology are the primary driving forces of environmental change. It lays out what needs to be done to reduce wasteful and inefficient consumption patterns in some parts of the world while encouraging increased but sustainable development in others. It offers policies and programmes to achieve a sustainable balance between consumption, population and the Earths life-supporting capacity. It describes some of technologies and techniques that need to be developed to provide for human needs while carefully managing natural resources. Developing or Agenda-setting theory Agenda-setting theory describes the "ability [of the news media] to influence the salience of topics on the public agenda."That is, if a news item is covered frequently and prominently the audience will regard the issue as more important. Agenda-setting theory was formally developed by Dr. Max McCombs and Dr. Donald Shaw in a study on the 1968 presidential election. In the 1968 "Chapel Hill study," McCombs and Shaw demonstrated a strong correlation (r > .9) between what 100 residents of Chapel Hill, North Carolina thought was the most important election issue and what the local and national news media reported was the most important issue. By comparing the salience of issues in news content with the public's perceptions of the most important election issue, McCombs and Shaw were able to determine the degree to which the media determines public opinion. Since the 1968 study, published in a 1972 edition of Public Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 64
Opinion Quarterly, more than 400 studies have been published on the agenda-setting function of the mass media, and the theory continues to be regarded as relevant Agenda-setting vs. agenda-building As more scholars published articles on agenda-setting theories it became evident that the process involves not only active role of media organizations, but also participation of the public as well as policymakers.Rogers and Dearing described the difference between agenda-setting and agenda-building based on the dominant role of media or public. Thus setting an agenda refers to the effect of the media agenda on society, transfer of the media agenda to the public agenda, while building an agenda includes some degree of reciprocity between the mass media and society where both media and public agendas influence public policy. Berkowitz has implemented a more nuanced analysis of agenda-setting and agenda-building theories by introducing the terms policy agenda-setting and policy agenda-building. He argues that when scholars investigate only the linkage between media and policymakers, it is still appropriate to use the notion of policy agenda-setting.However, when the focus is placed not only on policymakers personal agendas, but also on the broader salient issues where media represent only one indicator of public sentiment, Berkowitz suggests talking about policy agenda-building. Three types of agenda-setting Rogers and Dearingidentify three types of agenda setting: 1. public agenda setting, in which the public's agenda is the dependent variable (the traditional hypothesis) 2. media agenda setting, in which the media's agenda is treated as the dependent variable (aka agenda building) 3. policy agenda setting, in which elite policy makers' agendas are treated as the dependent variable (aka political agenda setting) Mass communication research, Rogers and Dearing argue, has focused a great deal on public agenda setting - e.g., McCombs and Shaw, 1972 - and media agenda setting, but has largely ignored policy agenda setting, which is studied primarily by political scientists. As such, the authors suggest mass communication scholars pay more attention to how the media and public agendas might influence elite policy maker's agendas (i.e., scholars should ask where the President or members of the U.S. Congress get their news from and how this affects their policies). Writing in 2006, Walgrave and Van Aelst took up Rogers and Dearing's suggestions, creating a preliminary theory of political agenda setting, which examines factors that might influence elite policy makers' agendas.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 65
Cognition & organisational change: cognitive processes are likely to be evoked in a group or organization when a new schema is introduced andthat conflicts are likely to arise because of these cognitive processes. The cognitive effects of agenda-setting Agenda setting occurs through a cognitive process known as "accessibility." [8][9] Accessibility implies that the more frequently and prominently the news media cover an issue, the more instances of that issue become accessible in audience's memories. When respondents are asked what the most important problem facing the country is, they answer with the most accessible news issue in memory, which is typically the issue the news media focused on the most. The agenda-setting effect is not the result of receiving one or a few messages but is due to the aggregate impact of a very large number of messages, each of which has a different content but all of which deal with the same general issue. Mass-media coverage in general and agenda- setting in particular also has a powerful impact on what individuals think that other people are thinking, and hence they tend to allocate more importance to issues that have been extensively covered by mass media. This is also called schemata theory. Business Models & Value propositions: Organisational Learning we need to practice the disciplines of personal mastery, mental models, and shared vision together in the context of effective, healthy, and unified teams. The 5 Learning Disciplines Shared Vision, Mental Models, Personal Mastery, Team LearningandSystems Thinking are each made up of a set of tools and practices for building and sustaining learning leadership capability in organisations. Each Discipline consists of:
Principles, propositions or concepts (Senge calls these guiding ideas)
Tools or techniques that, once learned and practised, assist in making the Disciplines come to life Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 66
Practices or precepts to follow in your own leadership behaviour and approaches According to Senge, leaders in learning organisations learn to thrive on change and constantly innovate by methodically cultivating these 5 Disciplines. They may never be fully mastered, but learning-centred leaders, teams and organisationspractise them continuously. Our approach to workplace improvement and learning-centred leadership is based firmly in the values, concepts, principles and language of learning organisations. The 5 Leadership Learning Disciplines in brief are:
Shared Vision: The key vision question is What do we want to create together?. Taking time early in the change process to have the conversations needed to shape a truly shared vision is crucial to build common understandings and commitments, unleash peoples aspirations and hopes and unearth reservations and resistances. Leaders learn to use tools such as Positive Visioning, 'Concept-shifting and Values Alignment to create a shared vision, forge common meaning/focus and mutually agree what the learning targets, improvement strategies and challenge-goals should be to get there.
Mental Models: One key to change success is in surfacing deep-seated mental models - beliefs, values, mind-sets and assumptions that determine the way people think and act. Getting in touch with the thinking going on about change in your workplace, challenging or clarifying assumptions and encouraging people to reframe is essential. Leaders learn to use tools like the 'Ladder of Inference' and 'Reflective Inquiry' to practise making their mental models clearer for each other and challenging each others' assumptions in order to build shared understanding.
Personal Mastery is centrally to do with self-awareness how much we know about ourselves and the impact our behaviour has on others. Personal mastery is the human face of change to manage change relationships sensitively, to be willing to have our own beliefs and values challenged and to ensure our change interactions and behaviours are authentic, congruent and principled. Leaders learn to use tools like 'Perceptual Positions' and 'Reframing' to enhance the quality of interaction and relationship in and outside their teams.
Team Learning happens when teams start thinking together sharing their experience, insights, knowledge and skills with each other about how to do things better. Teams develop reflection, inquiry and discussion skills to conduct more skillful change conversations with each other which form the basis for creating a shared vision of change and deciding on common commitments to action. Its also about teams developing the discipline to use the action learning cycle rigorously in change-work. Leaders learn to use tools like the 'Action- Learning Cycle' and 'Dialogue' to develop critical reflection skills and conduct more robust, skillful discussions with their teams and each other.
Systems Thinking is a framework for seeing inter-relationships that underlie complex situations and interactions rather than simplistic (and mostly inaccurate) linear cause-effect chains. It enables teams to unravel the often hidden subtleties, influences, leverage points and intended/unintended consequences of change plans and programs and leads to deeper, more complete awareness of the interconnections behind changing any system. Leaders learn to use Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 67
'Systems Thinking Maps' and 'Archetypes' to map and analyse situations, events, problems and possible causes/courses of action to find better (and often not obvious) change options/solutions. Why are the five disciplines of systems thinking so important when engaging living systems? Systems thinking is a way of understanding and operating in the world as it truly is highly interrelated and interconnected! It is a body of knowledge and tools developed over the past fifty years that can help us see and engage living systems more effectively. With systems thinking, we no longer see the world as a collection of separate and unrelated forces and elements, but as a tapestry of complex and interrelated systems. In this way, we can better identify patterns and see how change can and does occur. Then, we can begin to discern how to influence change and minister unto others in ways that are life-giving and beneficial. o Living Systems Ministry is about caring for Gods people and communities knowing that the Works Method cannot meet the needs or address the problems of living systems. o Senges Five Disciplines are: Personal Mastery we must set aside the time and energy necessary for our own on-going learning and personal growth Mental Models they are important to consider and bring to surface because they shape how we understand ourselves, other people, and the situations we face. Right or wrong, they inform our decisions and actions. Shared Vision in order to meet the needs and address problems of living systems, we need to share the same values and goals with those we minister to and with. Organisational Learning we need to practice the disciplines of personal mastery, mental models, and shared vision together in the context of effective, healthy, and unified teams. Systems Thinking - a way of understanding and operating in the world as it truly is highly interrelated and interconnected by practicing and combining the disciplines of personal mastery, mental models, shared vision, and team learning. o Systems Thinking is the foundation to Living Systems Ministry: It is more important to understand and engage relationships than individual parts or components alone. It can enable us to see patterns and begin to understand how to influence positive change in the living systems to and within which we minister. Business Models & Value propositions: A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). The process of business model construction is part of business strategy.the term business model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 68
target customers, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. The literature has provided very diverse interpretations and definitions of a business model. A systematic review and analysis of manager responses to a survey defines business models as the design of organizational structures to enact a commercial opportunity. Further extensions to this design logic emphasize the use of narrative or coherence in business model descriptions as mechanisms by which entrepreneurs create extraordinarily successful growth firms.
Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 69
MODULE 8: Mobilizing support and executing change: Four approaches to change, parallel organization, ownership and involvement in change, dealing with political aspects of change, the psychology of persuasion, communicating to influence, targeting influence efforts, framing change, making difficult choices, negotiating change. Executing change: challenges of execution, execution framework, developing cross functional linkages, aligning policies, and removing structural impediments, developing new routines for innovation and improvement, considering human element. ****************************************************************************** Mobilizing support and executing change Implementing Change Powerfully and Successfully There are many theories about how to "do" change. Many originate with leadership and change management guru, John Kotter. A professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change." We look at his eight steps for leading change below. Step 1: Create Urgency For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. This isn't simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about what's happening in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself. What you can do: Identify potential threats , and develop scenarios showing what could happen in the future. Examine opportunities that should be, or could be, exploited. Start honest discussions, and give dynamic and convincing reasons to get people talking and thinking. Request support from customers, outside stakeholders and industry people to strengthen your argument. Note: Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 70
Kotter suggests that for change to be successful, 75 percent of a company's management needs to "buy into" the change. In other words, you have to work really hard on Step 1, and spend significant time and energy building urgency, before moving onto the next steps. Don't panic and jump in too fast because you don't want to risk further short-term losses if you act without proper preparation, you could be in for a very bumpy ride. Step 2: Form a Powerful Coalition Convince people that change is necessary. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough you have to lead it. You can find effective change leaders throughout your organization they don't necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. Once formed, your "change coalition" needs to work as a team, continuing to build urgency and momentum around the need for change. What you can do: Identify the true leaders in your organization, as well as your key stakeholders . Ask for an emotional commitment from these key people. Work on team building within your change coalition. Check your team for weak areas, and ensure that you have a good mix of people from different departments and different levels within your company. Step 3: Create a Vision for Change When you first start thinking about change, there will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember. A clear vision can help everyone understand why you're asking them to do something. When people see for themselves what you're trying to achieve, then the directives they're given tend to make more sense. What you can do: Determine the values that are central to the change. Develop a short summary (one or two sentences) that captures what you "see" as the future of your organization. Create a strategy to execute that vision. Ensure that your change coalition can describe the vision in five minutes or less. Practice your "vision speech" often. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 71
Tip: For more on creating visions, see our article on Mission Statements and Vision Statements . Step 4: Communicate the Vision What you do with your vision after you create it will determine your success. Your message will probably have strong competition from other day-to-day communications within the company, so you need to communicate it frequently and powerfully, and embed it within everything that you do. Don't just call special meetings to communicate your vision. Instead, talk about it every chance you get. Use the vision daily to make decisions and solve problems. When you keep it fresh on everyone's minds, they'll remember it and respond to it. It's also important to "walk the talk." What you do is far more important and believable than what you say. Demonstrate the kind of behavior that you want from others. What you can do: Talk often about your change vision. Address peoples' concerns and anxieties, openly and honestly. Apply your vision to all aspects of operations from training to performance reviews. Tie everything back to the vision. Lead by example . Step 5: Remove Obstacles If you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting. But is anyone resisting the change? And are there processes or structures that are getting in its way? Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. What you can do: Identify, or hire, change leaders whose main roles are to deliver the change. Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision. Recognize and reward people for making change happen. Identify people who are resisting the change, and help them see what's needed. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 72
Take action to quickly remove barriers (human or otherwise). Step 6: Create Short-Term Wins Nothing motivates more than success. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have some "quick wins " that your staff can see. Without this, critics and negative thinkers might hurt your progress. Create short-term targets not just one long-term goal. You want each smaller target to be achievable, with little room for failure. Your change team may have to work very hard to come up with these targets, but each "win" that you produce can further motivate the entire staff. What you can do: Look for sure-fire projects that you can implement without help from any strong critics of the change. Don't choose early targets that are expensive. You want to be able to justify the investment in each project. Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with an early goal, it can hurt your entire change initiative. Reward the people who help you meet the targets. Step 7: Build on the Change Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve. What you can do: After every win, analyze what went right, and what needs improving. Set goals to continue building on the momentum you've achieved. Learn about kaizen , the idea of continuous improvement. Keep ideas fresh by bringing in new change agents and leaders for your change coalition. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 73
Step 8: Anchor the Changes in Corporate Culture Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started. What you can do: Talk about progress every chance you get. Tell success stories about the change process, and repeat other stories that you hear. Include the change ideals and values when hiring and training new staff. Publicly recognize key members of your original change coalition, and make sure the rest of the staff new and old remembers their contributions. Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten. 4 Approaches to Organizational Change There are at least four ways or approaches for doing organizational change. Each approach is valid in its own right and all are needed for effective and lasting change. However, we may find ourselves more drawn to one or two of these approaches based on our unique skills or personality, but each approach should be honored and validated.
Working on the System Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 74
Cultivating Consciousness Creating Alternatives Working in the system Working On The Organization We are working on an organization when we by our perspective or by our actual location are on the outside of the organization working from a place of relative objectivity. From this perspective we are and can be more objective since we are not integrally bound or emotionally entangled in the life of the system which we are seeking to change. We have the organization, it does not have us. A common and often effective approach to working on a system is the approach of a consultant. One who can objectively see the organization and help the system see itself. The consultant can then work with the system to shift and change as needed. The consultant is invited to be an objective partner in helping the organization, even though the consultant will never essentially be in the system. An more challenging, but also needed, posture to working on a system is the activist. An activist is often by location on the outside of a system, yet seeks to make the system and its outcomes more just, humane and healthy. The activist from an outside perspective can help the organization see itself and provide needed motivation for change, especially when the organization does not internally see the need for change or choices to be unaware of their practices. The activist can speak truth to power. An activist will probably never be invited into the organization, so must seek to work from the outside or on the system to effect change. This outsider posture, however makes the activist position more difficult and challenging at making lasting change within an organization. The activist may have an objective perspective and be morally right, but will not have the emotional and social capital with the organization as a tool for change. The advantages of working on a system is the objective perspective that can come from not being entangled within the emotional, mental and psychological complexity of the organization. Working on a system allows one to bring fresh perspectives, resources and energy into systems encouraging and inviting them into needed change. Successful change management is more likely to occur if the following are included: 1. Benefits management and realization to define measurable stakeholder aims, create a business case for their achievement (which should be continuously updated), and monitor assumptions, risks, dependencies, costs, return on investment, dis-benefits and cultural issues affecting the progress of the associated work 2. Effective communication that informs various stakeholders of the reasons for the change (why?), the benefits of successful implementation (what is in it for us, and you) as well as the details of the change (when? where? who is involved? how much will it cost? etc.) 3. Devise an effective education, training and/or skills upgrading scheme for the organization 4. Counter resistance from the employees of companies and align them to overall strategic direction of the organization Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 75
5. Provide personal counseling (if required) to alleviate any change-related fears 6. Monitoring of the implementation and fine-tuning as required. Ownership & Involvement in change: It might appear to be more complicated if more people are asked to help manage change in the short term, but in the long term, it is not. Even if you are able to develop a brilliant transformation strategy, you will still have to develop organisational ownership and commitment, and the key to that is to widen the circle of involvement. 1
When people are excluded from the change process from the very beginning, they rarely exhibit the necessary levels of ownership and commitment to see the change process through to a successful conclusion. Even if the change committee interviews employees to gather data for the change process, it doesn't create the same level of ownership as actual involvement does. And predictably, the reverse side of ownership is resistance. BRING PEOPLE TOGETHER FOR ACTION To increase change ownership, individuals need to become a community of people who are willing to act on a common goal, that is, the transformation. Some ways that you can help them to do so is to create a compelling purpose for the change or encourage dialogue among employees. For example, to help your colleagues feel pride over their involvement in the change effort, you can consider creating opportunities for them to understand each other's jobs and how these roles contribute to the organisation as a whole. Create more joint projects or inter-divisional sharing that would allow employees to feel like they have worked together to transform the organisation. BUILD RELATIONSHIPS Today's organisations are complex systems that require intricate coordination to be effective.3 And organisations are made of people, meaning that change cannot happen in isolation. Communities of committed people produce organisational change. But for a collection of individuals to create the co-ordinated sets of actions necessary to produce change, they must feel connected to each other.4 Trust, connection, and knowledge of the personal resources available within the community can transform a collection of individuals into a community of people capable of producing exceptional results. In addition to creating formal platforms that allow people to understand each other's roles, consider having informal ones as well. For example, celebrating successes together or ensuring Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 76
that staff well-being is properly met. Informal celebrations, expressed through laughter and singing, helps to forge bonds and are symbolic of a strong community. Ownership & involvement in change: reduces the resistance with the implementation of change. It also induces the feeling of bondness among the employees & leverages commitment & productivity. Dealing with Political level aspects of change: For the political level, measures of innovation are more focused on a country or region competitive advantage through innovation. In this context, organizational capabilities can be evaluated through various evaluation frameworks, such as those of the European Foundation for Quality Management. The OECD Oslo Manual (1995) suggests standard guidelines on measuring technological product and process innovation. Some people consider the Oslo Manual complementary to the Frascati Manual from 1963. The new Oslo manual from 2005 takes a wider perspective to innovation, and includes marketing and organizational innovation. These standards are used for example in the European Community Innovation Surveys. [24]
Other ways of measuring innovation have traditionally been expenditure, for example, investment in R&D (Research and Development) as percentage of GNP (Gross National Product). Whether this is a good measurement of innovation has been widely discussed and the Oslo Manual has incorporated some of the critique against earlier methods of measuring. The traditional methods of measuring still inform many policy decisions. The EU Lisbon Strategy has set as a goal that their average expenditure on R&D should be 3% of GDP. The psychology of Persuasion: key principles of influence by Robert Cialdini to persuade customers: 1. Reciprocity People tend to return a favor, thus the pervasiveness of free samples in marketing. In his conferences, he often uses the example of Ethiopia providing thousands of dollars in humanitarian aid to Mexico just after the 1985 earthquake, despite Ethiopia suffering from a crippling famine and civil war at the time. Ethiopia had been reciprocating for the diplomatic support Mexico provided when Italy invaded Ethiopia in 1935. The good cop/bad cop strategy is also based on this principle. 2. Commitment and Consistency If people commit, orally or in writing, to an idea or goal, they are more likely to honor that commitment because of establishing that idea or goal as being congruent with their self-image. Even if the original incentive or motivation is removed after they have already agreed, they will continue to honor the agreement. Cialdini notes Chinese brainwashing on American prisoners of war to rewrite their self- image and gain automatic unenforced compliance. See cognitive dissonance. 3. Social Proof People will do things that they see other people are doing. For example, in one experiment, one or more confederates would look up into the sky; bystanders would then look up into the sky to see what they were seeing. At one point this experiment aborted, as so many people were looking up that they stopped traffic. See conformity, and the Asch conformity experiments. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 77
4. Authority People will tend to obey authority figures, even if they are asked to perform objectionable acts. Cialdini cites incidents such as the Milgram experiments in the early 1960s and the My Lai massacre. 5. Liking People are easily persuaded by other people that they like. Cialdini cites the marketing of Tupperware in what might now be called viral marketing. People were more likely to buy if they liked the person selling it to them. Some of the many biases favoring more attractive people are discussed. See physical attractiveness stereotype. 6. Scarcity Perceived scarcity will generate demand. For example, saying offers are available for a "limited time only" encourages sales.
communicating to influence: is the process wherein the main objective would be to influence with effective communicating skills. targeting influence efforts: is the process where th factors responsible to influence are stressed in order to attain the organisations objective. framing change: is nothing but applying the so designed change effectively in the organisation. making difficult choices: refers to making those decisions that the competitor cannot imitate negotiating change : refers to those processes which bargain towards effective & efficient implementation of change in the organisation. Executing Change: Effective execution of business strategy, change management and a high performance organizational culture are the ingredients for achieving business results and indispensable value for your customers. Success depends on lean and outcome-driven project management, collective decisiveness, proactive recovery plans and dedicated actions in alignment with desired with business results. Sustaining success depends on a high performance culture that adapts to changing business conditions. Challenges of execution: 1. Implementing Change Powerfully and Successfully There are many theories about how to "do" change. Many originate with leadership and change management guru, John Kotter. A professor at Harvard Business School and world-renowned change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading Change." His eight steps for leading change below. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 78
2. Urgency in implementation For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change. This may help you spark the initial motivation to get things moving. This isn't simply a matter of showing people poor sales statistics or talking about increased competition. Open an honest and convincing dialogue about what's happening in the marketplace and with your competition. If many people start talking about the change you propose, the urgency can build and feed on itself. Kotter suggests that for change to be successful, 75 percent of a company's management needs to "buy into" the change. In other words, you have to work really hard on Step 1, and spend significant time and energy building urgency, before moving onto the next steps. Don't panic and jump in too fast because you don't want to risk further short-term losses if you act without proper preparation, you could be in for a very bumpy ride. 3. Lack of Coalition Convincing people that change is necessary is challenging. This often takes strong leadership and visible support from key people within your organization. Managing change isn't enough you have to lead it. You can find effective change leaders throughout your organization they don't necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. 4. Obstacles If you follow these steps and reach this point in the change process, you've been talking about your vision and building buy-in from all levels of the organization. Hopefully, your staff wants to get busy and achieve the benefits that you've been promoting. Put in place the structure for change, and continually check for barriers to it. Removing obstacles can empower the people you need to execute your vision, and it can help the change move forward. Identify, or hire, change leaders whose main roles are to deliver the change. Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they're in line with your vision. Recognize and reward people for making change happen. Identify people who are resisting the change, and help them see what's needed. Take action to quickly remove barriers (human or otherwise). Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 79
5. Alligning policies Nothing motivates more than success. Let the company policies be clear & free from ambiguity. Give your company a taste of victory early in the change process. Within a short time frame (this could be a month or a year, depending on the type of change), you'll want to have some "quick wins " that your staff can see. Without this, critics and negative thinkers might hurt your progress. Create short-term targets not just one long-term goal. You want each smaller target to be achievable, with little room for failure. Your change team may have to work very hard to come up with these targets, but each "win" that you produce can further motivate the entire staff. Look for sure-fire projects that you can implement without help from any strong critics of the change. Don't choose early targets that are expensive. You want to be able to justify the investment in each project. Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with an early goal, it can hurt your entire change initiative. Reward the people who help you meet the targets. 6. Removal of structural Impediments: Obstacles with regard to structure should be removed while forming organization structure. Flow of communication should be well designed. Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change. Launching one new product using a new system is great. But if you can launch 10 products, that means the new system is working. To reach that 10th success, you need to keep looking for improvements. Each success provides an opportunity to build on what went right and identify what you can improve. After every win, analyze what went right, and what needs improving. Set goals to continue building on the momentum you've achieved. Learn about kaizen , the idea of continuous improvement. Keep ideas fresh by bringing in new change agents and leaders for your change coalition. Anchor the Changes in Corporate Culture Finally, to make any change stick, it should become part of the core of your organization. Your corporate culture often determines what gets done, so the values behind your vision must show in day-to-day work. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 80
Make continuous efforts to ensure that the change is seen in every aspect of your organization. This will help give that change a solid place in your organization's culture. It's also important that your company's leaders continue to support the change. This includes existing staff and new leaders who are brought in. If you lose the support of these people, you might end up back where you started. Talk about progress every chance you get. Tell success stories about the change process, and repeat other stories that you hear. Include the change ideals and values when hiring and training new staff. Publicly recognize key members of your original change coalition, and make sure the rest of the staff new and old remembers their contributions. Create plans to replace key leaders of change as they move on. This will help ensure that their legacy is not lost or forgotten. Execution framework: The Structure of a Parallel Organization
Parallel organizations are different from hierarchical organizations A parallel organization differs from a traditional, hierarchical organization in that it actively solicits employee input. It's possible -- and sometimes advantageous -- to blend a bureaucratic structure with a parallel structure. For example, a subset of employees can act as a parallel structure to develop solutions to specific problems without changing the overall organizational structure. 1. Business 2. Business Management 3. Managing Employees 4. The Structure of a Parallel Organization 1. Culture Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 81
o A parallel organization encourages employee involvement and fosters the idea that everyone is a stakeholder in the business. Managers share information with employees and employees share their intimate knowledge of the business at the detail level to demystify processes and suggest efficiencies. Managers promise to listen and implement suggestions where feasible. Processes o Teams in a parallel organization consist of members from different job functions. Each member provides a unique contribution and represents the interests and input from their departments. The result can be greater than the sum of its parts. At a higher level, a steering committee, composed of high-level managers, develops a vision for the organization and the implementation of attainable goals. It can also act as the link between a parallel organization and the formal organization. o Activities o The actual work of a parallel organization happens in forums where the teams address specific problems. A formal training process can help the team understand its role and provide the group with problem solving tools to help brainstorm ideas and build consensus. Developing cross-functional linkage through Employee Ownership Via Involvement: People become invested in their traditional ways of doing things. Consequently, any effort to change or reorganize the method used to accomplish work can be threatening and disturbing to employees. People are especially resentful if they perceive that a change was "done unto them." In fact, this is one of the most effective ways to generate serious resistance to change. Forming a powerful engagement process is central to successful change because it a affects all other areas of your change management plan.there are four components of a powerful engagement process:
Involvement Learning Rewards Communication Developing cross functional linkage Indicators: Many scholars claim that there is a great bias towards the "science and technology mode" (S&T- mode or STI-mode), while the "learning by doing, using and interacting mode" (DUI-mode) is Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 82
widely ignored. For an example, that means you can have the better high tech or software, but there are also crucial learning tasks important for innovation. But these measurements and research are rarely done.
Aligning policies & removing structural impediments: ALWAYS INVOLVE MORE PEOPLE IN THE CHANGE PROCESS THAN LESS It might appear to be more complicated if more people are asked to help manage change in the short term, but in the long term, it is not. Even if you are able to develop a brilliant transformation strategy, you will still have to develop organisational ownership and commitment, and the key to that is to widen the circle of involvement. 1
When people are excluded from the change process from the very beginning, they rarely exhibit the necessary levels of ownership and commitment to see the change process through to a successful conclusion. Even if the change committee interviews employees to gather data for the change process, it doesn't create the same level of ownership as actual involvement does. And predictably, the reverse side of ownership is resistance. BRING PEOPLE TOGETHER FOR ACTION To increase change ownership, individuals need to become a community of people who are willing to act on a common goal, that is, the transformation. Some ways that you can help them to do so is to create a compelling purpose for the change or encourage dialogue among employees. For example, to help your colleagues feel pride over their involvement in the change effort, you can consider creating opportunities for them to understand each other's jobs and how these roles contribute to the organisation as a whole. Create more joint projects or inter-divisional sharing that would allow employees to feel like they have worked together to transform the organisation. BUILD RELATIONSHIPS Today's organisations are complex systems that require intricate coordination to be effective.3 Andorganisations are made of people, meaning that change cannot happen in isolation. Communities of committed people produce organisational change. But for a collection of individuals to create the co-ordinated sets of actions necessary to produce change, they must feel connected to each other.4 Trust, connection, and knowledge of the Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 83
personal resources available within the community can transform a collection of individuals into a community of people capable of producing exceptional results. Negotiating Workplace Change
Every day brings new opportunities to negotiate your needs, whether it is with customers, partners, vendors, management, or colleagues. More often than not, these conversations center on some aspect of change. Effective negotiating skills determine how well you influence, persuade, and collaborate with others. Negotiating change is a fluid process that includes situations where you have little or no direct control to working with people who have little or no desire to change. 1: Change does not mean perfection. Change, itself, is an evolutionary process. Don't expect to get it right from the start or get it right all the time. Recognize that mistakes happen; however, it's your ability to adapt and handle setbacks that separates leaders and agents of innovation from those who play it safe and choose to remain stagnant. 2: Acknowledge your comfort zones in different situations. Credibility begins with the self. Sometimes this means stepping up to the challenge of unfamiliar territory and other times it means acknowledging your frailties. We all have situations where we feel more comfortable than at other times. It's important to recognize your discomfort in various situations so that 1) you don't sabotage your best efforts and 2) they don't go underground and become emotional "hot buttons" for you. 3: Introduce change when it's needed. Its difficult to not introduce change just because you can, whether you're in the position to do so by influence or power. Far too often, new managers come in and begin "tossing the salad" as a way to make a name for h/her. Years ago as I was poised to accept my first supervisory position, my manager at the time, Rick Griggs, gave me some sound advice Dont lead change with your ego. Avoid making major changes within the first three months, he suggested, as this would give me time to learn about the organization and the business, and lay the foundation for smarter decisions about what needed changing. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 84
Execution and Change Management Effective execution of business strategy, change management and a high performance organizational culture are the ingredients for achieving business results and indispensable value for your customers. Success depends on lean and outcome-driven project management, collective decisiveness, proactive recovery plans and dedicated actions in alignment with desired with business results. Sustaining success depends on a high performance culture that adapts to changing business conditions. The unique approach impacts culture by increasing trust, breaking down silos, developing new habits of execution and establishing meaningful monitoring systems producing measurable business results within three to six months. While each engagement is customized, it uses a systematic methodology for executing business strategy and change delivered in five phases: Phase 1: Accountability Assessment Identify patterns of breakdown in execution between organizational levels and functional areas. Not only will the organization become clear on where accountability is breaking down, key habits of execution will be identified for development to insure even greater organizational success. The result: a clear strategy for executing business strategy that leverages change efforts and the organizations culture to achieve business results. Phase 2: Executive Alignment and Focus Working session to build demonstrated alignment for the organizations Picture of Success and prepare executives to lead and monitor organizational change and guide middle management. Executives will learn about the key strategies for increasing organizational performance, leading change and developing middle managers to be more effective change agents. Phase 3: Middle Managers as Leaders of Change Develop middle managers into a unified team of change agents responsible for achieving the organizations priorities and deliverables as established by executives. Using IMPAQs Agreements for Excellence System, middle managers will develop cross-functional collaboration and teamwork that breaks down silos and builds ownership for achieving business results. Middle managers develop specific strategies and actions to improve execution, relationships and deliverables all linked to produce the organizations priorities and business outcomes. Phase 4: Increase Supervisor and Employee Accountability and Engagement Implement a custom version of Accountability Based Leadership with middle management while Implementing the Power of Personal Accountability with all employees so all individuals develop a new standard of performance, communication and engagement linked to the organizations goals. Phase 5: Measure, Monitor and Transfer for Sustainability Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 85
Establish measurements that are monitored throughout phases 2 through 4. Also, develop internal change agents to continue the organizations Accountability movement to support improved and sustained results. Developing new routines for Innovation Innovation is the application of better solutions that meet new requirements, inarticulated needs, or existing market needs. This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society. The term innovation can be defined as something original and, as consequence, new that "breaks in to" the market or into society. One usually associates to new phenomena that are important in some way. A definition of the term, in line with these aspects, would be the following: "An innovation is something original, new, and important - in whatever field - that breaks in to (or obtains a foothold in) a market or society." While something novel is often described as an innovation, in economics, management science and other fields of practice and analysis it is generally considered a process that brings together various novel ideas in a way that they have an impact on society. Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better. In business and economics, innovation is the catalyst to growth. With rapid advancements in transportation and communications over the past few decades, the old world concepts of factor endowments and comparative advantage which focused on an areas unique inputs are outmoded for todays global economy. Economist Joseph Schumpeter, who contributed greatly to the study of innovation, argued that industries must incessantly revolutionize the economic structure from within, that is innovate with better or more effective processes and products, such as the shift from the craft shop to factory. He famously asserted that creative destruction is the essential fact about capitalism. In addition, entrepreneurs continuously look for better ways to satisfy their consumer base with improved quality, durability, service, and price which come to fruition in innovation with advanced technologies and organizational strategies. [5]
One prime example is the explosive boom of Silicon Valley startups out of the Stanford Industrial Park. In 1957, dissatisfied employees of Shockley Semiconductor, the company of Nobel laureate and co-inventor of the transistorWilliam Shockley, left to form an independent firm, Fairchild Semiconductor. After several years, Fairchild developed into a formidable presence in the sector. Eventually, these founders left to start their own companies based on their own, unique, latest ideas, and then leading employees started their own firms. Over the next 20 years, this snowball process launched the momentous startup company explosion of information Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 86
technology firms. Essentially, Silicon Valley began as 65 new enterprises born out of Shockleys eight former employees. Diffusion of innovation
Diffusion of innovation research was first started in 1903 by seminal researcher Gabriel Tarde, who first plotted the S-shaped diffusion curve. Tarde (1903) defined the innovation-decision process as a series of steps that includes:
First knowledge
1. Forming an attitude 2. A decision to adopt or reject 3. Implementation and use 4. Confirmation of the decision Once innovation occurs, innovations may be spread from the innovator to other individuals and groups. This process has been proposed that the life cycle of innovations can be described using the 's-curve' or diffusion curve. The s-curve maps growth of revenue or productivity against time. In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself. At some point customers begin to demand and the product growth increases more rapidly. New incremental innovations or changes to the product allow growth to continue. Towards the end of its life cycle growth slows and may even begin to decline. In the later stages, no amount of new investment in that product will yield a normal rate of return Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 87
The s-curve derives from an assumption that new products are likely to have "product life". i.e. a start-up phase, a rapid increase in revenue and eventual decline. In fact the great majority of innovations never get off the bottom of the curve, and never produce normal returns. Innovative companies will typically be working on new innovations that will eventually replace older ones. Successive s-curves will come along to replace older ones and continue to drive growth upwards. In the figure above the first curve shows a current technology. The second shows an emerging technology that currently yields lower growth but will eventually overtake current technology and lead to even greater levels of growth. The length of life will depend on many factors.
Negotiating Change:
Quality is everybodys business
Leadership needs to champion and support institutional change initiatives. They need to invest time and resources and use their bully pulpit to reinforce the message. Efforts that lack support from the top and depend upon the good will of front line employees to do the right thing because it is the right thing, dont stand the test of time. Those who are closest to the processes being addressed should be given the education, training, and tools to facilitate change. These are individuals who know whats working and where there are opportunities for improvement. Customers and stakeholders also have knowledge about where there are opportunities for improvement and should have an input. The organization is there to efficiently use fiscal, physical, and human resources to provide consumers with a service or product.
Innovation & Human element: Improvement is not the same thing as innovation. Unfortunately, the media and even many business leaders tend to use the terms almost interchangeably. Patrick Lefler explains the significant differences between the two concepts. Improvement and innovation. In todays business world these two terms are used almost interchangeably. Its a trend thats been promoted the business press; by companies large and small who profess to be in the innovation business; and even by the myriad innovation consultants out there. But the problem with equating improvement with innovation is that does a disservice to innovation and the truly successful innovative strategies used by some of the leading firms. First, an improvement that only meets the market standard or reacts to innovation that your competitors have already introduced into the market is NOT innovation. Its playing catch-up. Organisational Development & Change 12MBAHR447
Dept of MBA, SJBIT Page 88
Second, introducing an improvement that does not significantly differentiate you from your competitors is NOT innovation. Its simply just an improvementevolutionary, not revolutionary. And finally, introducing improvement that may give you a competitive advantage but also can be easily copied by your competitors is NOT innovation. Its just a temporary advantage. When Toyota introduced the Toyota Production System (TPS) and radically changed the way manufacturing and supply logistics were previously organized by automobile manufacturers, the company demonstrated innovation. More than any other aspect of the company, TPS allowed Toyota to ascend from its humble beginnings in Japan to become recognized as a leader in the automotive manufacturing and production industry. All attempts today by other automobile manufacturers to emulate the Toyota Production System are simply a strategy of playing catch up. When Southwest Airlines changed the existing airline model in the 1970s by focusing on point- to-point round-trip flights to avoid the capacity inefficiencies of the hub-and-spoke model used by the rest of the industry, and then monetized that new model into becoming the industry profit leader, that was innovation. When JetBlue tried to emulate that same model years later, it was a good business strategybut it wasnt innovation. When Sony introduced the first Walkman in the late 1970s, they changed the music-listening habits of millions of people worldwide and became the industry leader making hundreds of millions of dollars in the process. That was innovation. When competitors raced to match their offeringalbeit without the resulting outcome of huge profitsit was improvement and a good product strategy. But it was not innovation. Geoffrey Moore says it best in his highly influential book Dealing with Darwin by explaining innovation this way: Focusing on our chosen innovation[so that] we will so outperform our competitors that prospective customers and partners will cease to entertain them as legitimate alternatives.