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a persistent and troubling gap between the inherent value of the technology
they develop and their ability to put it to work effectively. At a time of fierce
global competition, the distance between technical promise and genuine
achievement is a matter of especially grave concern. Drawing on their long
study of the difficulties managers have had in closing this gap, the authors
identify half a dozen key challenges that managers responsible for
implementing new technology must surmount: their inescapably dual role,
the variety of internal markets to be served, legitimate resistance to change,
the right degree of promotion, the choice of implementation site, and the
need for one person to take overall responsibility.
Introducing technological change into an organization presents a different
set of challenges to management than does the work of competent project
administration. Frequently, however, the managers responsible for
shepherding a technical innovation into routine use are much better
equipped by education and experience to guide that innovations
development than to manage its implementation.
In the following pages, we describe some of the challenges managers must
overcome if companies are to absorb new technologies efficiently. We also
suggest strategies managers can use to address these difficulties. Although
the examples we cite are all computer related and come from the experience
of large manufacturers, the issues raised and strategies proposed apply
every bit as well to small businesses, to service operationsin fact, to any
organization where technological innovation flourishes.
Our findings derive from our combined research and consulting experience
with more than 20 large multinational corporations and with some 70
organizations within General Electric. Our focus is on internally developed
technologies; but as vendors of advanced manufacturing equipment have
found in their efforts to help implement the systems they market, new
technologies, no matter what their origin, confront managers with a
distinctive set of challenges.
A Dual Role
Those who manage technological change must often serve as both technical
developers and implementers. As a rule, one organization develops the
technology and then hands it off to users, who are less technically skilled but
quite knowledgeable about their own areas of application. In practice,
however, the user organization is often not willingor ableto take on
responsibility for the technology at the point in its evolution at which the
development group wants to hand it over. The person responsible for
Marketing Perspective
That involving users in a new technologys design phase boosts user
satisfaction is quite well known, but the proper extent, timing, and type of
user involvement will vary greatly from company to company. For example,
software developers in an electronic office equipment company established a
user design group to work with developers on a strategically important piece
of applications software when the program was still in the prototype stage.
Prospective users could try out the software on the same computer
employed by the programs developers. The extremely tight communication
loop that resulted allowed daily feedback from users to designers on their
preferences and problems. This degree of immediacy may be unusual, but
managers can almost always get some information from potential users that
will improve product design.
A marketing perspective also helps prepare an organization to receive new
technology. Many implementation efforts fail because someone
underestimated the scope or importance of such preparation. Indeed, the
organizational hills are full of managers who believe that an innovations
technical superiority and strategic importance will guarantee acceptance.
Therefore, they pour abundant resources into the purchase or development
of the technology but very little into its implementation. Experience
suggests, however, that successful implementation requires not only heavy
to select the right software package and then, when it became apparent that
they would have to build their own system to get all the features they
wanted, to give advice on its structure and content.
The result was an inventive, well-accepted, and widely used system.
Moreover, users regarded the minor problems that did arise as bugs to be
worked out of our system. As one manager told us, The users wanted it, so
they built it.
Critical to the success of this project was the choice of opinion leaders
among users for involvement. Managers who have wrought change have
known for a long time that the opinions of a few leaders profoundly influence
the speed and extent of an innovations diffusion. The basis for leadership
differs from organization to organization, but these leaders are not usually
hard to identify. Frequently, they occupy their place of influence as a result of
technical proficiency, not formal position.
Opinion leaders, however, are not necessarily the most skilled operators.
Behavioral science studies have shown that people commonly seek two kinds
of credibility in such leaders: safety credibility (this person is enough like
me for his opinions to be trusted) and technical credibility (this person
knows what she is talking about). Someone whose technical skills are so
superior that followers can have no hope of emulation may fall too far
outside the norms of a group to be a real opinion leader.
In the marketing organization just described, one senior account manager
refused to use the new electronic system. The system implementers were at
first alarmed but then realized that this individual was not an opinion leader.
Their efforts flowed around him, unimpeded by his opposition. Six months
after everyone else went on the system, he capitulated, convinced at last of
its utility.
vaporware stage. Months before they had their hands on the software,
intended users faced questions from their customers about how they liked it.
The gap between perception and reality was traceable to the energetic
efforts of one project manager early on. Knowing the importance of selling
the concept to management, this enthusiast had extended his campaign to
virtually anyone who would listen. Since it was a sexy topic, the new artificial
intelligence system received wide attention in the media as well as in
organizational newsletters. This oversell presented a problem to
implementation managers, who had to fight the perception that their project
was way behind schedule and that their product delivered less than
promised.
Getting them to try the innovation may require nothing more elaborate than
a well-paced and tactfully presented training session.
Often, however, an implementation manager has to create new role models
by siting the innovation where the workers most open to change can
demystify the technology for others by using it themselves. Although it is
definitely a mistake to correlate resistance with age per se, it remains true
that people with a long-term investment in certain routines and skills often
hesitate to give up the security of those habits. Again, it is best to avoid
extremes and to site new technology near workers who are fairly open to
change but not so different from those whose resistance makes them poor
models.
When a large warehouse installed a materials handling system, it relied on
its so-called hippy crane operators instead of workers on the loading
platform. Once the crane operators had worked out the wrinkles,
management could progressively install the system throughout the plant.
The crane operators were not opinion leaders at first because of their relative
youth and different backgrounds, but they were both receptive to innovation
and not so very different as to be unacceptable role models.
Fear of Loss
As talk about the deskilling potential of new computerized technologies has
grown, unions are seeking retraining for their members whom automation
would otherwise displace. Many companies are upgrading the status of their
workers who are forced to trade hard-earned manual skills for the often
dreary routine of button pushing. Although the problem is far from being
resolved, it has at least merited recognition.
There is, however, another aspect of deskilling that has been much less
obvious to implementers: the simple necessity of extending concern about
deskilling to foremen and supervisors. They do not, of course, actually have
to run the new machinery or to possess the intimate knowledge of the
system that daily operators do. Even so, giving subordinates knowledge that
supervisors and foremen do not have undermines their credibility. If the
foremen or supervisors worked their way up through the ranks, they will
know the old machinery well. They served as problem solvers when it broke
down and derived no small part of their authority from their experience with
it. To train their subordinates and leave them out is to invite hostility.
When a pulp mill introduced a new computerized control room, vendor
representatives trained the operators and their assistants. No similar effort
was made for the foremen, who thought (with some justification) that they
had lost control over the mills operation. Some of the operators relinquished
their novel power by tactfully educating their foremen, but others felt they
had earned the right to more autonomy because the foremens knowledge
was obsolete.
One way to deal with this kind of situation is to teach supervisors how to
instruct hourly workers about the new technology. These sessions should
transmit details of the information hourly workers require, instructions on
how best to present it, guides to practice sessions, and audiovisual aids.
Another reason for resistance is fear that the innovation will be politically
enfeebling and that supervisors and even operators will lose some control by
adopting it. A good implementation plan should try to identify where a loss of
power may occur so that managers can anticipate and possibly avert any
problems arising from that loss.
In one large manufacturing plant, corporate research developed a
computerized system for scheduling the productionin small batchesof
customized health care products. Although the manufacturing manager
outwardly supported the idea, he never made any of the decisions or
appointments necessary to put the new technology into effect. The
implementation team finally realized what he had seen at the outset: using
the software removed from his hands control over a key piece of his
operation. The programmers working on the project reported to management
information systems (MIS), not manufacturing. The manager never voiced his
opposition since there was little rational basis for it, but his resistance
effectively stalled the project. In this case, the programmers were quite
willing, as was MIS, to report for the duration of the project to manufacturing,
a change that allowed the project to swing into place.
Personal Benefit
An innovation must offer an obvious advantage over whatever it replaces, or
potential users will have little incentive to use it. The more visible the costs
of an innovation (financial, convenience, the need to learn new skills), the
greater the importance of making potential benefits and rewards apparent.
These benefits include expanded influence over work (stopping a production
line), increased value of work (no in-process inventory), greater recognition
(being part of a valued implementation team), solution of a longstanding
problem (a shop-floor control system that gives up-to-the-minute production
reports), and preservation of jobs.
It is easy for managers to forget that benefits buried in the system, which
they can see because of their position, may be totally invisible to the
operators on whom the success of the innovation depends. A new technology
may pay off for an organization as a whole but not for individuals in any form
they can recognize. That is why it is so important to make these benefits
visible through encouragement from supervisors as well as through explicit
and timely feedback on how the innovation is affecting workers output. In
general, the faster the positive feedback to users, the more visible the
benefits will be.
A very large natural resources company ran into difficulties with introduction
of a methodology for constructing software. This approach required
programmer-analysts to sit down with their clients and, following a
regimented procedure with standardized notations, analyze the clients
business. A structured approach was expected to identify more potential
problems at the design stage and facilitate communication between client
and designer. Moreover, the company hoped that a standardized notation
would facilitate the transfer of project work between programmers and cut
the time spent on program maintenance.
In retrospect, it is clear that all the benefits of the new technology accrued to
the organization, not to the individuals who used it. In fact, many potential
users thought they would be penalized for using the new methodology, since
managers judged their performance on speed and low cost, not on the
quality of their output. The organizations rhetoric supported, indeed
mandated, use of the new technology, but the reward structure militated
against it.
Now, contrast this situation with one in which managers gave some thought
to the challenge of translating organizational benefits into individual rewards.
Before installing a shop-floor control system, a major appliance manufacturer
conducted informal research into the problems of the hourly work force. They
discovered that the current voucher system never permitted workers to know
how much their pay would be in a given week. A small modification of the
control systems design made it possible for employees to receive a report
on cumulative salary with each job they entered. Although this piece of
information was not central to the needs of the organization, adding it to the
systems design was a low-cost way to boost the innovations benefits to
workers. This small feature more than compensated them for the pain of
developing new skills and habits, and the advantage of the new system over
the old was apparent every time they used it.
that top management will stand behind this technology even in a budget
crisis.
The second step, which is harder, is to help managers at all levels send out
the right signals. If, for instance, the first step was an announcement of a
new drive for quality, the second should be to increase the emphasis on
quality throughout the company. If workers hear an announcement about a
new quality program but continue with impunity to ship products that they
know are inferior, the initial symbolic gesture loses potency. Worse, all future
gestures lose credibility too.
The third step is the hardestand the most necessary. Managers must bring
the criteria used to judge the performance of innovation users into
conformance with the demands of the new technology. New technologies
often require new measures. If, for example, a new, structured software
technique requires more time than did the old, managers must evaluate
programmer-analysts less on the basis of the quantity of output than on the
basis of its quality.
Further, because productivity commonly declines whenever a new
technology is introduced, more accurate measurements of productivity in the
old sense may lead supervisors to fear that their performance will look worse
not least because, with a fully automated system, direct labor drops but
indirect labor grows.
Other adjustments might include a phase-in period for the new technology
during which the usual output measurements do not apply. It might also
make sense to reward people for preventing rather than just solving
problems and for developing work behavior identified with the new
technology. Although operators do not respond well when they view
technological systems as controlling their behavior, they respond quite well
when a system gives them feedback on their performance and the
performance of their machines. Information increases the amount of control
people have over their environment.
Converting hedgers into believers is not a simple task, but it is one more of
the inescapable challenges managers face as they try to implement new
technology. Indeed, as the competitive environment changes and as the
systematic effects of new technologies become even more pronounced, the
work of implementing those technologies will increasingly pose for managers
a distinctive set of challengesnot least, the task of creating organizations
flexible enough to adjust, adapt, and learn continuously.
Uncertainty and Risk by: Donald A. Schon
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