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Drivers of Organizational Change within the AEC Industry:

Linking Change Management Practices with Successful


Change Adoption
Brian C. Lines, Aff.M.ASCE1; and Prashanth Kumar Reddy Vardireddy2
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Abstract: In today’s rapidly evolving market, effective organizational change adoption has become a core competency of architecture, engi-
neering, and construction (AEC) firms to maintain their competitive advantage. Firms that more effectively manage organizational change
adoption can position themselves as early adopters and are able to expend fewer resources in making the transition. The objective of this study
was to collect a global sample of organizational change initiatives across the AEC industry to identify whether specific change management
practices have a direct relationship with successful change adoption. On the basis of a data sample of 237 organization-level change initiatives,
the results of this study establish that there are definitive—and learnable—change management practices that AEC firms can implement to
increase the success of their change initiatives. The global data sample presented in this study is a meaningful contribution to the AEC litera-
ture, which consists primarily of case-based studies limited to a single type of organizational change event. Furthermore, this study contributes
practical action steps for industry professionals to manage the adoption of new technologies, management strategies, and business practices
within their organizations more effectively. DOI: 10.1061/(ASCE)ME.1943-5479.0000548. © 2017 American Society of Civil Engineers.

Introduction evolving market conditions and differentiate themselves from their


competitors. However, organizational change adoption is inconsis-
In today’s rapidly evolving market, the ability of architecture, engi- tent across the industry, which raises a fundamental research ques-
neering, and construction (AEC) firms to adopt organizational tion: How are some companies able to implement organizational
change has become a core competency for remaining competitive. changes more effectively while others are less successful?
There are many forms of organizational change within the industry; The objective of this study was to establish industrywide rela-
for example, the continual evolution of information technology has tionships between certain change management practices and the
had vast impacts on AEC firms, such as the integration of building adoption of organizational change. Leading change management
information modeling (BIM), smart products, mobile technology, practices were identified from organizational behavior literature.
safety monitoring equipment, building scanning technology, virtual Although these practices have been investigated within the AEC lit-
design and construction, and e-document management. Other erature, existing studies have typically been restricted to limited
changes include advances in management strategies, including the data samples (typically comprising only a few companies) and
industrialization of construction operations, modular techniques, focused on the adoption of a single type of change. To address this
preconstruction services, design and construction integration, sup- gap in the literature, the objective of this study was to conduct an
ply chain management, advanced work packaging, and evolving international survey to establish more broadly the influence of key
project delivery methods. Within the context of this study, organiza- change management practices on the facilitation of successful
tional change is defined as a planned alteration of a firm’s traditional organizational change adoption within AEC firms. The results of
practices with the intent of changing the company’s long-term oper- this study are intended to confirm that there are certain change man-
ating protocols (Hallencreutz and Turner 2011; Helms Mills et al. agement strategies that AEC firms can use to adopt company-level
2009). change initiatives more successfully.
Regardless of which particular change an AEC company may
consider, firms with effective change management protocols can
position themselves to manage the transition more efficiently, and Literature Review
thereby potentially reduce resource expenditures and accelerate the
pace of change where feasible. The result is that successful organi- The literature review was conducted with an interdisciplinary focus
zational change management enables firms to respond better to by examining key change management practices from the field of
organizational behavior. Lewin (1947), largely credited as one of
1
Assistant Professor, Dept. of Civil, Environmental & Architectural the early founders of organizational change research, characterized
Engineering, Univ. of Kansas, 1530 W. 15th St., 2135B Learned Hall, change implementation into three phases called unfreezing, moving,
Lawrence, KS 66045 (corresponding author). E-mail: brianlines@ku.edu and freezing (or refreezing). This paper focuses on the moving
2
Graduate Student, Dept. of Civil, Environmental & Architectural phase of change initiative; in other words, the literature review
Engineering, Univ. of Kansas, 1530 W. 15th St., 2150 Learned Hall, emphasizes the mechanics of how the organization accomplishes
Lawrence, KS 66045. E-mail: p740v307@ku.edu
the transition from one operational state to the next. Key practices
Note. This manuscript was submitted on January 26, 2017; approved
on March 31, 2017; published online on July 17, 2017. Discussion period within Lewin’s other phases of unfreezing (antecedent conditions
open until December 17, 2017; separate discussions must be submitted for necessary for fostering change, such as the initial decision to make
individual papers. This paper is part of the Journal of Management in the change and creating a sense of urgency to create motivation for
Engineering, © ASCE, ISSN 0742-597X. the transition) and refreezing (institutionalization or posttransition

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normalization of new practices), are therefore beyond the scope of exclusive to the AEC industry—is a complicating factor that must
this study. be considered during organizational change initiatives. Through
Change management practices from the organizational behavior their interviews with firms that implemented cooperative partnering
literature were coupled with examples of documentation within the procurement procedures, Eriksson et al. (2009) identified that labor
AEC literature. As stated previously, it should be noted that the unions must be included in discussions surrounding any change so
AEC literature is primarily limited to case studies and relatively union members clearly understand the benefits of it.
small data sets focused on a singular organizational change initia-
tive, which further motivated the interdisciplinary approach to the Appoint Effective Change Agents to Lead the Transition
presented literature review.
Perhaps the most important role is that of the change agent, defined
Visible Commitment of Senior Leadership in the organizational behavior literature as the internal champions
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of the change who act as an official transition team to guide the tran-
Within the organizational behavior literature, secured executive sition (Hunsucker and Loos 1989; Kanter 1983). This role is under-
sponsorship is widely credited as a driver of successful change stood to be distinct from senior executive support because change
adoption. Beer and Eisenstat (1996) suggested that before a agents are expected to be actively and directly involved in all
change is implemented, senior leadership’s role is to demonstrate aspects of change implementation (Self and Schraeder 2009).
that the proposed change is pertinent and suitable to the organiza- Organizations should designate individuals to lead the change as
tion’s position in the marketplace. Visible commitment from sen- part of their work responsibilities, and these change agents should
ior leaders is also required for the duration of change implementation be readily available to assist other employees both before and
to build credibility Armenakis et al. (1999). Without demonstrated throughout the change (Covin and Kilmann 1990; Schweiger and
commitment from leadership, employees may perceive that the DeNisi 1991).
change initiative is merely a passing fad that will eventually be aban- In a case study of several U.S. and Japanese contractors who
doned (Emiliani and Stec 2004). implemented new web-based project management software, Dossick
Senior leadership commitment has also been noted as a key fac- and Sakagami (2008) noted the importance of establishing a leader
tor within the AEC industry; however, AEC studies have focused who took action to facilitate training, deliver communication, and
on a range of organizational change types and are often limited to enforce use of the software. In an earlier study of total quality man-
data sets of several organizational cases, isolated geographic loca- agement practices within 17 AEC firms, Burati and Oswald (1993)
tions, or particular industry sectors. In a study of construction proj-
specified the need for active involvement of middle management in
ects within the United States and Singapore, management commit-
addition to senior leadership commitment. According to six BIM
ment was identified as a major barrier to adopting human resource
experts interviewed by Won and Lee (2013), recent trends in BIM
practices for safety management (Lai et al. 2011). Shehu and
adoption have revealed that establishing a master BIM manager is
Akintoye (2010) found a lack of commitment from senior leaders to
a priority.
be the single largest barrier to the successful implementation of pro-
gram management among organizations in the U.K. construction
environment. BIM adoption has been linked to consistent support Establish Clear Performance Benchmarks to
from top management within design firms (Ding et al. 2015; Son et Quantify Progress
al. 2015). Management-focused changes, such as the adaptation of An important strategy for organizations to build momentum for a
six sigma within construction, have also been shown to benefit change initiative is to establish clear benchmarks of desired results
immensely from active senior leadership support (Pheng and Hui and then clearly document progress throughout the organization’s
2004). transition. In a famous eight-step process for leading change, Kotter
(1995) recommended that change managers systematically plan for,
Extensively Communicate the Benefits for Employees create, and celebrate short-term wins, which both recognize and
The field of organizational behavior has long credited communica- reward employees who actively participate in the change. Cameron
tion of the change message as a driver of change readiness among and Quinn (1999) explained that public communication of success-
employees (Armenakis et al. 1993). Research has focused on the ful results not only demonstrates visible performance improvement
aspects that comprise an effective change message, much of which but it also builds confidence among the organization’s personnel.
boils down to answering the question of “What’s in it for me?” for Other organizational behavior experts have suggested that measura-
each employee (Armenakis et al. 1999; Holt et al. 2007; Self and ble successes serve to legitimize the appropriateness of the change
Schraeder 2009). Cameron and Quinn (1999) noted the change mes- for the organization (Walker et al. 2007).
sage must emphasize the disadvantages of remaining with the status The AEC industry’s longstanding tradition of being hyper-profit
quo. Without extensive communication of the benefits that a change focused means that executives must deliberately identify how a
will bring, organizations are sure to encounter resistance because of change initiative will impact the bottom line throughout the transi-
employees’ uncertainty with the new process and fear of unknown tion. For example, a survey regarding BIM implementation within
consequences (Bourne et al. 2002). the United Kingdom revealed that many firms struggle with lack of
In a case study inquiry of three large Australian construction immediate benefits from the initial projects delivered (Eadie et al.
companies, Peansupap and Walker (2006) found that a leading fac- 2013). Another study found the top barrier of BIM implementation
tor affecting the diffusion of information and communication tech- was unclear and invalidated performance improvements (Lee et al.
nologies was the lack of clear benefits communicated to company 2015). Construction firms that have implemented enterprise risk-
employees. Case studies of several U.K. architectural firms imple- management systems reported a lack of quality data as a barrier to
menting BIM and lean practices revealed that resistance to change change (Zhao et al. 2015). Within the construction sector specifi-
often stemmed from the inability of personnel to understand the cally, studies have found that workers are more stimulated to partic-
benefits over their traditional drafting practices (Arayici et al. ipate in innovation efforts when profits are shown to be maximized
2011). The influence of unionized labor forces—although not (Na et al. 2006).

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Follow a Realistic Implementation Timescale strategies AEC firms can use to increase the success of their organi-
zational change initiatives and are thus relevant to practitioners.
Another behavioral aspect of organizational change is the rate of
implementation (Rodgers 2003). Even when they support the vision
for change, organizational personnel may still resist the transition if Questionnaire Design
they feel management is expecting an unrealistic pace (Smollan The questionnaire was designed to collect feedback from AEC com-
2011). Organizational behavior experts have explained the benefit panies regarding a significant organizational change their firm had
of planning for longer strategic time horizons rather than hoping for recently experienced. Respondents were asked to identify a recent
a quick fix approach to change adoption (Garratt 1999; Tatum organizational change in which they had participated and to answer
1989). questions regarding the change management methods their com-
AEC firms often underestimate the time and resources required pany used to facilitate the transition. Respondents also indicated the
for change, whether the implementation of quality management extent of successful change adoption that their firm was able to
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programs (Sullivan 2011), radio-frequency identification (RFID) achieve.


technology (Li and Becerik-Gerber 2011), risk management sys- The questionnaire was created using an online survey tool
tems (Cheung and Loosemore 2015), communication technology because of the accessibility of online survey tools and ease of
(Peansupap and Walker 2006), or knowledge-management systems reaching many participants. First, a pilot questionnaire was cre-
(Tan et al. 2012). ated and distributed to 23 participants via e-mail. A teleconfer-
ence discussion was conducted to present a review of the ques-
Provide Sufficient Training Resources for Employees tions within the pilot survey. Minor changes were suggested by
the pilot questionnaire participants and were incorporated to
A major cause of resistance to change occurs when organizations refine the final questionnaire.
do not provide sufficient change-related training to their employees Once the questionnaire was finalized, a standard e-mail tem-
(Alvesson 2002; Schneider et al. 1994). The psychological dynam- plate was created to provide information about the research objec-
ics surrounding the effect of sufficient training resources on change tives. The survey questionnaire consisted of two additional sec-
recipients has long been documented by organizational behavio- tions. The first section was framed around the main research
rists. For example, Judson (1991) suggested that employees will question and captured scales for each change- management prac-
worry that they may not be capable of changing how they personally tice along with three scales that measured the change-adoption
operate within their daily job functions, and Galpin (1996) showed dependent variable. The second section asked questions regard-
that appropriate levels of training become a key factor in building ing the respondent’s demographics.
employee confidence in their ability to adopt change successfully. To meet the study objectives, it was necessary to gather data
Training is particularly important in the AEC industry in from a broad section of the AEC industry. Survey respondents were
which companies are highly specialized and each project requires identified through distributed mailing lists of multiple professional
unique technical solutions. When new technology is introduced, organizations, including Fiatech, Process Industry Practices (PIP),
it is critical that project teams receive appropriate training to fa- Mechanical Contractors Association of America (MCAA), In
miliarize them with the ways to use the technology during project Eight, and Engineering News-Record (ENR). The snowball
operations. For example, training has been shown to be critical approach to sampling was used through which contacts on the mail-
for BIM integration (Bo and Chan 2012; Jensen and Johannesson ing lists were asked to complete the questionnaire and requested to
2013; Khosrowshahi and Arayici 2012; Rogers et al. 2015). The forward the survey to colleagues; therefore, the exact number of
importance of training is not limited to technology-focused survey questionnaires distributed cannot be established, and the tra-
organizational changes but extends to all forms of management- ditional response rate cannot be calculated (Muller and Turner
or operations-based changes; for example, when companies first 2006). E-mail distribution of surveys occurred over a 2-week period
gain experience with alternative project delivery systems (such as with a 3-week cut-off period for responses.
design-build), they must build their project team’s knowledge
and skill sets to achieve success (Park et al. 2009).
Definitions of Variables
Leading change management practices were identified on the basis
Methodology of their prevalence within the organizational behavior literature as
well as their relevance to case studies of AEC organizational
Research Objectives and Anticipated Contribution change. The specific definitions of each change management prac-
tice that were studied are included in Table 1 along with multiple
The objective of this study was to establish industrywide relation- measures for the dependent variable of change adoption. Change
ships between prominent change management practices from the adoption measures were focused on quantifying the extent to which
organizational behavior literature and successful organizational an organizational change was successfully executed by the com-
change adoption within the AEC industry. Further investigation pany. Variables were measured on 7-point Likert-like scales within
focused on trends that may exist on the basis of AEC industry- the survey questionnaire (1 = strongly agree; 2 = agree; 3 = some-
demographic groupings. Although a review of previous literature what agree; 4 = neutral; 5 = somewhat disagree; 6 = disagree; 7 =
revealed numerous organizational change studies in the AEC litera- strongly disagree).
ture, the existing body of knowledge is primarily limited to small
data sets, such as case studies of a single organization or small
Hypothesis Statements
group of companies.
This study contributes to the literature by formally demonstrat- Hypotheses are graphically summarized in Fig. 1. Each of the
ing the influence of change management strategies across a robust change management practices was hypothesized to have a positive
sampling of AEC firms and a wide range of organizational change relationship with change adoption. Each hypothesis was subdivided
types. The results verify that there are definitive and learnable into four components to establish relationships of change management

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Table 1. Summary of Change Management Practices and Organizational Change Adoption Measures

Variable type Abbreviated variable Definition


Change management Communicated benefits Employees had a clear understanding of how the organizational change benefited
practice them personally within their specific job function.
Senior leadership commitment The organization’s senior leadership was committed to the organizational change
initiative (“walked the talk”).
Realistic timescale The speed at which the organization implemented the change was appropriate and
achievable.
Training resources Employees had a clear understanding of the action steps necessary to implement the
change within their specific job function.
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Change agent effectiveness The change agents responsible for leading and managing the change initiative were
effective.
Measured benchmarks The organization established clear benchmarks for evaluating the success of the
change initiative (in relation to previous performance).
Change adoption Sustained long-term Organizational change adoption was sustained long-term within the company’s
operations (3 or more years).
Produced beneficial impacts Organizational change adoption resulted in a positive or beneficial impact on the
organization.
Achieved desired goals Organizational change adoption achieved the desired outcomes within the organiza-
tion’s operations.
Change adoption construct Overall organizational change adoption was measured as the linear composite of
optimally weighted change adoption variables.

Independent Variables Dependent Variables

Overall Change a. Change Adoption


Management Performance Construct

Communicated
Benefits
b. Sustained
Senior H1 Long Term
Leadership
Commitment
H2
Realistic c. Produced
Timescale H3
Beneficial
H7 Impacts
Training H4
Resources
H5 d. Achieved
Change Agent Desired Goals
Effectiveness H6

Measured
Benchmarks

Fig. 1. Graphical representation of study hypotheses

practices with each measure of change adoption, including (a) the Spearman 1904). Second, a multiple ordinal logistic regression was
change adoption construction, (b) sustained long term, (c) pro- performed to investigate the total variance in change adoption that
duced beneficial impacts, and (d) achieved desired goals. was explained by the change management practices used in collabo-
ration. Third, a more refined correlation analysis was performed on
Methods of Analysis the basis of the demographic subsections of the study sample.

First, Spearman’s rank-order correlation was used to establish


Study Sample
bivariate relationships between individual change management
practices and change adoption measures. Spearman’s rank-order The questionnaire was designed such that each response repre-
correlation is a nonparametric test and a common analytical sented an organizationwide change initiative. This unit of measure
approach for use with ordinal data measures (McClure 2005; was purposely selected to establish change management relationships

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across a broad sample that included numerous types of organizational strength was based on guidelines recommended by Keller and
change initiatives. A total of 237 organizational change initiatives Warrack (2000) and Lehtiranta et al. (2012).
were captors from the survey. A sample of the types of initiatives is Investigation of individual measures of change adoption (sus-
listed in Table 2. On the basis of size and variety, the sample was con- tained long-term, produced beneficial impacts, and achieved desired
sidered to be a fairly accurate representation of the AEC industry. goals) revealed minor changes in the relative importance of the in-
Respondent characteristics are presented in Table 3, which shows dependent variables. For example, senior leadership commitment
that a range of AEC organization types and sizes were represented in had the strongest relationship with an organization’s ability to sus-
the data sample and that the majority of respondents had more than tain long-term change, whereas it was only the fifth strongest rela-
20 years of experience. tionship with the overall change adoption construct.

Ordinal Regression of Change Management Practices


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Results and Change Adoption


Ordinal logistic regression tests were conducted to further explore
Reliability of the Change Adoption Construct the collected data and validate inferences from correlation results.
Internal reliability was investigated for the change adoption con- Separate ordinal logistic regressions were performed between all
struct. Cronbach’s alpha, which is a commonly accepted measure of change management practices and each change adoption measure.
scale reliability, was above the acceptable threshold of 0.7 Three pseudo-R2 measures were assessed for each model to identify
(Cronbach 1951; DeVellis 2003; Kline 2005). A principal compo- the variance explained, revealing that the change management prac-
nent analysis (PCA) with varimax rotation was performed to estab- tices collectively defined between 17.9 and 58.1% of the variance in
lish the change adoption construct. Inspection of the correlation ma- change adoption (Table 5). For each regression, proportional odds
trix showed that all variables had at least one correlation coefficient were assessed by a full-likelihood ratio test that compared each
greater than the 0.3 threshold. The overall Kaiser-Meyer-Olkin
(KMO) measure was 0.653, which is classified as mediocre accord- Table 3. Respondent Characteristics
ing to Kaiser (1974). The individual values of the KMO measure of Category Frequency Percentage (%)
each variable were greater than 0.6, and Bartlett’s test of sphericity
was statistically significant (p < 0.001), indicating that the data Organization size [gross revenue (US$
were likely factorable. A single factor was extracted on the basis of millions)]
visual inspection of the scree plot, which revealed only a single <30 29 12.3
point above the inflection point; this finding was supported by 30–99 25 10.6
100–499 29 12.3
results of varimax orthogonal rotation. The change adoption con-
>500 81 34.3
struct was established as the linear composite of the optimally
Unknown/not indicated 72 30.5
weighted original variables (sustained long-term, produced benefi-
Organization type
cial impacts, and achieved desired goals).
Owner 109 46
Contractor 45 19
Bivariate Relationships between Change Management Architecture/engineering 35 14.8
Practices and Change Adoption Unknown/not indicated 48 20.2
Hierarchical position
Spearman’s rank-order correlation was used to assess bivariate rela- Project team 24 10.1
tionships between change management practices and various meas- Project leader 51 21.5
ures of change adoption. The preliminary analysis showed the rela- Manager/director 71 30.0
tionships to be monotonic as assessed by visual inspection of scatter Senior executive 46 19.4
plots. Results of the correlation matrix are shown in Table 4. Unknown/not indicated 45 19.0
Statistically significant relationships were found at the 99% confi- Years of professional AEC experience
dence interval, which supported all hypotheses. (years)
Focusing on the change adoption construct, a strong positive 0–10 8 3.4
correlation existed with change agent effectiveness (rs = 0.714, 10–20 26 11.0
p < 0.01), and moderate positive relationships were found for com- 20–30 71 30.0
municated benefits (rs = 0.659, p < 0.01), realistic timescale (rs = 30–40 73 30.8
0.544, p < 0.01), senior leadership commitment (rs = 0.510, 40þ 25 10.5
p < 0.01), measured benchmarks (rs = 0.603, p < 0.01), and training Unknown/not indicated 34 14.3
resources (rs = 0.476, p < 0.01). Interpretation of association

Table 2. Examples of Organizational Change Initiatives Captured within the Data Sample

Organizational change category Common sample initiatives


Software BIM, project controls, project management, document management systems, paperless systems
Technology application Mobile technology, radio-frequency identification (RFID), materials tracking upgrades
Supply chain reorganization Industrialized construction, supplier relation management, customer relationship management system
Management and operations Lean, alternative project delivery, formal project management systems, alternative procurement, knowledge management,
safety management
Business strategy Enterprise risk management, business structure reorganization, entering a new market, change in marketing strategy

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Table 4. Spearman’s Correlation of Independent and Dependent Variables

Number Variable abbreviation 1 2 3 4 5 6 A B C D


1 Communicated benefits 1.000 — — — — — — — — —
2 Senior leadership commitment 0.439 1.000 — — — — — — — —
3 Realistic timescale 0.544 0.474 1.000 — — — — — — —
4 Training resources 0.620 0.317 0.547 1.000 — — — — — —
5 Change agent effectiveness 0.628 0.491 0.627 0.566 1.000 — — — — —
6 Measured benchmarks 0.518 0.450 0.472 0.490 0.565 1.000 — — — —
A Sustained long-term 0.384a 0.405b 0.330c 0.283d 0.380e 0.353f 1.000 — — —
B Achieved goals 0.634a 0.450b 0.580c 0.442d 0.687e 0.547f 0.509 1.000 — —
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C Produced beneficial impacts 0.634a 0.467b 0.487c 0.515d 0.691e 0.603f 0.462 0.741 1.000 —
D Change adoption construct 0.659a 0.510b 0.544c 0.476d 0.714e 0.603f 0.685 0.913 0.887 1.000
Note: Correlation was significant at the 0.01 (2-tailed) level for all variables.
a
Bivariate association with Hypothesis 1.
b
Bivariate association with Hypothesis 2.
c
Bivariate association with Hypothesis 3.
d
Bivariate association with Hypothesis 4.
e
Bivariate association with Hypothesis 5.
f
Bivariate association with Hypothesis 6.

Table 5. Summary Results of Ordinal Logistic Regression Tests

Test(s) Sustained long-term Achieved desired goals Produced beneficial impacts Change adoption construct
2
Cox and Snell pseudo-R 0.179 0.438 0.417 0.516
Nagelkerke pseudo-R2 0.289 0.569 0.535 0.581
McFadden pseudo-R2 0.205 0.393 0.357 0.331
Deviance goodness of fita 83.096 (p = 0.999) 106.32 (p = 0.919) 119.802 (p = 0.685) 81.219 (p = 0.997)
Likelihood-ratiob 42.437 (p < 0.05) 123.184 (p < 0.05) 39.518 (p < 0.05) 135.229 (p < 0.05)
a
p > 0.05 indicates model is a good fit.
b
p < 0.05 indicates better fit than the intercept-only model.

model with varying location parameters. The deviance goodness- tions that established clear measurements of change initiative
of-fit test indicated that each model was a good fit for the observed were nearly 4 times more likely to adopt the change in their long-
data, and all models were statistically significant over the intercept- term operations (p = 0.017). For the measure of achieved desired
only models, as shown by the likelihood-ratio test. goals, senior leadership commitment was the greatest odds ratio,
Notable statistically significant parameter estimates are reported resulting in a rate of successful goal achievement 11 times larger
for each ordinal regression with emphasis on differences between (p = 0.001) than organizations without visible senior leadership
change adoption results achieved by organizations that agreed ver- commitment. Furthermore, the second-greatest odds ratio for
sus disagreed that their organization effectively performed each achieved desired goals was the presence of effective change
change management practice. For the change adoption construct, agents (p = 0.022), which highlights the importance of leadership
the odds that an organization achieved a successful change adoption skills in managing change. For the dependent variable produced
was 20 times more likely when the benefits of the change were thor- beneficial impacts, organizations with senior leadership commit-
oughly explained (p = 0.001). Establishing quantifiable perform- ment had nearly a 6-times greater change adoption rate (p =
ance metrics improved the odds of successful organizational change 0.008). Organizations that established clear benchmarks were 4
adoption 7 fold. When effective change agents were present to times more successful (p = 0.001). The presence of effective
manage the change effort, the organization was 7 times more likely change enabled organizations to be 4 times more likely to achieve
to adopt the change (p = 0.001). When the organization established their desired performance improvements.
clear benchmarks to evaluate the success of the change initiative,
the organization was 7 times more likely to achieve successful
Demographic Trends and Change Adoption
change adoption (p = 0.000). Organizations that followed a realistic
implementation plan were 4 times more likely to successfully adopt Correlation analysis was performed for the change adoption con-
the change. Organizations with visible senior leadership commit- struct and the independent variables that were based on various de-
ment throughout the change were 4 times more likely to be success- mographic characteristics of the survey respondents. Results are
ful (p = 0.020). presented in Table 6 and key findings are described below in the fol-
When considering the effect of change management practices on lowing subsections.
individual measures of change adoption, parameter estimates from
ordinal logistic regressions revealed several notable results. For the Organizational Size
dependent variable of sustained long-term, the establishment of Firms with revenue greater than US$30 million agreed that vari-
clear performance benchmarks was found to have the greatest odds ous change management practices were related to their ability to
ratio among the change management practices such that organiza- influence adoption positively. However, smaller organizations

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Table 6. Summarized Correlation Analysis for Change Adoption Construct by Respondent Demographics

Communicated Senior leadership Realistic Training Change agent Measured


Category benefits commitment timescale resources effect benchmarks
Organizational size [gross
revenue (US$ millions)]
<30 0.796b 0.612b 0.599b 0.549b 0.786b 0.654b
30–99 0.671b 0.502a 0.588b 0.546b 0.742b 0.424a
100–500 0.772b 0.678b 0.693b 0.564b 0.700b 0.596b
500þ 0.587b 0.330b 0.338b 0.355b 0.622b 0.569b
Organizational type
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Owner 0.758b 0.511b 0.547b 0.477b 0.764b 0.641b


Contractor 0.559b 0.333a 0.546b 0.379a 0.565b .482b
Architect/engineer 0.639b 0.403a 0.356a 0.324 0.678b 0.596b
Hierarchal position
Project team 0.856b 0.634b 0.651b 0.737b 0.717b 0.711b
Project leader 0.630b 0.514b 0.444b 0.344a 0.632b 0.616b
Manager/director 0.722b 0.457b 0.481b 0.387b 0.777b 0.490b
Senior personnel 0.545b 0.410b 0.601b 0.434b 0.653b 0.647b
Professional experience
(years)
0–10 0.759a 0.839a 0.591 0.764a 0.261 0.606
10–20 0.747b 0.489a 0.361 0.522b 0.730b 0.512b
20–30 0.694b 0.353b 0.326b 0.301a 0.514b 0.453b
30–40 0.689b 0.522b 0.646b 0.542b 0.780b 0.677b
40þ 0.670b 0.681b 0.649b 0.306 0.810b 0.721b
a
Correlation is significant at the 0.05 level.
b
Correlation is significant at the 0.01 level.

found a stronger relationship between senior leadership commit- experienced personnel indicated feeling the most strongly that
ment and change agent effectiveness with the successful adop- change agent effectiveness was strongly associated with the
tion of organizational change initiatives. The finding might be change adoption construct.
attributable to small organizations providing individual leaders
with greater ability to extend their influence across the
organization. Discussion

Organizational Type Influence of Change Management Practices on


Correlation results indicated that different organizations within the Change Adoption
AEC industry—such as owners, contractors, and designers—
showed high consistency in their relationships between change The positive bivariate correlations between all change management
management practices and change adoption. practices and each measure of change adoption are consistent with
both the organizational behavior literature and the case-based
Hierarchical Position research within the AEC industry. These relationships, coupled
According to executive respondents, senior leadership commitment with the fact that ordinal logistic regression results explained as
was found to be a relatively unimportant factor in adopting change much as 58.1% of the variance in change adoption, confirm the
within an organization (rs = 0.410, p < 0.001). In a converse result, study hypotheses. On the basis of bivariate statistical relationships,
at low levels of the organizational hierarchy, much greater impor- the participation of effective change agents was found to have the
tance was placed on senior leaders, with project team perspective strongest relationship with achieving successful change adoption.
showing a strong relationship to adopting change (rs = 0.634, This result was followed closely by communication of the benefits
p < 0.001). Project teams expressed the strong belief that sufficient each employee would gain from the change within their specific job
training resources were critical in adopting change (rs = 0.737, function. Somewhat surprisingly, the least important change man-
p < 0.001), whereas no other members of the organization agreed, agement practice was the provision of sufficient training resources
perhaps indicating that training of technical skills for change is for employees to gain the necessary technical skills for implement-
most critical for employees who will experience the greatest impact ing the change (it had a moderately statistically significant relation-
of change on their daily job functions. ship with change adoption).
The relative importance of change management practices was
Years of Professional Experience largely consistent among several measures of change adoption.
Several trends were identified on the basis of the respondent expe- However, one notable area of deviation was that of senior leader-
rience. Early career professionals believed senior leadership (rs = ship commitment, which held the strongest relationship with sus-
0.839, p < 0.05) and training resources (rs = 0.764, p < 0.05) to taining organizational change over the long-term but was among
have strong positive relationships with the change adoption con- the least relatively important change management practice for the
struct. As the experience levels increased, the correlation coeffi- other change adoption measures. Perhaps this finding reflects that
cient for these variables decreased considerably. More senior leaders have a critical role of demonstrating that the change

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J. Manage. Eng., 2017, 33(6): 04017031


is not simply a trendy fad but that the organization is dedicated to management practice consists of actionable steps that industry pro-
making the transition. fessionals can take to improve the chances of successful change
adoption (Table 7).
Demographic Implications The global data sample within this study is also meaningful con-
tribution to the AEC literature, which is primarily limited to data
The uniformity of results across various organization types indi- sets that include only several organizations (or a single organiza-
cates that organizational change dynamics are fairly consistent tion) and are often restricted to a single type of organizational
across the industry. Organizational size was found to be a more im- change initiative. This study expands upon the existing body of
portant indicator in reprioritizing the relative importance of change knowledge by using a unit of measure such that each data point (N =
management practices, with smaller organizations experiencing 237) in the sample represents a different, organizationwide change
greater influence of senior leaders and change agents. within an AEC company. The numerous distinct types of change
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Demographic trends identified a potential communication break- initiatives captured within the data sample support broad applicabil-
down within the AEC organizational hierarchy. Executives placed ity of the findings across the wide variety of change events experi-
the least emphasis on the importance of senior leadership commit- enced in the modern AEC marketplace.
ment, whereas personnel relatively low in the hierarchy and less-
experienced personnel felt it was very important for successful Limitations and Recommendations for Future Research
change adoption. Perhaps senior leaders feel that they are unable to
force change, whereas project teams and newer career professionals Several study limitations were identified along with suggested areas
look to executives for leadership during an organizational transi- for future research. First, this study was limited to leading change
tion. Another demographically based finding was that experienced management practices identified within the organizational behavior
professionals felt that effective change agents are essential to literature. Although these practices explained up to 56.9% of the
change adoption, whereas those early in their professional careers variance in change adoption, substantial variance was left unex-
yearned for more detailed training of the technical skills and actions plained. Therefore, other factors likely contribute to successful
steps necessary to enact a change. change adoption, such as environmental factors, organizational cul-
ture, broader industry trends, global economic conditions, and so
forth. Future research may investigate additional change manage-
Conclusion ment practices and perhaps even identify certain change manage-
ment practices that are unique to the AEC industry that may not
Contribution have been identified in the organizational behavior literature.
Second, this study was based upon self-report responses, which
The study results contribute practical implications for AEC firms. may be affected by participant biases or inability to recall aspects of
First, the results imply that change management practices are con- past situations accurately. Future research may be designed to col-
sistent across industries. Second, this study empirically demon- lect multiple responses from each organization to capture perspec-
strates that achieving successful change adoption is as much—or tives from across the organization more accurately and thoroughly.
more—dependent on the soft skills of change management as on Another limitation was that the sampling technique allowed
the technical skills of learning to implement the change within the respondents to choose whether they reported a successful or unsuc-
organizational operations. In other words, organizational change cessful organizational change initiative. Analysis of the study sample
adoption is as much about hearts and minds of employees as it is revealed that respondents more frequently chose to report successful
about the nuts and bolts of the change itself. Third, effective change change initiatives by a slight margin. Future studies may consider a
management strategies are learnable skills in that each change sampling design whereby each participating organization is required

Table 7. Sample of Recommended Change Management Actions in Existing Literature

Ranka Change management practice Recommended actions for change practitioners


1 Change agent effectiveness Identify change agents who are influential yet distinct from senior executives/
Designate time & resources for change agent job responsibilities (i.e., not overburdening for the change).
Ensure change agents are active, visible, and available to help employees throughout the change.
2 Communicated benefits Answer the question, “What’s in it for me?” for all stakeholders within the company.
Create urgency by illustrating the disadvantages of the status quo.
Celebrate intermediate wins with employees to showcase relatable results.
3 Measured benchmarks Clearly identify (and track) the quantifiable performance outputs expected.
Define any new abilities, capabilities, processes, and functions that the company will acquire.
Ensure accuracy of the performance data and use the data to enforce positive accountability.
4 Realistic timescale Develop an implementation plan that accounts for all major change-related transition activities.
Avoid the temptation to push aggressively for a quick fix; rather, maintain focus on long-term adoption.
Set leadership expectations for patience and forgiveness of minor setbacks, which will encourage the change.
5 Senior leadership commitment Provide visible demonstrations of commitment for the duration of the change.
Be sure to walk the talk wherever possible by participating in the company’s new practices.
Illustrate that the change is not a fad by showing that leaders are focused on long-term adoption.
6 Training resources Provide up-front training and guides to minimize uncertainty before initiating change processes.
Establish avenues to encourage employee questions (thereby reducing uncertainty).
Provide on-the-job training for each employee’s job function.
a
Rank was based on the strength of association found via Spearman’s rank-order correlation coefficient.

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