10 Change Management and Knowledge Management

Copyright: Dr. Michael Lim

Module: Knowledge Management

5 Steps of Knowledge Management

•1. Process Mapping•2. Social Network Mapping•3. Knowledge and Knowledge Process Mapping•4. Strategy and Analysis•5. Change Management

Environment

Environment-Strategy-Structure-Operations (ESSO) Business Model (copyright: Dr. Michael Lim 2010)

OperationsStrategy

PESTEL and Opportunities and Threats- How do they affect us and our Customers, Competitors & Suppliers

Structure

•Hierarchy•Community (flat)•Mixed

•Key activities•Key resources•Key competitors•Key suppliers and partners•Key customers- segment, channel (e.g. direct, franchise)•Cost and Revenue

Knowledge Management•Knowledge in people’s heads•Documents, Databases and Resource Planning Programs•Strategy, Structure and Operations

OperationalCompetitive priorities •Cost•Quality•Time•Flexibility•Innovation•Affective

Design Copyright: Dr. Michael Lim (2010)

Lim, M. 2010. Environment-Strategy-Structure-Operations (ESSO) Business Model. Knowledge Management Module at Bangor University, Wales. Available at: http://www.communitiesofinnovation.com/L/Dr_Michael_Lim_Business_Model_Knowledge_Creation_and_Innovation_Lecture_9.ppt(last accessed 02/12/10)

Market opportunitiesCompetitive advantageResource based viewMarket access e.g. government contractsCustomer base– broad or narrow/ focused/ niche

Today’s Lecture

• Why do organizations plan to change?• Primary barrier to change• Why are people resistant to change?• Questions to ask before implementing change• Lewin’s Theory of behaviour modification for

change management• Styles and tactics for managing change• Learning Organization• Case Study: Wikipedia

So… why should I stay awake?

• Understand what prevents change in organizations• Understand how to implement change in

organizations carefully• Understand how to plan for a learning organization

that is capable of changing with the environment• Explore a social knowledge construction platform-

Wikipedia• Understand the influence of motivation on change

management- Wikipedia

Why do organizations plan to change?

• Respond to new Opportunities or Threats

• Anticipation of the above

Primary barrier to change

•People

Why are people resistant to change

• Power- “Why must I listen to you?”

• Perception- “That’s the way to do it.”

• Habit- “I am used to doing it that way.”

• Inconvenience- “It’s troublesome to change.”

• Money- “Am I earning less? Will I lose my job?”

• Security- “That’s the way it has always been done.”

Adapted from Johnson, G., and K. Scholes. 1999. Exploring Corporate Strategy. Fifth edition. Prentice Hall Europe, London.

• 1. Who does the change affect?• 2. Who will sustain the change?• 3. Is the change easy to understand and accept?

Questions to ask before implementing Change

•1. Unfreeze Macroprocess– Probe and map– Heat

•2. Integrate Macroprocess– Manipulate– Fit

•3. Freeze Macroprocess– Monitor– Reinforce

Integrating Knowledge

Adapted from Lewin, A. 1951. Field Theory in Social Science. Harper, New York.

- Unfreezing, movement, refreezing

•1. Unfreezing– Probe and map the forces that maintain behaviour in

its present form– Communicate need for change

•2. Movement– Development of new attitudes or behaviour– Implement change

•3. Refreezing– Stabilize change– Reinforce e.g. policies

Lewin’s Theory of Behaviour Modification for Change Management

Adapted by Mullins, L. J. 2007. Management and Organizational Behaviour. Seventh Edition. Dorling Kindersley, Delhi. From Lewin, A. 1951. Field Theory in Social Science. Harper, New York.

Forcefield analysis

• Forces for change • Forces against change

Johnson, G., and K. Scholes. 1999. Exploring Corporate Strategy. Fifth edition. Prentice Hall Europe, London.

Styles of Managing Change

• Direction

• Education and Communication

• Collaboration

• Intervention

•CoercionJohnson, G., and K. Scholes. 1999. Exploring Corporate Strategy. Fifth edition. Prentice Hall Europe, London.

Change Tactics

• Coherent change throughout the organization

• Use of the appropriate change agents

• Timing

• Caring approach to job losses or those who suffer as a result of the change

• Visible short-term wins

Johnson, G., and K. Scholes. 1999. Exploring Corporate Strategy. Fifth edition. Prentice Hall Europe, London.

Learning Organization

• Traditionally, organizations are seen as hierarchies that maintain order and control, building stability and achieving efficiency (exploitation).

• Now, the environment is fast changing, we need learning organizations that are fast at processing people’s collective knowledge and keeping in step with the customers’ changing demands (both exploitation and exploration).

Johnson, G., and K. Scholes. 1999. Exploring Corporate Strategy. Fifth edition. Prentice Hall Europe, London.

Four Premises of Learning Organizations

• Organizational learning involves a tension between exploration and exploitation

• Organizational learning is multi-level: individual, group, and organization

• The three levels of organizational learning are linked by social and psychological processes: intuiting, interpreting, integrating, and institutionalizing (4I’s)

• Cognition affects action (and vice versa)

Crossan, M. M., H. W. Lane, R. E. White. 1999. An organizational learning framework: from intuition to institution. Academy Management Review 24 (3) 522-537.

Crossan, M. M., H. W. Lane, R. E. White. 1999. An organizational learning framework: from intuition to institution. Academy Management Review 24 (3) 522-537.

Case Study: Social construction of knowledge

• Taking a look at Wikipedia

• Issues– Quality– Power of incumbent volunteers

• How to bring about change in an existing system that is being run by volunteers?