chapter 3 change path vs change tools

11/20/14 Mazlan bin Che Soh, FSPPP, Managing Change

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CHAPTER 3

CHANGE PATH VERSUS CHANGE

TOOLS


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At the end of the chapter, student should be able to:

• Explain why do change path differ?• Define change tools• Explain Lewin’s Three Stage Model• Explain Beckhard and Harris• Discuss about Business Process Re-engineering• Discuss Best Practices• Explain the Learning Organization


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Definition of Change Path and Change Tools

• Change Paths are formed from a unique blend of personal, organisational and environmental experience in managing change. These factors make each organisation’s that encounter with change, relatively different to each other in terms of change experience and how they handle change in their organization.

• Change Tools also known as Change Models are generic or standardised tools designed to bring about change in many organisations. Change tools often referred as ‘one size fits all’ techniques. However, it is only broad principles for planning change in which the application demands customization to fit with organization requirement.

Why Do Change Path Differ?• There are two theories that explain why change path

differ:

• a)Structural Contingency Theory– This contingency theory was introduced by Dexter

Dunphy and Doug Stace in 1990. This theory proposes ‘managers must identify organizational environment (external fit) in order to decide organizational structure’. Contingency theories emphasise on managerial choices to resolve five (5) dilemmas of change which require a choice from the following options which is adaptive strategy or rational strategy, cultural or structural change, continuous or radical transformation, empowerment or command and economic or social objectives.


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Why Do Change Path Differ?• Contingency theory argues that change strategies vary to

reflect different organizational environments and characteristics therefore organization need to adapt change plans to environmental conditions.

• b) System Theory• Systems theory was introduced by Andrew Pettigrew and

Richard Whipp (1993) often conflict with a Contingency theory. System theory focuses on the need for integration of different elements in organization towards an organizational change strategy. Systems theories emphasise on the existence of several inter-related elements in a change plan to facilitate change which are environmental assessment, change leadership, linking strategic and operational change, coherence and leveraging human resources.

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Differences between Change Path and Change Tools

Contingency Approach(if-then approach)

System Approach(one best way approach)

Focus on the importance of external fit. Organization need to “read the firm’s environment “to decide the organizational structure.

Focus on the importance of internal fit. Organization needs to integrate the change strategy with inter-related elements of an organizational change program).

Criticize ‘one best way method’ as rigid.Belief that organization must fit its external environment due to turbulent realities of change.

Belief that indiscipline will be the fatal of change. The success of change relies upon synergies between inter-related elements of the change plan.

Belief that change will force organization away from its planned change, therefore dropping some change formula and rearranging back those formulas.

Belief that any weak link in the chain of elements will cause the change strategy fails.


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Change Tools• a)Lewin’s Three Stage Model• The study of change tools usually starts with Kurt Lewin

that pioneering work on organisational change in the 1940s. He focused on planned organizational change that provides a model of change from one stable state to the next state. His study of socio-spatial relations’ between individuals and groups led to the idea that there are ‘field forces’ which create group stability.

• According to Lewin organizations’ are constantly exposed to two (2) sets of field forces which are those that maintain stability and those that break it down. Planned change requires that ‘field forces’ be freed up and then restored after planned change is complete. Planned change occurs in three (3) steps


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Change Tools- Lewin’s Three Stage Model

i) Unfreezing (breaking field forces for stability)

• This may involve breaking psychological attachment to the past by using information that able to demonstrate the existence of problems. It is an early action or effort in order to break the resistance. For example, management may prove that reliance on old skills and technology will cause sales to fall and the business to fail.

ii)Moving (introducing new norms of behaviour)

• It also involves the acceptance of new norms and values by organizational members. For example, new technology and new skills may be introduced requiring

new social relations between staff. 11/20/14 Mazlan bin Che Soh, FSPPP,

Managing Change8

Change Tools- Lewin’s Three Stage Model

iii)Refreezing (restoring field forces for stability)

• Reinforcement is necessary to stabilise the system or to restore equilibrium where after we have forced change to happen, we need to put everything back in normal situation after the change is successfully done. For example, new norms or values will support the fresh skills, technology and social relations. However, the notion of refreezing is thought to be of declining relevance in the present age when organisations are expected to thrive on constant change or chaos


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Change Tools- Lewin’s Three Stage

Model


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Change Tools-Beckhard and Harris Model• Traditionally, "change programs" have often been driven

by technology implementations or upgrades, with business processes and working practices being changed to fit in with the new system. However, any change will encounter with the resistance and comments. How will you get everyone to agree with the changes?

• This is where Beckhard and Harris's Model can help. This model also known as Beckhard and Harris's Change Equation Model, in which this model explaining on how to overcome the resistance of change. Richard Beckhard and Rubin Harris first published their change equation in 1977 in "Organizational Transitions: Managing Complex Change", and it's still useful today.


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Change Tools-Beckhard and Harris Model


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• The change model formula (change equation) developed by them are:-

• Beckhard and Hariss Model

D x V x F > RDissatisfaction x Vision x First Step > Resistance to change


• According to them , for change to happen successfully, the following statement must be true as shown below:


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Dissatisfaction x Desirability x Practicality > Resistance to change

• How to use this model as change tools:• Beckhard and Harris's change equation is most useful as a checklist

in the planning and communication stages of a major change. When you are planning your change process, consider each variable to make sure your team are feeling dissatisfied with the current situation but they believes the future state is both desirable and practical.

• This seems to be a simple statement, but it's surprisingly powerful when used to structure a case for change. And because there's a multiplicative relationship between Dissatisfaction, Desirability and Practicality, if one element is missing, that variable will have a value of zero – meaning that this whole side of the equation will equal zero. Let's define each element, and look at why we need it:


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i) Dissatisfaction• A team has to feel dissatisfied with the current situation before a

successful change can take place. Without dissatisfaction, no one will likely feel very motivated to change. Dissatisfaction could include competition pressures ("We're losing market share") or workplace pressures ("Our sales processing software is crashing at least once a week"). Dissatisfaction can be any factor that makes people uncomfortable with the current situation.

ii) Desirability• The proposed solution must be attractive, and people need to

understand what it is. If your team doesn't have a clear vision of what things will be like after the change, and why things will be better, then they probably won't be willing to work to deliver it. The clearer and more detailed you make this vision, the more likely it is that your team will want to agree with the change and move forward.


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iii) Practicality• The team must be convinced that the change is

realistic and executable.

iv)Resistance to change• Resistance to change includes people's beliefs

in the limits of the change ("A new system won't fit with our unusual business process"), stubbornness toward any change ("I don't want to have to learn how to use a new system"), and general inertia or lack of interest at the beginning.


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Business Process Re-engineering

• BPR is another change tool of the 1980s publicised in the 1993 by Hammer & Champy in their bestseller book Re-engineering the Corporation. BPR is a fundamental re-evaluation and redesign of a business processes, retaining and improving only those processes that add value to the end user.

• It involves a rejection of segmented organisational structures built around narrow functional tasks. Instead, business should be structured around integrated business processes that can deliver value to the customer.


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BPR• Re-engineering as an activity requires:

i)Plotting (evaluate and identify) essential elements in the flow of work (processes)

ii)Retaining only those steps in the process that ‘add value’ to customer.

iii)Eliminating unnecessary steps in the process.

iv)Outsourcing necessary steps to organisations that can perform them more efficiently.

BPR is a radical tool for renewal in which old structures or processes are torn up and the whole production process is redesigned. BPR fits with contemporary business strategy which focuses on ‘core processes’. BPR is now associated with ‘downsizing’ and ‘outsourcing’


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Best Practices• This model was adapted from TQM by US businesses and researchers in

the 1980s. Models of ‘best practice’ are holistic or systemic in nature. They comprise several essential and inter-related elements that must all support each other if any are to work. These models are also said to be based on observation of ‘business success stories’.

• There are six (6) essential elements of best practice as follows:

• A focus on simultaneous improvement in cost, quality and delivery.• Closer links to customers.• Closer relationship with suppliers.• The effective use of technology for strategic advantage.• Less hierarchical and less compartmentalised organisations

for greater flexibility.• Human resource policies that promote continuous learning,

teamwork, participation and flexibility.


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Best Practices


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Learning Organization• The ‘learning organisation’ concept was developed in the

1970s by Argyris and Schon and popularised in the ’90s by Peter Senge (The Fifth Discipline). The learning organization as a change tools suggest a cooperative system of work organization in which semi-autonomous work-teams, supported by appropriate technology and information system engage in double loop learning. This approach assumes that:

• Knowledge (skill) is an important resource in organisations;

• Knowledge can be improved by understanding the learning process; and that learning processes can be linked to organisational goals.


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Learning Organization• Learning organisation theorists distinguish three (3) approaches to learning:

i) Haphazard learning• There is no process to reinforce learning, especially positive lessons if the objectives

of learning are unclear. What is learned may work against organisational needs. Organization must avoid learning of knowledge or skills that brings no benefits to the organization.

ii) Goal-based (single loop) learning• Single loop learning includes goal setting and feedback to reinforce learning process.

Learning objectives are linked to organisational needs. Staff is given feedback (performance appraisal) on their application of skills (performance) in relation to organisation targets.

iii) Double-loop learning• Organisational needs are revised to take account of input from staff (individuals and

groups). This input is based on their experience of applying their skills to the goals previously set. Double loop learning occurs when the previous knowledge become out of date (obsolete). Double-loop learning implies that organisations learn from their staff (the 2nd feedback loop) as much as staffs learn from the organisation (the 1st feedback loop).


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Learning Organization• Five (5) characteristics of learning organization by

McGill, Slocum and Lei– Flat organizational structure that emphasize on

teamwork.– 2-way information systems based on benchmarking

and continuous improvement.

– Human resource practices that develop skills and cooperative attitudes.

– Organizational culture that promotes innovation and creativity.

– Democratic or counselling leadership style.


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Learning Organization

• Five (5) characteristics of learning organization by Peter Senge– Personal Mastery (own self capability in multi discipline).– Shared Vision (genuine commitment rather than compliance

among organizational members).– Team learning (alignment and capability development among

members that produce results mutually desired).– Mental Models (images or generalization that makes us

understand things and to take action based on it).– System thinking (conceptual framework, body of language that

make us see things clear and useful to change people effectively).


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chapter 3 change path vs change tools

Education

structural change

change plans

change models

change strategies

operational change

planning change

dilemmas of change

organizational change