Summary: Process Improvement and change

Chapter 1: Changing organizations in our complex world.

Organizational change = planned alterations of organizational components (like vision, strategy, culture etc.) to improve the effectiveness of the organization.

If employees get the vision of the organization and understand the direction and perspective of where the organization is going and why, they are more likely to embrace their future role.

Environmental forces driving change today:Globalization means that marketing, research and development, production and other parts of an organization can be moved around the world or outsourced.

PESTE factors: Describe the context of an organization- Political- Economic- Social- Technological- Environmental

Three macro changes facing us today Leading to globalization of markets- Digitization of information- Integration of nation states and the opening of international markets- The geographic dispersion of the value chain.

Four types of organizational change1. Episoxic and discontinuous (planned) vs. continued ( emergent and self-organizing, constant, kaizen = continuous improvement) 2. Programmatic / planned vs. Respons to external events

1.Tuning: - Small, minor changes- Ongoing basis to improve efficiency / effectieveness- Quality improvement programs from middle-management

2.Adapting:- Minor changes- Respons to external stimuli – response to observed- Middle management respons to changes in environment

3.Redirecting or reorienting- Major strategic changes- Result from planned programs- Provide new perspectives and directions in a significant way

4.Overhauling or re-creation- Dramatic shift- Reaction to major external events- Often crisis situation forces the change-

Redirecting and overhauling have an greater impact on the individuals and are more challenging and time consuming.

Participants in organizational change- Change implementers:

o The ones making changes happen- Change initiators / champions

o Pushed or encouragedo Frame the vision for the changeo Provide resources and support for the initiative.o They get things moving, take action and seeking the initiate to

make things better.

- Change recipientso Receiving the end of change

- Change facilitatorso Won’t be responsible for implementing the change, but they will

assist initiators and implementers in the change through their contacts and consultative assistance.

One person might of course play multiple roles. The person who leads the change is the change leader / agent.

Requirements for succesful change (4p’s)- Planning- Persuasion- Passion- Perseverance

Chapter 2: Frameworks for leading the process of organizational change “how” to lead organizational change.

There are two distinct aspects of organizational change that must be adressed:1. Managers must decide both How (process) to lead organizational change2. Decide What (Content) to change in an organization.

The Sigmoid curve outlines where one should begin changing and where it becomes obvious that one needs to change. The time to introduce change is when the system is growing, and where the line is almost declining.

6 models of organizational change.1. Stage Theory of change: Lewin

I. Unfreeze- Focus on beliefs and assumption of people engaged in the

process who do not have the same ideasII. Change

III. Refreeze- Once the change has been completed these systems,

structures, beliefs and habits can refreeze in their new form.

Concerns regarding this model- Simplicity: It suggests that change is linear- Need for change needs more attention- Change is not seen as a continuous improvement process

2. Stage model of organizational change: Kotter Structured eight stage process:1. Establish a sense of urgency: 2. Create a guiding coalition3. Develop a vision and strategy4. Communicate the change vision5. Empower employees6. Generate short-term wins7. Consolidate gains and produce more change8. Anchor new approaches

3. Giving Voice to Values: Gentile Focusses on the ethical implications of organizational change.GVV takes people through a learning process that prepares them to expect values conflicts and provides the tools to intervene when they perceive wrong doing.1. Clarification and articulation of one’s values

a. Five widly shared values are: Honesty, respect, responsibility, fairness and compassion

2. Post-decision-making analysis and implementation plana. Stakeholder analysisb. Research how stakeholders might respond to changec. What levers can you use to persuade stakeholders to join

3. The practive of speaking one’s values and receiving feedbacka. Making your values more clear by practicing

4. Emotional transitions through change: Duck Captures the people and their emotional responses to the change processDucks’s five-stage change curve:1. Stagnation: People have to wake up from external or internal

change pressures. 2. Preparation: Dramatic announcement and planning of change

from an internal person.3. Implementation: Designing new organization structures, plans

and descriptions. And changing people’s mindset and habits4. Determination: People start realizing that change is real and

their work will change. 5. Fruition: Hard work pays off and the organization seems new.

5. Managing the change process: Beckhard and HarrisHas a strong focus on process

a. Describe the desired future state and current state Results in a gap analysis.

b. Describe how the organization will reach this desired statec. Manage the transition

6. The change path model: Cawsey-Deszca-IngolsCombines process and instructions (more detailed than Beckhard)Change path:1. Awakening:

I. Leaders need to scan internal and external environment2. Mobilization

I. Determiniation of what specifically needs to changeII. Vision for change and gap analysis is further developed

III. Engange people in change process3. Acceleration:

I. Action planning and implementation4. Instituationalization:

I. Succesful conclusion of the transition to the desired new state

The six models have more similarities than differences:i. Each is a process model Describe HOW change should happen.

ii. Lewin and Duck are Descriptive, Kotter, Gentile and Beckhard are presciptive, while the change path combines both

iii. Lewin is system level, Kotter, Beckhard and the change path are organizational level and Gentile and Duck are both

iv. Models describe the same processess but highlight different aspects.

Chapter 4: Building and energizing the need for change

Responsibility diffision: Happens when multiple people are involved and everyone stands by, assuming someone else will act.

External Data- Published research or trade papers (concrete)- Comments collected from customers and suppliers (less tangible)

Perspective of stakeholders- External; suppliers, government, customers, alliances- Internal; supervisors, employees, IT, finance, HR

Rule of thumb: Talk with stakeholders three times more you think and listen four times more as you think you should.

Internal Data- Hard data; custoemr satisfaction, cycle time, service profitability- Soft data; Found by walking around through the company. How people

act.

Develop an assessment of the need for change1. What do you see as the need for change and the important dimensions

and issues that underpin it?2. Have you investigated the perspective of internal and external

stakeholders?3. Can the different perspectives be integrate in ways that offer the

possibility for a collabortative solution?4. Have you developed and communcated the message concerning the need

for change in ways that have the potential to move the organization to a higher state of readiness for and willingness to change?

Eight dimensions related to readiness:1. Trustworthy leadership2. Trusting followers3. Capable champions4. Involved middle management5. Innovative culture6. Accountable culture7. Effective communications8. Systems thinking

Once change leaders understand the need for change, they can take different approaches to heighten / increase the awareness of the need throughout the organization by:

1. Make the organization aware that it is in or near a crisis that needs to be solved.

2. Identify a transformational leader based on higher-order values3. Find a transformational leader to champion the change4. Take the tie to identify common or shared goals and work out ways to

achieve them.5. Use information and education to raise awareness of the need for change.

Readying an organization for change (Armenkin et al.):1. The need for change is identified in terms of the gap between the current

state and the desired state.2. People believe that the proposed change is the right change to make 3. The confidence of organizational members has been bolstered so that

they believe they can accomplish the change.4. The change has the support of key individuals the organizational

members look to.5. The “what’s in it for me” question has been addressed.

Groupthinking can be a hugh problem in readiness for change and should be avoided by:

- Have the leader play an impartial role, soliciting information and input before expressing an opinion.

- Actively seek dissenting views. Role of devil’s advocate, challenging the majority’s opionion.

- Actively perue the discussion and analysis of the costs, benefits and risks of diverse alternatives

- Ensure an open climate for discussion and decision making- Allow time for reflection

Developing a well-grounded awareness of the need for change is a critical first step for change leaders when helping organizations overcome members to change.

A vision for change clarifies the road ahead and specifics the purpose of the change and provides guidance and direction for action. Creating a vision is central in making the gap analysis ( visualizing desired state).

Vison is closely connected to the mission of the organization (its fundamental purpose or reason for existence) and informs the core philosophy and values of the organization.

Jick outlines three methods for creating vision:1. Leader-developed

Leader creates vision and communicates it with others2. Leader-senior team-developed

Members of the senior team create the vision3. Bottom-up visioning

Employee-centric approach (=time consuming)

According to Todd Jick good visions are:- Clear, consistent and easily understood- Memorable and challenging- Implementable and tangible- Stable but flexible- Excellence centered

According to Lipton, an vision should contain the following to be effective:1. The mission or purpose2. The strategy for achieving the mission3. The elements of the organizational culture that seemed necessary to

achieving the mission and supporting the strategy.

Corporate vision (Long term) and Change vision (short term)

Chapter 5: Navigating change through formal structures and systems

An organizational’s formal structure is defined by how tasks are formally divided, grouped, and coordinated. Formal structures are designed to support the strategic direction of the firm by enhancing order, efficiency, effectiveness and accountability.

Formal systems:- Planning systems- Control systems- Performance management- Reward system- Information system

They provide the formal instrastructure that operationalizes the organizational structure

Differentiation: The degree to which tasks are subdivided into separated jobs or tasks. Integration: The coordination of the various tasks or jobs into a department or group. Extent to which activities are combined into processes and systems.

Chain of command: Defines how individuals or units within an organizational report to one another up and down the organizational ladder.

Span of control: The number of individuals report to a manager the ratio of workers to managers in an organization.

Centralization vs. Decentralization: How and where decision making is distributed in an organizational structure

Formal vs. Informal: The degree to which organizational charts exist, are codified and are followed.

Mechanistic organizations: Rely on formal hierarchies with centralized decision making and a clear division of labor. Work is specialized and routine. fits better with cost strategies.

Organic organization: Are more flexible, have fewer rule, procedures and there is less reliance on the hierarchy of authority for centralized decision making. Jobs are less specialized. Fits better innovation

Organizational effectiveness can be reached if there is a fit between the information-processing requirements of an organization and the structural design choices of this informational-processing capacity.

Information processing capacity of structural design choices- Vertical: Rules, Policies, Hierarhical, vertical communication- Horizontal: Direct contact, Formal teams, Managerial linking roles.

7 types of relations that will help overcome boundaries impair information flow:1. Direct contact2. Use of individuals in liaison roles (responsibility for communication) in

groups3. Multidepartment task forces4. Formal teams5. Integrating roles6. Managerial linking roles7. Structures with dual-authority relationships

Gaps versus overlap dilemma (Bolman and Deal). If tasks are not clearly assigned they can easily fall through the organizational cracks. But, if managers overlap assignments they may create conflict, wasted effort and redundancies.

Structural decisions should follow strategic decisions because the structure will then be there to support the strategy.

The formal approval process does more than ensure that the decision making concerning change is thorough and reasoned. If the process is viewed as legitimate by others in the organization, its decisions will lend legitimacy to what changes are pursued and enhance acceptance.

Howell and Higgins identified to use system awareness to advance change:- Strategies based on creeping commitment

o Employee surveyso Benchmark datao Pilot programs Clarify the need for change and reduce resistance

- Strategies based on Coalition buildingo Identify key user groupso Move decision in a favourable directiono Support from key coalition members to get formal approval

Renegade method: It is often easier to gain forgiveness than permission to do something in organizations. (Peter Grant’s Just do it’ approach)

The effective use of the formal commitment, performance management and reward systems can play useful roles in gaining acceptance and commitment. The way that systems and processes are deployed will influence the perception of change.

There is a greater need for flexibility and adaptiveness, which can be achieved by- Processes to promote trust- Communication- Cross functional teams- Flattened structure- Transparency in leadership- Collaborative relationships

Chapter 6: Navigating Organizational politics and culture

Power can be used strategically to influence organizations toward healthier ends. Capacity to influence others to accept one’s ideas or plans.

Hardy’s dimensions of power:1. Resource power: The access to valued resources in an organization2. Process power: The control over formal decision-making arenas and

agendas3. Meaning power: The ability to define the meaning of things

The culture of a group can be defined as six sub-parts:1. A pattern of shared basic assumptions2. That was learned by a group3. As it solved its problems of external adaption and internal integration4. That has worked well enough to be considered valid5. Therefore to be taught to new members6. As the correct way to perceive, think and feel in relation to those

problems.

To analyse a culture, there are three levels (Schein):1. The visible aspect or artifacts of the organization2. The organization’s espoused beliefs, values and strategy.

a. Most change agents start change at this level of culture.3. Basic underlying assumptions that have becomeso ingrained and so much

a part of a group’s thinking and perspective on the world that they are not questioned.

a. Are extreme difficult to change

A change agent needs to analyse a culture at three levels:1. Observe the artifacts: Ex. How people are dressed and interact.2. Read documents and talk to people to learn espoused beliefs and values:

Ex. What does the organization say about itself on the internet3. Observe and ask people about underlying assumptions: Ex. What is the

nature of human being?

Power tactics: Strategies and tactics deployed to influence others to accept one’s ideas or plans.

The change equation: The more people see the benefits of a change or the more they are dissatisfied with current situation, the more they are willing to change. People need to perceive both positive impact of the change on organizational and individual level.

Useful tools in helping change leaders to understand forces against change1. Force field analysis: identifying and analysing the driving and

restraining forces in an organization.

2. Stakeholder analysis: A process of identifying the key individuals or groups in the organization who can influence the proposed change. making stakeholder map to show all people and positions.

Cross and Prusak clarify organizational members as:- Central connectors: People who link with one another- Boundary spanners: People who connect the formal and informal

networks to other parts of the organization.- Information brokers: People who link various subgroups.- Peripheral specialists: People who have specialized expertise in the

network.

Moving each stakeholder on a change continuum:Awareness of the issue Interest Desire for action Take action

Flip-flop changes: Forces are weak and change events are not very important, but the situation could change only to reverse itself easily. (For example if people have shifting preferences).

Change occurs when:Perceived benefits of change > Perceived cost of change

OR

Dissatisfaction X Benefits X Succes > Cost

Chapter 7: managing recipients of change and influencing internal stakeholders

Recipients of change: find themselves on het receiving end of a change initiative and have little power to alter the direction or content of a change initiative

Resistance to change includes actions that are intended to slow or prevent change from happening. Resistance arises when an individual comes to believe that the costs outweigh the benefits and that opposition is warranted. Actions can vary:

Change leaders need to: - channel the energy in positive ways, not letting the enthusiasm for change

overwhelm legitimate concerns- name the problem of mixed feelings and the need to understand the

different reactions to change- appoint highly respected, positively oriented stakeholders to chair

significant committees or oghter change initiative structures, and ensure they have the skills and resources required to fill these roles in ways that don’t stifle needed discussions and debate. Transparency, openness to learning, and the willingness to translate learning into practice will advance recipient openness to change.

- manage the pace and remember that going too slow can dampen support for change with enthusiasts, while going too fast will create anxiety in those who are doubtful and fatigue.

Some causes to negative reactions to change: negative consequences appear to outweigh the benefits communication process is flawed, leading to confusion and bouts there is concern that the change has been ill conceived, insufficiently

tested or may have adverse consequences that are not anticipated. the recipients lack experience with change and its implications or have

habituated approaches that they rely upon and remain committed to.

recipients have had prior negative experience with a similar change recipients have had prior negative experiences with those advocating the

change

Ambivalence to change: the mixed emotions that a change initiative can trigger. Ambivalence arises from uncertainty and occurs when we are asked to act in ways that are inconsistent with our existing attitudes. These mixed emotions generate discomfort that we seek to resolve. There is advice that suggests we have an easier time giving voice to mixed feelings involving conflicting beliefs than we do when negative emotional responses are involved. Once the individual has resolved his or her ambivalence, subsequent changes to those attitudes become much more difficult until a new sense of ambivalence arises.

change leaders should be: focusing on helping people make sense of the proposed changes listening for information that may be helpful in achieving the change constructively reconciling their ambivalence sorting out what actions are now needed

Psychosocial contract represents the sum of the implicit and explicit agreements we believe we have with key individuals and the organization concerning our employment relationship. These ground our expectations concerning ourselves and the organization, concerning terms and conditions, norms, rights, rewards and obligations.

Stages in reaction to change: typically must progress through when coping with a more traumatic change are:

- before the change: anticipation and anxiety phase. Issues are coping with uncertainty and rumours about what may or may not happen.

- During the change: shock, denial and retreat phase. issues are coping with the change announcement and associated fallout, coping with uncertainty and rumours, reacting to the new reality.

- After the change: acceptance phase. Issues are putting residual traumatic effects of change behind you, acknowledging the change, achieving closure and moving on to new beginnings, adaptation and change.

Survivor syndrome: reaction of those who survive a poorly handled, traumatic change such as a downsizing.

Predisposition to change: Are we typically innovators, early adopters, members of the early majority of adopters, members of the late majority or the group of individuals who are very late adopters or non-adopters.

Tolerance for turbulence and ambiguity: involves our comfort level with these conditions. individuals who have higher tolerance levels generally will be more comfortable and open to change, while those who have lower tolerance levels will prefer more stable and predictable environment.

Competency or a complacency trap: the tendency to rely on competencies and strategies that have worked in the past.

Steps to minimize the negative effects on change:- engagement: trust is increased and rumours are reduced when leaders share

story after story about problems that are driving the need for change, what is known and not known, process, action plans and timelines.

- timeliness: hear in a timely fashion and be given time to constructively process what they have heard.

- two-way communication: change leaders need to be open to learning as much from exchanges as followers. Using multiple channels is the best.

- Make continuous improvement the norm- encourage people to be change agents and avoid the recipient trap.

Scepticism relates to doubts and concerns we may have concerning the capacity of the change to deliver the promised results. These may be rooted in the change itself, the adoption process, concerns about the change leadership, or unease about the organization’s and other key stakeholders’ responses to the change.

Cynicism occurs when we fundamentally lose faith in the change, the adoption process, the key individuals involved, or the organization.

Chapter 8

Change agent effectiveness: a function of the person, his vision and the characteristics of the situation

Essential characteristics to change leaders: 1. Commitment to improvements2. Communication and interpersonal skills3. Determination4. Eyes on the prize and flexibility 5. Experience and networks6. Intelligence

Exothermic: describes a change situation when energy is liberated by action. Endothermic describes a change program that consumes energy and arouses opposition, which then requires more energy from the change agent.

Change leaders pull people to change through the use of a powerful change visionChange managers create change by working with others, overcoming resistance, and problem solving situations,

Developmental stages of a change agent vary from a novice stage to an expert stage through successful experiences with increasingly complex, sophisticated change situations.

Types of change leaders: - Emotional champion: has clear and powerful vision of what the

organization needs and uses that vision to capture the hearts and motivations of the organization’s members

- Developmental strategist: applies rational analysis to understanding the competitive logic of the organization and how it no longer fits with the organization’s existing strategy

- Intuitive adapter: has the clear vision for the organization and uses that vision to reinforce a culture of learning and adaptation

- Continuous improver: analyses micro environments and seeks changes such as re-engineering systems and processes.

Hunsakers change roles: Catalyst: needed to overcome inertia and focus the organizations on the

problems faced Solution giver: knows how to respond and can solve the problem as well

as convince others to pursue their solutions Process helper: facilitates the how to of change, playing the role of third

party intervener often Resource linker: brings people and resources together in ways that aid

in the solution of issues Internal change agent: an employee of the organization who knows the

organization intimately and is attempting to create change. External change agent: person from outside the organization trying to

make changes. Often this person is an outside expert and consultant. Change team: group of employees, usually from a cross-section of the

organization, that is charged with a change task Champion: person within the change team who will fight for the change

under trying circumstances and preserve throughout adversity Steering team: plays an advisory and guidance role to change leaders

and design and implementation teams Design and implementation team: responsible for the actual design and

implemtations of the change initiatives Change project manager: coordinates planning, manages logistics,

tracks the team’s progress toward change targets and manages the adjustments needed along the way.

Sponsor: senior executive who fosters commitment to the change and assists the change agents who are actively making the change happen

Visible sponsorship: entails actions including leveraging of influence and time to advocate for the change

Information sharing and knowledge development: when the sponsor provides useful information to the change team and ensures that the team’s change plans are sound.

External change agents are often hired to promote change through the technical expertise and credibility they bring to an internal change program. They bring fresh perspectives from ideas that have worked elsewhere, are process experts, provide independent and trustworthy support. But they may lack the deep knowledge of the political environment and culture of the organization that the inside change agents should have, and in the end it is the organization that needs to take responsibility for the change, and can thereby not replace the internal change agents.

Developing a change team has seven factors that a critical to team success with self-managed teams:

1. Clear, engaging direction2. A real team task3. Rewards for team excellence4. Availability of basic material resources to do the job5. Authority vested in the team to manage the work 6. Team goals7. Development of team norms that promote strategic thinking.

Design rules for top teams: 1. Keep it small (10 or fewer)2. Meet a minimum of biweekly and demand full attendance. 3. Everything is your business, no information is off-limits4. Each of you is accountable for your business5. No secrets and no surprises within the team6. Straight talk, modeled by the leader7. Fast decision, modeled by the leader8. Everyone’s paid partly on the total results

Sponsors may also provide protection for those who are delegated with change tasks, allowing change agents to be less risk averse and more willing to champion the change.

Middle powerlessness: the feeling of a lack of power and influence that those in middle-level organizational roles often experience when organizational changes are being implemented. Pressures comes from above and below and they see themselves as ill-equipped to respond.

Rules of thumb for change agents: things for change agents to keep in mind to ensure their survival and success over the long term.

- Stay alive: stay in touch with those things that energize you. - Start where the system is: experienced change agents diagnose the

system, understand it and begin. - Work downhill: work with people in a system in a collaborative fashion- Organize, but don’t over-oganize- Pick your battles carefully - Load experiments for successes: set up the situation and position it as

positively as possible. - Reflect- Think and act fast- Create a coalition - Enz.

Chapter 9: action planning and implementation

Change leaders recognize the usefulness of plans and the imperative of action. Prepare, take action, and learn from the results. Change initiators have a ‘do it’ attitude. Change often initiates by management, because they have access to all data and see the organizational problems and envision solutions. But, they are not in the field. In ideal world, change leaders are located in the middle of the organization. But this is often not the case. If middle management has an idea, they may lack interest because of other priorities and political realities.

When organizations can learn from bottom up, they prospect for successful adaptation. From top-down, this can take long, and people lower in hierarchy can sometimes make decisions without permission. There is a middle between an environment that punishes taking risks, and one which rewards such initiatives.

Mintzberg and westley’s change approaches:- Thinking first strategy: works best when the issue is clear, data are

reliable, context is structured, thoughts can be pinned down, and discipline can be established as in many routine production processes. (introduction six sigma)

- Seeing first strategy: works best when many elements have to be combined into creative solutions, commitment to those solutions is key, and communication across boundaries is essential. (new product development)

- Doing first strategy: works best when situation is novel and confusing, complicated specifications would get in the way, and a few simple relationship rules can help people move forward. (if feedback is wanted of new customer service approach)

Three generic change strategies by nohria and khurana:- Programmatic change: mission, plans and objectives. Is implemented by

training, timelines, and steering committees. The main issue is lack of focus on behavior, one solution for all and inflexibility

- Discontinuous change: initiated from top, clear break, reorientation. It is implemented by decrees, structural change, concurrent implementation. Issues are political coalitions derail change, weak controls, stress from the loss of people.

- Emergent change: ambiguous, incremental, challenging. Is implemented by use of metaphors, experimenting and risk taking. Issues are confusion over direction, uncertainty and possible slow results.

Unilateral approach: if one first changes systems and structures, forcing behavioral changes, that action will in turn produce changes in attitudes and beliefs over time. Participative approach: you first need to engage and change attitudes and gain acceptance of an initiative before restructuring systems and organizational structures. Unilateral approach may ensure that things are done, but can be risky and needs to be managed with care.

Techno-structural refers to change that is based in structures, systems and technology. Behavioral-social change is focused on altering established social relationships.

Action planning and implementation involved planning the work and working the plan. Right decisions mean approximately right as change agents obtain feedback from action and make adjustments as they act.

Steps of effective change1. Mobilize commitment to change through joint diagnosis of business

problems2. Develop a shared vision of how to organize and manage for

competitiveness3. Foster consensus for the new vision, competence to enact it and cohesion

to move it along. 4. Spread revitalization to all departments without pushing it from the top5. Institutionalize revitalization through formal policies, systems and

structures6. Monitor and adjust strategies in response to problems in the

revitalization process.

Tabel 9.2 for comparison of change models.

Tools for action planning: 1. To do list2. Responsibility charting 3. Contingency planning: consideration of what should be done when things

do not work as planned on critical issues.

Contingency planning importance of thinking through what should be done should events not go as planned. Tools:

- Decision tree analysis: consider the major choices and the possible consequences of those alternatives

- Scenario planning: change strategy is formed by first developing a limited number of scenarios about how the future may unfold and then assessing what the implications of each of these would be to the organization.

Scenario planning differs from forecasting, forecasting starts in the present and uses trend lines and probability estimates to make projections about the future. Scenario planning starts by painting a picture of the future and works backwards, asking what would have to happen to make this future scenario a reality.

4. Surveys, survey feedback and appreciative inquiry Surveys are used to access the opinions of internal and external stakeholders and assess attitudes and beliefs of relevance to the change. Survey feedback is an action research method developed by organizational development practitioners as a way to stimulate and advance conversations and insights concerning what is going on in the organization and how employees are feeling.

5. Project planning and critical path methods: deadlines and insights in which activities may not be delayed. (critical path method, path with the leas slack time)

6. Force field (ask change agents to specify the forces for and against change) and stakeholder analysis (ask that key players be identified and the relationships among players and the change initiative be examined)

a. Commitment charts: can be used to analyze the engagement of each stakeholder.

b. Adoption continuum or awareness, interest, desire, adoption (AIDA). Adoption continuum is encouraging individuals to the point that needed stakeholders are aligned with the change.

7. Leverage analysis: determination of methods of influencing major groups. Leverage analysis seeks to identify those actions that will create the greatest change with the least effort. (seek for influential individuals)

Change agents learn to specify who does what, when and how to monitor and track their change initiatives. Agents use a variety of management tools, such as responsibility and project planning charts, survey and survey feedback, and critical path methods to successfully plan and implement their change programs.

Purpose of the communication plan for change:1. Infuse the need for change throughout the organization2. Enable individuals to understand the impact that the change will have on

them3. Communicate any structural and job changes that will influence how

things are done 4. Keep people informed about progress along the way.

Four phases in communications process during change:1. Prechange phase: centering on communicating need and gaining

approval for the change2. Developing the need for change phase: focuses on communicating

urgency and enthusiasm for the change3. Midstream phase: involves disseminating details of the change and

should include obtaining feedback from employees4. Confirming the change: communicates and celebrates the success of the

program to reinforce commitment.

Richness of communication channels differs per channel. Standard reports and general information e-mails represent the lean end of the continuum. Richness increases as one moves to personalized letters and emails, telephone and face to face is richest.

Kotter and Schlesinger: alternatives to reduce negative reactions to change: 1. Education and communication: strategy that helps others develop an

understanding of the change initiative, what is required of them and why it is important

2. Participation and involvement gets others involved and can bring new energy and ideas, and cause people to believe they can be part of the change

3. Facilitation and support is a strategy that provides access to guidance and other forms of support to aid in adaptation to change

4. Negotiation and agreement is when change leaders can make explicit deals with individuals and groups affect by the change

5. Manipulation and co-option include covert attempts to influence others 6. Explicit and implicit coercion rests on change leaders’ legitimate right and

responsibility to insist that change be done 7. Systematic adjustment are those made to formal systems and processes

that reduce resistance while advancing the desired changes.

Push tactics attempt to move people in the desired direction through rational persuasion (use of fact and logic) and/or direct or indirect pressure (guilt, threats)Pull tactics attempt to draw people in the desired direction through arousing interests and enthusiasm through inspirational appeals, consultation and their active participation.

Influence strategies by nut Intervention involves key executives justifying the need for change and

providing new norms to judge performance Participation involves engaging stakeholders in the change process Persuasion involves the use of experts to sell a change Edict is issuing of directives

Transition management is the process of ensuring that the organization continuous to operate effectively while undergoing changeAfter-action review is a final phase of the transition-management process. It seeks to bring closure to the experience and engage participants in a process that will allow the learning gained through the change process to be extracted and codified in some manner for future use.

Successful change agents develop detailed communications plan and understand how to manage transitions from the present to a future desired state.

Chapter 10

Measurement and control processes can play a critical role in guiding change and integrating the initiatives and efforts of various parties

Measurement and control systems incorporated into change initiatives can clarify expected outcomes and enhance accountability. Change agents can be doubtful about this, since it can undermined the change and change agent.

Measurement systems need to: - Frame the need for change and the implications of the vision in terms of

expected outcomes- Monitor the environment - Guide the change, gauge progress and make midcourse corrections- Bring the change to a successful conclusion

It is thus wrong that measurements and control is only needed at the end of the change. It starts at the beginning by identifying the need for change.

Four stage change process1. Awakening:

a. Identify a need for change and confirm the problems or opportunities that incite the need for change through collection of data

b. Articulate the gap in perforamcne between the presnt and the envisioned future state, and spread awareness of the data and the gap throughout the organization

c. Develop a powerful vision for changed. Disseminate the vision for the change and why its needed through

multiple communication channels2. Mobilization

a. Make sense of the desired change through formal systems and structures, and leverage those systems to reach the change vision

b. Assess power to cultural dynamics at play, and put them to work to better understand the dynamics and build coalitions and support to realize the change

c. Communicate the need for change organization-wide and manage change recipients and various stakeholders as they react to and move the change forward

d. Leverage change agend personality, knowledge, skills and abilities and related assets

3. Accelerationa. Continue to systematically reach out to engage and empower

others in support, planning, and implementation of change. Help them develop needed new knowledge, skills, abilities and ways of thinking that will support change

b. Use appropriate tools and techniques to build momentum, accelerate and consolidate progress.

c. Manage the transition, celebrating small wins and the achievement of milestones along the larger, more difficult path of change

4. Institutionalizationa. Track the change periodically and through multiple balanced

measures to help assess what is needed, gauge progress toward the goal and to make modifications as needed and migate risk.

b. Develop and deploy new structures, systems, processes and knowledge, skills, and abilities, as needed to bring lilfe to the change and new stability to the transformed organization.

Measures influence what people pay attention to and how they act, even when they believe those actions are ill advised.

- Use measures that lead to challenging, but achievable goals: employees need to believe that they can achieve

- Use measures and controls that are perceived as fair and appropriate: measurements and control processes are more likely to be accepted if the process used in developing them is seen as reasonable and fair.

- Avoid sending mixed signals: measurement systems related to change often send conflicting signals, and it is not unusual for change leaders to say one thing but signal another through what they measure and reward.

- Ensure accurate data: employees are likely to supply accurate and timely data when they trust the measurement system.

- Match the precision of the measure with the ability to measure: o When complexity and ambiguity are low and time short, choose

more precise, explicit goal-focused measures. When there are high and time long, choose more approximate measures, focus on vision and milestone.

Control systems:- Interactive controls: systems that sense environmental changes crucial

to the organization’s strategic concern. (market intelligence data)o Help sensitize change leaders to environmental shifts and strategic

uncertainties- Boundary systems: systems that set the limits of authority and action

and determine acceptable and unacceptable behavior. (limits to spending authority)

o Change leaders know what sorts of actions are appropriate and which are inappropriate or off limits

- Belief systems: fundamental values and beliefs of organizational employees that underpin the culture and influence organizational decisions (vision/mission)

o Allows to frame initiatives in ways that are aligned with the core beliefs and the organization

- Diagnostic/steering controls: traditional managerial control systems that focus on key performance variables (sales data)

o Helps to understand critical performance variables and milestones and modify their approach to encourage desired outcomes.

Control during design and early stages:- Clarifying overall direction as options and potential courses of action are

explored. - Can asses organizations readiness for change - Make initial go-no-go decision on whether to proceed in the development

of the initiative.

controls in the middle of the project - Track and receive timely and accurate feedback- See whether milestones and road markers are achieved - Support in decision making

Controls toward the end of the change project- What is accomplished?

Different types of controls are needed as the change project shifts from the planning to implementation phase

Strategy map: a visual representation of the end state and the action paths that will get them there. After vision and strategy are defined, financial goals and objectives are important.

Three measurement tools are presented:Balanced scorecard; put a weight on important categories

Financial Company’s relationship with customers Internal business process Learning and growth

Risk exposure calculator: assessing the level of risk associated with a company’s actions. Focus primarily on internal rather than external environmental risks. Risk drivers:

- Change pressure, When the change leader is: Under significant pressure to produce There is a great deal of ambiguity Employees are inexperienced in change

- Change culture If a culture pushes risk taking Executive resist hearing bad news Internal competition

- Information managemeng Change situation is complex and fast changing Gap in diagnostic change measures Decision making reagerding change is decentralized.

Duration, integrity, commitment and effort model (DICE): a process-oriented approach to assessing and managing the risk associated with change projects. Four factor model predict successes of change.

- Duration: how frequently the change project is formally reviewed - Integrity: asks about the team leader’s skills and credibility and the skills,

motivation and focus of members of the change team. - Commitment in a two-stage measure:

o Commitment of senior managemento Employee or local level commitment

- Effort: level of increased effort that employees must make to implement change.

the lower, the better the score.