Implementing Organizational Change Theory into Practice 2e Bert
Implementing Organizational Change: Theory into Practice 2/e Bert Spector Chapter 2 Theories of Effective Change Implementation Copyright © 2010 Prentice Hall 2 -1
Learning Objectives n n n Present the three phases of the planned change theory of Kurt Lewin. Delineate the key insights to effective implementation offered by the field of Organizational Development. Differentiate between content-driven and processdriven change. Explain an approach to change management that emphasizes task requirements and performance results. Offer a framework for change implementation that encompasses multiple theories. Copyright © 2010 Prentice Hall 2 -2
Building a Vocabulary n Norms: shared expectations of how group members ought to behave. “Telling employees why they need to change will not build motivation to change; it is necessary to do, but not sufficient. ” “Don’t assume that poor organizational performance will create an urgent need to change within the company. ” “To break the ‘social habits’ that support existing patterns of behaviors, start with creating dissatisfaction, disequilibrium, and discomfort. ” Copyright © 2010 Prentice Hall 2 -3
Building a Vocabulary Elements of Kurt Lewin’s Change Model: Unfreezing: the first stage in Lewin’s change model in which group members become dissatisfied with the status quo. Moving: the second stage in Lewin’ss change model in which group members alter their patterns of behavior. Refreezing: the final stage in Lewin’s change model in which group members institutionalize the new patterns of behavior into a new status quo. Copyright © 2010 Prentice Hall 2 -4
Lewin’s Change Model Organizational Performance Re ez fre Un ve o M e Old Norms maintain status quo New Norms support outstanding performance Copyright © 2010 Prentice Hall 2 -5
Lewin’s Change Model (continued) Stage 1: color Stage 2: Moving Text in this Unfreezing Create dissatisfaction (with the status quo) Benchmark operations Diagnose internal barriers to performance Redesign organizational roles, responsibilities, and relationships Train for newly required skills Promote supporters /remove resisters Copyright © 2010 Prentice Hall Stage 3: Refreezing Align pay/reward systems Reengineer measurement/ control systems Create new organization structure 2 -6
Building a Vocabulary n Organizational development (OD): an approach to organizational effectiveness that calls on the fields of behavioral and social sciences to provide guidance to planned change efforts. “Performance problems often reside in the hand-offs between employees, between tasks, between functions, and between units; these are the problems that be targeted first for change. ” Copyright © 2010 Prentice Hall 2 -7
10 Defining Perspectives of Organizational Development Perspective Underlying Assumptions Systems perspective Outstanding performance depends on interactions between and among the multiple elements of organization; between the people, processes, structure, and values of the organization; and between the organization and its external environment Alignment perceptive The effectiveness of organizations will be determined by a state of congruence between people, process, structure, values, and environment Participation perspective People will become more committed to implementing solutions if they have been involved in the problemsolving process Social capital perspective To achieve outstanding performance, organizational leaders seek to create a network of interdependent relationships that provides the basis for trust, cooperation, and collective action Teamwork perspective Accepting shared purpose and responsibility for interdependent tasks enhances coordination, commitment, and creativity and supports outstanding performance Copyright © 2010 Prentice Hall 2 -8
10 Defining Perspectives of Organizational Development (continued) Perspective Underlying Assumptions Multiple stakeholder perspective Outstanding performance requires that organizational leaders balance the expectations of multiple stakeholders: shareholders, employees, customers, suppliers, host community, labor unions, trade associations, governments, etc. Problem solving perspective Conflicts over task issues can increase the quality of decisions if they occur in an environment of collaboration and trust Open communications perspective Open and candid communication, especially upward in the hierarchy, creates the opportunity for learning and development while building trust and collaboration Evolution/revolution perspective Organizations must develop competencies to engage in both incremental (evolutionary) and fundamental (revolutionary) change Process facilitation perspective Individuals who reside outside of the organizational hierarchy can become both facilitators and teachers of effective implementation processes in partnership with organizational members Copyright © 2010 Prentice Hall 2 -9
A Congruence Model of Effectiveness External Environment Internal Context n n Organizational purpose Strategy Business model Organizational design n n n Customer, employee, and investor expectations Social/cultural forces Technological changes Labor market shifts Government regulation World events Organizational Effectiveness Patterns of Employee Behavior n n Enactment of roles and responsibilities Process of interaction among employees Copyright © 2010 Prentice Hall 2 -10
Building a Vocabulary n n n Open system: an organism or entity that exists in a constant interactive state with its external environment. Alignment: the degree of congruence or compatibility between and among various elements of a system. Stakeholders: individuals or groups who lay legitimate claim to the performance of the organization. Copyright © 2010 Prentice Hall 2 -11
Building a Vocabulary § Content-drive change: programmatic change in which specific programs--customer relationship management, balanced scorecard, and lean enterprise--for example, are used as the driver and centerpiece of implementation. § Process-driven change: an approach to change implementation that emphasizes the methods of conceiving, introducing, and institutionalizing new behaviors and uses content as a reinforcer rather than a driver of new behaviors. “Content-driven change often fails because of inadequate attention to the process of change. ” Copyright © 2010 Prentice Hall 2 -12
Key Theoretical Approaches to Change Implementation Change Effort Employee involvement Key Points Allow employees, especially lower-level employees, to participate in making decisions, scheduling and designing work, and ensuring quality Lean processes Redesign cross-functional workflow and processes to drive out waste and inefficiencies Concurrent engineering Integrate product design, manufacturer, and support activities into a synchronized Process Value-chain integration Capture value by linking and coordinating the primary Activities - inbound logistics, production, outbound logistics, marketing, and sales - of the organization Copyright © 2010 Prentice Hall Company Example n n n General Motors Hampton Inn Hotels SAS Airlines Lockheed Martin n Toyota Tyco Electronics n n n n British Aerospace Carolla Development Comdial Corporation Burcas IBM Electronics Microsoft 2 -13
Key Theoretical Approaches to Change Implementation (continued) Change Effort Key Points Balanced scorecard Strategic planning and measurement tool that connects internal processes with financial performance Agile Business model Reinvention Software development process emphasizing frequent releases, intense customer involvement, and cross-functional teams Redefine the ways in which the organization acquires and retains customers while generating profits Copyright © 2010 Prentice Hall Company Example n n n n n Blue Man Productions Centex Construction Citizens Bank Cambridge Biotech Lotus Development Quality Tree Software Metro e. Bay Southwest Airlines 2 -14
Building a Vocabulary Task alignment: an approach to behavioral change that starts with the identification of the key strategic tasks of an organization or unit and then asks employees to redefine their roles, responsibilities, and relationships in order to perform those tasks. “Task alignment combines the insights of organizational development with a bottom-line focus on performance. ” “A task aligned approach to change implementation can help create motivation to adopt new behaviors by focusing on real, immediate business problems and producing tangible results. ” Copyright © 2010 Prentice Hall 2 -15
Key Theoretical Approaches to Change Implementation Theoretical Approach Main Theoretical Contribution Lewin’s Field Theory Begin behavioral change by focusing on context and unfreezing existing social habits Organizational Development Organizations are dynamic, open systems Process-Driven Change Focus on organically developed and implemented efforts to improve organizational performance Task Alignment Link desired new behaviors to requirements of performing key tasks Help Explain How to Implement Change Build a sense of pervasive dissatisfaction with the status quo on the part of employees n Offer operational models for new behavioral patterns n Reinforce new behaviors with alterations to systems and structures n Target entire organizational system for change Create a climate of open discussion and upward feedback on efficacy of change implementation n Call on process consultants to facilitate interventions n n Do not use externally developed program as driver of change n Focus on the unique requirements for each organization and unit n Build support for change implementing it n Analyze and indentify key performance indicators and behavioral implications for outstanding performance n Attach requirements for new behavior to new strategy objectives of the organization n Build line-management support for change effort n Copyright © 2010 Prentice Hall 2 -16
A Sequential Model for Effective Change Implementation Step 1 Step 2 Designing New Strategically Aligned Behavior Help • Training • Mentoring • Roles • Responsibilities • Relationships Step 4 Step 3 Systems & Structures Talent Management • Assessment • Promotion • Replacement • Recruitment • Reporting Relationships • Compensation • Information • Measurement & Control Copyright © 2010 Prentice Hall 2 -17
Implementation Traps: Applying the Right Tools at the Wrong Time in the Process Trap For Example Why is it a trap? Starting with Systems and Structures (Step 4) Imposing new system or structure (e. g. , global matrix, balanced scorecard measurement system) Will be experienced as “change from above”; likely to be poorly understood and resisted Starting with help (Step 2) Driving change with training program Because employees work in an unchanged organizational context, their learning is likely to be short-lived and will fade out Starting with Talent Management (Step 3) Recruiting new employees, removing and replacing, and replacing individuals seen to be resisters to change Lack of understanding concerning what is required can be viewed by employees as arbitrary, thus diminishing trust and commitment Starting implementation with shared diagnosis Redesigning work (e. g. , creating cross-functional teams) New designs will be seen as unconnected to strategic reality which can lead to resistance Driving change through top management Leadership may be out of touch with realities of organization while employees may not understand strategic imperatives Ignoring mutual engagement Copyright © 2010 Prentice Hall 2 -18
Case Study 1 Battle for the Arctic: Drill or Not to Drill https: //www. youtube. com/watch? v=Xyn 4 d. Ac. P-Mc Copyright 2010 Prentice Hall 2 -19
Case Study Questions 1 - Illustrate the case presented in the movie by applying the Change Model proposed by Lewin’s? 2 - Choose only 2 perspectives from the 10 Defining Perspectives of Organizational Development and propose solutions to help solve the problem presented in the case? Copyright 2010 Prentice Hall 2 -20
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