Managing ChangeManaging Change

March 28th, 2005March 28th, 2005

Review of Duck ArticleReview of Duck Article

►Do you agree with the statement “The Do you agree with the statement “The proper metaphor for change is proper metaphor for change is balancing a mobile”. Why?balancing a mobile”. Why?

►Do you think Duck believes that Do you think Duck believes that communication is critical? What communication is critical? What evidence is there for your answer?evidence is there for your answer?

Review of Duck Article IIReview of Duck Article II

► Where does change in behavior need to Where does change in behavior need to start for change to be successful ? Why ?start for change to be successful ? Why ?

► What are the “arms” or the dimensions of What are the “arms” or the dimensions of the organizational mobile ?Would this be a the organizational mobile ?Would this be a valid organizational model for your valid organizational model for your organization?organization?

► Is there a parallel between the “coalition Is there a parallel between the “coalition movement” in Kotter’s article and the “TMT” movement” in Kotter’s article and the “TMT” in this article? What is different? Why do you in this article? What is different? Why do you think this?think this?

Organizational Organizational DevelopmentDevelopment

What is What is it?it?

“a system-wide application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structures, and processes for improving an organization’s effectiveness” (Cummings and Worley)

Why is OD Important?

Change is inevitable. It either happens to you or by you.

PEOPLE ORGANIZATION

Strategic Learning

Organizational Learning Learning Organization

C Culture Mission Strategies

HA

N Desired FutureGE

Behavior and Values Vision Strategic HRM

Innovation Knowledge and Creativity Management

Best Practice and Application

© John C. Reynolds 1998

Summary of key theoristsSummary of key theoristsPerspective Theorist Emphasis Application

Individual Maslow Individual Needs Career DevelopmentHerzberg Job Enrichment

Vroom Individual expectancies Reward System DesignPerformance Appraisal

Hackman/Oldman Individual Performance Incentive systems

Group Lewin Norms and Values Changing conformity patterns

Argyris Interpersonal competence Training & education

System Likert Management Style Change to participative mgt

Lawrence Org Structure Change contingent on Org. Environment

Levinson Org as a family Diagnosis according to family patterns

Where did OD come from?Where did OD come from?

►Theoretical RootsTheoretical Roots

Maslow’s Need Theory (1954)Maslow’s Need Theory (1954)

Herzberg’s Dissatisfaction Theory (1966)Herzberg’s Dissatisfaction Theory (1966)

Evolving TheoriesEvolving Theories

►Expectancy Theory (Lawler and Expectancy Theory (Lawler and Vroom)Vroom) Behavior is associated with outcomesBehavior is associated with outcomes Outcomes have different values for Outcomes have different values for

different peopledifferent people People will be motivated when they People will be motivated when they

believe their behavior will lead to rewardsbelieve their behavior will lead to rewards

Evolving TheoriesEvolving Theories

►Hackman and Oldhams Work Design Hackman and Oldhams Work Design Model (1980)Model (1980) Relationship between job and worker Relationship between job and worker

satisfactionsatisfaction Work is meaningfulWork is meaningful Outcomes are the workers responsibilityOutcomes are the workers responsibility Results and feedback is importantResults and feedback is important

Evolving TheoriesEvolving Theories

►Positive Reinforcement (Skinner)Positive Reinforcement (Skinner) Shape behavior and motivation be Shape behavior and motivation be

reinforcementreinforcement When behavior is evident, occasional When behavior is evident, occasional

reinforcement is requiredreinforcement is required Negative reinforcement is short termNegative reinforcement is short term Learn what to do, not what not to doLearn what to do, not what not to do

Evolving TheoriesEvolving Theories

► Force Change Theory (Lewin)Force Change Theory (Lewin) Behavior is a function of personalityBehavior is a function of personality It is normally addressed in terms of motivation or It is normally addressed in terms of motivation or

needs and,needs and, the environment/situation that affect the personthe environment/situation that affect the person Perceived forces impact the behaviorPerceived forces impact the behavior Distinction between driving and restraining Distinction between driving and restraining

forcesforces

Significance of these theoriesSignificance of these theories

►The practice has evolved over timeThe practice has evolved over time►There is no one core journey to where There is no one core journey to where

we are todaywe are today►Excellent research for some of the Excellent research for some of the

interventions we invest our time in interventions we invest our time in today.today.

Ingo Case StudyIngo Case Study

Review of Ingo Phase 1Review of Ingo Phase 1

►1.1. Was INGO ready for change?Was INGO ready for change?►Give reasons for you assessment.Give reasons for you assessment.►2.2. What factors do you perceive What factors do you perceive

triggered the change process? Were triggered the change process? Were these the right triggers?these the right triggers?

►3.3. Identify and provide examples of Identify and provide examples of what the leaders did/did not do well in what the leaders did/did not do well in this process?this process?

PEOPLE ORGANIZATION

Strategic Learning

Organizational Learning Learning Organization

C Culture Mission Strategies

HA

N Desired FutureGE

Behavior and Values Vision Strategic HRM

Innovation Knowledge and Creativity Management

Best Practice and Application

Corporate CultureCorporate Culture

►Culture is the frame of reference that Culture is the frame of reference that often differentiates one social group often differentiates one social group from anotherfrom another

►Leaders often ignore it:Leaders often ignore it: Soft and fuzzy, does not impact resultsSoft and fuzzy, does not impact results Consultant’s way of making moneyConsultant’s way of making money Only an act of God can change itOnly an act of God can change it

Components of CultureComponents of Culture

►Beliefs, behaviors and assumptionsBeliefs, behaviors and assumptions

►Culture is a shared belief, often the Culture is a shared belief, often the

glue that holds the group togetherglue that holds the group together

►Culture needs time to develop, and Culture needs time to develop, and

thus time to changethus time to change

Working Definition (Conner)Working Definition (Conner)

Organizational Culture Organizational Culture reflects the interrelationship reflects the interrelationship of shared beliefs, behaviors of shared beliefs, behaviors and assumptions that are and assumptions that are acquired over time by acquired over time by members of the members of the organization.organization.

BeliefsBeliefs

►Set of interrelated values and Set of interrelated values and

expectationsexpectations

►Framework for peoples’ decisions Framework for peoples’ decisions

and behaviorsand behaviors

BehaviorsBehaviors

Observable and natural actions Observable and natural actions of peopleof people

AssumptionsAssumptions

►The unconscious rationale we The unconscious rationale we use for continuing to apply use for continuing to apply certain beliefscertain beliefs

Cultivating a CultureCultivating a Culture

►Culture Culture will will develop without develop without

planningplanning

►Cultures are developed often from Cultures are developed often from

a set of decisions made in isolation a set of decisions made in isolation

in the organization’s historyin the organization’s history

Architectural Cultural Architectural Cultural DevelopmentDevelopment

► Intention is to orchestrate a new cultureIntention is to orchestrate a new culture► Phase 1 : Senior Management defines the Phase 1 : Senior Management defines the

characteristics of a new culturecharacteristics of a new culture► Phase 2 : An assessment is completed of the Phase 2 : An assessment is completed of the

existing cultureexisting culture► Phase 3 : Action plans/interventions are Phase 3 : Action plans/interventions are

designed to close the gapdesigned to close the gap► Phase 4 : Management owns and Phase 4 : Management owns and

participates in these plansparticipates in these plans

Why Manage Culture?Why Manage Culture?

►People’s reaction to change People’s reaction to change sometimes are:sometimes are:Change is happening too fastChange is happening too fast

The changes are overwhelmingThe changes are overwhelming

Change is too complexChange is too complex

Whenever there is a discrepancy Whenever there is a discrepancy between the culture and the objectives between the culture and the objectives of change, the culture always wins...of change, the culture always wins...

Kotter’s 8 StepsKotter’s 8 Steps

►Culture comes at the end of the Culture comes at the end of the processprocess

►Requires a lot of talkRequires a lot of talk►Often involves turnover of staffOften involves turnover of staff►Makes decisions on succession Makes decisions on succession

planning crucialplanning crucial

PEOPLE ORGANIZATION

Strategic Learning

Organizational Learning Learning Organization

C Culture Mission Strategies

HA

N Desired FutureGE

Behavior and Values Vision Strategic HRM

Innovation Knowledge and Creativity Management

Best Practice and Application

© John C. Reynolds 1998

Organizational BehaviorOrganizational Behavior

►A key part of organizational change A key part of organizational change and strategic human resources.and strategic human resources.

►Organizational Behavior relates to the Organizational Behavior relates to the

organization, work groups and organization, work groups and

individualsindividuals

Components of OBComponents of OB

►Motivation (Individuals)Motivation (Individuals)

►Group Processes (Work Groups)Group Processes (Work Groups)

►Leadership (Organizations)Leadership (Organizations)

PEOPLE ORGANIZATION

Strategic Learning

Organizational Learning Learning Organization

C Culture Mission Strategies

HA

N Desired FutureGE

Behavior and Values Vision Strategic HRM

Innovation Knowledge and Creativity Management

Best Practice and Application

Knowledge ManagementKnowledge Management

►Knowledge management is then the Knowledge management is then the process of transferring tacit ( or head process of transferring tacit ( or head knowledge) to a media that can be knowledge) to a media that can be shared with other knowledge workers shared with other knowledge workers in the shortest possible time in order in the shortest possible time in order to improve the effectiveness and to improve the effectiveness and learning of the organization in learning of the organization in achieving it’s mission.achieving it’s mission.

Impact of KMImpact of KM

► It’s results in changed behavior of It’s results in changed behavior of people and organizational culture as people and organizational culture as people’s understanding changes with people’s understanding changes with new knowledge. new knowledge.

What is Knowledge?What is Knowledge?

►KnowledgeKnowledge is taking information (data is taking information (data in a particular context) and applying in a particular context) and applying people’s experience or opinion people’s experience or opinion (generally tacit and intangible) in (generally tacit and intangible) in order to change positively the order to change positively the behavior and culture in the behavior and culture in the organizationorganization

Challenges to an Challenges to an OrganizationOrganization

►Making it a technology issueMaking it a technology issue►Creating the environment to Creating the environment to

contributecontribute Making sharing of Making sharing of knowledge naturalknowledge natural

►Proving it’s economic viabilityProving it’s economic viability

PEOPLE ORGANIZATION

Strategic Learning

Organizational Learning Learning Organization

C Culture Mission Strategies

HA

N Desired FutureGE

Behavior and Values Vision Strategic HRM

Innovation Knowledge and Creativity Management

Best Practice and Application

Organizational LearningOrganizational Learning

►Organizational Learning is learning Organizational Learning is learning that organizations enjoy through the that organizations enjoy through the learning of individualslearning of individuals

Components of OLComponents of OL

►Knowledge acquisitionKnowledge acquisition► Information DistributionInformation Distribution► Information Information

interpretation/enhancementinterpretation/enhancement►Creating organizational memoryCreating organizational memory

Impact of OLImpact of OL

►An organization learns if though it’s An organization learns if though it’s processing of information, the range of processing of information, the range of it’s potential behaviors is changed.it’s potential behaviors is changed.

What is a Learning What is a Learning Organization?Organization?

►A learning organization is an A learning organization is an

organization with an ingrained organization with an ingrained

philosophy for anticipating, reacting philosophy for anticipating, reacting

and responding to change, complexity and responding to change, complexity

and uncertainty.and uncertainty.

►To learn from the past rather than be To learn from the past rather than be

bound by it.bound by it.

Leader’s Role in LOLeader’s Role in LO

►DesignerDesigner►Teacher Teacher ►StewardSteward

Ingo Phase II Case StudyIngo Phase II Case Study

End of Module VIIIEnd of Module VIII