BMG 899J3 Leadership and Change Semester 3 200506 MBA Full Time and Fast Track

1
BMG 899J3 Leadership and Change Semester 3
2005/06MBA Full Time and Fast Track

• Class 2
• Rational Perspectives Planned Change
  Interventions

2
Lecture Structure

• Introduction
• Change process Planned or Emergent?
• Objectives of Change
• Considering Approaches to Change
• What to Change?
• How to Change it?
• Some Planned Change Approaches
• Summary and Conclusions

3
Introduction Environmental Change
Organisational Triggers

• Global Changes, Competition and Markets
• International Economic Integration
• International Competition
• Maturing Markets in Developed Countries
• Technological Change

More Threats More domestic
competition Increased Speed International
competition
More Opportunities Bigger markets Fewer
barriers More international markets
More Large-Scale Changes
in Organizations Structure change
Mergers, joint ventures,
consortia Strategic change
Horizontal organizing, teams, networks
Culture change
New technologies, products Knowledge
management, enterprise New business
processes resource planning
E-business Quality programs
Learning organizations
Source Kotter (1995)
4
Introduction

• Substantial Change in Environment leads to
  Organisational Triggers
• Managers and Change Agents need to understand HOW
  as well as WHAT to change
• Examples of Poor Change Management prevalent

5
Brainstorming Activity

• Take a few minutes and think about some change
  initiatives that have been reported recently in
  the media?
• Are they developing as planned? (Why / why not?)
• What could be done to improve the scenario?

6
Change Planned or Emergent?

• Planned Strategic Change
• Voluntarism (classical) - Choice for Managers
• Assumption Smooth, deliberate, conscious
  reasoning and actions
• Common Techniques Total Quality Management
  Behaviour Modification, Structural change

7
Change Planned or Emergent?

• Emergent Change
• Determinism (evolutionary) External ( E.g.
  economy) and internal factors (E.g. interest
  group power), influence change in directions
  outside managers control
• Assumption number of unrelated decisions made by
  managers regarding change means that
  organisations change by drift rather than by
  design
• Importance of population ecology and lifecycle
• Some middle ground realism?
• Lindbolm (1979), Quinn (1980) and Whittington
  (2003)

8
Objectives of Change

• Typical Objectives
• Higher performance, acceptance of new techniques,
  greater motivation, more innovation, increased
  co-operation, reduced turnover
• Changes at organisations level of adaptation to
  environment (External)
• Reaction to environment
• Anticipation of future pressures
• Changes in internal behavioural patterns
  (Internal)
• Formal and informal ground rules relating to
  behaviour
• Superior subordinate roles work groups entire
  organisation (Organisational Development)

9
Considering Approaches to Change Three Broad
bases for Change

• Power Coercive Strategies
• Powerful ensure compliance
• Legitimate power
• Empirical Rational
• Rational individuals
• Convince individual that change can be beneficial
• Normative Re-educative
• Behaviour influenced by socio-cultural norms
• Requirement for re-orientation of values,
  attitudes and relationships

10
Considering Approaches to Change

• What to Change (Content)?
• Structure
• Technological
• People
• How to Change (Process and Planning)?
• Greiners views on Planned Change
• Intervention Strategy Model (ISM) - Paton and
  McCalman
• Hard Systems Model of Change (HSMC) Senior and
  Fleming (2006)
• Interconnections
• Plan, Power, Relationships, Tempo of Change

11
Planned Approaches to Change Greiners views on
Planned Change

• Seven change approaches
• Unilateral Power
• 1 Decree
• 2 Replacement
• 3 Structural
• Shared Power
• 4 Group Decision
• 5 Group Problem Solving
• Delegated Power
• 6 Data discussion
• 7 Sensitivity Training

• Power Base
• Power (Coercion)
• Empirical (Rational)
• Empirical and Normative

12
Planned Approaches to Change Greiners views on
Planned Change
Phase 1
Pressure on Top Management
Phase 2
Intervention at the top
Arousal to take action
Phase 3
Reorientation to internal problems
Diagnosis of problem areas
Phase 4
Recognition of specific problems
Invention of new solutions
Phase 5
Commitment to new courses of action
Experiment with new solutions
Phase 6
Search for results
Reinforce positive results
Acceptance of new practices
13
Planned Approaches to ChangeIntervention
Strategy Model (ISM) - Paton and McCalman

• Rooted in Systems perspective
• Successful intervention in working processes of
  original system
• Three basic phases
• Definition
• Evaluation
• Implementation
• Progressive approach to analysing, designing and
  implementing change
• Cognisant of participation, group involvement and
  organisational dynamics

14
Planned Approaches to ChangeIntervention
Strategy Model (ISM)
Problem Initialization
Definition Phase
Stage 1 Problem / systems specification
Potential stage iteration
Stage 2 Formulation of success criteria
Stage 3 Identification of performance indicators
Stage review progress agreed
Potential phase iteration
Evaluation Phase
Stage 4 Generation of options and solutions
Potential stage iteration
Stage 5 evaluation techniques selected and option
editing
Stage 6 Option evaluation
Stage review progress agreed
Potential phase iteration
Implementation Phase
Stage 7 Development of implementation strategies
Forward loop implementation considerations
Potential stage iteration
Stage 8 Consolidation
Stage review progress agreed
Desired Situation
Environmental development
15
Planned Approaches to ChangeIntervention
Strategy Model (ISM)
Buying a New House
Definition phase
Stage 1 House too small but major lifestyle
decision
Decide to build on instead
Stage 2 Bigger house, before baby arrives, near
schools
Stage 3 Good value for money, size, location, old
v new
Review Established detailed idea of house type,
location
New development possibility
Evaluation phase
Stage 4 Internet trawl, Estate agents, visit
properties
Survey reveals problems
Stage 5 Big enough?, Price?, Move in dates?
Stage 6 Weigh up pros and cons of possible houses
Review House selected to bid on
Vendors decide to withdraw
Implementation phase
Stage 7 Mortgage arranged, Price agreed
Win Lottery!!
Children dont like new school
Stage 8 Offer accepted, Move in to house
Review Now accepted as home by all family
members
Desired Situation
Environmental development
16
Planned Approaches to ChangeIntervention
Strategy Model (ISM) Activity
Problem Initialization
Definition Phase
Stage 1 Problem / systems specification
Potential stage iteration
Stage 2 Formulation of success criteria
Stage 3 Identification of performance indicators
Stage review progress agreed
Potential phase iteration
Evaluation Phase
Stage 4 Generation of options and solutions
Potential stage iteration
Stage 5 evaluation techniques selected and option
editing
Stage 6 Option evaluation
Stage review progress agreed
Potential phase iteration
Implementation Phase
Stage 7 Development of implementation strategies
Forward loop implementation considerations
Potential stage iteration
Stage 8 Consolidation
Stage review progress agreed
Desired Situation
Environmental development
17
Planned Approaches to Change Hard Systems Model
of Change (HSMC) Senior

• Rooted in Goal Setting
• Reviewing options and testing against explicit
  criteria
• Useful for hard (difficult) problems
• Can technique be used for qualitative issues?
• Three overlapping phases
• Description
• Options
• Implementation

18
Planned Approaches to Change Hard Systems Model
of Change (HSMC) Senior

• Description
• 1 Situation summary
• 2 Identify objectives and constraints
• 3 identify performance measures
• Options
• 4 Generate options
• 5 Edit options and detail selected options
• 6 Evaluate options against measures
• Implementation
• 7 Develop implementation strategies
• 8 Carry out the planned changes

19
Summary and Conclusions

• Began to look at the concepts of Planned v
  Emergent approaches to change
• Underlying ideas behind planning change of any
  kind discussed objectives relationships based
  on power
• Three key Planned / sequential approaches
  discussed
• Next class Phychological Approaches

20
References

• Greiner, l. (1967) Patterns of Organisational
  Change, Harvard Business Review, May-June.
  
• Kotter, J.P. (1995) The New Rules How to Succeed
  in Todays Post-Corporate World New York The
  Free Press.
• Lindbolm, C.E. (1979) Still muddling not yet
  through, Public Administration Review, 39
  517-527
• Quinn, J.B. (1980) Managing Strategic Change,
  Sloan Management Review, 21 3-20
• Whittington, R. (2003) What is Strategy and does
  it matter? London Routledge.
• Paton, R.A. and McCalman, J. (2000) Change
  Management, London Sage
• Senior, B. and Fleming, J (2006) Organisational
  Change, London Prentice-Hall.

Background Reading

• Burnes, B. (2004) Managing Change, Harlow
  Financial Times/Prentice Hall (Chapter 8)
• Hayes, J. (2002) The Theory and Practice of
  Change Management, Basingstoke Palgrave
  MacMillan (Chapter 5)
• Paton, R.A. and McCalman, J. (2000) Change
  Management, London Sage (Chapter 4)
• Senior, B. and Fleming, J (2006) Organisational
  Change, London Prentice-Hall. (Chapter 7)