Tuesday, January 23 Agenda Chapter 3: Forces for Change

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Tuesday, January 23 - AgendaChapter 3 Forces
for Change

• Chapter 2 - reprise . . .
• Chapter 3 -
• - environmental (external) pressures
• - organizational (internal) pressures
• - why pressures might not be heeded
• Forces for change in the newspaper industry -
  Jack Zaleski, The Forum

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Images of Managing Change

• Controlling Shaping
• Intended
• Partially
• intended
• Unintended

Director Coach ______________________ Navigator I
nterpreter ______________________ Caretaker Nurtu
rer
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Most appropriate image DEPENDS on . . .

• the particular organization
• the context of the situation
• time/resources available
• the stakes at hand
• advance knowledge of outcomes
• degree of goal clarity/consensus
• individuals knowledge and skill
• personality of the change agent . . .

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Other images of managing change?

• Artists,
• Craftsmen,
• Technocrats
• Management by barking around,
• (Change management is the ultimate in
  managerial noise. - Mintzberg) Vs. Managing
  quietly

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The paradox of organizational change

• organizational carnage
• transformation/ Vs.
• revitalization
• ? ?

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Underlying rationale for proceeding with
organizational change

• Economic perspective
• Learning perspective
• Evolutionary perspective

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Innovation Leads to Change
External Pressures
Competitive Advantage
Change
Innovation
New Technology Or Ideas
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• (Managers) are called upon to
• stabilize the unstable and destabilize the rigid,
  
• adapt to the present and anticipate the future,
• improve what is and invent what is to be,
• lead a renaissance while preserving tradition.
• pg. 50

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Organizational Change Management

• What is it?
• Why do we need it?
• New technology or ideas
• Internal pressures
• Old software
• External pressures
• Competitive pressures
• Regulatory changes
• Economic conditions

Sustaining Change
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6 Environmental (External) Pressures for Change

• 1. Fashion pressures
• 2. Mandated pressures
• 3. Geopolitical pressures
• 4. Market decline pressures
• 5. Hypercompetitive pressures
• 6. Reputation and credibility pressures

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External Pressures for Change
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1. Fashion Pressures(mimetic isomorphism)

• management fads ? organizational change
• TQM, MBO, PBL outsourcing
• mission statements privatization
• teaching portfolios decentralization
• learning assessment empowerment
• benchmarking
• merit-based pay
• economic development

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Fashion Pressures

• Why adopt?
• Why are outcomes often disappointing?

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2. Mandated Pressures(coercive isomorphism)

• Political/legal pressures examples
• Potential for increased regulation provides
  incentive for proactive change
• (to prevent mandated pressures).

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3. Geopolitical Pressures

• Technological
• Economic
• Global
• Demographic
• Socio-cultural

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4. Market Decline Pressures(Market Growth
Pressures)

• (Industry) facts/trends
• Five Forces of Competition
• Rivals
• Substitutes
• Buyer power
• New entrants
• Supplier power

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5. Hypercompetition Pressures

• Hypercompetition exists when an organizations
  competitive advantage cannot be sustained over
  time.
• Rapid imitation/leap-frogging of advantages
  occurs through continuous innovation and
  relentless competition on a global scale.
• Requires nimble and innovative yet efficient
  organizations - uses flexible manufacturing and
  cellular (vs. hierarchical) structures.

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6. Reputation and Credibility Pressures

• Involves organizational ethics/values/practices/ac
  tions.
• Viewed as an intangible asset.
• How important?

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Organizational (Internal) Pressures for Change

• 1. Growth pressures
• 2. Integration and collaboration pressures
• 3. Identity pressures
• 4. New broom pressures
• 5. Power and political pressures

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1. Growth Pressures

• Organizational growth ?
• formalization,
• specialization,
• delegation,
• ? procedures for monitoring, control, and
  coordination
• (elaborating the hierarchy and bureaucracy)

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2. Integration and Collaboration Pressures

• A big deal in our mega-organizations today.
• Reducing redundancy and eliminating duplication
  of resources through consolidating and
  standardizing units/policies/procedures.
• Advantages? Disadvantages?

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3. Identity Pressures

• Who are we now?
• How to determine,
• communicate (internally and externally),
• and solidify in
• positive and meaningful ways?

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4. New Broom Pressures

• Managing loudly Vs. managing quietly
• ego Vs. humility.
• Advantages/Disadvantages?
• Successes/Failures of new brooms?
• Role of a failed new broom on the road to
  organizational change/revitalization?

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5. Power and Political Pressures

• Generally create pressures
• FOR change
• or AGAINST change?

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Ignoring Forces for Change . . .

• 1. Threat-rigidity response
• 2. Erroneous perceptions of the environment
• 3. Organizational inertia/forces for stability

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Next week

• Chapter 4 - Types of organizational change
• Application Exercises (handout)
• Reflective application paper 2 apply
  ideas/concepts from chapter 4 to help you begin
  to craft the change initiative for your specific
  situation