Leadership and Change

1
Leadership and Change

• Topic 3
• Introduction to General Approaches to Change
  (Planned Approaches)

2
Lecture Structure

• Introduction
• Planned v Emergent change processes
• Objectives of Change
• Considering Approaches to Change
• What to Change?
• How to Change it?
• Some Planned Change Approaches
• Summary and Conclusions
• Activity Case Study (Intuit)

3
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

4
The Strategic Nature of Change Forces Driving
Need for Major Organisational Change

• Global Changes, Competition and Markets
• Technological Change
• International Economic Integration
• Maturation of Markets in Developed Countries
• Fall of Communist and Socialist Regimes

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 Based on John P. Kotter, The New Rules
How to Succeed in Todays Post-Corporate
World (New York The Free Press, 1995).
5
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

6
Change Planned or Emergent?

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

7
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
• Reaction to environment
• Anticipation of future pressures
• Changes in internal behavioural patterns
• Formal and informal ground rules relating to
  behaviour
• Superior subordinate roles work groups entire
  organisation

8
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

9
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
• Interconnections
• Plan, Power, Relationships, Tempo of Change

10
Planned Approaches to Change Greiners views on
Planned Change

• Based on research Greiner notes seven main
  approaches to change (Based on power
  relationships)
• Unilateral Power
• 1 Decree Approach
• 2 Replacement Approach
• 3 Structural Approach
• Shared Power
• 4 Group Decision Approach
• 5 Group Problem Solving Approach
• Delegated Power
• 6 Data discussion Approach
• 7 Sensitivity Training Approach

11

Planned Approaches to Change Greiners views on
Planned Change
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
Experimentation with new solutions
Phase 6
Search for results
Reinforcement from positive results
Acceptance of new practices
12
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

13
Planned Approaches to ChangeBasic Phases of
Intervention Strategy Model (ISM)
Problem initialisation
Definition phases
Evaluation Phase
Feedback
Implementation Phase
Environmental development loop
Problem Conclusion
14
Planned Approaches to ChangeIntervention
Strategy Model (ISM)
15
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

16
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

17
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 week further discussion and critique of
  planned models and appreciation of emergent
  change concepts

18
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 Strategut and
  does it matter? London Routledge.
• Paton, R.A. and McCalman, J. (2000) Change
  Management, London Sage
• Senior, B. (2002) Organisational Change, London
  Prentice-Hall.

Background Reading

• Burnes, B. (2000) Managing Change, Harlow
  Financial Times/Prentice Hall (Chapters 7 8)
• Course Handout on Planned Change
• Paton, R.A. and McCalman, J. (2000) Change
  Management, London Sage (Chapter 4)
• Senior, B. (2002) Organisational Change, London
  Prentice-Hall. (Chapter 7)

19
Activity Case Study (Intuit)

• What were the major environmental factors which
  meant that Intuit had to consider its position at
  the beginning of the case?
• What do you feel were the key factors in the
  turnaround of the company?
• Can you use Greiners model of planned change to
  chart the development of the QuickenMortgage
  product?