The practicalities of managing change
Chapter 7 - 8
Joakim Tell
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Administration SI
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On Friday, the SI meeting with master 1 year students.
I miss some of your SI plans (De Wulf send it again)
The agenda on Friday (13.15 – 15.00) is:
Ingrid Svetoft (supervisor SI) Starts with an introduction (15 minutes)
2-4 master 2 year students inform about SI from a student perspective
and how the group meetings will be organized (15 minutes)
The large group of 80 students split up in smaller groups (master 2
year students organize this).
Conference rooms in O building and one class room have been
booked (lists for booking on Navid’s door) the following days:15 Sep 9
-15, 24 Sep 13 -17, 1 Oct 9 -16, 8 Oct 10 -16 and12 Oct 9 -16
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SIMBIZ
Group 2 has not simulated yet!
?
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Strategies for managing change
• Two different approaches to managing change processes,
each built on a different philosophy and encompassing
various methodologies, are discussed in the book.
• One change approach that is based on rational logical
models which are most appropriate for situations of hard
complexity (difficulties) where the ”people issues” are low is
discussed in chapter 7. This is the model used by the
majority of managers.
• Another change approach, that take in consideration that
many change situations involve ”people issues” (leadership,
culture and politics), soft complexities, is discussed in
chapter 8.
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What is an Organisation?
Focus of hard
models for change
”Problems”
Focus of soft
models for change
”messes”
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Different philosophies Between Hard & Soft Change Approaches
HARD (Problems/efficiency)
• Clear objectives and quantifiable data
• Evolved first to meet needs of modern engineering and
industrial systems (Scientific management)
• Only a formal organization exists with one common
goal. A unitary view
• A ”good” relation between workers and management
through division of work, (”hands wanted” – manager
thinks)
• Regards conflict as a rare phenomenon that can be
removed through appropriate managerial action
(troublemakers).
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Different philosophies Between Hard & Soft Change Approaches
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SOFT (Messes/effectiveness)
An organization is a Social system, that is, has a purpose of its
own, so do its parts, and so do the systems that contain it. People
act in accordance with their own view of what is rational for them.
They are not puppets. A pluralist view.
Evolved later (1960s) in response to difficulties in using hard
approaches (HR)
Parallel to the formal organization exists an informal organization.
The values in the workgroup are more important for productivity
than economical incentives and interest from management
increases motivation.
Regards conflict as an inherent characteristic of organizational
affairs and stresses its potentially positive aspects.
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The Hard Systems Models of Change Ch. 7
1, A description phase (describing and diagnosing
the situation, understanding what is involved,
setting the objectives and performance
measures for the change).
• Clear objectives and quantifiable data.
2, An options phase (generating options for
change, selecting the most appropriate option,
thinking about what might be done.
3, An implementation phase (putting feasible plans
into practice and monitoring the results). Often
implementation no problem!
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Hard Systems Models of Change
• An example of a problem characterized by hard
complexity is presented at p. 312, ”Dissatisfaction with
the system for providing IT support services”
• The case is as follows ”Susan is calling IT-support – as
usual there is no one there. No use sending an e-mail –
experience from before is that it takes at least two days
to get an answer- Susan is not satisfied with the IT
support – If she was responsible, she would definitely
make changes”.
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1, Diagnose the situation.
Objectives and performance
measures
2, Generate options for change
3, Implementation often no problem!
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Soft Systems Models of Change
• Often, the signals arriving on manager’s desks are not
as clearly categorised – the only thing managers
percive are problems or messes.
• Soft Systems Models of Change challanges the
rationallity to organizational change taken by the Hard
System Models of Change!
• SSMC recognises that some change situations
(problems/oppurtunities), by nature of their complexity
and particular characteristics (messes), require soft
rather than hard systems approaches to change.
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The philosophy behind soft systems models of change
Ackoff (1981) suggests there are 3 ‘kinds of things’ which
can be done about soft complexity.
1. Resolve them
• Select a solution that yields a “good enough” outcome.
Patch and mend (fix it for the moment), survivaloriented.
2. Solve them (optimizing)
• Select quantitative approaches based on research and
rational-logical methods of analysis. Focuses on the
parts rather than the whole; (The idea behind the hard
system models of change)
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3. Dissolve them
• Change the nature of the problem context by
challenging underlying purposes and
assumptions (or system involved) so as to
remove the problem.
• In double-loop learning, individuals, groups or
the organization question the values,
assumptions and policies that led to the actions
in the first place; if they are able to view and
modify those, then double-loop learning has
taken place. (Argyris & Schön, 1978)
• This is what the soft systems approach tries to
do.
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Exercise: Apply Ackoff’s three ways of dealing with
problems (Resolve, Solve and Dissolve) on
company X below (taken from Ackoff, 1981).
(Hand out assignment 2).
• A large machine tool
manufacturing company is
confronted with abrupt
changes in the demand for its
products.
Current situation
Reactions to the
fluctuations are both
disruptive and costly
for the company.
Desired situation
First reduce cost and
then also fluctuations
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Company X
Resolving the problem
• Among other things, the
company (by using past
experience and using ’good
sound judgement’) alternated
continually between hiring and
firing personell, many of whom
were highly skilled. This made for
low morale, low productivity, not
to mention hostility between
labour and management, but
lowered the cost.
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Solving the problem
• The managers brought in researchers
who formulated the problem as one of
production smoothing, the solution to
which depended critically on the
accuracy of forecast demand.
Unfortunately, they could not develop
very good forecasts. Therefore, the
solutions yielded by optimizing (solving)
were only marginally better than those
previously obtained by problem
resolving.
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Resolve
• Finally, a design attack was made on the
problem. It was reformulated into one of
reducing fluctuations of demand rather
than one of responding to them. This was
done by adding a new product line, the
demand for which was counter-cyclical
realtive to that for machine tools, but its
production required the same technology,
and some of the same parts and
subassemblies. The new product line,
road building equipment, also used the
same distribution and marketing system
as machine tools.
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OD as a process for managing change
• OD is a process of change which has a framework of
recognizable phases that take the organization from its
current state to a more desired future state.
• Two important concepts in OD are Action research and
Change agent.
• An example of OD process is Levin's three-phase
model of change (one of the earlier and most
influential models) Unfreezing, Moving and Refreezing
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Action Research
• Action research a collaborative effort between the
leaders and facilitators of any change and those
who have to enact it. Context bound (real life
problems).
• It involves data gathering, continuous feedback of
data to the client group, data discussion, action
planning, and action. Co-generation of knowledge.
• Therefore, action research is, as its name suggests,
a combination of research and action lead by an
internal or external change agent/s.
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Lewin’s three-phase model of change
take the organization from its current state to a more
desired future state.
Organizational
efficiency
3, The new way to work
Refreezing
is implemented through
Moving
symbolic actions
Unfreezing
2, New possibilities are investigated
and a promising way is chosen
1, Shake up people's habitual
modes of thinking to heighten
the awareness of the need for
change
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Time
1, Unfreezing
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Develop a vision for the need to change (transformational
leadership) through the process of organizational diagnosis and
creative thinking.
Resistant to change is the most problematic issue in
management of change.
To describe the current state, use for instance the PEST
analyze. Even temporal (historical) and internal environment
must be assessed (info about total system)! Questionnaires,
interviews, observations and organisational documents, can be
used
Disturb the status quo by strengthing or weakening the resistant
to change through an awareness of what will happen if nothing
changes. Use for instance Force Field Analyze (FFA).
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FFA model
Visualize the power balance and the strong forces in the form of feelings, values,
power and politics that are restraining change.
1, An automatisation of the production process, due to uneven quality and long lead times
2, The increased competition will otherwise put us out of business
Restraining forces
Driving forces
Faster
manufacturing
process
Balance
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Better quality
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No change
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Old values
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Missunderstanding and
a lack of trust
Change
Action plan
1, Involve all the personal in the design of the new
process and educate them in the new system
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2, Changing
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A systematic (brainstorming – research) search
for new ideas to take the organization from its
current state to a desired future state through
dialogue with all concerned in order to create an
understanding for the need to change and to use
all ideas and creativeness of the people
involved.
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3, Refreezing
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The use of continuous data collection and feedback is
essential to keep track of how the change is progressing
and to monitor for further change in the light of
environmental changes.
The use of surveys and interviews is one way of collecting
data. (Data to be collected depends on the situation)
Symbolic actions, such as change of logo, forms of dress
and ways of grouping people, as well as leadership could
be one way to manifest ”the new way to work”.
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Why are these steps so important?
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If you skip the phase unfreezing, the change will meet resistant (old
values will increase and lead to misunderstandings and a lack of trust)
when prevailing forces are increased. Use for instance the FFA model
to visualize!
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If you don’t base your decisions on a rigor and systematic process
when making the actual change, and instead base your decisions on a
hunch that yields a ”good enough” outcome (Resolve, Ackoff, 1981)
and don’t involve all that are concerned by the change, the
suggestions are often ill founded, when you lack important knowledge
and/or an internal acceptance.
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The 8-Step Process of Successful Change (Kotter, 1996)
SET THE STAGE
• 1. Create a Sense of Urgency.
Help others see the need for change and the importance of acting
immediately.
• 2. Pull Together the Guiding Team.
Make sure there is a powerful group guiding the change—one with
leadership skills, bias for action, credibility, communications ability,
authority, analytical skills.
DECIDE WHAT TO DO
• 3. Develop the Change Vision and Strategy.
Clarify how the future will be different from the past, and how you
can make that future a reality.
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MAKE IT HAPPEN
• 4. Communicate for Understanding and Buy-in.
Make sure as many others as possible understand and accept the
vision and the strategy.
• 5. Empower Others to Act.
Remove as many barriers as possible so that those who want to make
the vision a reality can do so.
• 6. Produce Short-Term Wins.
Create some visible, unambiguous successes as soon as possible.
• 7. Don’t Let Up.
Press harder and faster after the first successes. Be relentless with
instituting change after change until the vision becomes a reality.
MAKE IT STICK
• 8. Create a New Culture.
Hold on to the new ways of behaving, and make sure they succeed,
until they become a part of the very culture of the group.
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Criticisms of the OD Model for Change
OD cannot be applied in the same way across all cultures.
Supposedly it is not suited to high Power Distance, high
Uncertainty Avoidance, and high Masculinity cultures.
• Power Distance focuses on the degree of equality,
between people in the country's society. A high Power
Distance ranking indicates that inequalities of power and
wealth have been allowed to grow within the society.
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• Uncertainty Avoidance focuses on the level of tolerance
for uncertainty and ambiguity within a society. A high
Uncertainty Avoidance ranking indicates that the country
has a low tolerance for uncertainty and ambiguity (people
will tend to be heavily driven by laws and rules).
• Masculinity focuses on the degree to which the society
reinforces, or does not reinforce, the traditional masculine
work role model of male achievement, control and power.
A high Masculinity ranking indicates that the country
experiences a high degree of gender differentiation.
“Money before relationships”.
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What kind of consequences does this create for international
companies and their work with ”soft” changes?
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