Managing Continuous Change: The Realities Heather Stebbings Steve Macaulay The latest announcements that the Health Service is to undergo yet another change has prompted some people to say what we need is some stability. Other people, however, are saying look this is the way all organisations are going – we need to continually change. Now, joining me in the studio today is Heather Stebbings. Heather is doing a Doctorate in organisational transformation. Now, Heather, what is your take on this idea of continually changing an organisation? Heather Stebbings Hello Steve, thanks for inviting me in today. Yes, I am very interested in this concept of continuous transformation for organisations. And if we take a look at a lot of the companies out there right now in industry that have a number of these challenges, change is something that is now the new norm in effect. Perhaps some of the things that they struggle with is this continuous requirement to change. When we look at that, especially with for example, the recent healthcare industry announcements about restructuring, about the way in which the organisations are perhaps suited to perform all their business processes, when we look at those types of organisations what we frequently find is that they are set in their structure, they are set perhaps for a longer term strategy, they are set perhaps in the way in which they actually have to produce their outcomes, they have to produce [for example] the care that they are delivering. So that is the healthcare industry. Other examples include the banking industry, for example and we have restructuring between investment arms and retail arms of banking. So this continuous requirement to change is now perhaps the new norm. Steve Macaulay So let’s get down to specifics. If it is the new norm, I suspect in practice, it involves a lot more than that. What are the things that are changing and need to change? Heather Stebbings Some of the research that I have been involved with pretty recently, looks at what is it that underlies this ability to continuously change; what is it that actually helps organisations manage the way in which they adapt, manage the way in which they evolve. Heather Stebbings One of the things that is starting to come through from a recent pilot study is this ability to manage the relationships between critical components, between critical resources. And in some cases the resource could be as wide as another business function itself and it could be as small as a single computer; and what we are looking at particularly is the way in which these relationships can flex. Because once you have a flexible relationship, you will find that the organisation can move more. So perhaps it is dependency driven or it is the constraint that actually holds the organisation in a particular pattern. Steve Macaulay So give me a for instance. Heather Stebbings Give you a for instance: let me give you an example that I have looked at from the legal industry. A number of them have particular processes that they have in place, they are very set in their ways, they need to operate as a professional services organisation that constantly delivers a good quality output. They exist to serve their customers and their clients with specific needs. When we look at the way in which particular business processes change, what we have is information routing whether it’s a flow of information to a particular point, or perhaps the criticality of that information changes, what you then find is if the process can’t adjust the information flow, or can’t adjust the content, what you find is the input and output of that process then becomes the rigid factor. Steve Macaulay So how do you oil the wheels to make that change? Heather Stebbings I think there are a number of things that are associated with oiling the wheels. If we look at particularly the legal industry study that I have just done, one of the oiling factors is understanding what it is that contributes to those flows of information; what is it that maintains that business process – the integrity of that business process? And if we look at the input/output value relationships that exist there, oiling those resources and oiling those connections and oiling those relationships – managing those interdependencies really effectively. It removes a lot of the constraints. So it is about managing those interdependencies that allows that level of flex. Steve Macaulay So for practical managers on the ground, what would your key message be to make organisations adaptable, transformational, responsive? Page 2 Heather Stebbings Heather Stebbings If I put my engineer’s hat on for a second and look down in the nuts and bolts of the organisation, I would be looking at the dependency mapping, the constraint mapping – all of those things which for a particular business process, mean that (a) goes to (b) goes to (c), because the chances are when we look at organisational change and we look at perhaps it is painful over here, root causes down here – well root causes the ripple effect that happens over here and what we will find is that if we start to map those constraints you will find a way of getting back to actually what we need to do is to not shuffle the deck chairs on the Titanic, what we need to do is address the way in which the organisation manages constraints between business process parts. Steve Macaulay So oil the wheels, look at the constraints and unblock them? Heather Stebbings Absolutely. Steve Macaulay Heather, thank you very much. Heather Stebbings You are very welcome. 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