Mergers and
acquisitions:
A roadmap for
effective organizational
change
Brian W. Keith
Associate Dean, Administration and Faculty Affairs,
George A. Smathers Libraries
Cecilia Botero
Associate Dean of the George A. Smathers Libraries and
Fackler Director of the Health Science Center Libraries
Michele R. Tennant
Assistant Director, Biomedical and Health Information Services,
Health Science Center Libraries
Bioinformatics Librarian, UF Genetics Institute
These slides and a complete bibliography
are available at
http://ufdc.ufl.edu/AA00016004
(sources cited)
Thank you to our sponsors
• LLAMA (Library Leadership & Management
Association)
• ACRL (Association of College and Research
Libraries)
Agenda
• Trends in Library Change
• Concepts and recommendations from scholarship
on change and culture
• The case of the successful integration of the UF
HSC Libraries and the main campus libraries
• Pearls of wisdom
Trends in Library Change
Changing Library Environment
• Economic Factors and Accountability
• Data Curation and management
• Technology
• Expectations
• Online learning
• Staffing
Changes In ARL’s
Kenney, Anne R. 2013. “Something’s Gotta Give! Making Tough Choices on Doing Less with Less”. Conference presentation, ARL Spring Meeting, slide 19.
http://www.arl.org/storage/documents/publications/mm13sp-kenney.pdf
Staff Changes
Kenney, Anne R. 2013. “Something’s Gotta Give! Making Tough Choices on Doing Less with Less”. Conference presentation, ARL Spring Meeting, slide 21.
http://www.arl.org/storage/documents/publications/mm13sp-kenney.pdf
What does the literature tell us about Change
and Change Management?
Change
Examples:
• Work process changes
• New technology implementations
• Reorganizations
• Strategy changes
• Relocations
• Outsourcing
• Retirements
• Leadership changes
• Downsizing
Change
• Estimates are up 50% of all change efforts fail,
often as a result of poor change leadership.
• Negative outcomes, include:
sunk costs, organizational ineffectiveness,
customer dissatisfaction, low morale, high
turnover, and wasted resources.
(Kotter; & Quinn)
Change
• These failures are commonly related to human
issues, not technical issues.
• Successful organizational adaptation is increasingly
reliant on generating employee support and
enthusiasm for proposed changes, rather than
merely overcoming resistance.
(Kotter, et al.; & Piderit)
Change Readiness
• Reflected in organizational members' beliefs,
attitudes, and intentions regarding the extent to
which changes are:
• Needed or beneficial, and
• The organization's capacity to successfully make those
changes.
• At the individual level, readiness is the cognitive
precursor to the behaviors of either resistance to,
or support for, a change effort.
(Armenakis, et al.)
Change Readiness
• Attitudinal reactions are driven by
feelings of:
• Uncertainty,
• Loss of control, and
• Fear of failure.
(Caldwell, et al.; & Fedor)
Cognitive Adaptation Theory
Individuals with certain traits handle
change best:
• High levels of self-esteem (e.g., a high sense of selfworth),
• Optimism (e.g., a highly positive outlook on life), and
• Perceived control (e.g., a view of life and situations as
being under personal control).
(Wanberg, et al.)
Change Readiness
• Employees may be reluctant to incorporate new
procedures, technology, or other changes into their
work if they are anxious about their ability.
• To lessen employee resistance, managers should
ensure that adequate training is provided to
employees and should take steps to bolster
employees' confidence in their abilities.
(Coch, et al.; & Wanberg, et al.)
Perceived Organizational Support (POS)
• POS is defined as the employee’s perception
of the organization’s attitude towards the
employee.
• POS is valued as assurance that aid will be
available from the organization when it is
needed to carry out one’s job effectively and
to deal with stressful situations.
(Self; & George, et al.)
Perceived Organizational Support
• Socio-emotional and material support to employees
who are going through stressful adaptation
processes during organizational change are symbols
of care, respect, benevolent motives, favor, and
commitment toward employees, and are positively
related to fairness judgments.
• POS should produce a felt obligation to care about
the organization’s welfare and to help the
organization reach its objectives.
(Liu, et al.; & Rhoades, et al.)
Perceived Organizational Support
• A conscientious effort should be undertaken to
build organizational support prior to implementing
change.
• However, in organizations with low POS where
change is needed immediately, change agents
should not expect a favorable response from
employees and there should be immediate efforts
to simultaneously build organizational support.
(Self)
Perceived Organizational Support
• Employees expect adequate support for the
change from management.
• Failure to provide such support will be seen as
a failure due to lack of effort and represents
an integrity-based trust violation.
(Weiner; & Kim, et al.)
Perceived Organizational Support
When change is seen as resulting from
management volition and without
perceived necessity, managers often bare
much more responsibility for the change
and face more obstacles when attempting
to implement such changes.
(Lüscher, et al.; Kim, et al.; & Rousseau, et al.)
Perceived Organizational Support
• When change is attributed to external factors
that are unavoidable and uncontrollable by
management, employees tend to be more
lenient toward management.
• When management is not seen as responsible
for initiating the change, failure to provide
change support is less likely to harm the
reciprocal relationship.
(Bies, et al.; Kim, et al.; & Self)
Organizational Justice and Fairness
• Perceptions of fairness increased by:
• Providing advanced notice of changes,
• Showing respect for individuals,
• Being open to and considerate of participants'
concerns, and
• Providing individuals the opportunity for inputs
that can affect ultimate outcomes ("voice”).
(Brockner, et al.; Korsgaard, et al.; & Folger)
Organizational Justice and Fairness
• When change participants perceive that
implementation was handled fairly, reactions to the
change and to the organization are more favorable.
• Process fairness increases:
• Individuals' openness to a particular change,
and
• Absolute level of commitment to the
organization.
(Novelli, et al.; Schweiger, et al.; Wanberg, et al.; & Brockner, et al.)
Change Management
Lewin’s Model of Individual-Level Change
Process (1948):
1. Unfreeze,
2. Move or change, and
3. Refreeze.
(Lewin)
Change Management
In subsequent study, the manner in which
management treats and involves
employees during change has received the
greatest amount of attention and has been
shown to be a powerful determinant of
individuals' reactions to major
organizational changes.
(Beer; Brockner, et al.; & Lind, et al.)
Change Management
Consistently organizational-level change process
models involve:
• Motivating the change by developing commitment
and readiness to it,
• Creating a vision by describing the outcomes of the
change,
• Developing political support by addressing the
power and influence dynamics of the proposed
change, and
• Managing the transition by moving from the
current to the future desired state, sustaining
momentum by carrying the change effort to full
completion.
(Cummings, et al.)
Change Management
Kotter famously defined an eight-step process for
organizational change:
1.
2.
3.
4.
5.
6.
7.
Establish a sense of urgency,
Form a guiding coalition,
Create a vision,
Communicate the vision,
Empower others to act on the vision,
Plan for and create short-term wins,
Consolidate improvements to create more
change, and
8. Institutionalize new approaches.
(Kotter)
(see Sidorko; Nussbaumer, et al.; and Farkas for applications of Kotter’s model in libraries)
Communication Is Key
• A primary mechanism for creating readiness
for change is the message for change.
• The readiness message should incorporate
two issues:
1. Need for change, that is, the discrepancy
between the desired end-state and the present
state, and
2. Individual and collective efficacy (i.e., the ability
to change).
(Armenakis, et al.)
Communication
• Global and local change agents need to be
clear, early on, about the precise ramifications
the change program will have for change
recipients.
• They should explain how any threat can be
dealt with, and at the same time introduce
and highlight the personal benefits change
could have for employees, beyond its
importance for the organization.
(Oreg, et al.)
Communication
While immediate supervisors can play an
important role in helping employees to interpret
the change message and assess its impact…
…causal explanations and justifications for
a change initiative must originate with
global change agents perceived as the
instigators of the initiative, not the
immediate supervisors.
(Larkin, et al.; & Self)
Communication
• POS goes beyond “selling” of a change:
pronouncements, proclamations, slogans, and themes.
• Specific change support behaviors include providing
necessary resources and training and helping
affected employees adjust to the job situation.
(Dutton, et al.; Beer; Kotter; & Caldwell et al.)
Transformational Leadership (TL)
Leaders who exhibit ‘transformational’
behaviors:
•
Appeal to followers’ sense of values and are able
to get them to see a higher vision, and
•
Encourage them to exert themselves in the
service of achieving that vision.
(Burns)
Transformational Leadership
TL Dimensions include:
• Creating and communicating a vision,
• Creating empowering opportunities,
• Personal credibility that causes followers to
trust, admire, and identify with the leader,
• The intellectual stimulation of followers, and
• Tending to followers’ needs.
(House; Yukl; Bass; & Sashkin)
Transformational Leadership
Transformational leadership, over time, gains
the leader “credits” that may be drawn down by
behaviors that may deviate from followers’
expectations.
(Herold, et al.)
Transformational Leadership
Managers should invest special attention
in creating a supportive and trusting
organizational culture if they expect
change recipients’ support and
cooperation in times of change.
.
(Oreg, et al.)
Change Management (CM)
Transformational Leadership(TL)
• CM focuses on the here-and-now, the
specific change at hand and from a tactical
point of view.
• TL refers to a longer term relationship
established between the leader and
followers, built up over many interactions
and having a more strategic orientation.
(House, et al.; & Herold, et al.)
CM and TL
• Leader behaviors in relation to a specific change
do not alone determine the extent followers will
support change.
• The impact of change management behaviors is a
function of the leader’s level of transformational
leadership and the level of impact the change has
on the individual’s own job.
(Herold, et al.)
CM and TL
Transformational leadership’s impact:
• Positively associated with change commitment
whenever change management was low.
• Helpful when both change management and
job impact were high.
• It is only when change management was high
and job impact was low that transformational
leadership was not related to change
commitment.
(Herold, et al.)
CM and TL
Bottom Line:
Transformational leaders get more “buy in” to an
organizational change regardless of their specific
behaviors in planning or implementing that
change.
(Herold, et al.)
Distribution of Change Effort
• Employees compare the turmoil created by the
change for themselves and for others in their work
groups. Having to shoulder a disproportionate
amount of the change can result in less desirable
commitment-related outcomes.
• This may represent a major problem if the change
burden falls disproportionately upon those the
organization considers the most talented or critical
employees.
(Fedor)
Organizational Culture
“ … a pattern of shared basic assumptions
learned by a group as it solved its problems of
external adaptation and internal integration,
which has worked well enough to be considered
valid and, therefore, to be taught to new
members as the correct way to perceive, think,
and feel in relation to those problems”
(Schein, 2010)
Culture
Several theories of organizational culture, but
the “anthropological” theory states that
culture is not a “thing”, but that culture “is”
the organization.
(Smircich)
Culture
Three fundamental levels at which culture
manifests itself:
• observable artifacts,
• values, and
• basic underlying assumptions.
(Schein, 1990)
Culture
In libraries, culture can be exemplified by a shared
understanding of:
• How the library and its activities align with the
mission of the organization it serves
• The unique information needs of users and how to
meet them
• The values and culture of the organization the library
serves
• How the library accomplishes decision-making
• The day-to-day work of the library
(Desson)
Health Science and Medical
Libraries
UF Health Science Center Libraries
UF Health Science Library serves six colleges:
•
•
•
•
•
•
Dentistry
Medicine
Nursing
Pharmacy
Public health and health professions
Vetmed
Changing Environment in Medical and
Health Science Libraries
• CTSA- (Clinical and Translational Science
Awards)
 Interdisciplinary collaboration and education
 Community Outreach
 Informatics
• Reporting structures
Trends In HSC Library Reporting Relationships
2010
Adapted from: Buhler AG, N Ferree, TT Cataldo, MR Tennant. 2010. “External Reporting Lines of Academic Special Libraries: A Health
Sciences Case Study.” College and Research Libraries, 71(5):467-94.
Survey of HSC Directors
HSC libraries that report to HSC administration
have and value a culture that provides
autonomy and decision-making authority, with
decreased bureaucracy and streamlined
decision-making.
So what happened at UF?
Background
UF library system as of 2008 consisted of 3
systems:
1. Lawton Chiles Legal Information Center
2. Health Sciences Center Libraries (HSCL)
• Health Science Center (Gainesville)
• Borland branch library (Jacksonville)
• Veterinary Medicine Reading Room
(Gainesville)
Background
UF library system as of 2008 consisted of 3
systems:
3. George A. Smathers Libraries (Smathers)
•
•
•
•
•
Special and Area Studies Collections
Government Documents and Maps
Humanities and Social Sciences Library
Marston Science Library
Departmental Branches
• Architecture and Fine Arts
• Education
• Journalism
• Music
Background
Historically, there was extensive collaboration
between the Smathers Libraries and HSCL,
particularly in the areas of:
• The acquisition of library resources,
• Tenure & Promotion, and
• Library Management System
Integration Planning
• Fall 2008, the HSCL and Smathers Libraries
were directed by the President to integrate the
2 systems as soon as feasible.
• Negotiated an implementation of July 1, 2009.
Integration Planning
October 2008, Dean and HSCL Director agreed to
work on an integration proposal to jointly submit
to the Provost that would allow the HSCL retain
autonomy in regard to servicing its customers’
needs.
Integration Planning
On January 21, 2009, employees of the Smathers and
HSCL libraries were enlisted to Integration working
groups:
•
•
•
•
•
•
•
•
•
Administrative Services (Human Resources and Financial
Services)
Access Support (ILL, Circulation, Library-Wide Policies)
Budget Preparation
Development (Grants, PR)
Digital Services/Institutional Repositories
Facilities
Public Services/Collections Management
Systems
Technical Services
Integration Planning
• Asked to look at common functions and
services in the two library systems and identify
possible efficiencies; and also identify policies
to be harmonized or new procedures that will
need to be developed.
• The recommendations of the Work Groups
were to be used by the Dean and Director for
the consolidated integration plan as a basis for
implementation of the integration.
Integration Planning
• Conceptually:
The overriding goal of the HSCL – Smathers
integration was to ensure that services to our users
were not compromised and it was hoped that work
efficiencies and service quality would improve.
• A report from each work group was submitted
by February 25th.
Integration Planning
Working Group recommendations fell into 4
general categories:
• Fully Integrate
• New support for HSCL
• More integrated decision making and
communications
• No Integration
Integration Planning
Fully Integrate:
Administrative Services (Human Resources and
Financial Services)
Integration Planning
New support for HSCL:
• Fundraising, Grants and Public Relations
• Digital Services/Institutional Repositories
• Facilities Management
Integration Planning
More integrated decision making and
communications:
• Access Support (ILL, Circulation, Library-Wide
Policies)
• Public Services/Collections Management
• Technical Services
Integration Planning
No Integration:
Systems (IT)
Integration Planning
In March 2009, Dean and Director, with input from
other library staff, drafted the integration proposal
to present to the Provost. The report covered:
• Integration
• Appropriate Funding for HSCL
• HSCL Renovation
Integration Planning
• The report was posted on the internet and blog
established for feedback from library
employees and others on campus.
• The plan was approved by the Provost, with an
effective integration date of July 1, 2009.
Implementation
• On July 1, the HSCL Director became Associate
Dean and Director of the HSCL, reporting
directly to the Dean of University Libraries who
in turn reports to the Provost
• Director retained an non-reporting relationship
with the SVPHA
Implementation
• Beginning July 1, 2009, the Smathers Fiscal Services
office produced, per HSCL specifications, and publicly
posted monthly budget reports for the HSCL and
maintained segregated fiscal accounts for the HSCL to
ensure funds were not comingled between the HSCL
and the rest of the integrated libraries.*
• Director retained authority over funds of the HSCL.*
*Communicating a sense of ownership to the HSC colleges.
Outcomes
• No layoffs
• Minimal but strategic reassignments
• No reallocations of recurring funds
Outcomes
Integration allowed us to pool resources in those
areas that we serve in common, which allowed
the integrated library system to devote more time
and resources to the areas that we each uniquely
serve.
Successes @ UF
• HSCL had never participated in the University’s
dual career program, but as a part of the
University Libraries, the HSCL was able to place
a Basic Biomedical Sciences librarian.
• The HSC Libraries received one of the Provost’s
‘jumpstart’ positions - a Clinical Research
Librarian to serve UF’s CTSI (Clinical and
Translational Science Institute).
Successes @ UF
The centralization of the fiscal & human
resources management functions provided a
net savings of 1 HSCL FTE that was then
repurposed to serve in a Access Services
position, which in return, freed 1 full time
librarian to serve the area of consumer
health and community outreach.
Successes @ UF
The HSCL has increased the support provided to
the clinical enterprise:
•
•
Librarians participate in rounding and morning
reports, and
Consumer Health librarian assisting patients at
the internal medicine clinics
Successes @ UF
• The combined system realized an increase to
the campus research enterprise contribution to
the Libraries.
• The increased funding was added to the base
HSCL material budget.
Successes @ UF
Smathers Libraries provides funds to the
HSCL for a variety of purposes, including a
contract with an architect to begin planning
for a phased renovation project. At the
same time, the Dean has tirelessly pursued
renovation funds.
Successes @ UF
Significant pay inequities existed for the HSCL
employee salaries when compared to the Legal
Information Center and the Smathers Libraries.
This represented a major obstacle to a successful
integration.
Smathers’ HR successfully completed a review for
faculty and staff, and implemented market equity
plans (primarily, using HSCL funds).
Successes @ UF
The HSCL gained advocacy from the library
Development Office including a grants manager.
The HSCL had no such resources prior to
integration and effectively competed for donors
versus HSC units.
Recently, the HSCL Director position was
endowed!
Successes @UF
The head of the new system, as a Dean, is
positioned to serve as champion for the
health libraries and integration may actually
improve the standing of the libraries in the
health center.
Challenges @ UF
The biggest challenge was cultural.
How do we assess the UF based on the
literature?
The UF Case
• External Causation
• No explanation or vision from initiating leader
• Provided deadline (urgency)
The UF Case
• Fell to implementing leadership to provide:
• Vision
• Process
The UF Case
• Library leadership at various levels brought:
• Transformational Leadership
• POS
• Opportunities for voice
The UF Case
• The result was a general sense of fairness,
efficacy and inevitableness.
The UF Case
• Change was probably easier because we were
able to minimized negative consequences
• Negatively, their was disproportionate effort
required from some units and individuals
The UF Case
• Ultimately successful, and seamless/unobvious
to external stakeholders, because of:
• Staff support and effort, and
• Library leadership
The UF Case
• The success has positioned the combined
organization to handle, externally driven and
internally imposed change
Now for some pearls of wisdom…
Pearls of Wisdom
• Success is possible with effective process,
planning and communication.
• Integration can address historic issues,
inequities, and inefficiencies, and can allow
leveraging of resources.
Pearls of Wisdom
• Get on with it and implement to the best
advantage of the libraries: patrons and staff are
what matters and will suffer if leaders are not
devoted.
• Trust must be developed through tact, honesty
and effectiveness.
Pearls of Wisdom
• Be candid about disadvantages to both units
and mitigate these as best as possible.
• Be candid about advantages to both units and
celebrate progress towards these.
Pearls of Wisdom
• Clarify the scope of authority.
• Consider maintaining distinguishable resources.
• Collaborate on important decisions.
Pearls of Wisdom
• Periodically assess the integration and results.
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Mergers and acquisitions:
A roadmap for
effective organizational
change
University of Florida
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