Successful Organization Change at National Database and Registration Authority

(NADRA) Pakistan: A Case Study

Sadaf Alam1

Abstract

Organizational change is a methodical, top-down process to turn around the organization. The study
evaluates the change management process at the National Database and Registration Authority
(NADRA) by utilizing the Kotter's 8-Step Change model of organizational performance. By applying the
model paper shows how NADRA was able to change business mission and organizational culture and
has made Pakistan the first country in the world to develop a fully integrated and centralized system of
registration. This study also finds the important role of leadership and key mangers in implementing
change. A brief correlation with 4D model of change and with control process during the change activity
has also been applied.

Keywords
Organizational Change, Control, Leadership, Kotter’s Eight Steps, NADRA.

1. Introduction

Change is totally essential for the continued existence of organizations in the competitive environment.
Organizational change requires modification in organization's purpose, culture, structure, and processes.
Only few organizations experience success during the change initiatives as tremendous amount of
efforts, dedication and integration among members is required. But once the organization has successful
during the change process it can experience remarkable position.

National Data Base & Registration Authority (NADRA) is also among that organization that not only has
experienced success in transformation but also gives pride to the country. NADRA is the largest semi-
government IT based organization of Pakistan with the workforce of 14,500 and around 800 data
acquisition centers across the country, aiming at to become self sustaining organization.

NADRA can proudly be considered as example of successful organizational transformation. During the
last few years, this organization has expanded its product base from Computerized Identity Card to a list
of other value added products.
It was strategic planning that has resulted in the merger of National data base organization (NDO) and
Directorate General of Registration that has created a new organization aimed at overcoming the
problems of previous regime, ranging from issues of unavailability and disintegration of quality data to
political interference.

According to Zia and Farheen (2009) the rationale behind the creation of NADRA was to develop: A
National Data Warehouse, A National Information Infrastructure for online, nationwide access to the
National Data Warehouse, A National Spatial Data Warehouse Infrastructure to set up a comprehensive
geographic and land information system and National Identity Documents for all citizens and non-citizens
resident in Pakistan.

To achieve the desired outcomes the need for transformational change was realized by authorities that
has resulted the change in mission, strategies and organizational culture and organization has been
successful in brining organizational change that can be allied to the list of national and international

1
Senior Lecturer, Management Sciences Department, Bahria University Karachi. sadaf.alam@bimcs.edu.pk
awards won by authorities of NADRA to make the organization as most successful organization of
Pakistan.

NADRA has made Pakistan the first country in the world to develop a fully integrated and centralized
system of registration through technology advancement and efficient computerization/automation system.

1.1 Objective of the Study

The main objective of the study is to find out the interaction among change and organizational culture and
to describe the importance of leader’s familiarity of organizational culture and ability to execute change
leading to organization success. The study investigates the organization change process at NADRA
(taking as case study) by implementing Kotter’s 8 step change model and shows how NADRA was able
to change its business mission, strategies and organizational culture under the change process.

2. Literature Review

A wide range of literature is available on organizational change. The main aim of organizational change is
familiarization to the environment indicated by Barr, Stimpert and Huff (1992) and Leana and Barry (2000)
or an improvement in performance as mentioned by Boeker (1997), Keck and Tushman (1993). Most
important perspective of change is known as ‘planned approach’ to change that is described by Lewin
(1952) in which change is considered as a three stage process: unfreezing existing behavior; moving to
the new behavior; and, refreezing the new behavior. The three-step model was adopted for numerous
years as the leading framework for understanding the process of organizational change. This process of
change was further modified, analyzed by many researches.

Bullock and Batten (1985) formed a four step model consisting of exploration, planning, action and
integration. Luecke (2003) has also given seven steps change model. Kanter et al. (1992) has given ten
instructions for implementing change. According to Dunphy and stace (1993) organizational performance
depends more on situational variables, more on managers’ responses and strategies which varies from
change organization to organization.

3. Kotter's 8-Step Change Model

Every organization understands the need of change but they feel difficulty in implementing it throughout
organization. Integration is required between leadership and organizational process to implement
organizational change successfully.

To better understand the change process of NADRA, Kotter's (1996) 8-Step Change Model is
implemented. The reason to take this model is that all steps of Kotter's change model are clearly
explained which gives a guidance for the process of change and can be fit well into the culture of
traditional levels of management.

This model is applicable to a wide range of organizations ranging from sovereign national organization to
competitive multinational corporations, aiming at implementation of successful process of change. One of
the examples is US Army that, in 1999 has applied Kotter’s 8 steps change model during the
transformational change process to prepare the troops for the asymmetrical threats.

So many researchers have criticized this model as it is top down model and lack the participation of
employees; it also observed that the model lacks the particulars that needs more detail. Eight steps for
leading change are explained below in context of NADRA.
Figure 1: Kotter’s 8 Step Model for Managing Change.

Articulate a powerful rationale

and business case for change
1.
Continually articulate the Establish a
connections between
sense of
the new way of working 2. Assemble a team with
and corporate success. 8. urgency enough power & influence
Weave new corporate Form a in the organisation to lead
style / culture into Institutionalise the change effort
leadership development changes
powerful
and succession planning coalition

Create a
Use credibility to Kotter’s 8 compelling vision
change policies & 7. 3. of the future to
procedures that Steps for
Consolidate Create a guide the
don’t fit vision.
Recruit and improvements Managing vision
direction of the
change
promote Change
employees who
can implement
vision
Use every possible
6. vehicle to
4. communicate the
Plan for and
Communicate vision. Role-model
Create short- the vision new behaviours
Plan visible quick-wins.
Implement and recognise term wins 5.
and reward employees Empower
involved
others Remove obstacles to the change. Change
systems, or structures that undermine the
vision

Source: www.theheartofchange.com

3.1 Step One: Create Urgency

The Change process is a perilous and uncertain process. If organization fails to recoil tactfully with the
forces that are maintaining status quo, the entire process of change can result in collapse. But if the first
of Kotter’s steps is done correctly, then to some extent certainty can be assured to minimize the
resistance.

NADRA fulfills the criteria of creating the sense of urgency for change among its employees by giving
them the reasons that why change is required. For this purpose competitive analysis with giving
advantages and disadvantages of change to everyone is helpful. Management of NADRA has perceived
that change is successful if whole organization wants it that’s why at organizational level this need was
created.

3.2 Step Two: Form a Powerful Coalition

According to Kotter (1995) during the change process organization must promote team building to form a
powerful coalition. In his book “Leading change” Kotter has given four characteristics that are essential to
form a powerful coalition. These four characteristics include position power, expertise, credibility and
leadership.

3.2.1 Position Power: Teams that are formed to lead change initiatives must get support from key
players. At NADRA it was insured by creating the need for change and to ensure participation incentives
were given. One of the main factors of success of NADRA is the satiated support from its key
stakeholders.

3.2.2 Expertise: According to Kotter (1996) to implement the change personal expertise such as work
experience, maturity and discipline plays a vital role. At NADRA it was ensured that all members of the
team must have expertise and work experience in their designated field, for that purpose good staff was
promoted from within the organization and specialized and diverse people were recruited from outside to
work in specialized teams in all area such as technology development , networking and project
management.

3.2.3 Credibility: As explained by Jack Welch (Former CEO GE) in his book “Winning” Leaders
relentlessly upgrade their team, for that they have to make sure the right people are in the right jobs.
Along with the expertise focus was also given on credibility of people. Well reputed individuals from the
corporate world were included into the team to ensure the effectiveness of change process.

3.2.4 Leadership: Implementing change process seems impossible without the transformational leaders.
According to Burns (1978) transformational leaders stimulates and inspires followers to achieve
extraordinary outcomes. It is the responsibility of the leaders to transform the behavior of people to
achieve defined goals by giving them courage, integrity and enthusiasm. A new chairman of NADRA has
displayed all traits of transformational leadership including inspirational motivation, individual
consideration, intellectual stimulation that has helped NADRA to have effective teams.

It was the strategic management experience of leadership that has made NADRA successful in
implementing the change process and has increased the performance of the organization. In recognition
of their services, leadership of NADRA were rewarded with so many national and international awards
such as Sitara-e-Imtiaz for “service to nation” in 2006, “Life time achievement award “ by NCR corporation
in 2007 , ID people award and “outstanding achievement award” for secure documentation by ID world
international congress in Rome in 2006.

3.3 Step Three: Create a Vision for Change

In an organizational change process forming a vision is vital to express the change effort. Vision can
result in desirable future that can give success to change process. Vision provides reason of existence
and long-term strategy. Without a sensible vision, change efforts can break up into a list of confusing
projects that take the organization in the wrong direction.

Keeping in focusing the problem of previous regime new management at NADRA has created the vision
to become a learning organization followed by customer service for that purpose mission and strategies
were bespoke. Business model was transformed from manual data collection to fast and secure single
data entry.

3.4 Step Four: Communicate the Vision

Jack Welch (2205) in his book “Winning” writes that leaders make sure people not only see the vision,
they live and breathe it. Organizations can never be successful just by creating a vision for change. It
must be communicated to all levels of organizations. One reason of the success of change process at
NADRA is that vision was communicated at the start of change process to successfully implement the
change.

People were aware that what they are trying to achieve that has supported NADRA to increase the
effectiveness of change process. Organization has Utilize the vision in decision making and problem
solving. The most powerful medium utilized by NADRA is to communicate the vision through behavior of
the strategic leaders in the organization by setting the examples. Wiggins (2009) in his study provided the
model to guide and communicate the employees during the process of change. According to him when to
convey news of change to employees they must be given with support information to deal with their
refutation which comes in the form of annoyance and frustration. Once employees begun accepting the
vision of change it will be reflected in their commitment as well.

3.5 Step Five: Empowering Others to Act on Vision

Many organizations become successful in communicating the vision but without removing the barriers
strategic leaders cannot be successful in getting the support from within organization for transformation.
Barriers can be removed by empowering people. Participation in decision making gives people a sense of
involvement and increases the probability of commitment to change.

It has been observed that before the change process NADRA has experienced traditional management
hierarchy characterized by complex communication, traditional command and control system and lack of
participation. During the process of change at NADRA participative management style was introduced. To
increase the participation of employees from all level an open door policy was introduced through which
employees are encouraged to share ideas. Infrastructure was redesigned with fewer boundaries,
common prayer and mess facilities, regardless of level of management has created to ensure the
participation of employees.

3.6 Step Six: Create Short-term Wins

Organizational change is not a short term process, it requires tremendous amount of patience to feel the
process of change. Challenge is to cope with uncertain behaviors that can result in the failure of entire
process. If organization targets low-cost short term targets it can be able to create short term wins.
Conspicuous performance improvement changes the mindset of people. During the change process,
NADRA gave more emphasis on short term corporate goals. Initially more focus was given to the software
development and software integration, later on the focus has expanded to provide technology solutions to
other countries.

Now NADRA is offering wide range of solutions for domestic as well as international market including
Multi- Biometric e-Passport, Automated Border Control, Integrated Solution for Multi-Biometric Identity
Cards, Vehicle Monitoring and Identification System, Electronic Point of Sale System, Facial Access
Control System, RFID Driving License, Machine Readable Seafarer Identity Document, Biometric
Identification & Payment Solutions etc. NADRA has produced the World’s first Machine Readable and
also has become the Asian leader for providing identity-based multi-biometric technology solutions.

3.7 Step Seven: Build on the Change

Short term wins can only be the origination. According to Kotter, premature victory celebration
exterminates the ongoing momentum. Organizations should keep learning, if an organization stops
learning new processes after implementing change that organization cannot become self sustaining
organization.

NADRA has never relied of short term wins as long term target is the economic development of the
country by increasing the registration of people. NADRA has competitive advantage of having world's
largest multi-biometric database used it to bring transparency in government's citizen centric initiatives.
NADRA has the most accurate database and serving in restoration of the law and order situation.

Successful projects have been started that are serving dual purpose of increasing the registration and
developing a country. E-sahulat system is one of them, designed specifically for rural areas, low income
population aiming secure online payment. E-Sahulat services are franchised and 5000 individuals are
given license for that purpose and organization is planning to expand the network of franchises. During a
short span of time NADRA is successful in ranking itself amongst the top 50 identity management
companies of the world.

3.8 Step Eight: Institutionalized Change (Anchor the Changes in Corporate Culture)

Most important task is to bring the change in the culture of an organization. Edgar Schein (2004) defines
organizational culture as a guide of fundamental assumptions that the group share to deal with problems
of external adaptation and internal integration. Basic thing to the success of organizational change is the
recognition of the change by employees.
Very few organizations become successful to reflect improvement in processes after implementing the
change. Heathfield (2009) in his research “How to Change Your Culture: Organizational Culture Change”
has identified two important elements executive support and training for creating organizational cultural
change. According to him Executives must lead the change by changing their own behaviors. They must
show behavioral support for the cultural change. Training can be very useful in both communicating
expectations and teaching new behaviors.

At NADRA new culture was created to integrate the transformed business mission and corporate strategy
of the organization and introduced the values such as customer services, innovation, transparency and
efficiency.

Keeping in view the link between organization performance appraisal system and management practices,
organization has allied the customer service with reward system. To institutionalize the transparency and
competence at NADRA MIS application were applied into all areas of business. Employees were given
full support and encouraged by management to create the culture of innovation and creativity. It has also
supported the organization to implement the mission of becoming learning organization.

4. Brief link with 4D change model

The change process at NADRA can also be seen in the 4D change model created by Suresh Srivastva,
Ron Fry and David Cooperrider in 1990.

The 4D model is based on an OD technique called appreciative inquiry that engages all levels of an
organization in the process of revitalization and transformation. This model can be applied to all kind of
organizations and is appropriate for a wide range of change processes.

A brief link of the model and phases of change process are as follows:

4.1 Discover: The first phase of the model deals with identification of organizational processes that work
well. During the process of change all organizational process at NADRA was reevaluated and redesigned
to ensure the efficiency and transparency.

4.2 Dream: In the dream phase people are encouraged to envision the organization. This phase deals
with the development of vision, where organization wants to be in future. Organization has focused its
efforts to become a learning organization. NADRA has successful in fulfilling the dream by applying
transformational change process.

4.3 Design phase deals with designing the strategy that helps an organization to accomplish all the
dreams. As mentioned in the earlier model, NADRA has designed its strategy in alignment of the mission
to become a learning organization. For this purpose new cultural values including customer service,
transparency, and innovation were implemented that has resulted in the phenomenal growth of the
organization.

4.4 Destiny or delivery is final phase and the focus is to implement the changes. During the change
process at NADRA so many steps were taken to reinforce the change including the concept of
participative management and dealing with the concerns of stakeholders. Continues training,
improvement in behaviors are supporting organization to sustaining the change. It is the great effort of the
organization to sustain the organization that has made NADRA Asian leader for providing identity-based
multi-biometric technology solutions.

4.5 Control System at NADRA

Researches show that organization spend most of their efforts and time in planning, but it cannot be
guaranteed that organizations will pursue all activities in a manner that was planned. Control is the
process that scrutinizes the activities of the organization to ensure the significant accomplishment.
Schendel and Hofer have defined the strategic control as implementation of strategy as planned and
guarantee the results as intended.

During the entire process of change, NADRA exerted the strategic control to evaluate the smoothness of
activities aligned with planning. It was made clear that strategy of the organization must be aligned with
its mission of becoming a learning organization. For that purpose management has decided to transform
into self reliant organization.

Management control assures the availability and optimal utilization of resources. During the
transformational process NADRA assured the availability of the resources needed for the
accomplishment of the goals ranging from infrastructure development to human resource. Highly skilled
and technical staff was hired. To have greater efficiency and transparency, organization structure was
designed in a manner that gives empowerment to the people and has motivated the employees to
participate in the decision making process.

To have a greater control in HR processes including staff management and performance analysis
NADRA has applied Oracle human resource modules. It has reduced the HR cost and also helpful in
recruitment and HR decision making.

NADRA has designated responsible people for managing the activities and taking corrective actions for
deviations. In the development of new software more focus is given on transparency, efficiency and
security. Keeping in view the requirement of budget and quality NADRA utilize a structured management
approach and established tools for the execution of IT projects, that enables the organization to have a
control over managing IT infrastructure development and operations.

5. Conclusion

NADRA has been successful in transforming the organization into a learning organization. It has
implemented the organizational change not in short time it required a long way process of transformation
of the entire process. Through transformational leadership and focusing on customer oriented culture,
organization has created the example of turnaround. The case study has highlighted all the factors that
have resulted in the phenomenal success of NADRA. Although organization exerts effective strategic,
managerial and operational control in its country wide operations still accuracy and efficiency required not
only to increase the client base but also to meet the strategic security requirement of the country.

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