1

Diagnosis for Change
Learning Objectives
On completion of this chapter you should be able to • Understand the role of diagnostic models. • Apply a range of diagnostic instruments relevant to various aspects of the process of managing. • Form a view on which instruments you find most attractive/helpful.

ation of the organization as a whole. among variables and pinpoint where change is needed when things are not going well. This chapter provides a e external environment that they will have to take into account. iagnosis by Image"). However, the nurturer with an interest in emergent strategy may remain unconvinced as

1 k-5 , T)rr 4 , vi- r s s~

Sourcemac.-C _
nd
0

apter 7), consultants use diagnostic tools as part of their focus on helping the client by managing process (more

work," "what causes what," and so forth, within our organizations. In this sense, diagnosis exists whether or not

bout situations that we face in our organiza?tions, how we talk about those situations, and what we deem to be f not using a model is not a real option; the choice is whether we use one that is explicit (such as those discuss kely to be based on the limited experience of one or a few individuals; thus, their generalizability may be uncer

mplexity of a situation where thousands of different things are "going on" more manageable by reducing that sit

3

Chapter 5 Diagnosis for Change 123

he specific situation that an organization confronts; that is, one that assists thought, dis?cussion, and action in

Modeling Organizations

formance. Each model represents the particular "angle"/nuance provided by its designer/author. We have inten

d hunches into a working tool that anyone can use."5 His model is based on six variables (see Figure 5.1): 1. Pu

nce apart and weather?those seeking to improve an organization must observe relationships among the boxes

124 Chapter 5 Diagnosis for Change

IGURE 5.1 The Six-Box Organizational Model Purposes: What business are we in?

pyright ? 1976 by Marvin R. Weisbord. Used by permission of the author.
Relationships: How do we manage Leadership Does someone keep the boxes in balance? conflict among people? With technologies?

Helpful mechanisms: Have we adequate coordinating technologies?

Rewards: Do all needed tasks have incentives?

the variables. They characterize the factors into seven categories: structure, strategy, systems, style, staff, skil rganization; that is, how they actually behave (consultative? decisive?) when faced with the need to act. Staff re

erest [e.g., style] ... can be at least as important as strategy and structure in orchestrating major change."10 (S

5
FIGURE 5.2 The 7-S Framework
Structure

Chapter 5 Diagnosis for Change 125

Source: Waterman, Peters, and Phillips, 1980:18.
Strategy Systems

Superordinate Goals

Skills

TABLE 5.1 Applying 7S to Intuit
Source: Higgins, 2005.

for being slow to make decisions, a tendency that had seen it beaten by competitors to a number of market op

ing commitment of staff to Intuit's products by emphasizing the critical role of quality/efficiency processes in m

(Continued)

126 Chapter 5 Diagnosis for Change

ream for Intuit," that provided an outline of the objectives he was setting for Intuit and what would need to be d ating profits increase 40 to 50 percent.

capability refer to the processes, either formal or informal, that coordinate activities throughout the organizati

FIGURE 5.3 The Star Model

Strategy Vision
Direction Competitive advantage

Structure Power and authority 02 by AMACON Books. Reproduced with permission of AMACON Books in the format Textbook via Copyright Clear?ance Center? Reporting relationships Organizational roles

Reward Systems Goals, scorecards and metrics Processes and Lateral Capability

Values and behaviors Compensation/rewards Networks, processes, teams, integrative roles, matrix structures

7
FIGURE 5.4 The Star Model: Effects of Misalignment

:hapter 5 Diagnosis for Change 127

If strategy is missing, If the structure isn't If the development of If the metrics and If people aren't unclear, or not aligned to the coordinating mechanisms rewards don't enabled and agreed upon strategy is left to chance s

4?

CONFUSION

ht 2002 by AMACON Books. Reproduced with permission of AMACON Books in the format Textbook via Copyright Clear?ance Center.
resources across • No common direction; people pulling in different directions boundaries energy • Ineffective execution; • Long decision and • Low standards lost opportunity for innovation cycle times • No criteria for competitive • Frustration and turnover • Difficult to share decision making advantage information and leverage best practices

FRICTION

GRIDLOCK INTERNAL COMPETITIONPERFORMANCE LOW
• Low employee
satisfaction

• Inability to mobilize • Lack of collaboration • Wrong results; diffused • Effort without results

, skills, needs, and expec?tations of the people in the organization), formal organizational arrangements (struct

d of the environment, resources, and history. Environment refers to factors outside the organization such as the

Transformation Process

GURE 5.5 Nadler and Tushman's Congruence Model

Context Environment Resources History

Output

d by permission of Pearson Education, Inc., Upper Saddle River, NJ.

Organization Group Individual

A

Feedback

128 Chapter 5 Diagnosis for Change

Congruence Model to Organizational Problem Analysis Source: Adapted by permission of Pearson Education, Inc., U

Step 1. Identify symptoms Explanation 2. Specify input

3. Identify output that suggest that there might be a problem. s of the organization'sIdentify problems resources, history, and strategy. environment, 4. n both the intended organizational output and the output that is actually occurring. ween the intended and actual outputs and the cost of this gap in terms of organizational performance. 5. Describe the organizational components our organizational components, but in doing so recognize that not all problems have internal causes; the proble 6. Assess congruence e between the various components of the organization (as specified in the model). analysis to the problem identification to identify key factors needing attention. 7. Generate hypotheses s might remove or reduce the problem. 8. Identify action steps

on process is primarily the performance of the organization, but this is mediated via the performance of both g

onal") change and those that are more likely to be the source of change that is experienced as incremental ("tr both directions, indicating that internal organizational factors can impact the environment and not just be on

eing able to analyze organizations from the perspective of four different "frames" or "lenses," each of which pro

Chapter 5 Diagnosis for Change 129

9
FIGURE 5.6 The Burke?Litwin Model
External 'E Environment L d h'

Mission and Str

ea ers ip

ategy

E: THEORY AND PRACTICE by Burke. Copyright 2002 by Sage Publications Inc., Books. Reproduced with permission Culture nagemeru of Sage Publication Practices w Systems ook via Copyright Clearance Center. to Structure (Policies and Procedures)

t t,

Work Unit Climate

E

Motivation Task Requirements t-i and Individual Skills/Abilities

5?

W Individual Needs and Values

Individual and Organizational Performance

outputs. From this perspective, the focus is on getting the correct formal design as one would find on an organi rties, and the reverse (where fit is lacking, both suffer). me is that it does not present "political" as necessarily equating to "bad" or "underhand." Even where superordi

130 Chapter 5 Diagnosis for Change

TABLE 5.3 Diagnosis by Image Sources Adapted from Palmer and Dunford, 1996.

a metaphor or simile such as "my organization is like a well-oiled machine" (it runs very smoothly) or "my organization is a dinosaur" (it

re familiar), what metaphor or simile would you use to describe it?

hrough this image? ......................................................... .......................................................

n. However, even where people are not intentionally "holding back," they will often find it difficult to encapsula ges" to organizational analysis18-is to ask people to describe their organization and how it operates by provid? s then become the focal point for discussion. Indeed, they generate discussion because a natural follow-on from

Component Analysis

in which it operates. The approaches to diagnosis in this section deal with specific components within these mo

ls), social (e.g., demographic changes), technological (e.g., development of new/substitute products), environm

11

Chapter 5 Diagnosis for Change 131

e future that this implies rather than rigidly documenting the status quo. Applied in this way, it can for

mer, as they constitute the everyday reality with which they will have to deal, the simulations extend nario is a description of some future state based on a set of assumptions about what is likely to happe

TABLE 5.4 Scenario Methodology

mistic and pessimistic scenarios focus attention on how the organization might respond should the situation dev

Schoemaker, 1993. See especially Table 2.

132 Chapter 5 Diagnosis for Change

ation with which you are familiar:

e of the five "key drivers" (see Table 5.4)? ors as the building blocks of your scenarios, construct, in 100 words Construe- or less, the outline of a realistic,

on. cessary action to meet the set objective. A second option is to suspend taking action until a direct challenge to uestions. Agreement on the answer to the third question may be desirable, but it is not necessary as long as th

has to deal: what it is seeking to achieve and how it intends to do so. Strategy and change intersect because bo of five elements that should be mutually reinforcing (see Table 5.5). Any misalignment between elements iden

Chapter 5 Diagnosis for Change 133

13

Arenas: What business will we be in? • Which product categories? • Which market segments? • Which geographic areas? • Which core technologies? • Which value-creation stages? 2. Vehicles: How will we get there? • Internal development? demy of Management (NY).Joint ventures? per?mission of Academy of Management (NY) in the format Textbook via Copyright Clear?ance Center. • Reproduced with • Licensing/franchising? Acquisitions? 3. Differentiators: How will we win in the marketplace? • Image? • Customization? • Price? • Styling? • Product reliability?

TABLE 5.5 The Elements of Strategy

4. Staging
• Speed of expansion? • Sequence of initiatives? 5. Economic Logic • Lowest costs through scale advantage? Lowest costs through scope and replication advantage? • Premium prices due to unmatchable service? • Premium prices due to proprietary product features?

oving to this stage, it is important to test the quality of the proposed strategy. Hambrick and Fredrickson provid

omplish that mission."24 These assumptions, premises, and beliefs, often formed over time through experience

134 Chapter 5 Diagnosis Jor Change

E 5.6 'Testing the Quality of Your Strategy
Key Evaluation Criteria 1. Does your strategy fit with what's going on in the environment? 1.1 Is there a healthy profit potential where you're headed? 1.2 Does strategy align with the key success factors of your chosen environment.

2. Does your strategy exploit your key resources? 2.1 With your particular mix of resources, does this strategy give you a good head start on your competitors? my of Management (NY). Reproduced with per?mission of Academy of Management (NY) in the format Textbook via Copyright Clear?ance 2.2 Can you pursue this strategy more economically than competitors? 3. Will your envisaged differentiators be sustainable? 3.1 Will competitors have difficulty matching you? 3.2 If not, does your strategy explicitly include a ceaseless regimen of innovation and opportunity creation? 4. Are the elements of your strategy internally consistent? 4.1 Have you made choices of arenas, vehicles, differentiators, staging, and economic logic? 4.2 Do they all fit and mutually reinforce each other? 5. Do you have enough resources to pursue this strategy? 5.1 Do you have the money, managerial time and talent, and other capabilities to do all you envision? 5.2 Are you sure you're not spreading your resources too thinly, only to be left with a collection of weak positions?

6. Is your strategy implementable? 6.1 Will your key constituencies allow you to pursue this strategy? 6.2 Can your organization make it through the transiti 6.3 Are you and your management team able and willing to lead the required changes?

drift."25

le?ments of the business environment. It also assists in identifying whether the strategy of the organization ma ?sus on assumptions. Where consensus is found, the emphasis should move to its indepen?dent validation. Whe

15
Source: Picken and Dess, 1998.

Chapter 5 Diagnosis for Change 135 TABLE 5.7 The Im

echnology, which was expected to provide performance competitive with the lower end of the business jet mark

uel, which meant more weight, which necessitated redesign, and on and on. Eventually, the Starship made it to

OT analysis is that it very easily becomes a listing not of strengths but "believed strengths," not of weaknesses

ion, some diagnostic models can be too abstract; something that makes the issues very concrete achieves a cl

rovide a characterization of organizational culture, including Robert Quinn's "competing values model" 26 and th

136 Chapter 5 Diagnosis Jor Change TABLE 5.8

The Strategic Inventory

Source: Picken and Dess, 1998, Exhibit I.

What are the key factors of production? Who are the suppliers? Are we dependent on a limited number of so • What are the bases for competition in our industry? What are the key success factors? How do we measure u market? What products-services do we provide? • What trends and factors in the external environment are important to our industry? How are they likely to ch theAre we able, in assessing our knowledge and assumptions, to clearly separate fact from assumption? • difference between them? makes one firm aset internallyand the other not? competitor consistent? Is our assumption dustry? Where is the value added? we answer "yes" to the question: "If assumption A is true, does assumptio • For each pair of assumptions, can
• Do we understand the relative importance of each of our assumptions?

hat In terms of How does heimpact on performance? kind of relationships do we have? • customer? its potential or she perceive us? What tant to this end user? Howconfidence in itsperceive us? What kind of relationship do we have? • In terms of our level of does he or she validity? nesses? How do they perceive us? What can we near-term change? • In terms of the likelihood and expectation of learn from them? ges in the environment or their behavior would make them competitors? • In terms of its strategic impact? hat is our key assumptions broadly does our firm compare? How about our competitors? Are the cost structure? How understood? hnologies? Production technologies? Delivery and service technologies? How does our firm compare? How abou • Have we documented and communicated our key assumptions? To our key managers? To the boundary-spanners? To other key employe
Do we have a process for reviewing and validating our key assumptions and premises?

• Is there a process in place? Are responsibilities assigned? Are periodic reviews planned and scheduled?

17

Chapter 5 Diagnosis.for- Change 137

Fortune A date five years in the future YOURCORP Enters the List of America's Ten Most Admired Companies

ost admired companies. The list rep?resents the results of a survey of the CEOs and CFOs of America's 1,000 largest companies. The big

cording to three key indicators: ................................................................................ 2 ................................................................................ 1.................................................. 2.................................................. 3 ???????????..???????.................................................................................

kable position? When interviewed, CEO Jessie White said, "This is something that we have been working towards for the past five years. 2 ................................................................................ 2.................................................. 3..................................................

.....................

ntifying the key changes in the business environment. These were used as a basis for generating a strategic dialogue within the compan

??????????????..

?????????????????. .

rough this dialogue, YOURCORP had produced a clear sense of what its strategic objectives had to be over the five year period. These o

1............................................................................... 2.................................................. 3..................................................

(continued)

138 Chapter 5 Diagnosis for Change

TABLE 5.9 Newsflash-(concluded)

om one long-standing YOURCORP customer said, "We're with them for the long haul." He pointed to the aspects of the company's mode .................................................. 2................................................................................................................................ 3.................................................................................

.....

anies. "However," she said, "as soon as I joined YOURCORP, I really noticed the difference. The place felt like a leading-edge company." W .................................................. 2................................................................................................................................ 3.............................................................................. ..................................................

or managers in YOURCORP. Each was asked to identify the one thing that, more than anything else, made the company stand out from ............................................................................... ..................................................

viewed several staff who had been with YOURCORP for five years or more. What was it that had made them stay? A consistent set of res .................................................. ....................................................... 2 ................................................................................ .......................................................................................................................

Gerry Johnson describes the culture of an organization using the concept of the "cul?tural web" (see Fi The web comprises seven elements:28

set of assumptions commonly held throughout the organization in regard to basic elements of the business such as what business we're

tines (in regard to how organizational members treat each other and, perhaps even more importantly, associated beliefs as to what is

19
FIGURE 5.7 The Cultural Web

Chapter 5 Diagnosis for Change 139

Source: Adapted by permission of Pearson Education, Inc., Upper Saddle River, NJ.

ganization members that, as a form of oral history, communicate and reinforce core elements of the culture.

os, office design, dress style, and language use that convey aspects of the culture.

ch, through what they measure and reward, communicate what is valued by the organization.

ich refer to the most influential management groupings in the organization.

ure, which refers to the nature of the formal and informal differ?entiation and integration of tasks within the organization.
2 9

mapping" the culture of an organization is described by Gerry Johnson:

ich is taken for granted can be a useful way of questioning what is nor?mally rarely questioned. If no one ever questions what is taken f

ts of organizational culture it may be possible to see where barriers to change exist.

sible to see where there are linkages in the aspects of organizational culture which are especially resistant to change.

tional culture can also provide a basis for examining the changes that need to occur to deliver a new strategy.

e used to consider whether such changes can be managed. In this way practical ideas for implementing strategic change can be develop

140 Chapter 5 Diagnosis for Change

hout easy answers." 31 Bolman and Deal identify six such dilemmas.32

he product or service experienced by the customer. y or by default through ambiguity in instructions, the situation can easily become one where there is wasted effort and/or conflict.

. However, if job descriptions are very specific and either rigidly enforced or rigidly followed, a major source of organizational flexibility

ake into account a "shifting paradigm for organizational success" that positions speed, flexibility, integration, and innovation as the "new ierar?chies of organizations; horizontal boundaries exist between organizational units (e.g.,

21
TABLE 5.10 Diagnosing Structural Dilemmas
Source: Created from Bolman and Deal, 2003:69-72.

Chapter 5 Diagnosis for Change 141

..............6.......................... 7 Roles are not clear enough

Roles are too narrowly defined

ies are those between the organization and the "outside world" (e.g., customers and suppliers); and geographic boundaries are those b stic instrument for testing the current state of "boundary?lessness" of an organization across all four boundaries, while Table 5.12 looks

Diagnosing Readiness to Change

142 Chapter 5 Diagnosis for Change

TABLE 5.11 How Boundaryless Is Your Organization?
Source: Ashkenas et at.. 1995:28-29. Copyright ?? 1995 Jossey-Bass. Reprinted with permission of John Wiley & Sons, Inc

16 statements describe the behavior of boundaryless organizations. Assess the extent to which each statement characterizes your curr true at all) to 5 (very true).
Innovation Total Score

Vertical

Speed Most decisions are Boundary made on the spot by those closest to Flexibility Managers at all levels routinely take on frontline responsibilities as well as broad stra?tegic assignments. 1 2 3 4 the work, and they are acted on in New ideas are screened and decided on without fancy overheads and multiple hours rather than 12345 weeks. 12345

Ad hoc teams Horizontal New products or Boundary services are get? -representing various stakeholders spontaneously form to explore new ideas. ting to market at an Integration 1 2 3 whose members operate with little regard to formal rank in the organiz increasingly Key problems are tackled by multi?level teams 4 5 Resources quickly, frequently, and effortlessly shift between centers of expertise and operating units. 1 2 3fast pace. 45 1 21 2 3 4 5 345

Routine work gets done through end?to-end process teams; other work is handled by proj?ect teams drawn from share 12345 Supplier and customer reps are key players in teams tackling strategic initiatives. External3 4 5Customer requests, Boundary complaints, 12 and needs are anticipated and There are standard Strategic resources and key responded to in Suppliers and customers are regular prolific contributors of new product product platforms, common are often "on loan" to customers and suppliers. real time. managers 1 2 3 countries. practices, and shared 2 3 4 5 of experience across4 5 centers 1 1 2 3 4 51 2 3 4 5 Business leaders rotate regularly between country operations. Geographic Best practices are Boundary disseminated and New product ideas are evaluated for viability beyond the country where 123 leveraged quickly4 5 12345 across country operations. 12345

d outcome usually being successful implementation). As a result, a prechange audit of the readiness o

1. Rate each statement. column. ore of 12 or less for any "success factor" or boundary measurement suggests that that particular factor needs attention; a score of 16+

Too often Sometimes

1. Slow response time 1 2 3 Chapter 5 Diagnosis /or Change 143 23 4 5 TABLE 5.12 How Healthy Is Your Organization's Hierarchy? 6 1. Speed Source: Ashkenas et al., 1995:59-60. Copyright n 1995 Jossey-Bass. Reprinted with permission of John Wiley & Sons. Inc. Healthy7Hierarchy High 8 Medium 9 Traditional Hierarchy Part 1: Success Factors Low 10 Information closely held at top. Instructions: Determine how critical the four new2.Flexibilityto change 2.paradigm success factors are in your organization, circling High, Medium, or Low fo Rigidity 1 High 1 2 Medium 2 3 Low 3 4 3. Integration 4 5 High 5 6 Medium 6 7 Part 2: Red Flags Low 7 8 4. five danger Instructions: Evaluate how often the followingInnovation signs appear in your organization, circling a number from 1 (too often) to 10 (se 8 9 High 9 10 Medium 10 Information widely shared. Low make decisions 3.to Authority Underground activity 1 centralized at top. 2 3 4 1 5 2 6 3 7 4 8 5 9 6 10 7 4. Internal employee frustration 8 1 9 2 of Vertical Boundaries 10 ssess where your company stands today on Authoritydimensions of information, authority, competence, and rewards, circling a number the four3 to make decisions distributed to wherever appropriate. 4 5 Competence specialized and focused;6 people do one job. 7 8 1 9 2 10 3 5. Customer alienation 4 1 5 2 6 3 7 4 8 a company's managers complete the questionnaire (individually), they should hold a group forum to discuss the following questions: 5 9 6 ization's success that we loosen our vertical10 boundaries? In other words, do we really need to operate faster and more flexibly? 7 current? Which ones are most worrisome? Competence widespread; people do multiple tasks as needed. 8 rtical profile dragging us down and causing us problems? 9 Rewards10 archy, which dimensions are strongest? Where do webased need to change in order to be more successful? most on position. 1 rtical boundaries? Where would we like to be on each of the four dimensions in the next year or two; that is, what profile do we need to 2 3 4 5 'Ashkenas et al., 1995:61. 6 7 8 9 10 Rewards based on skills and accomplishments.

144 Chapter 5 Diagnosis for Change

TABLE 5.13 Readiness for Change
Source: Stewart, 1994:106-10. Copyright ?C) 1994 Time, Inc. All rights reserved.

Sponsorship. The sponsor of change is not necessarily its day-to-day leader; he or she is the visionary, chief cheerleader, and bill payer-the person with the power to help the team

confident of our skills here."); two for a medium score ("We're spotty here; we could use improvement or more experience."); and one p change when it meets resistance. Give three points-change will be easier-if sponsorship comes at a senior level; for example, CEO, COO, or the head of an autonomous business unit. Weakest sponsors: midlevel executives or staff officers. Leadership. This means the day-to-day leadership-the people who call the meetings, set Low = 1 the goals, Category work until midnight. Successful change is more likely if leadership is high level, has Score "ownership" (that is, direct responsibility for what's to be changed), and has clear business results in mind. Low-level leadership, or leadership that is not well-connected throughout the organization (across departments) or that comes from the staff, is less likely to succeed and should be scored low. Motivation. High points for a strong sense of urgency from senior management, which is shared by the rest of the company, and for a corporate culture that already emphasizes continuous improvement. Negative: tradition-bound managers and workers, many of whom have been in their jobs for more than 15 years; a conservative culture that discourages risk taking. Direction. Does senior management strongly believe that the future should look different from the present? How clear is management's picture of the future? Can management mobilize all relevant parties-employees, the board, customers, etc.-for action? High points for positive answers to those questions. If senior management thinks only minor change is needed, the likely outcome is no change at all; score yourself low. Measurements. Or in consultant-speak, "metrics." Three points if you already use performance measures of the sort encouraged by total quality management (defect rates, time to market, etc.) and if these express the economics of the business. Two points if some measures exist, but compensation and reward systems do not explicitly reinforce them. If you don't have measures in place or don't know what we're talking about, one point. (continued)

Organizational context. How does the change effort connect to other major goings-on in the organization? (For example: Does it dovetail with a continuing total quality management process? Does it fit with strategic actions such as acquisitions or new product lines?) Trouble lies ahead for a change effort that is isolated or if there are multiple change efforts whose relationships are not linked strategically.

25

Chapter 5 Diagnosis for Change 145

TABLE 5.13 Readiness for Change-(continued) s purchasing, accounts payable, or marketing. If functional executives are rigidly turf conscious, change will be difficult. Give yourself m

(continued)

146 Chapter 5 Diagnosis for Change

estions; it is clear where decisions are made. Give yourself a low grade if decisions come slowly and are made by a mysterious "them";

us resources on lagging factors (your ones

you have low scores in the first seven readiness dimensions. Bring those up to speed before attempting to implement large-scale chang hout a precipitating catastrophe. Focus instead on (1) building change readiness in the dimensions above and (2) effecting change throu

hey seem highI
27
2. History of change (Does the organization have a good track record handling change?) TABLE 5.14 Support for Change Questionnaire 1 Source: Maurer, 1996:104-105. 2 3 Total 4 3. Cooperation and trust (Do they seem high throughout the organization) Score 5 6 7 1 Low 2 3 4 4. Culture (is it one that supports risk taking and change?) 5 6 7 High 1 Low 2
Chapter 5 Diagnosis for Change 147

3 4 5. Resilience (Can people handle more) 5 6 17 High 2 Low 3 4 5 6 1 7 High 2 Low gurability" (see Table 5.16).37 3 the individual's beliefs in regard to four factors are central: (1) their own capability to implement the proposed change, (2) the appropria 4 5 6 7 High Low 4 2 3 Low High 8. Status quo (Will this change be seen as mild?) / High 6

are those individuals or groups, inside or outside the organization, who have the capacity to influence, directly or indirectly, the success

2. Assess each stakeholder's capacity to influence the particular change being proposed (e.g., rate as high, medium, change team to a potential problem-those expressing support tions, are reported. While attitudes are worth knowing?and may alert thelow). 3. Check each stakeholder's "track record," particularly in regard to comparable issues.

e over the organization. hange in question.

148 Chapter 5 Diagnosis for Change

TABLE 5.15 Working with the Support for Change Questionnaire
Source: Maurer, 1996.

organization about the degree of support that exists for the change.

duct the meeting in a nonthreatening atmosphere and encourage people to explain why they scored the way they did. and the subsequent discussion, consider the implications for the proposed change; for example, do you need to do more (and if so what

akeholder interest against stakeholder power (see Figure 5.8). In this model, specific action is advocated based on the categorization of ons be addressed:40

ation to change the balance? • Can any oppositional stakeholders be encouraged to leave? ers be increased? ders be decreased?

meets concerns without undermining the change? uld the proposal be revisited?

anager to be much better informed as to the likely reception to the change among key stakeholders and, on this basis, steps can be tak Item 1 2 3 4 LEVEL OF INTEREST 5

FIGURE 5.8 The Power?Interest Matrix Active Leadership

Low

High

Source: Adapted by Low permission of Pearson Education, Inc., Upper Saddle River, NJ.

A B
Minimal effort Keep informed Keep satisfied Key players

C ThePOWER executive team believes that organization design is a source of D

High

competitive advantage.

When strategy discussions are held, organization design is considered

one of your strategic elements.

29
TABLE 5.16 How Reconfigurable Is Your Organization?

Chapter 5 Diagnosis /or Change 149

components is aligned with the strategy.

Source: DESIGNING DYNAMIC ORGANIZATIONS by Galbraith. Copyright 2002 by AMACON Books. Reproduced with permission of AMACON Books in the format Textbook via Copyright C

Knowledge Management nds to change. This tool is for use with an executive team. ve leadership, knowledge management, learning, flexibility, integration, employee commitment, and change readiness. Each of these

e statement. Then, total your scores. Strongly Disagree People have easy access to all the information they need to make

Strongly Agree

decisions on behalf of customers.

Technology and HR practices allow for rapid collection and dissemiItem 1 2 3 4 5

nation of information.

Integration The organization has mechanisms in place for converting information Assignments and career paths for high performers are designed to into useable knowledge for innovation, best practices, and organizapromote cross-functional skills, broaden interpersonal networks, and tional learning. provide exposure to senior management. Learning Specialists are available to the entire organization through either People are selected for their learning aptitude. special assignment or career paths. Performance metrics and feedback allow employees to measure their Managers are moved between organizational units, not just upward (continued)

performance against internal and external standards and share in the in their own unit, for promotions and development.

150 Chapter 5 Diagnosis for Change

responsibility for increasing their own capabilities. TABLE 5.16 How Reconfigurable Is Your Organization?-(concluded) Employee Commitment Strongly Disagree Strongly Agree

The organization uses a wide variety of methods in addition to trainEmployees are provided with the opportunity to develop job-related ing to support learning. skills and are rewarded for developing skills that increase their value Flexibility to the organization. Employees are skilled at working in teams. Employees have the tools, systems, information, and skills to deliver

excellence to internal and external customers.

Employees actively recommend the company as a good place to

imilarly, higher numbers are strengths you can build on going forward. Continue to use this tool when questions arise as to how flexibly work.

Change Readiness

Em loyees understand the strategy and goals of the organization.

Employees understand the rationale for the current organization

31

Chapter 5 Diagnosis for Change 151 Your overall organizational culture, vision, and values support

organizational change and innovation.

hose work?ing against the change are restraining forces.

e Figure 5.9).

trength of each factor by using a consistent format (e.g., numbers, as in Figure 5.9, or thickness of the arrow).

uc?cessfully implemented?) and the sources of greatest restraint (useful to know if on bal?ance the change looks like it is not succeedin

RESTRAINING FIGURE 5.9 Force-Field Diagram FORCES PROGRESS

002 by Sage Publications Inc. Reproduced with permission of Sage FORCES DRIVING Publication Inc. Books in the format Textbook via Copyright Clear?ance Center.

_, 0
OO R`4

0
4 Z RESTRAINING w FORCES

-.1 / _V

Implement curnc ism *A e al and tp• eCo fif
4'J?
P

DRIVING yJS FORCES >J~F .n If 1~ '<14V
.o?

~' P,t t J P ~0 : 4,0-1, F~

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