7HR006 Leading

Transformation and Change

Day 10
 To share some views about learning organisations
To discuss cracking the code of change
To discuss in search of excellence
To debate all the above none of them are real
To share final thoughts for the assessment
To book tutorial times for the next 2 teaching
weeks
Capability & capacity stem from
learning
Learning as an organisation?
Strategic or transformational
change both involve and demand
learning Carnall (2007)
If only individuals learn when they
leave the organisation is depleted
No consensus over the model for
organisational learning and the
ability of organisations to learn in
practice
 Learning Organisations or
Organisational learning?
Organisational learning depends onthe spiral of knowledge
(Nonaka 1996)

A learning organisation harnesses the full brain power,

knowledge and experience available to it, in order to evolve
continually for the benefit of all its stakeholders. Mayo &
Lank (1994)

The intentional use of learning processes at the individual,

group and system level to continuously transform the
organisation in a direction that is increasingly satisfying to
its stakeholders
Dixon 1994

Much of organisation and management theory is built on the

conceptualisation of organisations as independent,
objective entities. The notion of organisation learning
requires us to take that a stage further and to
conceptualise organisations as learning entities.
 When an Organisation becomes a
learning organisation
It learns from its environment & adapts
Behaviour changes indicate that learning
has occurred
Change therefore becomes natural & constant
 A learning organisation
must be able to:
Generate new ideas & ways?
Propose new, untried solutions to problems?
Challenge, be creative & open minded?
Be outward looking?
(e.g. benchmarking best practice)

Adopt ideas from anywhere

Willing to change
Act
Take risks
The Learning Organisation
Systems thinking
Personal mastery Mental models

COACHING MENTORING
Learning
Organisatio
n
Building shared vision Team learning
BENCHMARKING
Senge & Guest (1992)

http://www.youtube.com/watch?v=tsX5lLI7c_M
5 disciplines (Senge)+ 3
complementary processes
(Guest)
Mental models individual
assumptions
Personal mastery clarifying &
deepening personal vision
Team learning patterns within teams
Building shared vision commitment
to the future
Systems thinking relying on
feedback
Creating the Learning
Organisation
Strategy

Looking In
The
Structures Learning
Compan
Looking Out y
Learning Opportunities Pedler et al (1988)
Context/climate/culture
Learning does not stand alone
Learning & business strategy are closely linked
Organisation consciously learns from opportunities &
threats
Not just learning but continually learning how to learn
IT supports learning (not control it)
Learning supports other initiatives
Clear aims/objectives
Well developed processes for defining, creating,
capturing, sharing & acting on knowledge
Investment not a cost
Senior Management commitment
Communication networks important
LEARNER at the centre
LEARNING central to organisational culture
What about your organisation?
Learning: valued ,a habit, the norm?
Knowledge creation & transfer present?
Individuals have a sense of ownership,
empowerment & commitment?
Flexible Structures?
Simple, streamlined
Reduced bureaucracy
Networking & team working dominate
Blame-free supportive culture?
Clear shared vision?
Outward looking?
 Different sorts of
organisational capital
Volberda, Morgan et.al. (2010)

Human capital
Knowledge & skills of a firms entire
workforce
Social capital
Relationships inside & outside the
firm that help the firm accomplish
tasks & create value for customers &
shareholders
Cracking the code of change?
Michael Beer & Nitin Nohria

We felt these outstanding minds might

enable us to take an important first step
in developing an integrative conceptual
framework that would inform the
question being asked by managers
around the world: How do I go about
managing change effectively? (pp. x-xi)
"let's start by admitting that we have not
broken the code of change" (p. 473).
2 unsuccessful cases, one
successful
Scott Paper:
New CEO fired 11,000 people & divested
SBUs
3 fold shareholder return within 20
months
But little commitment, coordination,
communication & creativity
forced the organisation to be sold to
Kimberley Clark
2 unsuccessful cases, one
successful
Champion International
CEO concentrated on getting
managers, workers and unions onside
Long term project to build
competencies in workforce
Bottom up change encouraged
But no increase in shareholder value
over a decade & sold to UPM-Kymmene
2 unsuccessful cases, one
successful
ASDA
New CEO when ASDA nearly bankrupt
Used E &O direction
from the top
engaged from below.
Within 8 years shareholder value
increased 8 fold along with capacity
to sustain competitive advantage
Sold to Wal-Mart
In Search of Excellence
Tom Peters & Robert H
Waterman Jnr. (1982/2006)
http://www.amazon.co.uk/Search-Excellence-Americas-
Best-Run-Companies/dp/1861977166#_
 In Search of Excellence
Tom Peters & Robert H Waterman Jnr.
(1982)
The true seminal text
One of the biggest sellers ever
sold 3 million copies in its first four years,
most widely held US library book 1989 to 2006
The content:
examined 43 of Fortune 500's top performing (US)
companies. with records of long-term profitability
and continuing innovation
Success was due to 8 common themes
The outcomes:
a new way of looking at organisations
a belief that the magic solution had been found (?)
 Excellence themes
(8 chapters of the book).

A bias for action

'getting on with it'.
Close to the customer
learning from them.
Autonomy and entrepreneurship
fostering innovation
nurturing 'champions'.
Productivity through people
quality through front line employees.
'In Search of Excellence'
themes (continued).
Hands-on, value-driven
philosophy guiding practice & demonstrating
management commitment.
Stick to your knitting
dont diversify!
Simple form, lean staff
minimal HQ staff.
Simultaneous loose-tight properties
autonomy on the frontline but core
centralised values.
Managing Change in
Excellent Organisations (1)
Clear values
internally owned
market relevance
Loose-tight systems
analysis, planning and control but
informality; internal competition;
questioning approach;
experimentation
 Managing Change in
Excellent Organisations (2)
Support
top management visibility
change heroes
no political elites
flat integrative structures
task forces and project teams
symbolic communication
 Includes
the Toyota
way!
But careful what you read!!!
http://www.iei.liu.se/q/filarkiv/phdcourses
/1.119234/InSearchofExcellenceSMJJ_.pdf
http://www.fastcompany.com/1737410/le
adership-hall-fame-tom-peters-author-
search-excellence
Dickens!
http://www.businessweek.com/magazine/
content/01_49/b3760040.htm

Small beer!
Oops!
 The EFQM Business Excellence
Model
1. Management commitment to the business excellence journey
2. Effective strategic planning
3. An emphasis on people issues through empowerment and training
4. Unprecedented levels of employee participation through effective communication
of and involvement in the organizations goals, mission and objectives.
5. Process understanding, management, measurement and improvement
6. Deliberately avoiding jargon to ensure a seamless integration of business
excellence practices
7. Nurturing a culture which focuses implicitly and explicitly on anticipating and
serving customers needs
8. Demonstrating concern for better environment management
9. Making the internal spread of best practice contagious

(See article in WOLF)

 HRs role
management.aspx
http://www.cipd.co.uk/hr-resources/factsheets/change-

People management and development professionals have a significant role to play in any change
management process.
CIPD research has also identified that HRs involvement in various aspects of change can make
the difference between successful and less successful projects by, for example, their:
involvement at the initial stage in the project team.
advising project leaders in skills available within the organisation identifying any skills gaps,
training needs, new posts, new working practices etc.
balancing out the narrow/short-term goals with broader strategic needs.
assessing the impact of change in one area/department/site on another part of the organisation.
being used to negotiating and engaging across various stakeholders.
understanding stakeholder concerns to anticipate problems.
understanding the appropriate medium of communication to reach various groups.
helping people cope with change, performance management and motivation.
CMA slides https://wolf.wlv.ac.uk/wbs/70687/Change
%20Management_UWBS.pdf?menu=865017 or attached separately in
WOLF

Page 16 HR as change facilitators

Page 22 critical elements in change
Page 27 managed change model

OD Factsheet Nov 2012

http://www.cipd.co.uk/hr-resources/factsheets/organisation-
development.aspx

CIPD podcast equipping people for

change http://www.cipd.co.uk/podcasts/_articles/episode+19.htm
 Additional thoughts before hand in;
Final thoughts
see assessment guide (learning
outcomes etc)
see assessment structure/checklist
send email to tutor if stuck emails on
front page of WOLF topic
important note hand in date is
8/5/17 (e-submission)
 Useful references
Chapters 7 & 8 of Senior, B. and Fleming, J. (2006) Organisational Change. 3rd.edition
Financial Times Prentice Hall
J. Balogun, J. & Hope Hailey, V. (2008) Exploring Strategic Change, 3rd. edition, FT/Prentice Hall
Beer M. & Nohria, N (eds). (2000) Cracking the code of change Boston: Harvard Business
School Press.
Carnall, C. (2007) Managing change in Organisations 4th edition. FT/Prentice Hall
Edmonstone, J. (2010) A new approach to project managing change. British Journal of
Healthcare Management. Vol 16 No.5
Grundy, T. (1993) Implementing strategic change : a practical guide for business London :
Kogan Page,
Harigopal, K. (2006) Management of Organizational Change. Levering Transformation. 2 nd
edition. Sage
Pedler, M., Boydell, T. Burgoyne, J.(1991): The Learning Company. Mc.Graw- Hill. Londres.
Peters, T.J. and Waterman, Jr R.H. (1982) In search of excellence: lessons from America's best-
run companies. Harper & Row
Paton, R.A. and McCalman, J. (2000) Change management: a guide to effective implementation.
2nd ed., London: Sage Publications
Senge, P. (1990)The Fifth Discipline. Doubleday. New York
http://www.cipd.co.uk/subjects/lrnanddev/general/lrndevoverview.htm?IsSrchRes=1
http://www.cipd.co.uk/subjects/lrnanddev/strategiespolicies/tngpolstrat.htm
http://www.cipd.co.uk/subjects/corpstrtgy/hmncapital/humancap.htm?IsSrchRes=1