TEC 401

Session Five

Human Factors In Technology

Joseph Lewis Aguirre

Characteristics
Characteristics of
of Technology-Driven
Technology-Driven Change
Change
with
with Regard
Regard to to The
The Implementation
Implementation of
of
Technology.
Technology.

• Human resources.
• Functional resources.
• Technological capability.
• Organizational abilities.  
Change Management

Joseph Lewis Aguirre

Managing
Managing Resistance
Resistance to
to Technological
Technological
Change
Change
• Process re-engineering and restructuring.
• Innovating application of goods and
services.
• Managing employees as a vital element in
the value chain.
• Achieving and maintaining customer
loyalty.  
 Internal
Internal or
or External
External Focus
Focus
An externally focused company can be difficult to identify because it
uses standard problem-solving strategies, supply chain processes
and product delivery models.

What separates externally focused companies from internally focused

ones is the use of outside data as key inputs to these models.

For example, externally focused companies look at non-traditional

competitors because they might re-define the customer problem.
- Traditionally, McDonald's looked at Burger King, KFC, and Taco
Bell as competitors.

- But if the problem is redefined as a need for quick, low-cost food

and drinks, a new set of competitors come into play such as
convenience stores, frozen meals at grocery stores and gas stations
 Internal
Internal Focus
Focus –– Time
Time Spent
Spent Outside
Outside
If the senior team spends the majority of its time solving operational problems, the
company is internally focused. Internally focused companies also avoid and deny
negative feedback. It's tough to uncover the truth; and once a company decides to
venture outside, the chance of hearing negative feedback is high. The risk in
ignoring negative information threatens the survival of the organization.

Example of an externally focused executive is Jack Welch, former CEO and chairman
of General Electric.

According to David Jones, chairman and CEO of Wallace Computer Services Inc.,
routine contact by senior level executives from all functional disciplines has been
critical for winning contracts without significant price concessions. Mr Jones
himself attends major account presentations as just one more person on the
account team.
 Business
Business Drivers
Drivers
 Customer problems or business processes? If business processes drive the business, the
organization is internally focused.

A company is externally focused if it understands its rules need to be flexible so that front
line staff can immediately and effectively solve customer's problems - without a dozen
supervisors' signatures.

How a company handles customer returns and complaints provides great clues about the
focus of an organization. For example, Nordstrom's has a legendary external focus
with virtually no restrictions on customer returns.

Home Depot and CDW (Computer Discount Warehouse) exhibit their external focus by
employing knowledgeable staff who are willing to answer endless customer questions.

Internally focused organizations keep everyone appraised of each process with time-
consuming meetings. Walk around any internally focused corporate headquarters and
observe the number of people in meetings or the number of conference rooms
available. Then stop and think about the extent to which internal meetings are solving
customer problems or producing profits.

To determine who owns the business processes, ask these two questions:
1. Are business processes too complicated to document?
2. How many times during a month do key processes go unexecuted because someone
is absent?
 Internal
Internal Focus
Focus Risks
Risks
Extinction:

For example, consider a company that uses only one supplier of a key raw
material or services or two customers that contribute 80 percent of total
revenue.

US auto industry in the 1980s when overseas companies introduced products

that were superior in quality, more durable and less expensive. The US auto
industry failed to listen to customers' quality and fuel efficiency concerns
until consumers had an alternative buying source - foreign car
manufacturers that addressed these concerns with a value price.

The auto industry changed again when gas prices started going north of 50
cents a gallon, and customers wanted fuel-efficient cars rather than large
sedans. Obviously, that didn't last. Trends have reversed yet again as extra
large SUVs remain in high demand. Being ahead of the market as these
changes occur is the way to profitability. It's not good enough to watch the
market trends as they play out.
Planning
Planning Management
Management ofof Personal
Personal and
and
Organizational
Organizational Change
Change
• Business description, objectives, and
technological environment.
• Personal and organizational responsibilities for
moral and ethical use of technology.
• Current and potential uses of technology for the
global success of business objectives.
• Human factors within the enterprise that utilize
current and emerging technology more
effectively.  
 Knowledge
Knowledge Based
Based Strategic
Strategic Change
Change

• Concepts of organizational knowledge

• Strategic change as the process of
knowledge creation
• A case study
• Discussing the case
• Conclusion
 Organizational
Organizational Knowledge
Knowledge

• What is knowledge?
– Knowledge is more than processed data, it results the
processing or sense making of information by
intellects.
– Knowledge consists of phenomena that amounts to
more than just facts, it also consists of beliefs and
values acquired through the meaningfully organized
accumulation of information through experience,
communication and inference
 Knowledge
Knowledge Based
Based Economy
Economy

• Knowledge-based economy is an economy

in which knowledge is the most important
productive factor
• Knowledge-based company (enterprise) is
a company in which knowledge is the most
important productive factor
Knowledge
Knowledge and
and Organizational
Organizational Culture
Culture

• Organizational culture: set of assumption and

beliefs held in common and by the organization’s
members
• Values and beliefs are examples of tacit
knowledge
• -- culture is “a stock of knowledge that has been
codified into patterns of recipes for handling
situations, then very often with time and routine
they become tacit and taken for granted and forms
the schemes which drive action
 Change
Change Management
Management –– is
is itit possible?
possible?

• Managers want to transform their organizations on

a planned basis
• 70% failure rate for organizational change
initiatives in general
• Increasingly the feasibility of “managing” change
is being questioned
• Change is about issuing objectives and
instructions and ‘explaining’ to individuals how
need to change
 Change
Change Management
Management –– is
is itit possible?
possible?

• For change to occur in organizations, the

routines and their associated meanings have
to evolve
• Thus the strategic change can be identified
as the process of new knowledge creation
• This approach can be defined as
knowledge-based change
 Design
Design Co.
Co.

• Engineering division of a parent company

• Established in 1999
• Re-branded in 2000
• Tough growth targets
• Changing from engineering focused organization
to an entrepreneurial engineering service
• External customer instead of internal customer
 Change
Change Initiative
Initiative
• Changing Structure from hierarchical to matrix, team
based structure
• Using assessment centers to pick people for new
positions
• Hiring new people for sales, marketing, finance & HR
• Introducing a new board
• Asking many of old managers to leave
• New performance management for paying according
to achievement of personal objective
 Resistance
Resistance to
to Change
Change

• Conflict between new and old staffs

• New staffs don’t add value?
• Traditional, hierarchical, very macho,
conservative and male oriented culture
• Fixed cost pricing vs. hourly basis waging
• Communications problems
Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.

• Architectural & component Knowledge

– Entrepreneurial and commercial targets of the

company, challenged both the component and
architectural knowledge bases.
Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.

• Absorptive capacity

– Engineers had no prior knowledge of new

working circumstances to ease their absorption
of the new knowledge they were being asked to
take on board.
 Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.

• Knowledge codification and diffusion

– The issue in change is to do with the codification and

diffusion of the new architectural and component
knowledge necessary for change to occur, rather than
existing knowledge
– Those who have developed new procedures, systems or
routines that work, can share them with others who
have not progressed so far
Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.

• Redundancy

– Redundancy is a key enabler of the types of

communication mechanisms described under
knowledge codification and diffusion.
– Requisite variety
Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.

• Enabling context

– The enabling context would be about how,

through structures and informal groups, as
discussed above, to facilitate sharing and
development of new ways of working
Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.
Conclusion
Conclusion

• Management implications
• Individual are not passive recipients of change
• Change is a process of innovation and creativity
• The individuals need to be enabled to re-create
their ways of working, their daily routines and
behaviors
• Senior management cannot impose the detail of
what individuals need to do differently to meet the
aims of change
Knowledge
Knowledge base
base approach
approach to
to Design
Design Co.
Co.
Conclusion
Conclusion –– Management
Management Implications
Implications

• New critical areas of focus

• Communication
• Creating and enabling context
Technology
Technology Trends,
Trends, Predictions
Predictions
 Headlines
Headlines
CIA Overseeing 3-Day War Game on Internet
The CIA is conducting a war game this week to simulate an
unprecedented, Sept. 11-like electronic assault against the
United States. The three-day exercise, known as "Silent
Horizon," is meant to test the ability of government and
industry to respond to escalating Internet disruptions over
many months, according to participants.
05-25-05

http://online.wsj.com/article/0,,SB111627924241235058,00.html?mod=2%5F1153%5F2
 Headlines
Headlines
Under Pressure to make cars safer, smarter and more fuel
efficient, auto makers are going back to the drawing board
and the testing lab. The result: A surge of innovation abd
experimentation is coming that the industry has not seem
since its earliest days.

Increasingly, cars will become electronic

thinking machines - not just mechanical
devices

WSJ 07-25-05
 Decision
Decision Making
Making Framework
Framework
Information
Decision Structure Characteristics

Business Professionals Pre specified

Scheduled
Detailed
Frequent
Historical
Operational Internal
Structured Narrow Focus
Management
Efficient, do thing right

Tactical Management Ad Hoc

Semi Structured
Business Unit Managers Unscheduled
-Effective, right thing Summarized
Infrequent
Strategic Management
Un Structured Forward looking
Executives, Directors
External
-Transformation
Wide Scope
RELATIVE TIME SPAN
 Thinking
Thinking Like
Like A
A Board
Board Member
Member
What CIO is What BOD is
Thinking thinking

1. Corporate Profitability
1. Technology Integration

2. Vendor Management 2. Buying or Selling

3. Compliance 3. Sarbannes-Oxley

4. Business Alignment 4. Succession Planning

5. IT Governance 5. Corporate Governance

6. IT Security 6. Risk Management

7. Sourcing 7. Long-Term Shareholder

Value
8. Talent Management 8. Executive Compensation

Source: From IT to the Board Room, John Byrnes MD for Mason Wells.
 Mission
Mission Vision
Vision
Mission, Vision, Information
Goals Characteristics

Business Professionals Pre specified

Scheduled
Detailed
Frequent
Historical
Operational Internal
GOALS (SOP) Narrow Focus
Management
Efficient, do thing right

Tactical Management Ad Hoc

MISSION
Business Unit Managers Unscheduled
-Effective, right thing Summarized
Infrequent
Strategic Management
VISION Forward looking
Executives, Directors
External
-Transformation
Wide Scope
RELATIVE TIME SPAN
 Organizational
Organizational Effectiveness
Effectiveness
ENVIRONMENT

CLIMATE
Other Teams Enthusiasm Marketplace
Competition STRUCTURE
Accountability
Reward
System GOALS
Reporting
Creativity Relationships
Values
Clarity Mission Commitment
Philosophy
Collaboration Stress
Feedback
System
Decision
Making
Behavior
Flexibility Norm Trust

Competition
Culture Involvement

Pressures
 Traditional
Traditional MFG.
MFG. Organizational
Organizational
ENVIRONMENT

CLIMATE
Other Teams Enthusiasm Marketplace
STRUCTURE
Competition Mechanistic Functional
Structure
Reward
System GOALS
Hierarchical
Creativity
Values
Clarity Mission Commitment
Philosophy
Collaboration Stress
Feedback Centralized
System Decision
Making
Control:
Flexibility Standardization Trust

Competition
Culture Involvement

Pressures
 Advanced
Advanced MFG
MFG Technology
Technology
Organizational
Organizational
ENVIRONMENT

CLIMATE
Other Teams Enthusiasm Marketplace
STRUCTURE
Competition
Organic Product Team
Reward
System GOALS
Flat
Creativity
Values
Clarity Mission Commitment
Philosophy
Collaboration Stress
Feedback Decentralized
System Decision
Making
Control: Mutual
Flexibility Adjustments Trust

Competition
Culture Involvement

Pressures
 Values
Values
Honesty Ecology Hedonism
Customers
Employees Cutting Edge Risk
Safety Image Collaboration
Competitors
Revenue Fun Centralization
Profits Growth Creativity
Alliances
New Products Family Other
New Markets Capital
Quality
Social Capital
Location
Technology
Technology Trends,
Trends, Predictions
Predictions
 Predictions
Predictions
 
1893-1993: Dave Walter, Today then
In the early 1890s,a news agency commissioned 74
prominent Americans to write brief essays on what life
would be like in 1993, as part of the fanfare for the future-
oriented World's Columbian Exposition, which opened in
Chicago in May 1893.
1990 – 2000: John Seely Brown, Paul Duguid, The
Social Life of Information, 2000
 
--> experts predicted the end of newspapers, television,
paper, office, established university…missed the The
Internet
 Predictions
Predictions
1893-1993: Dave Walter, Today then
Correct Forecasts
•An income tax was coming.
•Homes would be air-conditioned.
•Women would vote.
•Florida would boom as a leisure state.
Cities would become groups of suburbs
Erroneous Forecasts
•Hypnotism would replace
anesthetics in surgery.
•The government would set up
colleges to train servants.
•Houses and cities would be built of
aluminum.
Unemployment would disappear.
 MAJOR
MAJOR AI
AI APPLICATIONS
APPLICATIONS
Artificial Intelligence

Cognitive Science Robotics Applications Natural Interface

(Human Information Applications
Processing) Visual Perception
Tactility Natural Languages
Expert Systems Dexterity Speech Recognition
Learning Systems Locomotion Multi sensory Interfaces
Fuzzy Logic Neural Navigation Virtual Reality
Networks Intelligent
Agents
 Artificial
Artificial Intelligence
Intelligence Drivers
Drivers
 
New Scientist 04-2005 Editorial:
 
AI pervades our world and may soon start evolving faster than humans can track it - in whose
hands should this awesome power reside?  When it comes to emerging technologies we
know what we are afraid of, even though we may not know why.  There is no shortage of
public debate about genetically modified crops, nanotechnology and cloning.  And policy
makers have responded:  Many countries have laws that restrict they way these technologies
can be used. 

So why the deafening silence about the potential dangers of artificial intelligence? Here is a
technology that is already changing the world:  AI is used in everything from guided missiles
to air-traffic control.  It is not yet "intelligent" in the human sense, but looks likely to change"
 Social
Social Perception
Perception Machine
Machine
Social Signals: Tone of Voice, Facial Movement, Gesture

Listen in to social signals within conversations, ignoring words

Predictions:
• Next move
• Winner in negotiations
• Connector within the group
• Feelings about negotiations.

Applications:
• Badge - social context sensing by infrared, audio and motion
• GroupMedia PDA - Attraction signaling in social events
• Serendipity Phone - Compares interests and makes socially appropriate introductions

Source: Alex Pentland MIT Media Arts and Sciences, Computer 3,2005
 Socially
Socially Aware
Aware Communication
Communication
Potential Commercial Applications:

• Mood Ring (“jerk-o-meter”) - enhance couple’s communication

• Comfort Connection - call center application

• Personal Trainer - immediate feedback

• Winning Combination - Paring right salesperson with right client

Source: Alex Pentland MIT Media Arts and Sciences, Computer 3,2005
Worlds
Worlds Cafe
Cafe
 Knowledge
Knowledge Management
Management

It's been said that if NASA wanted to go to the moon

again, it would have to start from scratch, having
lost not the data, but the human expertise that took
it there the last time.
 Knowledge
Knowledge Networks
Networks Vs
Vs
Repositories
Repositories
users users
users users
Query Query

users
Codified
knowledge

Response
users users
users users
Wearables
Wearables
 Wearables
Wearables
Sony GestureWrist and GesturePad This Sony GestureWrist and GesturePad..
IBM Research's Meta Pad IBM's research to explore how humans interact with computers and define the
technologies needed for future pervasive devices.
 
ViA II PC a lightweight, wearable design of the PC,
Matsucom onHand PC The onHand PC "wristwatch" is a full-featured PDA
Xybernaut Poma Wearable PC Hitachi PC
CharmIT wearable development kit The CharmIT is Charmed Technology's first wearable development kit.
Bitsy-Borg wearable computer A single board computer and a MicroOptical™ eyeglass-mounted display
unit, targeted at the OEM developer.
Xybernaut's XyberKids Wearable Computing Platform The Xybernaut XyberKids product is a multi-
component solution for students who face the challenge of a disability,
OQO wireless handheld computer The OQO is the smallest high performance WindowsXP computer with
complete PC functionality.
Xybernaut Mobile Assistant® V The MA V is a powerfulsuper lightweight wearable computer .
 Wearables
Wearables Fashion
Fashion
Dockers Mobile Pant
. Great for keeping cell phones, PDAs and beepers handy.
Scott eVest with personal area network SeVs have up to 42 hidden pockets and a patent-pending Personal Area Network (PAN).
Sanyo Fashion House Raincoats for Palm Devices Has a special pocket for Palm devices lined with static shielded material as well as
a cell phone pocket lined with anti-magnetic material.
 
Bristol Wearable Computing Project Concerned with exploring the potential of computer devices that are as unconsciously portable
and as personal as clothes or jewellery.
IBM Linux-based watch Linux on a wrist watch including Bluetooth capabilities
Samsung SPH-S100 cell phone watch PCS Single Mode (1,900 MHz) Watch Type Phone with SMS, Dedicated Ear-microphone,
Vibrating Alert Alarm/World Time, Automatically Call Lock, Voice Dialing(20), Speaker Phone Function, Phone Book(80) and
Calendar
Casio digital camera watch You can use IR data communication to transfer images to a computer
Casio PAT2GP-1V GPS Satellite NAVI watch uses GPS satellites that ring the globe to tell you your current location.
Timex Internet Messenger Watches Timex Internet Messenger Watches can receive email messages
Timex Watch - Speedpass System Inside the timepiece is a miniature Speedpass radio frequency transponder that allows customers to
instantly pay for purchases at Exxon and Mobil gasoline stations nationwide and at select
Microsoft Smart Personal Objects Technology (SPOT) Smart Personal Objects are common, everyday items, such as wristwatches,
clocks, pens, key-chains and refrigerator clock magnets that are made smarter, more personalized and more useful through the use of
specialized technology
Persuasive
Persuasive Technology
Technology -- Captology
Captology
Persuasive Technology - Insight into how computing
products can be designed to change what people
believe and what they do in domains such as
•Health
•Business
•Safety
Design, theory, and analysis of persuasive
technologies: "captology."
 Virtual
Virtual Reality
Reality

VT™ CAVE™ Virginia Tech

"Future Watch", a CNN Documentary on Applications of a CAVE

 Virtual
Virtual Reality
Reality
VRML Resources
Web3D Consortium
VRML97

Virtual Reality Modeling Language (VRML)

VRML Gallery of Electromagnetism
Ampere's Law anim (255 kb)
Assorted anim (940 kb)
A line-integral (166 kb)
VRML Viewers
FreeWRL
GLView
OpenVRML
Web3D page
VRweb: A Multi-System VRML Viewer
 Human
Human Mind
Mind Framework
Framework
Creative Machines

Perception Learning Internal

Imagery

Cognitive neuroscience  acknowledges only three

principal activities going on within the brain: learning,
perception, and internal imagery (imagination).

http://www.imagination-engines.com/
 Life
Life Creation
Creation
“Biologist J. Craig Venter once raced the US
Government to complete the decoding of the
human gnome. Now after a maverick career
studying the code of life, Dr. Venter has a new
goal: Life itself”

WSJ 06-29-05
 Trends
Trends to
to Watch
Watch
1. Ubiquitous wireless microchips: socks, brain, toaster
2. Move toward human-centric designs: reliable software
3. Moore’s Law will continue indefinitely
4. Quantum computers will obsolete current cryptography
methods
5. We will face social conflicts with robots
6. Green living possible as a result of Ubiquitous computers
7. Electricity will grow as a function of the Internet
8. All software, books, documents and information will be free.
9. Robots will explore space and our bodies
10.Bionic bodies parts will expand lifespan
 Evaluating
Evaluating the
the Claims
Claims

Instead of extrapolating a trend, examine the social

consequences if the claim becomes true
ORGANIZATIONAL
ORGANIZATIONAL HORSEPOWER
HORSEPOWER

Global
ionall Force

LEARNING KP: Knowledge

partnership
nizationa

Async
Organizat

KP
TEAM VIRTUAL
CULTURE
JIT
OHP

Organizational Speed
 Planning
Planning Management
Management of of Personal
Personal and
and
Organizational
Organizational Change
Change

Key elements to consider when planning for the management of personal

and organizational change, driven by technology, include the
following:
• Business description, objectives, and technological environment.
• Personal and organizational responsibilities for moral and ethical use of
technology.
• Current and potential uses of technology for the global success of business
objectives.
• Human factors within the enterprise that utilize current and emerging
technology more effectively.  
Change Management - Change
Strategies

Joseph Lewis Aguirre

 Change
Change Resistance
Resistance Diagnosis
Diagnosis
Parochial Self Interest:
The best interest of individual is not the best
interest of the total organization

Misunderstanding & lack of trust

Few organization can be characterized as having
a high level of trust
The lack of trust between the person initiating the
change and the employee, can cause for
misunderstanding
Change
Change Resistance
Resistance Diagnosis
Diagnosis (cont)
(cont)

Different assessments - Remember Betsy?

People may assess the situation differently from managers
or those initiating the change
The difference in information that groups work with often
leads to difference in analysis

Low tolerance for change

People will not able to develop the new skills that will be
required of them
People will sometimes resist a change even when they
realize it is a good one
Change
Change Resistance
Resistance Diagnosis
Diagnosis TOC
TOC

The major obstacle to organizational growth

is managers’ inability to change their
attitudes and behavior as rapidly as their
organization require.

Peter F. Drucker
Methods for dealing with resistance to change
Approach Commonly used in Advantages Drawbacks
situation
Education Where there is a Once persuaded, Can be very time-
+communication lack of people will often consuming if
information or help with the lots of people
inaccurate implementation are involved.
information and of the change.
analysis

Participation + involvement
Where the initiatiors People who participate will Can be very time-
does not have all be committed to consuming if
the information implementing change, participators
and any relevant
they need to information they have
design an
design the change, will be integrated into inappropriate
and where others the change plan. changes
have considerable
power to resist.
Methods for dealing with resistance to change

Approach Commonly used in Advantages Drawbacks

situation

Facilitation + Where people are No other approach Can be time

support resisting because of works as well with consuming,
adjustment adjustment problems expensive and still
problems. fail.

Negotiation + Where someone or Sometimes it is a Can be too

agreement some group will relatively easy way to expensive in many
clearly lose out in a avoid major resistance. cases if alerts others
change and where to negotiate for
that group that has compliance.
considerable power
to resist.
Methods for dealing with resistance to change` (Con.)

Approach Commonly used Advantages Drawbacks

in situation
Manipulation + Where other If can be relatively Can lead to future
co-optation tactics will not quick and problems if
work or are too inexpensive solution people feel
expensive. to resistance manipulated.
problems.

Explicit + Where speed is It is speedy, and can Can be risky if it

implicit coercion essential and the overcome any of leaves people mad
change initiators resistance. at the initiators.
possess
considerable
power.
 Strategic
Strategic Continue,
Continue,
Fast Slower
Little involvement of others Lots of involvement of
others
Attempt to overcome any Attempt to minimize any
resistance resistance
Key situational variable:
The amount and type of resistance that is anticipated

The position of the initiator vis-à-vis resistor (in terms of

power, trust, and so forth)
Relevant data for designing the change and of needed
energy for implementing it
The presence or lack of presence of a crisis
Change Management - Why
Transformation Fails

Joseph Lewis Aguirre

 EXPERT
EXPERT ADVICE
ADVICE
Change
Change

One of the biggest changes for companies over the

last decade or so has been the emergence of the
so-called "global" market. How can companies
better equip themselves to deal with change on a
global basis?
 EXPERT
EXPERT
Change - ADVICE
ADVICE
Definition
Change - Definition

"Organizational change is the implementation of new procedures or

technologies intended to realign an organization with the
changing demands of its business environment, or to capitalize on
business opportunities.“
-- ODR®, a consulting firm with more than 23 years of experience
 EXPERT
EXPERT ADVICE
ADVICE
Change
Change

Slow, cautious, well documented, process driven,

incremental change is a luxury that very few
organizations can now afford. Speed has now
become a key competitive advantage.
 Managing
Managing Change
Change

Research by The Global Future Forum (GFF) has found that as

much as 58% of top executives in the Fortune Global 500 admit
their organization is ineffective at managing radical change.

The research highlighted that organizations actively involved in

planning for change are only planning for "more of the same."
 Internal
Internal to
to External
External Focus
Focus

"it is important for businesses to anticipate the

future - not just so that they can plan for it, but
so that can help to shape it too.“

- David Smith, CEO of The Global Future

Forum
 EXPERT
EXPERT
Expert ADVICE
ADVICE
Views
Expert Views
•   "I think there is a world market for maybe
five computers" - Thomas Watson, IBM president,
1943.

• "Television won't last because people will

soon get tired of staring at a plywood box
every night" - producer Darryl Zanuck, Twentieth-
Century Fox, 1946.       
 EXPERT
EXPERT
Expert ADVICE
ADVICE
Views
Expert Views
• When Brigadier General Billy Mitchell proposed that airplanes
might sink battleships by dropping bombs on them,
– U.S. Secretary of War Newton Baker said "That idea is so damned
nonsensical and impossible that I'm willing to stand on the bridge of
a battleship while that nitwit tries to hit it from the air."

– Josephus Daniels, Secretary of the Navy, "Good God! This man

should be writing dime novels."

– Scientific American (1910) "to affirm that the aeroplane is going to

'revolutionize' naval warfare of the Future is to be guilty of the
wildest exaggeration."
 EXPERT
EXPERT
Expert ADVICE
ADVICE
Views
Expert Views

• "There is no need for any individual to have

a computer in their home" - Ken Olson, president of
Digital Equipment Corp., 1977.

• "640k ought to be enough for anybody" -

Microsoft founder Bill Gates, 1981
 EXPERT
Expert ADVICE
Expert ViewsADVICE
EXPERT
Views -- Takeway
Takeway

• Managers who can expand their imaginations

to see a wider range of possible Futures will
be much better positioned to take advantage
of the unexpected opportunities that will come
along.
 Change
Change -- Research
Research

More than 50% of survey participants had implemented dramatic

process change,

More than 90% implemented process changes that crossed

departmental boundaries

Almost 50% expect the change to impact their entire enterprise.

-- source: "Management Challenges for the 21st Century" by Peter F. Drucker A report published by ProSci
Learning Centers (www.prosci.com)
 Change
Change -- Research
Research

• More than 100 companies with different

characteristics have been studied.
• The efforts have gone under many names.
• In almost every case the basic goal was:
“ to make fundamental changes in how
business is conducted in order to help cope
with a new, more challenging market
environment”
 Change
Change -- #1
#1 Sense
Sense of
of Urgency
Urgency
• How most successful changes begin.
• Crises, potential crises or great opportunities.
• Bad business results are both a blessing and curse in first phase.
• An almost universal tendency to shoot the bearer of bad news.
• When is the urgency high?
• Over 50% have failed in phase 1,because of :
– Underestimate/motivating people.
– Overestimate success.
– Lack of patience.
– Paralyzed senior management.
 Change
Change -- #2
#2 Power
Power is
is in
in the
the Why
Why

• In most successful cases coalition is always

powerful.
• Senior management always forms core
group.
• More than high sense of urgency is required.
• Reasons for failing:
– No history of teamwork at top.
– Expecting the team to be led by a staff
executive.
 Change
Change -- #3
#3 Vision-less
Vision-less
• In successful cases, coalition develops a picture
of future.
• A vision says something that helps clarify the
direction in which an organization needs to
move.
Change
Change -- #4
#4 Communicating
Communicating the
the Vision
Vision

• Three patterns with respect to communication:

– Holding single meeting or sending out a single
communication.
– Making speeches to group of employees.
– Newsletters and speeches.
• Particularly challenging in case of short term
sacrifices.
• Walk the talk, nothing undermines change more than
wrong behavior by important individuals.
 Change
Change -- #5
#5 Force
Force Field
Field Analysis
Analysis

• Emboldened employees.
• Obstacles for employees:
– Narrow job definitions.
– Compensation and appraisal systems.
• The action is essential both to empower
others and to maintain the credibility of
change effort.
Change
Change -- #6
#6 -- Planning
Planning and
and short
short term
term
metrics
metrics
• Most people go on a long march unless…
• In one or two years you should find:
– Quality beginning to go up.
– Decline in net income stopping.
– Product introduction.
– Upward shift in market share.
• In successful cases manager actively plan to achieve
objectives. They don’t hope for.
• The benefits of commitments to produce short-term
wins.
 Change
Change -- #7
#7 Declaring
Declaring Victory
Victory Too
Too
Soon
Soon
• New approaches are fragile and subject to
regression.
• Ironically, it is often a combination of change
initiators and change resistors that creates the
premature victory.
 Change
Change -- #8
#8 Culture
Culture
• In the final analysis changes sticks when it
becomes “ the way we do things around here”
• Two factor in institutionalizing change:
– To show people, the effects of new approaches.
– Make sure that next generation of top management
will personify the new approach.
 Change
Change -- Summary
Summary

• Change process goes through a series of

phases.
• Critical mistakes in any of the phases can
have devastating impacts.
• A fewer errors can spell the difference
between success and failure.
Change Management- Why
Change Fails

Joseph Lewis Aguirre

 Change
Change is
is Personal
Personal

Each individual MUST think, feel, or do

something different.
Change programs fail because of:
Having a mechanistic mental model

Breaking change into small pieces

Managing the pieces

 Change
Change is
is Personal
Personal (cont)
(cont)
•The challenge is to manage the dynamics not the
pieces.
•Teaching personnel how to think strategically,
recognize patterns, and anticipate problems and
opportunities before they occur.
•From the managerial viewpoint, change is a
balancing act
 Change
Change is
is Personal
Personal (cont)
(cont)

Example: Transition Management Team, a group of company

leaders, reporting to the CEO, who commit all their time and
energy to managing the change process.
Managing change for this group means:
Managing the conversation between the people leading
the effort and those who are expected to implement the
new strategies.
Managing the organizational context in which change
can occur
Managing the emotional connections
 Change
Change -- Typical
Typical Approach
Approach

1. Management says “We have to make some changes

around here” (TQM, BPR, Employee Empowerment, …)
2. A task force is formed
3. This force works without communicating anyone else,
trying to meet deadlines, testing a lot of what-ifs
4. The results are delivered
5. Everyone has to do his part
 Change
Change -- Organization
Organization Context
Context

Strategic Frames Blinders

Processes Routines
Relationships Shackles
Values Dogmas
People Change Survivors
Change
Change -- Organization
Organization Context
Context (cont)
(cont)

Change Survivors: Cynical people who’ve learned how to

live through change programs without really changing at all.
They know that change programs are only manager’s fads.
Their reaction is the opposite of commitment.
In this context every change effort will fail.
Managers should change their behavior.
How would we act? How would we attack our problems?
What kind of meetings and conversations would we have?…
 Change
Change -- Organization
Organization Dynamics
Dynamics

An organization, like a mobile, is a web of

interconnections.
A change in one area throws a different part off
balance.
Managing these ripple effects is what makes managing
change a dynamic proposition with unexpected
challenges.
 Change
Change -- Transition
Transition Management
Management
Primary responsibilities:
•Establish context for change and provide guidance
•Stimulate conversation
•Provide appropriate resources
•Coordinate and align projects
•Ensure congruence of messages, activities, policies, and
behaviors
•Provide opportunities for joint creation (Empowerment)
•Anticipate, identify, and address people problems
Prepare the critical mass
 Change
Change -- References
References
• John P. Kotter, “Leading Change, Why Transformation Efforts Fail”,
HBR , April 1995.
• "Management Challenges for the 21st Century" by Peter F. Drucker A
report published by ProSci Learning Centers (www.prosci.com)
• Jeanie D. Duck, HBR on Change 2000, Managing Change: The
Art of Balancing
• , Donald N. Sull, HBR on Culture and Change 2002Why Good
companies Go Bad
• , Debra E. Meyerson, HBR on Culture and ChangeRadical
Change, The Quiet Way
• Colin A. Carnall, Pearson Education, 1999, Managing Change in
Organizations (Third Edition)