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Study Unit 6 of MOIC

Component B = 70% of module mark/ 20 Credits


Individual Change - Study Units 1 to 5:CW1 Learning Portfolio
Summary Essay/ Personal & Individual Change deadline 8th November
(28% of mark)
Organisational Change & Management of Change
Study Units 6 to 12
• CW2 Essay worth 42% of mark
• CW2 Essay Question Release – On Bb and in Seminar
Study Unit 7 (week of 12th November 2018)
• Deadline 26th February 2,500 words (+ /- 10%)
• Last week of teaching for CW2
11th February 2019 - final lecture and seminars
MOIC – Study Unit 6
Organisational Change and the
Management of Change
(principles & conundrums)
Reading MyBank Case available online via reading
list in SU6 also Case in 2017 edition 147-153 (Ch5:
144-48)
Required reading: Review chapters 2,3,4 and 5 in
2017 edition and Chapters 3,4 and 5 in 2014 edition

Roz Gasper
Lecture objectives
• Identify the key thinking and approaches to
organisational change and the management of
change
• Examine the implications of stability vs process
and fluid ‘mindsets’
• Examine the practical lessons and thinking
• Nine considerations of change management
• Offer you some YouTube resources to better
understand the concepts underpinning
managing individual and organisational change
Focus on ‘how’ to Manage and Lead
Change
Reflect the realities of organisational change:
• Making the wrong decisions about change
and innovation can be critical (when, what,
how and when not to change).
• ‘The brutal fact is that almost 70% of all
change initiatives fail.’ Beer and Nohria (2000) ‘Cracking the
Code of Change’, Harvard Business Review, 78(3):133-41

• No silver bullets or magical panaceas on how


to manage change successfully.
Movement from current state to
desired future state

A C B
Present state: Transition state: Future state:
the status quo of moving the aspirations for
the organization organization the organization

See core text Fig2.1 p29


The critical conundrum of change
• Change is a complex process that it is not
possible to fully control or predict.
• Uncertainty of change stimulates demand for
simple recipes that provide assurances that
there are techniques for successful change.
• Organizational change often characterized as a
movement from a present to a future (desired)
state that generally unfolds in unexpected
ways (whether planned for or not).
Theory & Practice of Organizational Change
‘inseparable’ two sides of the same coin
‘Every act of a manager rests on assumptions
about what has happened and conjectures
about what will happen; that is to say it rests
on theory. Theory and practice are
inseparable’ (D.S. Pugh, 1971: 9-10)

‘Theories-in-use’ our own thinking, mindsets, and perspectives


dictate what we focus on as important or unimportant and
based on these interpretations what we do our practices,
decisions, and choices
Different Assumptions – Objective Reality
Lead to different theories & views on CHANGE:
• Reality is objective (e.g. one best way to
change applies in all cases = best practice)
• Focus on stability = emphasise change as ‘one-
off’ and return to ‘stable’ positions
– Entities and structure exist in a state of
stability (equal and opposing forces
maintain the norm)
– Organizations have properties that can be
observed and compared (fixity)
Different Assumptions – Subjective Reality
• Reality is subjective (e.g. its important to look
at and compare the different perspectives
people, organizations, societies hold =
different solutions depend on how people see
things )
• Focus on process = emphasise DYNAMIC &
FLUID based on ‘ongoing’ change
– People continually engage in making sense
and interpreting a dynamic ongoing world.
– Processes of organizational change (flux).
(Core Text ch 4 (ch 3 in 2014 edition) has a complete theoretical review
of change theories)
Gradual coupled with rapid change – The
punctuated equilibrium model of change
• Disruption/ critical event triggers a time of change
• Over time change initiatives become embedded in
current routines and competencies.
• Creates inertia stifling creativity and innovation
(paradigm block, convergent change) resulting in
environmental misalignment (‘strategic drift’).
• Eventually performance declines to such an extent
that radical episodic interventions are necessary for
survival. (Core Text: see fig 2.3 p35; see Case 2.1 for organisational
example pp36-38; fig 3.2 p101 disruptive trends and pp101-6)
Demers (2007) historical framing
1950s-1970s: Concern with growth and choice for
change (voluntarism) or whether environmental
forces determine who survives (determinism).
1980s: Focus on more radical change and question
whether change is revolutionary or evolutionary.
1990s-2000s: Long-term processes of renewal in
which change is an ongoing reality rather than
being viewed as an occasional disruptive event.
See core text ch5 pp183-191; Case 5.2 An organisational example of innovation
as reality pp192-6
Leading company Historical overview of
decline / survival
Strong acquisitions in securing smaller airlines
Swiss Air (decline) (known as the ‘Hunter Strategy’) left them
vulnerable with large debts that could not be
financed following downturn post-2001
Edison Records (ditto Kodak Invented phonograph 1877, revolutionized
recording of music when other companies
smartphone photography patents) produced ‘needle-cut’ records, position in
market undermined, ceased operation in 1929
Woolworths (British Home ‘Woolies’ shocked the public by closing
operations in 2009 with the loss of over
Stores – Pension deficits; Pound 27,000 jobs and debts of £385 million. 2018
Land, New Look etc.,) Pound Land & New Look – online shopping?
Shell (2004) (survival of 2004 Restructure and new processes ‘downstream
one’ based on tough love and upsetting
oil crisis) power bases within operations worldwide

Santander (survival & expansion Reinvented itself with strong acquisitions in


2008 (e.g. Abbey National, Alliance &
in 2008; by 2013 one of country’s Leicester) embarked on culture change
leading retail banks) programme with clear messages
Rosebeth Kanter: Four rules for organisations
to change and survive
• Need to create flatter, more responsive and less
complex organizations
• Should contract-out some functions and develop
strategic alliances in order to pool resources,
share ideas and information
• Unleash individual dynamism via empowerment
and greater employee involvement,
encouraging innovation and entrepreneurship,
promoting flexibility and partnership
• Corporate Olympics: need to be fast, focused,
flexible and friendly 2017:88-91(2014:26-29)
‘Masters not Victims of Change’
Doing Organisational & Societal Change
• Rosebeth Moss Kanter
http://www.youtube.com/watch?v=WXwroF-x-KU Drivers & Levers of Change
http://www.youtube.com/watch?v=owU5aTNPJbs Eight principles Leading Change

• Matthew Taylor RSA (both available on you tube)


– Power to Act 2012
https://www.youtube.com/watch?v=tQ0Tv6ynwsk
Individualism, hierarchy and solidarity
– Power to Create 2014
https://www.youtube.com/watch?v=cDQosiH4VAc
How do we manage or lead change?

John Kotter
Key differences between management
and leadership
http://www.youtube.com/watch?v=SEf
gCqnMl5E
Metaphors and Images of Managing Change
('theories-in-use' to analyse practice)
• Morgan’s (1997) Eight Images of Organizations and Change
– Machine (standardised) - Domination (exploitative)
– Political (self-interest and conflict) - Pyschic Prison (unconscious influences)
– Organism (natural adapts) - Brain (learning and self organisation)
– Culture (creates shared reality) - Flux & Transformation (emergent change)

• Palmer et al (2009) identify six images (ideal types) of managing


change
They argue that managers are able to reflect on the assumptions that underpin
their and others images of change, to more fully assess whether there is a
dominant image of change within their organization, and to be aware of the
possibilities of adopting different images of change and not being stuck on a
one dimensional view (Palmer et al., 2009: 34-8).

Core Text ch 4 pp130-134 (ch 5 129-133)


Outcome & Approaches
Table 4.2 p132 (5.1 p135) adapted from Palmer et al 2009:24

PARTIALLY
INTENDED UNINTENDED
INTENDEND

DIRECTOR NAVIGATOR CARETAKER


(Controlling) (Controlling) (Controlling)

COACH INTERPRETER NURTURER


(Shaping) (Shaping) (Shaping)
Making yourself a more effective leader

In an article in the Harvard Business Review,


Peter Fuda and Richard Badham identify a
number of metaphors they argue ‘contain useful
insights about how leaders can become more
effective’ by using these different approaches:
Fire, Snowball, Mask and Movie, Russian Doll,
Chef and Coach.
Fuda, P. and Badham, R.J. (2011) ‘Fire, snowball, mask, movie. How leaders spark and sustain change’,
Harvard Business Review, 89 (11): 145-148.

Core Text ch 5 pp181-2


Snowball (gains momentum)

I shared with my team the kind of leader I


aspired to be. I asked every member to hold me
accountable to that vision. This set an
expectation that each of them would mirror my
commitment. Soon we added more layers of
leadership to the process, all accountable to one
another regardless of our position in the
hierarchy. It felt like a massive snowball rolling
down the hill, with me trapped in the middle.
[Clynton, CEO research subject]
Mask (not genuine or sincere)

I felt ill prepared for my promotion to such a big


job, so I tried to bluff my way through. I thought
‘OK, I will be the tough guy. It’s working for my
boss; he’s scaring the hell out of me’. But this
didn’t work, so I tried a different approach: ‘I’ll
be the nice guy. “Thank you for saying thank
you!”’ That didn’t work either. I was guessing
and making it up as I went along. I was a bit of a
fake.
[Mike, CEO research subject]
Movie (clear view of yourself)

The biggest realization is that if you want


change, you’ve got to stand outside yourself and
look back as if you were seeing yourself
replayed on video.
[Alan, CEO research subject]

Q: How many of us have a clear view


of ourselves as others see us?
Fire (‘burning platform’ is running
away rather than running toward)
In the modern business context, you can always
find a crisis to respond to. That’s why there are a
lot of these arsonist fire fighters. I used to be
that way, too. Nowadays I definitely prefer to
move toward something rather than away from
something.
[Tim, CEO research subject]

……. Lesson need to run toward


Nine Considerations in Process of
Organisational Change
1. No silver bullets
2. Shifting terrains are the norm
3. Allow time
4. Multiple Voices and Changing Views
5. Change as a Learning Experience
6. Training and new skills acquisition
7. Effective communication
8. Change as power-politics
9. Temporality & Paradox
Core Text: Table 5.4 p180
Managing the change from present to
desired state: Questions we address
over the coming weeks
• How to communicate and lead change?
• How to avoid resistance and motivate people?
• How to control and minimize the disruptive
aspects of change during implementation?
• How to shape the political dynamics of change
so that power centres develop that support the
change rather than block it?
• How to reach desired state over time?
Approaches Organisational & Change Management
– Perspectives , theories and model
• Drivers for change
• Planned change - N-step Models to
Organisation Development (OD)
• Change as an emergent process
• Politics, context and narratives
– Type/s and scale of change
• Whole organisation radical or incremental small
changes
• Change, communication & resistance
• Leading change /change management
• Changing structures/ systems/processes
• Changing culture
• Innovation & survival
How to Manage Change
https://www.youtube.com/watch?v=PQ0doKfhe
cQ

10 Principles of Leading Change (Clip 4.49


minutes)
From chapter 5 – 2017 edition core text
References ch2 (ch 3)
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References ch2 (ch3)
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