Chapter 5

Diagnosis for
Change

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 Diagnostic Tools

Diagnostic
Tools • The image of the change
Images of
Managing
manager has an impact on the
Change types of tools that may be used.
Advantages
of diagnostic
• The different images highlight the
tools
range of reasons why tools like
Diagnostic these may be utilized – they
Models:
-Organization illustrate the numerous ways
-Components
change can be interpreted.
Readiness for
Change

5-2
 Images of Managing Change

Diagnostic Images Diagnostic Tools

Tools
Director Using diagnostic tools to build up your own knowledge base
Images of and confidence about what needs to change by using
Managing models that specify relationships among variables and
Change pinpoint where change is needed when things are not going
well.
Advantages Navigator You will find the diagnostic tools attractive; models are ways
of diagnostic of “mapping” the environment they describe.
tools You will be less convinced of the capacity of the diagnostic
Caretaker
tools to support radical change, but several of the tools (see,
e.g., PESTEL and scenario analysis) provide insights into the
Diagnostic trends in the external environment that you will have to take
Models: into account.
-Organization
Coach You will focus on the diagnostic tools that highlight the goals
-Components
being sought and the competencies needed to attain them

Readiness for Interpreter You will be attracted to the diagnostic tools that emphasize
Change images, framing, and cognitive maps
Nurturer Having an interest in emergent strategy, you may remain
unconvinced as to the value of such diagnostic tools. 5-3
 Advantages of Diagnostic Tools

Diagnostic
Tools • Simplify a complex situation.
Images of • Identify priorities for attention.
Managing
Change • Highlight interconnectedness of various
Advantages organizational properties (e.g., strategy
of diagnostic
tools
and structure).
• Provide a common “language” with
Diagnostic which to discuss organizational
Models:
-Organization characteristics.
-Components
• Provide a guide to the sequence of
Readiness for
Change
actions to take in a change situation.
5-4
 Diagnostic Models: Organization

Diagnostic • Six-box organizational model:

Tools
– The key focus here is on six variables – purpose,
structure, rewards, helpful mechanisms, relationship and
Images of leadership. This model is useful to maintain awareness
Managing of all areas for consideration even though one variable
Change may be identified as the main area for attention.
Advantages
• 7-S framework:
of diagnostic – The 7-S framework: this focuses on seven key
tools components that affect organizational effectiveness –
structure, systems, style, staff, skills, strategy and
superordinate goals. The interconnectedness of these
variables is vital to the success of change.
Diagnostic
Models:
• Star model:
-Organization – An organization is effective when the five components of
-Components organizational design – strategy, structure, processes
and later capability, reward systems and people
practices – are in alignment.
Readiness for
Change

5-5
 Diagnostic Models: Organization

Diagnostic • Congruence model:

Tools – The organization is broken down into four components –
task, individuals, formal organizational arrangements and
Images of informal organisation. This is influenced by the context
Managing where the strategy is formulated and the output is then the
Change performance of the organization.
• Burke-Litwin model:
Advantages – This model identifies the transformational – external
of diagnostic environment, mission and strategy, leadership and
tools organizational culture - and transactional sources of
change.
• Four frame model:
Diagnostic – This offers four frames for the managers to conceptualize
Models: how the organization operates. These frames are structural,
human resource, political and symbolic frames.
-Organization
-Components • Diagnosis by image:
– This technique allows organizational members to use
Readiness for
images to describe the organizations and this can be used
as a basis for discussion.
Change

5-6
 Diagnostic Models: Components

Diagnostic • PESTEL Framework:

Tools – This analyses the external environment in terms of six factors –
political, economic, social, technological, environmental and
Images of legal.
Managing • Scenario analysis:
Change – Creating stories of possible future scenarios that are considered
to be vital to the future of the organization
Advantages • Gap analysis
of diagnostic – This is a tool used for reviewing the organization’s position
based on where they are and where they want to get to.
tools
• Elements of strategy
– These are five elements of strategy that are considered mutually
reinforcing – arenas, vehicles, differentiators, staging and lowest
Diagnostic costs through scale advantage. Any misalignment of these
Models: signifies the need for change.
-Organization • Strategic inventory
-Components – This aims to identify the strategic assumptions of managers and
determine their consistency with the business environment. This
Readiness for determines whether the strategy should be a focal point for
change.
Change

5-7
 Diagnostic Models: Components

Diagnostic • Newsflash exercise:

Tools – This is an exercise that encourages managers to be very
specific and succinct about change and clearer about the
Images of intended outcomes.
Managing • Cultural web:
Change
– This provides a way of mapping the organizational culture
through seven elements – paradigm, rituals and routines,
Advantages stories, symbols, control systems, power structures and
of diagnostic organizational structure
tools • Structural dilemmas:
– Six possible structural dilemmas that can be encountered
during change are diagnosed so areas that have been
Diagnostic “traded-off” during the change process can be identified
Models: • The Boundaryless Organization:
-Organization
– Success is arguably achieved only if four types of
-Components
organizational boundaries are diagnosed and reduced.
These are vertical, horizontal, external and geographical
Readiness for boundaries.
Change

5-8
 Readiness for Change

Diagnostic • Assessing the organization's readiness to

Tools
change can be a mediating variable between
Images of change management strategies and the
Managing outcomes of desired strategies.
Change • A perchance audit of the readiness of an
organization for change can provide an
Advantages
of diagnostic
indication of the likely outcome of a change
tools initiative at a particular point in time. Some
ways of doing this include:
– Questionnaires
Diagnostic – Stakeholder analysis: This focuses on the position of
Models: stakeholders in the change process and allows the
-Organization manager to be better informed of how to confront
-Components potential issues.
– Force-field analysis: This identifies factors that are
Readiness for driving forces for change as well as restraining forces.
Change

5-9