Week 8 Final
Organization Development & Change 11 edition Thomas G. Cummings • Christopher G. Worley
CHAPTER
18
Continuous Change
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Learning Objectives
Compare and contrast four continuous change interventions.
Describe the elements and processes associated with the dynamic strategy-making intervention.
Define the demands of turbulent environments and describe the self-design intervention.
Outline the definition and application of organization learning interventions.
Explain the logic and process of developing agile organizations.
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Criteria for Dynamic Strategy Making
Speed over delay
Breadth over narrowness
Flexibility over rigidity
Empowerment over autocracy
Simplicity over complexity
Unity over fragmentation
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A Dynamic Strategy System
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Elements of the Statement of Strategic Direction
Competitive Logic
A value propositions that connects the firm’s capabilities to market opportunities
Goals
Unifying target for achievement; financial and a single rallying goal
Organization
Formal organization design which aligns, work, structure, human resource practices and management processes to the competitive logic and goals
Action Plan
Initiatives and specific steps required to implement the strategy; sets priorities over a specific timeframe
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Dynamic Strategy Application Stages
Choosing relevant stakeholders
Holding the first retreat
Engaging stakeholders between the first and second retreats
Holding the second retreat
Implementing actions
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Self-Designing Organizations
Systemic change process altering most features of the organization
Process is ongoing, never finished—continuous improvement and change
Learning as You Go—on-site innovation
Need support of multiple stakeholders
All levels of the organization adopt new strategies and change behaviors
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The Self-Design Change Process
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Learning Organizations
Organization Learning interventions emphasize the structures and social processes that enable employees and teams to learn and share knowledge
Knowledge Management focuses on the tools and techniques that enable organizations to collect, organize, and translate information into useful knowledge
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How Organization Learning Affects Performance
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Characteristics of Learning Organizations
Structures emphasize teamwork, information sharing, empowerment
Information systems facilitate rapid acquisition and sharing of complex information to manage knowledge for competitive advantage
Human resources reinforce new skills and knowledge
Management processes facilitate rapid sharing of rich, complex information
Leaders model openness and freedom to try new things while communicating a compelling vision
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Organization Learning Process
Single loop learning
Most common form of learning
Aimed at adapting and improving the status quo
Double loop learning
Generative learning
Questions and changes existing assumptions and conditions
Deutero-learning
Learning how to learn
Learning how to improve single and double loop learning
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Organization Learning Activities
Discover Theories in Use and Their Consequences
Attend to the knowledge management practices that support learning.
Continuously monitor and improve the learning process.
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Discover Theories in Use
Dialogue
Systems Thinking
Left-Hand, Right-Hand Column
The Ladder of Inference
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The Ladder of Inference
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Knowledge Management Practices that Support Learning
Generating Knowledge
Identify knowledge for competitive strategy
Develop ways to acquire or create that knowledge
Organizing Knowledge
Put knowledge into a usable form
Codification and Personalization
Distributing Knowledge
Making knowledge easy to access, use & reuse
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Agile Organizations
Organizations with the ability to make timely and effective changes that support sustained levels of high performance.
Agile organizations typically operate in complex and rapidly changing environments
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Agile Organization Design Features
Routine
Strategizing:
Top management establishes and refreshes and the organization’s purpose, direction and market position
Supports a “culture of candor” where organization members are expected to challenge the status quo.
Perceiving:
The structures and methods for sensing, interpreting, and communicating relevant short-term and long-term shifts in the external environment
Testing:
The process of experimenting, innovating, and learning on a continuous basis
Implementing:
The ability to facilitate day-to-day changes in products, operations, structures, and systems, but more importantly, orchestrate the development of new capabilities, business models, and strategies
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18
Applying Agility Principles
Reframe culture as a facilitator of change
Create a change-friendly culture
Move from designing for stability to designing for flexibility
Agile designs emphasize a flat and flexible organization structure
Human resources practices support flexibility and speed by managing the right talent for change
Move from change as a project to change as a capability
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