change management

CHANGE MANAGEMENT BBA313

Assessing Internal Conditions. U4

1. The diagnosis models: The change cube, the six-box organizational model, the 7-s framework and the star model.

2. Diagnosing an organization culture and behavior. 3. Diagnosing readiness for change. 4. Evaluating an organization´s ability to compete effectively using

an extended Marketing Mix analysis. Using Problem Trees and Fishbone diagrams to analyze the most important issues that impact the organization's capabilities.

5. The diagnosis tools: 1. Using Problem Trees. 2. Using Fishbone (Ishikawa) diagrams.

6. The Pareto Effect.

Assessing Internal Conditions

The Weisbord Six Box Model is a framework developed by the American analyst Marvin Weisbord used to evaluate the performance of organizations and create competitive advantage.

The model is meant for use ‘across the board’, so you should find it helpful regardless of your field.

Weisbord’s Six-Box Model

Business frequently takes unexpected turns, so stay on top of your organization by understanding exactly where you are competing and what it takes to win in those areas.

Weisbord suggested a variety of questions to help people use the model.

Here you assess the business that you’re in, and decide what you’re trying to accomplish. Ask questions like: 1. Do we have a clear mission and vision? 2. How well do we use these to establish goals? 3. How clearly do people understand the goals? 4. To what extent do we agree on our goals? 5. How much have workers participated in goal setting? 6. How can we frame our goals to increase commitment and buy-in? 7. How well do our goals fit our capabilities and core competencies? 8. How much difference is there between what we say we do and what

we really do?

Purposes

Weisbord’s Six-Box Model

The details of how your business operates and how it works on a daily basis.

Structuring your business in a logical way based on the desired outputs you have in mind is one of the most important things you can do going forward.

Weisbord suggested a variety of questions to help people use the model.

Here you assess how work and people are organized. Questions include:

1. How well does our organizational design fit our purpose? 2. What organizational configurations are best for our purpose? 3. How well does our structure support effective communication? 4. What differences are there between formal structure and informal

structure? 5. What are the differences between what’s supposed to be done and

what’s really done? 6. Do we have appropriate accountability in both the formal and informal

structures?

Structure

Weisbord’s Six-Box Model

There are the obvious relationships between people both within your organization and outside of it that need to be managed.

Healthy relationships are required for business growth.

Clear and concise plan for how those conflicts are going to be resolved.

Weisbord suggested a variety of questions to help people use the model.

Here you assess how people relate to one another throughout the organization. 1. How important is the team development process? 2. How well do people relate and communicate with one another? 3. How well do people relate and communicate between departments

and units? 4. How much do people collaborate? 5. How well are people matched to the roles they perform? 6. Does the level of interdependence support the purpose and structure

of the organization? 7. How much conflict is there? 8. How effective are conflict resolution processes within the

organization?

Relationships

Weisbord’s Six-Box Model

Creating a structure of worthy rewards is one of the most important things managers can do to develop a positive culture that runs from top to bottom in the business.

Here you ensure that people are properly incentivized for doing what needs to be done.

1. How well do formal rewards reflect what the organization wants to accomplish?

2. Are informal rewards working effectively? 3. What actions and results really get rewarded? 4. To what extent do people consider rewards to be valuable? 5. How timely are rewards? 6. Are rewards distributed equitably? 7. What causes a worker to be punished? 8. Do rewards support the organization’s vision and goals?

Weisbord suggested a variety of questions to help people use the model.

Rewards

Weisbord’s Six-Box Model

Leadership refers mainly to the managers within an organizations, although non-managers can also have a leadership role within their own team.

Leaders have to optimize collaboration between employees, in order to jointly work towards their goal or on the production of a single product.

The intensive leadership style they will employ for this is aimed at tasks and relationships, managing and monitoring goals, identifying problems, and be highly adaptive to their environment, both internal and external.

Leadership

Differences between Leaders and Managers

Leaders

Innovates. Motivates. Inspires. Empowers. Focuses on people. Creates a vision for the future. Sets the tone for a great group culture. Long-range vision. Embraces change.

Managers

Administers. Sets specific goals. Provides structure for the team. Plans. Organizes. Delegates. Implements strategies. Solves problems. Detail-oriented.

Shared characteristics.

Open communication. Honesty. Integrity. Decisiveness. Respect. Empathy. Creativity. Confidence. Optimism. Commitment

Weisbord suggested a variety of questions to help people use the model.

Here, you’re looking at how well the boxes fit together and support one another. The leader is expected to maintain the right balance between all six key organizational elements. Do leaders understand the mission and vision? Do we routinely monitor that our stated purpose is still valid? Do leaders reflect the organization’s purpose in departmental goals? How well do leaders represent organizational values and practice ethical leadership? How much do leaders lead, as opposed to managing? How are leaders chosen? How effective are leaders at dealing with internal conflict? Does the primary leadership style support the appropriate direction of the other five boxes?

Leadership

Weisbord’s Six-Box Model

These mechanisms are certain to change over time as technology improves and markets advance accordingly, so you will want to stay on top of the things that you are using to be efficient and competitive.

Helpful Mechanisms

Assess the adequacy of coordinating technologies. Do we have planning, budgeting, and controlling systems in place, and do we actively monitor them? How well do policies and procedures support our purpose? Is the communication process sufficient and effective? Is there a mechanism for measuring and evaluating performance? Do we use a training and development process to align worker skill and performance with expectations?

Supporting mechanisms

Weisbord suggested a variety of questions to help people use the model.

Applying the Weisbord model as a diagnostic framework for organizational

analysis

The McKinsey 7-S Model Framework

The McKinsey 7-S Model is a change framework based on a company’s organizational design.

Developed by McKinsey and Company in the 1980’s. Specifically, it was developed by Robert H. Waterman and Tom Peters.

The McKinsey 7-S Model Framework

The model highlights that there exists a domino effect when any one element is transformed to restore effective balance. The central placement of shared values emphasizes that a strong change culture impacts all the other elements to drive change.

Hard elements that are easily identifiable and influenced by leadership and management.

Soft elements are those that are intangible and culture-driven.

Hard Elements

Strategy. The strategy element is a detailed plan that organizations create for successful change implementation, and to gain a competitive edge. A well-crafted strategy is aligned with the other six elements of the 7-S model and is reinforced by a strong vision, mission, and values.

What is our strategy? How do we intend to achieve our objectives? How do we deal with competitive pressure? How are changes in customer demands dealt with? How is strategy adjusted for environmental issues?

1. Identify the gaps. 2. Assess your strategy. 3. Approve strategy.

Strategic Plans

• Made to achieve the overall organizational goals.

• They achieve strategic goals through effective allocation of resources.

• They are comprehensive and

general in nature.

• They are made by the top-level managers

in consultation with board members and

middle- level manager.

Structure. Structure or organizational structure refers to a clear chain of command to avoid chaos & confusion. Structure is a simple yet crucial element as it creates a sense of employee accountability within the organization.

How is the company/team divided? What is the hierarchy? How do the various departments coordinate activities? How do the team members organize and align themselves? Is decision-making centralized or decentralized? Is this as it should be, given what we're doing? Where are the lines of communication? Explicit or implicit?

Hard Elements

1. Identify the gaps. 2. Assess your structure. 3. Approve your structure.

Systems refer to the business processes and operational procedures employed to complete a business’s routine activities. An organization’s SOPs consist of such practices and workflows that directly impact productivity and decision-making.

Systems.

Hard Elements

What are the main systems that run the organization? Consider financial and HR systems, as well as communications and document storage. Where are the controls and how are they monitored and evaluated? What internal rules and processes does the team use to keep on track?

1. Identify the gaps. 2. Document your business

processes. 3. Assess your system. 4. Approve your system.

Soft Elements

Shared Values. These are the core values governing an organization’s health. While implementing a change, organizations expect a behavioral modification from their employees, which is only possible in a strong change culture and organizational values.

What are your organization's core values? What is its corporate/team culture like? How strong are the values? What are the fundamental values that the company/team was built on?

1. Identify the gaps. 2. Assess your share values. 3. Approve your structure.

Soft Elements

Style. This element refers to the management style prevalent in a company that decides the level of employee productivity and satisfaction.

How participative is the management/leadership style? How effective is that leadership? Do employees/team members tend to be competitive or cooperative? Are there real teams functioning within the organization or are they just nominal groups?

1. Identify the gaps. 2. Assess your style. 3. Approve your structure.

Staff. This element represents the talent pool required, the size of the existing workforce, and their motivations. It also considers how they are trained and rewarded within the organization.

Soft Elements

What positions or specializations are represented within the team? What positions need to be filled? Are there gaps in required competencies?

1. Identify the gaps. 2. Assess your staff. 3. Approve your structure.

Skills. Skills refer to the abilities of employees to complete tasks. A study suggests that 45% of respondents reported that a skill gap caused a loss in productivity. Skills gaps overburden experienced employees who have to pick up the slack for their coworkers’ inexperience. It’s essential to identify the skill gaps and create relevant employee training programs to bridge these gaps.

Soft Elements

What are the strongest skills represented within the company/team? Are there any skills gaps? What is the company/team known for doing well? Do the current employees/team members have the ability to do the job? How are skills monitored and assessed?

1. Identify the gaps. 2. Assess your share values. 3. Approve your structure.

How to Implement McKinsey’s 7-S Model

Change agents can effectively implement the McKinsey 7-S model using a top- bottom approach. You must identify which elements of the 7-S framework you need to realign to improve organizational performance or to maintain alignment and performance during other changes such as restructuring, process improvement, a corporate merger, new software implementation, or a leadership change.

How to Implement McKinsey’s 7-S Model

Identify the Gaps and Unaligned Processes. Identify the gaps and inconsistencies in your organization’s existing business processes and list out the unaligned areas, as well as what needs to change to restore the effective balance.

Determine the Ideal Organizational Design This step is research-intensive and requires change leaders to find the sweet spot where management’s vision of an optimal organizational design aligns well with the sentiments across the rest of the team members.

Create an Effective Action Plan After identifying the outliers, change agents must create a detailed implementation plan. The action plan should include required changes to the organization’s hierarchy, the communication flow, and reporting relationships, which will allow the company to achieve the desired organizational design.

How to Implement McKinsey’s 7-S Model

Implement the Change. The change implementation stage is the most critical stage of any change initiative, and only well-implemented changes will avoid resistance to change and prevent overall change failures. You should identify internal change agents or hire change consultants best suited to implement your changes.

Maintain the Momentum with Continuous Review Processes. These seven elements are highly dynamic and change constantly. Therefore, practitioners must track these elements and their impact on one another to maintain the momentum of change.

A cross-functional team is simply a team made up of individuals from different functions or departments within an organization.

The 7-S model is a good framework to help you ask the right questions, but it won't give you all the answers. For that, you'll need to bring together the right people with the right knowledge, skills and experience.

How to Implement McKinsey’s 7-S Model

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