6360 Leading Change Wk4 Discussion and Summary

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Chapter 6: Navigating Organizational Politics and Culture

Chapter Overview

• Change leaders need to understand the informal components of organizations—culture and power

• Understanding the cultural and power dynamics in an organization is critical to a successful change

• Force Field Analysis and Stakeholder Analysis are two key tools to analyze the informal organizational system and how to change it

• Change leaders need to know themselves. They are both stakeholder and key actors in the process

The Change Path Model

Awakening Chapter 4

Mobilization Chapters 5 through 8

Acceleration Chapter 9

Institutionalization Chapter 10

Navigating Organizational Politics and Culture • Power Dynamics • Perception of change and

the change equation • Force field analysis • Stakeholder analysis

Power Dynamics: Sources of Individual Power

• Position or authority power

• Network power

• Knowledge power • Expert power • Information power

• Personality power

Power Dynamics: Other Sources of Power

• Ability to cope with and absorb environmental uncertainty

• Low Substitutability • What you have to offer is scarce and not easy

substituted for

• Centrality to decision making, resources critical to strategy or survival, or to work that others rely on

Resource, Process & Meaning Power

• Resource Power • The access to valued resources in an organization

• Process Power • The control over formal decision making arenas

and agendas

• Meaning Power • The ability to define the meaning of things. Thus,

the meaning of symbols and rituals and the use of language provide meaning power

Usage Frequency of Different Power Tactics

When Managers Influence Superiors

When Managers Influence

Subordinates

Most Popular Tactic

Least Popular Tactic

Using & Giving Reasons Using & Giving Reasons

Developing Coalitions Being Assertive

Friendliness Friendliness

Bargaining Developing Coalitions

Being Assertive Bargaining

Referring to Higher Authority

Applying Sanctions

Toolkit Exercise 6.2 Assessing Your Power

1. What sources of power are you comfortable with and which do you have access to?

2. Consider a particular context that you regularly find yourself in. What could you do to increase the power you have available? What types of power are involved?

3. How do the key players, structures, and systems in the particular context influence the types and amount of power available to you? How could you change this?

Toolkit Exercise 6.2 Where Does Power Lie in Your Organization?

Pick an organization you know well: 1. What factors lead to power? Which departments carry more

weight? What behaviors are associated with having power?

2. Think of a change situation it faced. What types of power were at play?

3. In Hardy’s terms, who controlled resources? Who had process power? Meaning power?

4. Who had “yea-saying” and “nay-saying” power? On what issues?

5. If you examine Table 6.1 in the book, what types of power were used most often? What types are you most comfortable using when you are attempting to influence others?

When Does Change Occur?

Change Occurs When:

Perceived Benefits of Change

Perceived Cost of Change

Modified Change Equation

Perception of Dissatisfaction with the Status Quo

Perception of the Benefits of Change

Perception of the Probability of Success

Perceived Cost of Change

Change Occurs When:

Reactions to Change

• People react to change for many reasons • Don’t equate support with friends and resistance with

enemies • It may be ambivalence and not resistance you’re seeing

• People experience ambivalence and/or resist for many reasons. Listen carefully so you can learn and refine initiatives • Don’t be blind to learning opportunities to refine analysis,

avoid problems areas, and strengthen initiatives

• The prospects of moving someone from resistance to support increase when they feel their concerns and insights have been understood and received

Resistance to Change

• Resistance to change is normal and there are often good reasons for it

• Don’t assume resistance is “bad” or “negative”. It might be helpful

• Resistance usually contains information that is useful—people have reasons that they resist change

Reasons for Resistance

• Self-interest

• Misunderstanding and lack of trust

• Different assessments of the consequences

• Low tolerance for change

Organizational / Individual Consequences & Support for Change

Perceived Impact of the Change on the Organization

Perceived Impact of the Change on the

Individual

Direction of Support of the Change

Positive Positive Strong support for change

Positive Negative Indeterminate, with possible resistance

Neutral Positive Support for change

Neutral Negative Resistance to change

Negative Positive Indeterminate support for change

Negative Negative Strong resistance to change

Perceived Impact of Change

1. Consider the impact of a change on an organization you know and consider the impact on the individuals concerned. a) Were the impacts on the organization and affected

individuals both positive? Were they perceived that way?

2. What were the perceived costs of change? Were the perceptions accurate? How could they be influenced?

3. What were the perceived benefits? What was the probability of achieving these benefits? Were people dissatisfied with the present state? What were the costs of not changing?

4. Were significant costs incurred prior to gaining benefits? Why did they take the risk (incurring definite costs but indefinite benefits)?

Force Field Analysis

Desired State

Current State

Restraining Forces

Driving Forces

Forces For and Against Change

No change

Strong

StrongWeak

Weak

R E S I S T A N C E

F O R C E S

CHANGE FORCE

No Change

Sporadic Change

Discontinuous Change (Breakpoints)

Continuous Change

Status Quo

Dominates

Change

Dominates

Stakeholder Analysis

A stakeholder is… Anyone who is influenced or could influence

the change you wish to make happen.

A stakeholder analysis is… The process of understanding of the

motives, power base, alliances, goals, etc. of all crucial stakeholders.

Stakeholder Analysis (cont.)

• Who are the stakeholders?

• What do they want?

• Do they support you? Why? Why not?

• What prevents them from supporting you?

• Who influences these stakeholders? Can you influence the influencers?

• Can stakeholders be co-opted or involved in a positive way?

Stakeholder Management: Savage et al.

High

Low

Low Stakeholder Potential Threat

Stakeholder Potential

For Cooperation

Mixed Blessing: Collaborate

Supportive: Involved

Non-Supportive: Defend

Marginal: Monitor

Stakeholder Map

Stakeholder # 1 (issues, needs, etc.)

Stakeholder # 2 (issues, needs, etc.)

Stakeholder # 3 (issues, needs, etc.)

Stakeholder # 4 (issues, needs, etc.)

Stakeholder # 5 (issues, needs, etc.)

Stakeholder # 6 (issues, needs, etc.)

Stakeholder # 7 Stakeholder # 8

Change Agent

Stakeholder Roles in Networks • Central Connectors

• People who link most people in an informal network with each other

• Boundary Spanners • Who connect an informal network with other parts of the

organization or other organizations

• Information Brokers • Who join the different sub-groups together (and prevent

fragmentation)

• Peripheral Specialists • Who have specialized expertise (and need freedom from

connections to maintain that expertise)

Dimensions of Networks • Source of information

• Inside or outside of the functional area

• Social restrictions • Tenure, hierarchy, and location determining

the network

• Source of connections • Planned interactions or happenstance hallway

encounters

• Quality of the connections • Relationship quality (short vs. long term, level

of trust and confidence in the information, etc.)

Stages in the Change Process

Initial Awareness

Interested in the

Change

Wanting the Change to

Happen

Ready to Take Action

General Orientation Towards Change

• Innovators

• Early Adopters

• Early Majority

• Late Majority

• Late Adopters

• Non-adopters

Similar to consumer adaptation profiles in

marketing, except you are urging the

adoption of a change, not a

product or service

Type of Commitment Exhibited

• Opposed to the change

• Let it happen

• Help it happen

• Make it happen

Managing the Strategic Consensus

High Understanding of the Change

Low Understanding of the Change

High, Positive Commitment to

the Change Strong Consensus Blind Devotion

Low, Positive Commitment to

the Change Informed Sceptics Weak Consensus

Negative Commitment to

the Change Informed Opponents Fanatical Opponents

Analysis of the Stakeholders’ Readiness to Take Action

Jones

Smith

Douglas

Green

Etc.

Stakeholder’s Name Aw

ar e

In te

re st

ed De

si rin

g Ch

an ge

Ta ki

ng A

ct io

Predisposition to Change: innovator, early adopter, early majority, late majority, laggard

Current Commitment Profile: resistant, ambivalent, neutral, supportive or committed

Toolkit Exercise 6.3 Force Field Analysis

Consider an organization change situation you are familiar with:

• What are the forces for change? Who is championing the change? How strong and committed are these forces (Who will let it happen; who will help it happen; who will make it happen)?

• How could these forces be augmented or increased? What forces could be added to those that exist?

• What are the forces that oppose change?

• How could these forces be weakened or removed? What things might create major resentment in these forces?

• Can you identify any points of leverage you could employ to advance the change?

Stakeholder Analysis Checklist 1. Who are the key stakeholders?

2. Is there a formal decision-maker with authority to authorize or deny the change project? What are his/her attitudes to the project?

3. What is the commitment profile of stakeholders? Do a commitment analysis for each stakeholder.

4. Are they typically initiators, early adopters, early majority, late majority, or laggards when it comes to change?

5. Why do stakeholders respond as they do? Does the reward system drive them to support or oppose your proposal? What consequences does your change have on each stakeholder? Do the stakeholders perceive these as positive, neutral or negative?

Stakeholder Analysis Checklist (cont.)

6. What would change the stakeholders’ views? Can the reward system be altered? Would information or education help?

7. Who influences the stakeholders? Can you influence the influencers? How might this help?

8. What coalitions might be formed amongst stakeholders? What alliances might you form? What ones might form to prevent the change you wish?

9. By altering your position, can you keep the essentials of your change and yet satisfy some of the needs of those opposing change?

10. Can you appeal to higher order values and/or goals which will make others view their opposition to the change as petty or selfish?

Summary

• Change agents need to understand the power structures and people in their organization—much of which may be informal and emergent in nature

• Ambivalence to change is a natural reaction. Resistance to change is likely (but not inevitable) and there is potential to use ambivalence and resistance in a positive way. People react to change for good reasons and change agents need to know those reasons.

• Force field analysis helps plot the major structural, system and people forces at work in the situation and to anticipate ways to alter these forces.

• Stakeholder analysis helps us understand the interactions between key individuals and the relationships and power dynamics that underpin the web of relationships