Organizational Change Issues

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Chapter 4: Building and Energizing the Need for Change

Chapter Overview

This chapter asks the question “Why change?”

A framework for assessing and understanding the need for change from multiple perspectives is developed

It describes what makes organizations ready for change

It outlines how change leaders can create an awareness for change

The importance of developing the vision for change is addressed. It can be a powerful aid in energizing and focusing action

The Change Path Model

Identify the need for change

Articulate the gap between current situation and desired future state and develop awareness of need for change

Develop and disseminate a powerful vision for change

Disseminate the vision through multiple channels

Institutionalization

Chapter 10

Acceleration

Chapter 9

Mobilization

Chapters 5 through 8

Awakening

Chapter 4

Recognizing the Need for Change Is Not Enough!

There is no shortage of things needing change

Recognizing the need for change is not sufficient

“Why change” is aided by solid analysis of what needs to change and why its important to expend resources on this area, but…

We need to be able to craft a compelling vision of:

Where we want to go (the desired change)

Why it is worth the effort

The Need for Change: Have You Done Your Homework?

What is your assessment of the need for change and the important dimensions and issues that underpin it?

Have you investigated fully the perspectives of internal and external stakeholders?

Can the different perspectives be integrated in ways that offer the possibility for collaborative solutions?

Have you developed and communicated the need for change in ways that will heighten readiness and willingness to change?

Develop Your Understanding of the Need for Change

Develop Your Understanding of the Need for Change and Create Awareness and Legitimacy for it

Seek Out & Make Sense of External Data

Seek Out & Make Sense of the Perspectives of Other Stakeholders

Seek Out & Assess Your Personal Concerns & Perspectives

Seek out & Make Sense of Internal Data

Readying an Organization for Change

Need for change is identified in terms of the gap between the current state and the desired state

People must believe that the proposed change is the right change

People must believe they can accomplish the change

The change is supported by key individuals that organizational members look to

“What’s in it for me?” has been addressed

A Second Look at Readiness

Leadership viewed as trustworthy by followers

Followers viewed as trustworthy and able to dissent by leaders

Have capable Champions of Change

Involved middle management

Innovative culture

Accountable culture

Effective communications

Systems thinking

Rate the Organization’s Readiness for Change

Readiness Dimensions:

Previous Change Experience

Score Range (−8 to +4) Score? _________ Executive Support

Score Range (−3 to +7) Score? _________

Credible Leadership & Change Agents

Score Range (0 to +11) Score? _________

Openness to Change

Score Range (−9 to +22) Score? _________

Rewards for Change

Score Range (−5 to +2) Score? _________

Measures for Change & Accountability

Score Range (0 to +4) Score? _________

Rate the Organization’s Readiness for Change (cont.)

Total scores can range from −25 to +50

The higher the score, the more ready the organization is for change

Organizations that score below +10 are likely not ready for change, making change very difficult

Use scores from each area as a guide to focus your attention on those low-scoring sections. What could be done to increase readiness?

This tool’s purpose is to raise awareness of the organization’s readiness for change. It is not meant to be used as a formal research tool!

Creating Awareness of the Need for Change

Create awareness that a crisis is near, or create a crisis that needs to be addressed

Develop a transformational vision for the change based on compelling values

Find a transformational leader to champion the change

Focus on common or shared goals and work out ways to achieve them

Create dissatisfaction with status quo through information and education

Barriers to Recognizing the Need for Change (“Active Inertia”)

Mental models about the world become blinders

Past successes reinforce existing practices

Existing values and corporate culture may harden into dogma

Leadership practices may impede recognition of need for change

Embedded systems and processes can harden into unquestioned routines and habits

Existing relationships can become shackles that impede the ability to respond to a changing environment

Groupthink

Illusion of invulnerability

Construct rationalizations

Morality of position is unquestioned

Stereotypes—distort image of other parties

Pressure applied to those who express doubts about the group’s position

Self-censorship—deviations from consensus are avoided

Illusion of unanimity

Mind-guards: leaders and fellow members protected from adverse information

Overcoming Groupthink

Have the leader play an impartial role

Actively seek dissenting views. Have members play the role of devil’s advocate

Actively discuss and assess the costs, benefits and risks of diverse alternatives

Establish a methodical decision-making process at the beginning

Ensure an open climate and solicit input from informed outsiders and experts

Allow time for reflection and do not mistake silence for consent

Value of a Vision for Change

What is Your Experience with Vision Statements?

What makes for a good vision statement?

What is the difference between a vision for the organization and one for change?

What does the organization and senior management want from the vision?

How much time, energy and resources should be devoted to creating a vision? Who should be involved?

What is a Vision Statement?

It is an attempt to articulate what a desired future for a company would look like… an organizational dream. Visions are big pictures.—Todd Jick

What is a Vision Statement? (cont.)

According to Tichy and Devanna:

It provides a conceptual framework for understanding the organization’s purpose—the vision includes a road map

It has emotional appeal with which people can identify

A vision’s value lies in its ability to guide behavior

What is a Vision Statement? (cont.)

According to Simons:

A vision without task is a dream world, and task without vision is drudgery.

Approaches to Visions for Change

Leader-developed vision

Leader-senior team-developed vision

Bottom-up visioning

Your Thoughts on Organizational Vision

How do you think an organization should go about developing a vision? Bottom up? Top down?

To whom should it be communicated? How should it be communicated?

When does an organization need to consider or revisit its vision?

Value of a Vision Is to Guide Behaviour

Good visions are:

Clear, concise, easily understandable

Memorable

Exciting and inspiring

Challenging

Excellence-centered

Stable but flexible

Implementable and tangible

Why Is It Necessary to Have a Vision?

A vision enhances performance measures

It promotes change and provides a basis for a strategic plan

It motivates individuals and facilitates recruitment

It establishes a context for decision making

What Is a Useful Vision?

A useful vision focuses on the future

Vision integrates three factors:

Mission: What business are we in? What’s our reason for being and our fundamental values?

Strategy: How are we to achieve our mission and our competitive advantage?

Culture: The enactment of who we are in our values, beliefs, rituals, etc., relative to ourselves, our coworkers and our clients

Why Do Visions Fail?

Senior management’s walk doesn’t match the talk

Ignores needs of those putting it into practice

Unrealistic expectations develop that can’t be met

Lacks grounding in the reality of the present

Either too abstract or too concrete

Lack of creative input

Poor management of participation

Complacency—no sense of urgency

The Vision Trap

Watch for vision creep

Get back to basics:

Language people can identify with

Language people can do something with and focus upon

Vision that engages and energizes and is not abstract and ambiguous

“Handy-Dandy Vision Crafter”

We Strive to be the… ________________________________________________

(Premier, Leading, Pre-eminent, World-class, Dominant, Best of Class)

Organization in Our Industry. We Provide the Best…

_______________________________________________

(Committed, Caring, Innovative, Expert, Environmentally friendly, Reliable, Cost-effective, Focused, Diversified, High-Quality, On Time, Ethical, High value added)

________________________________________________

(Products, Services, Business Solutions, Customer-Oriented Solutions)

“Handy-Dandy Vision Crafter” (cont.)

To… ________________________________________________

(Serve Our Global Marketplace; Create Customer, Employee and Shareholder Value; Fulfill Our Covenants to Our Stakeholders; Exceed Our Customers’ Needs; Delight our Customers)

Through…

_______________________________________________

(Committed, Caring, Continuously Developed, Knowledgeable, Customer focused)

Employees in this Rapidly Changing & Dynamic…

________________________________________________

(Industry, Society, World)

Organizational Vision and Change Vision

The approach to vision crafting remains the same but the focus shifts and becomes more specific around the particular change you have in mind

The change leader’s goals are advanced when they develop or facilitate the development of a compelling change vision that appeals to groups critical to the change initiative and effectively communicate it to them

Save the Children Vision for Its “Survive to 5” Program

We believe all children should live to celebrate their fifth birthday.

The Survive to 5 campaign supports Millennium Development Goal 4:

To reduce child mortality by two-thirds by 2015 and save the lives of over 5 million children under 5 who are dying of preventable and treatable diseases.

Tata’s Vision for the Nano

Create a $2,000 “people’s car.” It has to be safe, affordable, all weather transportation for a family. It should adhere to regulatory requirements, and

achieve performance targets such as fuel efficiency and acceleration.

The Result: The Nano. 50 miles per gallon and seats five. At $2,500—least expensive car in the world when launched.

Change Vision for the Procurement System in a Midsize South African Manufacturer

We believe providing reliable and cost-effective procurement services is critical to the future survival and success of our organization.

We will develop and deploy a computer-based process that provides accurate and repeatable information to procurement so that those involved will be able to eliminate purchasing errors, and make more knowledgeable purchasing decisions.

Through these actions we will reduce costs and increase the profitability and effectiveness of the organization.

This change will completely eliminate rework on the bill of material, and will enhance the effectiveness and efficiency of the procurement process, quoting and planning phases.

We will know we have succeeded in bringing this change to life by the measures we use to track progress, including error rates, costs, time savings, and user satisfaction.

Toolkit Exercise 4.2 Developing the Background to Understand the Need for Change

Consider an organizational change that you are familiar with. What data could help you understand the need for change?

Have you:

Made sense of external data?

Made sense of the perspectives of other stakeholders?

Assessed your personal concerns and perspectives that might affect your judgment concerning the change?

Understood and made sense of the internal data?

What else would you like to know?

What does your analysis suggest to you about the need for change?

Toolkit Exercise 4.3 Writing a Vision for Change Statement

Think of an organization you are familiar with that is in need of change. If you were the change leader, what would be your vision statement for change?

Write your vision statement for the change you are striving for.

Evaluate your vision. Is it:

Clear, concise, and easily understood?

Memorable?

Exciting and inspiring?

Challenging?

Excellence-centered?

Stable and flexible?

Implementable and tangible?

Toolkit Exercise 4.3 Writing a Vision Statement (cont.)

Does the vision promote change and a sense of direction?

Does the vision provide the basis from which you can develop the implementation strategy and plan?

Does the vision provide focus and direction to those who must make on-going decisions?

Does the vision embrace the critical performance factors that organizational members should be concerned about?

Does the vision engage and energize, as well as clarify? What is the emotional impact of the vision?

Does the vision promote commitment? Are individuals likely to be opposed to the vision, passive (let it happen), moderately supportive (help it happen), or actively supportive (make it happen)?

Toolkit Exercise 4.3 Increasing the Value of a Vision Statement

Assess the vision against the following:

Is there consistency between the words and actions of senior management and the vision?

Does it pay attention to the needs of those who will put it into practice?

Are expectations related to it challenging but realistic?

Is it grounded in the reality of the present?

Is it neither too abstract or too concrete?

Was it forged through an appropriate combination of synthesis and imagination?

Was there sufficient participation and involvement of others?

Does implementation contain a sense of urgency and measurable milestones?

Toolkit Exercise 4.4 Combining the Need for Change and Vision for Change

Think of an organization in need of change:

What is the gap between the present state and the desired future state?

How strong is the need for change?

What is the source of this need? Is it external to the organization?

Is there tangible evidence (e.g., crisis) of the need for change?

Toolkit Exercise 4.4 Combining Need for Change and Vision for Change (cont.)

If the change does not occur, what will be the impact on the organization in the next two to six years?

What is the objective, long range need to change?

Return to the change vision statement developed in Exercise 4.3. Does it capture a sense of higher order purpose or values that underpin the change and communicate what the project is about.

Explain how the vision links to the need for change.

A Checklist for Creating the Readiness for Change

What is the objective need for change? What are the consequences to the organization of changing or not changing? Are people aware of these risks?

Are members aware of the need for change? Do they feel the need for change or do they deny its need? How can they be informed?

Individuals are motivated toward change when they perceive the benefits as outweighing the costs. Do they see the benefits as outweighing the costs? What can you do to ensure this is the case?

A Checklist for Creating the Readiness for Change (cont.)

If individuals believe the benefits outweigh the costs, do they also believe the probability of success is great enough to warrant the risk taking and needed investment of time and energy?

Are there other alternatives that are more attractive to them? What is it about their costs, benefits, and risks? How should these alternatives be addressed by the change leader?

Summary

Change occurs when there is an understanding of the need for change, the vision of where the organization should go, and a commitment to action

Change leaders need to address the question “Why change?” and develop both a sound rationale for the change and a compelling vision of a possible future.

To develop the rationale, you need to do your homework! Careful assessment is used to understand and communicate the need for change and the organization’s readiness for change. The motives and interests of key stakeholders forms part of this assessment.