management case analysis
alnnrye
s11changeS22018.pdf
Management Competencies
Session 11: CHANGE
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Agenda
1. Warm-up case 2. Understanding change dynamics 3. Managing the Push 4. Managing the Pull
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1. Warm-Up Case
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ED HARTIN
WHY DID THE “SPRITZER” CHANGE EFFORT FAIL ?
of change initiatives fail
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potential outcomes of org. change
org. change
maladaptive (worsens alignment/fit)
adaptive (improves alignment/fit)
change is risky ! (consequences of changing may be less well understood than of not changing)
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organizational consequences
individual consequences competency loss
power loss job opportunities
learning/development
what do change managers need to do?
salesperson
networker
talent scout
campaign strategist
organizational architect
organizational psychologist
etc.
diplomat
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change manager
2. UNDERSTANDING CHANGE DYNAMICS
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when do organizations change?
successful change
initiative
motivation to change
opportunity to change
ability to change
10source: Nadler and Tushman 1997
opportunity to change: misalignment / incongruence as a starting point congruence framework:
do managers recognize opportunities for change?
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• strategic blind spots/ignorance: managers may over time become blind to many internal/external misalignments; may stop seeking for improvement opportunities
• strategic myopia: managers may recognize some misalignments, but don’t fully understand how they will affect their organizations
• “hammer-nail” problem: managers recognize misalignments, but apply old and inappropriate tools/solution to tackle them, not producing “real change”
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ENABLING FORCES make change necessary +
feasible
OBSTRUCTIVE FORCES oppose or
limit change efforts
GAP = opportunity for change
GOAL
STATUS QUO
ability to change: consider the force field
• macro environment (social trends, regulation etc.) • stakeholders (customers, competitors, etc.) • formal organization (structures, processes, systems) • informal organization (culture, politics, networks) • individual (personality, mindset, stakes, etc.)
motivation to change: a “performance feedback”-based theory
• what is an aspiration level? • a neutral reference point • smallest acceptable outcome • the line between perceived success and failure • a rule for simplifying evaluations
• aspiration levels vary by organization • different histories • different attention patterns
organizations change depending how their actual performance compares to their aspiration-level performance
Henrich Greve
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how do orgs form aspiration levels?
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historical comparison • early performance • recent performance • performance in good times
social comparison • similar others: size, industry, products, technologies • referent others: high performers • proximate others: same city, same country
when do organizations and people change?
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successful change
initiative
motivation to change
opportunity to change
ability to change
change manager
bandwagon effect
even successful change initiatives don’t happen overnight…
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tipping point
adoption
time champions critical
mass late adopters resistors
stickinessadoption process for the organization
mobilization + diffusion
“S-curve” adoption pattern
change agent matrix for finding the right supporters for change
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HIGH LOW
LOW
R ES
IS TA
N CE
INFLUENCE
CRITICAL MASS
LATE ADOPTERS
CHAMPIONS
RESISTORS
CHAMPIONS
3. MANAGING THE “PUSH”
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PUSH (direct attention, create urgency, implement
with discipline)
PULL (develop culture for change/experimentation,
utilize networks, leverage local insight)
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“The change process goes through a series of stages that, in total, usually require a considerable length of time. Skipping stages creates only the illusion of speed and never produces a satisfying result.”
John Kotter, Leading Change
kotter’s famous 8-stage process
Unfreeze
Implement Change
Refreeze
how to create urgency
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create dissatisfaction with status quo
highlight negative implications for the firm
highlight negative implications for the dept. /team
highlight negative implications for me / you
promising future for the firm
promising future for the dept./team
promising future for me / you
create enthusiasm for an alternative
power of negative emotions power of positive emotions
avoid FALSE urgency
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(mobilized employee)
“true” / directed urgency
“false” / directionless urgency
lots of motion, talk, meetings, PPT presentations, procrastination, etc.
purposeful action + decisions
>>critical reflection: change management btw. leadership and megalomania
change managers often believe in the 7 myth of change management
#1: Deliberate change creates value
#2: Resistance can be overcome
#3: Change is constant
#4: Change can be managed
#5: The change agent knows best
#6: You need to follow the steps
#7: Big changes require big changes
source: jarrett 2003, “7 myths of change management” 23
4. MANAGING THE “PULL”
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PUSH (direct attention, create urgency, implement
with discipline)
PULL (develop culture for change/experimentation,
utilize networks, leverage local insight)
culture for change - examples
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“Quality Academy” for training the next generation of leaders in quality improvement methodologies
https://www.google.com.au/about/company/philosophy/
Principle #10: Great just isn’t good enough. “Through innovation and iteration, we aim to take things that work well and improve upon them in unexpected ways.”
continuous change and improvement approach
26image source: wikipedia
developing a culture for change
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continuous improvement team
• mgmt. decisions guided by long-term objectives, even at the expense of short term financial goals
Philosophy (long term thinking)
• create process flow to surface problems • stop when there is a problem • standardize to facilitate cont. improvement
Process (eliminate waste)
• cultivate collaboration • provide compelling development perspective to people • grow leaders who live and foster the philosophy
People & Partners (Respect, Challenge and
Growth)
• go see for yourself to thoroughly understand • make decisions slowly by consensus,
considering all options; then implement rapidly
Problem Solving
(continuous improvement and learning)
embracing failure
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fast failure culture encourage people to prototype and test ideas quickly to learn more quickly
“intelligent failure” culture design prototypes, tests, and experiments to yield most valuable insights (e.g. key technological challenges, user preferences, etc.)
5. KEY TAKEAWAYS
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KEY TAKEAWAYS
7 myths
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opportunity ability
motivation
S-CURVE
embrace failure
continuous improvementKotter 8 Steps
PUSH (direct attention, create urgency, implement
with discipline)
PULL (develop culture for change/experimentation, utilize
networks, leverage local insight)
