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Managing Change Part I

Managing Change Part I

Science Applications International Corporation (SAIC) is the work organization Learning Team B has chosen for this paper. It is based out of Mclean, VA is a contracting company that supports various federal government department/divisions, military, and private sector civilian organizations. Our focus is in areas such as information technology, grid technology, system engineering, financial analysis, and program office support. 

This paper will identify a specific change that the team feels should occur in this organization. It will describe the cycle of change, and the specific change that needs to occur within the cycle of change. In so doing, it will also compare and contrast continuous and discontinuous change in this scenario. This paper will differentiate between the two types of change agents and discuss how one or both can be used in this scenario.

SAIC Background

SAIC encountered internal turmoil, which called for the removal of three of its top executives in connection with a contract it had with agencies in New York City known as the City Time Contract. The company has also decided to move from a historically independent company and split into two public companies, SAIC and LEIDOS. This was done to increase the organization’s potential for bidding on government contracts and address any perceived conflicts of interest when providing multiple and or different services for the government.

The legal issues associated with the contract, the removal of the executives, and the spilt will undoubtedly trigger change both internal and external.

Cycle of Change

The cycle of change is a process from which an organization goes through a major change or implementation in order for the organization to change the way it currently does business. These changes can come about for many reasons, changes in technology, changes in the business structure, or major innovations within the business sector.

Managing change in the workplace is a continual process. Implementing these changes can be exciting and yet difficult at the same time. Change can be the most difficult obstacle to overcome in any work environment. When change is implemented it can be hard for employees to adjust to the new rules and responsibilities. Change in itself can be viewed good or bad depending on one’s perception of the change and how it will affect them (Palmer, Dunford, & Akin, 2006).

Each lifecycle stage does offer new opportunities for an organization. There are four distinct stages to the organizational life cycle. The first stage is entrepreneurial stage, which is the birth or the re-birth of the organization. This stage is making sure that certain resources are made available and that the organization is establishing its mark in the market.

The second stage is collectivity stage which is the development of the organizations strategies and goals. In the collectivity stage this is establishing cohesion and guiding goals. This is the stage that Citigroup needs to focus upon; because of the organizations overarching goals the managers have failed the employees. Focus to be on place back building the knowledge of the employees, his or her abilities, skills, teamwork, and most of all for everyone to work together as a team.

The next stage is formalization which is establishing, procedures, policies, and formal control systems. The last life cycle state is the elaboration stage which is the business revitalizing, and problem- solving stage.

Two Classifications of Change

The two classifications of change that affect organization, continuous, and discontinuous, have specific agendas, and criteria to improve the company. Change for SAIC has come at a crucial time in the company’s history. Change of any kind affects all who are employed with SAIC. Employees have stock in the company and are considered employee owners. Any changes financially affect them in one way or another.

Continuous

Continuous change will certainly be a model the company follows as a result of decisions made to replace executives and split the company. This change is considered to be incremental change that “may involve adjustments in systems, processes, or structures, but it does not involve fundamental change in strategy, core values, or corporate identity” (Palmer, Dunford, & Akin, 2006). Continuous, also known as first-order and incremental change, maintains, and develops the business. There are no drastic changes in culture, values, strategy, or identity (Palmer, Dunford, & Akin, 2006). An interpretation of first-order change is maintenance for keeping up with what is the needed standard performance. A business that uses certain software may determine a new report is more effective than another report previously used.

Continuous change unlike discontinuous change is understood and changes are expected and gradually occur like a butterfly for example that changes from a caterpillar. This change occurs over a period of time. With the split occurring taking the company from independent to public the financial outlook of the company will most certainly change. Shareholders will now be part of the company so the dynamics will change. The company will stay the course and the logic and ideals that brought success will continue to exist. Investors must be assured that positive change and the companies’ effort to move in the right direction and bring about positive change will occur and a strategy in place to show how this change will be implemented.

Discontinuous

Discontinuous change, also known as second-order change is fundamentally different from first-order change. Second-order does not maintain or improve the business, it completely changes the business. Discontinuous transforms the company from one identity to another (Palmer, Dunford, & Akin, 2006). Downsizing, restructuring, merging, and buy-outs, are common examples of discontinuous changes. The purpose for second-order, unlike first-order, is to transform the business into something completely different.

One could argue that with the company splitting in two public companies that discontinuous change may be the model involed because the company is now moving into unchartered waters. Moving to a public company when traditionally we have been independent involves unforseen changes. Keep in mind the company is a contracting agency and whether these contracts will be affected by the changes continuous, discontinuous or both is yet to be seen. The split however will make the company more competitive thereby increasing revenue and attracting investors.

Change Agents

The two types of change agents are internal and external. According to Palmer, Dunford, and Akin (2006), "Examples of internal change agents are corporate board members, CEOs, executives, managers, and others in an organization's work force. External change agents include investors, suppliers, community activists, government regulators and even consumers.

Internal

Internal change agents usually come from either the human resource department or top level management and they have a huge role to play in the restructuring of an organization. Challenges internal change agents face are having to ensure that they do not get affected by other people's power games, as they would have knowledge of the internal politics (Palmer, Dunford, & Akin, 2006). They will also have to convince others that they have the necessary skills and expertise that will effectively contribute to the organizational change that has been task to them instead of having the company engage an external consultant, which results in cost saving as well. Connecting with the influential people in the company of different departments is also an essential factor as they can be the internal change agent's key points of influence to the organization as a whole (Palmer, Dunford, & Akin, 2006).

External

External change agents are often consultants that are being hired based on their expertise and portfolio that they have. They are often being hired because the top management feels that there isn't any suitable or capable people within the organization to be appointed as internal change agents and thus the outsource hiring of experienced consultants. However, according to Palmer, Dunford, & Akin (2006), "Arguments for the use of external agents outnumber those against. A field experiment; showed that organizations could be made more receptive to research results through the use of external consultants. This gives external change agents the advantage of objectivity, allowing analysis and examination of the various cultures, practices and mindsets that are within the organization (Palmer, Dunford, & Akin, 2006). An internal change agent, who has already been part of the organizational culture for a period of time might overlook something and not be as objective, which make employees feel they have a biased view towards certain issues. External change agents also have an added advantage of committing all their time to the task that is given to them. This is unlike internal change agents, where they have to be concerned about the daily operations of the company as well as implementing the different changes in the organization (Palmer, Dunford, & Akin, 2006).

Another consideration a company must consider when appointing a change agent is what model of approach should be used in the implementation process. One popular model is the organization development approach. Change agents take on a leadership role with values that include humanistic, democratic, and developmental aspirations of the company (Palmer, Dunford, & Akin, 2006).

Conclusion

The work organization described and discussed in this paper was Science Applications International Corporation (SAIC). It identified a specific change that we felt needed to occur. Also describe was the cycle of change, and the specific change that needed to occur within the cycle of change. This paper compared and contrasted the continuous and discontinuous change in this scenario. As well as differentiated between the two types of change agents and examined how one or both were used in this scenario.

References

Palmer, A., Dunford, R., & Akin, G. (2006). Managing organizational change: a multiple

perspectives approach. Retrieved from The University of Phoenix eBook Collection database.

Retrieved from http://apps.washingtonpost.com/local/top-dc-companies/2011/company/science-

applications-international-corp/591/

Retrieved from http://www.saic.com