Organization Development - NEED 3 PAPERS

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2 Organization Change

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Learning Objectives

After reading this chapter, you should be able to:

• Categorize change according to rate of occurrence, how it comes about, and scale.

• Provide examples of personal and organizational interventions that represent developmental, transitional, and transformational change; first- and second-order change; and operational and strategic change.

• Discuss the systems approach to change.

• Describe three levels of change, including individual, group or team, and organization or system.

• Compare and contrast five models of organization change.

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Write down the names of five highly successful companies today that were just as dominant 25 years ago. Are you able to think of five? Companies, like living organisms, tend to have a limited life span. Very few remain competitive for more than a decade or two. Instead, as Newman (2010) pointed out, companies tend to lose their edge because they fail to innovate and change. As he put it, they become obsessed with competing in the present and lose sight of the future. Newman listed 10 examples: Blockbuster, Dell, Eastman Kodak, Motorola, Microsoft, Sears, Sony, Sun Microsystems, Toys “R” Us, and Yahoo. You can probably think of others. Let us look at a couple of these examples.

Blockbuster easily transitioned from VHS to DVD formats but failed to anticipate that content would become available via mail, vending machine rentals, video on demand, and video streaming. Companies such as Netflix and Redbox did anticipate and adapt to this trend, however. Blockbuster became obsolete, closing hundreds of stores, accumulating debt, and struggling to regain its competitive edge.

Eastman Kodak dominated the com- mercialized camera industry for nearly a century, with innovations such as the Brownie camera in 1900, Kodachrome color film, the handheld movie camera, and the easy-load Instamatic camera. In spite of such innovation, Kodak failed to anticipate the advent of digital photography. Today most of us use our cell phone, iPad, digital cam- era, and a variety of apps and websites to take, store, alter, print, and share photos. Like Blockbuster, Kodak strug- gled to innovate with forays into phar- maceuticals, memory chips, health care imaging, document management, and many other fields. Unfortunately, these ventures did not restore the company’s profitability. In January 2012 the New York Stock Exchange (NYSE) suspen-

ded trading of Kodak stock following the company’s announcement that Kodak and its U.S. subsidiaries had filed for Chapter 11 reorganization. In February 2012 the NYSE removed the entire class of the company’s common stock from its listing and registration.

It is challenging to convince an organization to change, particularly when things are going well, as things did for many years for both Blockbuster and Kodak. Even when companies recognize the need for change, the process is complex and challenging, and most efforts do not succeed. In fact, change often fails to meet its intended outcomes (Griffith, 2002; Kogetsidis, 2012; Self, Armenakis, & Schraeder, 2007). Some have estimated that 50% of all change efforts fail (Quinn, 2011, and others estimate the failure rate even higher, at nearly 70% (Balogun & Hope Hailey, 2004; Burnes & Jackson, 2011; Higgs & Rowland, 2000). Simply put, organizations are not very good at planning and implementing change.

Scott Anderson/The Journal Times/AP

Blockbuster Video failed to anticipate change and could not compete with Netflix and other digital movie sources.

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Section 2.1The Nature of Organization Change

The purpose of this chapter is to explore organization change. We will identify a variety of types of change, discuss the systems approach to change, examine levels of change, and compare and contrast change models. Let us begin by considering the nature of change.

2.1 The Nature of Organization Change Change is the alteration or complete transformation of people, processes, products, and places. As you know from your own experience, change may be impermanent, transitional, and even reversible (such as moving to a new city, then perhaps moving home again) or per- manent and transformational (such as getting a college degree or experiencing the death of a loved one). Organizations, too, experience changes that can be subtle or transformational, temporary or permanent. Managing change effectively is considered a core competence of successful organizations (Burnes, 2004).

Three Categories of Change

There are several ways to classify change. Cao, Clarke, and Lehaney (2004) suggested change may be according to organizational function, process, culture, or power distribution. Senior (2002) took a different approach, organizing types of change according to three categories: (a) rate of occurrence, (b) how it comes about, and (c) scale.

Rate of Occurrence Change happens at varying paces. Often it is discontinuous and episodic. There is only one event or episode of change that makes a significant break from what has gone on before. Examples of discontinuous or episodic change might include a natural disaster, economic cycles of recession and expansion, or something more personal like the onset of illness or a one-time change in work.

The opposite of discontinuous or episodic change is continuous change—an ongoing pro- cess of shifts that can lead to significant alterations over time. People experience continu- ous change with technological innovations. Just a few years ago, the idea of a smartphone seemed far-fetched, yet today they are widely owned. Continuous change is also prevalent in health care, where new drugs and treatments have prolonged life—at least in industrial- ized countries.

How Change Comes About Another way of describing change is the way in which it occurs. Planning is one way that change comes about, particularly in OD. Change can also be unexpected, without planning. This might also be considered evolutionary change, which happens gradually and amounts to substantial shifts over time. Organizations may be involved in continuous improvement projects that gradually result in the adoption of new technologies and improved management practices such as participative management or organization learning.

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Section 2.1The Nature of Organization Change

Change may also come about due to contingency—when organizations are forced to respond to unique, unanticipated variables that require special action and changes. For example, lack- ing a necessary raw material might require emergency alterations to product design. Another way change comes about is via choice. Organizations can choose what changes to make, such as deliberately deciding to change their leadership style.

Change According to Scale The scale of change ranges from moderate ongoing changes at a department level to wholesale transformation of the organization culture. Revolutionary change, although much less com- mon than evolutionary change, represents a shock to the system that alters it permanently. The terrorist attacks of September 11, 2001, created revolutionary change in Americans’ national identity and sense of safety, as well as significant changes in air travel. Another revo- lutionary change was the economic downturn of 2008 and its consequences. These changes forced both individuals and organizations to adapt.

Developmental, Transitional, and Transformational Change

Change is one of those words that serves as a melting pot for scores of con- cepts and methods. Like the Inuit expression for snow (of which there are 20 or more shades of meaning), change means many different things to us. (Ackerman, 1997, p. 45)

Ackerman (1986) characterized change as developmental, transitional, or transformational. Developmental change is the growth and learning people experience as they acquire new skills, manage relationships, and take on new challenges. This type of change might involve problem solving, work assignments, conflict resolution, group dynamics, team building, meet- ing management, role negotiation, survey feedback, or training.

When people make incremental steps toward a preferred status over a specified period, they are making a transitional change. Transitional change includes increasingly using a device like a smartphone or gradually reducing calorie intake in order to lose weight. On an organi- zation level, transitional change might occur through reorganization, technology integration, new product development, mergers or acquisitions, or globalization.

Transitional change seeks to accommodate the new state while maintaining functionality dur- ing the conversion. Employees usually view this change as a disruption in standard operating procedures. For example, a large public university recently switched the platform for its online courses. The change began with an informational campaign. Then, over two semesters, faculty could volunteer to be early adopters of the technology. During this phase the early adopters pro- vided feedback to the information technology department to help the entire organization fully transition to this new technology. This strategy enabled the university to continue to deliver online learning in both the old and new formats while the technology was still in development. The entire university was then able to change to the new platform the following year.

A change that revolutionizes the organization and the ways its members think and act is known as transformational change. Transformational change is generally not reversible, because processes, behaviors, or beliefs become fundamentally different from those that

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Section 2.1The Nature of Organization Change

characterized the previous state. Transformational change may be due to crisis, leadership transitions, culture or strategy alterations, dramatic shifts in markets, or executive coaching.

Some companies have managed to transform themselves and stand the test of time. IBM transformed from a mainframe computer company into one that makes software, personal com- puters, and storage solutions. Apple started as a transformational com- pany: In a market dominated by large, unsightly computers with complex software and awkward user inter- faces, it introduced small, user-friendly Macintosh computers with aestheti- cally pleasing designs. Apple gained an ardent fan base, but as its compe- tition caught on, it almost faded into obscurity. Then, under the leadership of Steve Jobs, the company underwent a series of transformational changes that transformed our relationship with personal digital assistants via the iPad, iPhone, and iPod. Transformational change usually requires a charismatic leader who inspires others with a vision to achieve the desired change and willingness to take risk.

First- and Second-Order Change

Change in OD has been historically classified as first order and second order. When individuals simply alter the intensity, frequency, or duration of a behavior but otherwise continue doing more or less what they have already been doing, they are making a first-order change. For instance, Jordan might decide to increase his exercise sessions from once to twice a week. Or a manage- ment team might decide to communicate monthly instead of quarterly about organization issues.

First-order change is considered easy to implement and readily reversible. It does not require new learning, so it is usually impermanent. Jordan might decide to go back to once-weekly exercise sessions or to slack off on his regimen all together. Or management may later decide to communicate less frequently and implement that change easily.

Early OD focused on first-order change that involved moderate adjustments to the organiza- tion, people, and processes. These interventions were largely individualistic; that is, practitio- ners modified aspects of individuals’ behavior, believing that these individual changes would translate into organization effectiveness. This mindset caused OD consultants to overlook the big-picture, systemic issues affecting the organization. As a result, early OD often was ineffective.

Radical change that alters thinking, behaviors, or processes in irreversible ways is known as second-order change. This level of change requires a fundamentally different approach to issues, as well as new learning. It is generally not reversible and tends to be revolutionary or transformational. For example, rather than simply increasing his number of weekly exercise

©John Harper/Corbis

Apple was able to transform itself into one of the most important technology innovators of our time.

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Section 2.1The Nature of Organization Change

sessions, Jordan might meet with his doctor to assess his overall health, get up earlier each day to exercise, hire a personal trainer to work with him, consult a registered dietitian, take a healthy cooking class, or otherwise alter his mindset about exercise and health. Or, manage- ment might restructure or fundamentally change how it communicates, altering not only the frequency but also the content and delivery mode. The rise of online social networking offers an example of how organizations have new platforms for communicating. Platforms such as instant messaging, Twitter, wikis, social networking, teleconferencing, e-mail, and collabora- tion apps (e.g., Basecamp) have radically changed the way employers, employees, and custom- ers communicate, and have also made information more timely and comprehensive.

Contemporary OD, in its quest to change systems and cultures, focuses on second-order change. Examples include executive coaching that trans- forms a leader’s behavior, performance feedback that improves individual and group performance, leadership development that shifts how leaders think and act, group and team facilita- tion that revolutionizes interpersonal dynamics, diversity and multicultur- alism initiatives that make the orga- nization more inclusive, total quality management that improves products and services, life–work balance pro- grams that reduce stress, or organiza- tion restructuring that changes work processes.

What first- and second-order changes have you made in your life? How successful were you at maintaining them? What changes have you noticed in your workplace? How effective are you at helping others change? Take the change leader style assessment to evaluate yourself.

Cathy Keifer/iStock/Thinkstock

Just as a caterpillar transforms into a butterfly, so too is second-order change an irreversible process that alters ways of being.

Assessment: What Is Your Own Change Leader Style?

Take this self-assessment to gain insight into your change style. The survey covers 60 attitudes and behaviors of leaders related to change management. It should take about 20 minutes to work through the assessment.

http://www.careacademy.org/Change Management/Session 3/Change Style Assessment/Managing Change- Your Style Assessment.pdf

Operational and Strategic Change

When organizations make shifts that affect day-to-day functioning or operations, they are mak- ing an operational change. Examples include shifting the production schedule to accommodate

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http://www.careacademy.org/Change Management/Session 3/Change Style Assessment/Managing Change- Your Style Assessment.pdf

Section 2.1The Nature of Organization Change

supply of raw materials, hiring temporary workers to help cover a short-term increase in product demand, adding overtime to meet production numbers, problem solving around a quality issue, or creating a newsletter to better communicate with employees.

When the organization shifts its tactics to better achieve its mission and vision, it is making a strategic change. Strategic changes might include shifting the culture, management, and rewards systems to be more inclusive as a means of recruiting and retaining a diverse work- force; firing an executive and bringing in a person with a track record for business turnarounds; hiring workers to pursue a new market, product, or service; realigning people and resources to focus on a goal of becoming number one in sales or quality; or conducting a new marketing campaign to reach new customers.

Whether operational or strategic, change can be stressful, but strategies exist for coping with change.

Tips and Wisdom

• Notice the signs of approaching change: Pay attention to your organization and the environment. What do you notice, hear, and suspect?

• Ask yourself: “What is the worst thing that could happen if change X occurs?” Acknowledge that the only thing you control is yourself. How do you want to show up during the change?

• Look for opportunities within the change to think differently, take on new responsibilities, and learn new things.

• Help others cope. It will help take your mind off the uncertainty and position you as a leader.

Take Away 2.1: The Nature of Organization Change

• There are several ways of describing the nature of change in OD, which is the alteration of the complete transformation of people, processes, products and places.

• Change can be classified according to (a) its rate of occurrence, (b) how it comes about, and (c) its scale.

• OD can focus on first- or second-order change. First-order change is a gradual or incremental change that usually involves making moderate adjustments to existing procedures and practices. Second-order change significantly and irreversibly alters thinking, behaviors, or processes.

• Developmental change is associated with the growth and learning people acquire through experiences and formal education or training. Transitional change involves making incremental steps toward a desired state over a specified period. Transformational change revolutionizes the organization and the ways its members think and act.

• Change can be operational or strategic. Operational change involves shifts that affect day-to-day functioning or operations of the organization. Strategic change involves more revolutionary shifts in tactics to better achieve organization mission and vision.

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Section 2.2General Systems Theory and Organization Change

2.2 General Systems Theory and Organization Change Chapter 1 established OD as a data-driven, humanistic process that seeks to foster the health and effectiveness of individuals, groups, the organization, and the broader community. OD is concerned with how change is integrated within an organization; that is, OD studies the ways in which an intervention in one area might affect another area. In other words, OD is concerned with the entire system.

Freedman (2013) explained the value of this concern with the system:

Organizations benefit when their leaders think and act systemically. Systems- oriented leaders consider organizational changes in the context of the total system and its interactions with its environment, rather than merely focus- ing on the primary element that attracts critical attention. By thinking and acting systemically, leaders focus their attention on the interactions among the interdependent parts and levels of their organizations . . . [making them] more likely to set realistic, comprehensive goals and establish viable strate- gies and plans for change. (p. 411)

Many changes are localized when they affect only parts of the system. Medical specialties exist to treat parts of the body system. Yet treating disease in one system can be problematic when the impact on the body as a whole is not considered. This is also true in organizations in which a change might be made to a section of a manufacturing assembly line without con- sidering how it might affect manufacturing at other points along the line. Another example is when there is a change in raw materials that negatively impacts the final product. OD is dif- ferent from other more localized interventions in that it takes the total organization system into consideration.

General Systems Theory

Thinking and acting systemically about organizations originated with Ludwig von Berta- lanffy’s general systems theory, or GST (1950, 1968). Katz and Kahn (1978) called it a social systems approach. Also known as systems thinking, systems design, system dynamics, or holism, GST views the organization as a system of interconnected, interdependent subsys- tems. These subsystems might be people, technology, processes, the external environment, competitors, government, customers, and other stakeholders. GST views the organization as drawing inputs from the outside world and transforming them into products and services.

Von Bertalanffy (1950, 1968) contended that the primary purpose of an organization is sur- vival. He regarded organizations as perceived wholes with interdependent components that affect each other over time and help advance the system’s purpose. He identified systems as having five fundamental elements:

1. Semipermeable boundaries filter inputs and outputs across the organization’s bor- ders and separate its inside from its outside. Boundaries are not just physical spaces like the walls of the building, but also subject to time and social construction in terms of the organization beliefs, history, values, and leaders. Systems can also exist within systems. For example, our solar system is distinct from the rest of the Milky

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Inputs (Resources)

Outputs (Products and

Services)

Throughputs (Work/

Transformation)

FEEDBACK LOOPS

Section 2.2General Systems Theory and Organization Change

Way galaxy and has changed over the billions of years of its existence. An organiza- tion today is distinct from that same organization last year.

2. Inputs represent the raw materials and resources needed from the external envi- ronment for the organization to produce its outputs (goods and services). Inputs include a qualified workforce; market data pinpointing customer requirements for goods and services; prevailing political, economic, regulatory, technological, and social trends; competition; raw materials; capital; and information.

3. Throughputs entail the transformation of inputs into goods and services (outputs). Throughputs involve the line production of goods and services (e.g., an assembly line that manufactures vehicles) as well as support functions that indirectly contribute to the production of goods and services, such as human resource management or finance. A modification in throughput usually stimulates significant change in the organization.

4. Outputs represent the goods and services produced by the organization and demanded by customers. Ancillary outputs include wages and salaries employees spend and contribute to their local economies. Outputs also include waste, recycling, and dividends to stockholders.

5. Feedback loops provide information to the organization about how well the sys- tem components are meeting needs and expectations. Feedback loops are negative or positive and significantly impact a system’s behavior (Größler, Thun, & Milling, 2008). These loops might include relationships between subsystems or the relation- ship between one of these five system elements. When the organization falls out of equilibrium, feedback loops can help leaders figure out how to get the organization back on track. Figure 2.1 features a diagram of an organization system.

Consider your experience as a college student as an example of a system. Semipermeable boundaries might include the community where the university is situated and its history. Other boundaries might be through social networking, sports teams, or other extracurricular

Figure 2.1 Diagram of an organization system

This figure depicts a simple system model that shows how inputs or resources are introduced to a system and are transformed during the throughput process and released as outputs in the form of goods or services. The process is continuous, and the output informs future input through a feedback process.

Inputs (Resources)

Outputs (Products and

Services)

Throughputs (Work/

Transformation)

FEEDBACK LOOPS

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Section 2.2General Systems Theory and Organization Change

activities that connect the university to the outside world. Your inputs might be the courses you take, the quality of your instructors, the books you read, and the experiences you have. When these are put into your system and become throughputs, particularly through learn- ing processes, they transform into accrual of new knowledge and skill. The output might be a paper, insight, or project. Feedback loops happen via relationships you have with professors and peers, grades you receive on papers, and ultimately, meet- ing the requirements for graduation and attaining a degree.

Automotive manufacturing is another example of a system. Semipermeable boundaries include the community where the plant is headquartered, the industry, market conditions, and the economy. Inputs include design, steel, computer systems, and so forth. These inputs become throughputs, which transform during manufacturing to become outputs (vehicles). Feedback loops include whether the vehicle meets quality standards, achieves favorable external rank- ings, generates sales, and captures return customers.

Think of other systems you belong to and see if you can identify the five elements:

1. semipermeable boundaries 2. inputs 3. throughputs 4. outputs 5. feedback loops

The Whole Is Greater Than the Sum of Its Parts

When systems theory is applied to OD, it means the larger system is taken into account at all times. For instance, if managers are put through a leadership development program, how will their new knowledge and behaviors affect their subordinates? The vignettes about Blockbuster and Kodak at the beginning of this chapter show how the companies ignored the broader systems of their business and lost their competitive edge.

Tips and Wisdom

An organization is a totality, a whole system with interacting parts or components. To alter a part of the system may represent a change in the organization, but it is not necessarily OD. Change can occur at different points in an organization. For instance, a company might change its order intake process. The change to order intake procedures does not become OD unless it is considered in terms of its impact on the entire system and embraces OD philosophy and steps of action research.

AP Photo/Carlos Osorio

Raw materials undergo the throughput process in their journey from input into the factory to output as vehicles.

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Section 2.2General Systems Theory and Organization Change

Who Invented That? The Notion of a System

Greek philosopher Aristotle originated the adage “The whole is greater than the sum of its parts.” Aristotle’s quote has great significance for understanding system dynamics. It means that system parts have synergy when working together that they lack when they are separate. System parts are interdependent and work together to create something special like a body, solar system, or car. Aristotle’s wisdom captures the understanding that parts may be nonfunctional when separate but create the system when combined. For example, the separate systems of the body—cardiovascular, respiratory, digestive, etc.—only sustain an organism when they work together. Similarly, a bunch of car parts scattered about a garage does not make a car until the parts are combined to form the system of a vehicle. Simply reading books will not make someone a college graduate. The same principles operate in groups. The output of a coherent group is likely to be higher than that of its members working in isolation.

Within the system of an organization, if employee turnover increases, it is not enough to provide more training to existing workers. The product, employees, management, work environment, competitors, response time, training, transportation, and other variables must be considered to understand what other system factors might be affecting turnover.

Change Readiness

Life and work are characterized by constant change. OD considers change from the system view. Systems will not change when readiness is nonexistent. Part of the OD process is facili- tating readiness of individuals, groups, organizations, and systems.

Although this book’s focus is organizations, sometimes it is easier to relate to the process of change when we think about it in our own lives. When we undergo change, we may experi- ence crises of identity, relationship challenges, or worries about making a difference. In fact, a change in one area of your life can affect others—in essence, changing your personal sys- tem. Imagine you move to a new city. Suddenly your relationships, work life, and recreational options have all changed, which alters your life system.

In OD the changes that occur within the organization system often reverberate in your per- sonal life. Change, in OD terms, is not something that happens to you. Rather, it is an intentional process that seeks to improve something in the organization, since it is a planned change. You can take steps to prepare yourself for change. Let’s start by assessing your readiness for it.

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Section 2.2General Systems Theory and Organization Change

Table 2.1 offers a comparison of typical changes most people face at one time or another in life and at work; compare these to your own experience.

Table 2.1: Typical life and work changes

Typical life changes Typical work changes

• Leaving home for the first time • Becoming a college or graduate student • Falling in love • Leaving a relationship • Losing a loved one • Awakening to a cause • Experiencing a change in financial circumstances • Traveling abroad

• Reorganizing or downsizing • Receiving a promotion • Experiencing new colleagues or leaders • Repositioning business to be more competitive • Becoming global • Altering our behaviors • Merging with or acquiring other businesses

Assessment: Readiness for Change

William Bridges has written several books about the change process on both personal and organization levels. How ready for change are you? Take his assessment and evaluate yourself: http://www.wmbridges.com/articles/assessment_tools.html.

Take Away 2.2: General Systems Theory and Organization Change

• OD is more effective when it takes the entire organization into account to understand how changes might reverberate throughout the organization. The systems framework for understanding organizations originated with the development of general systems theory, or GST.

• In keeping with Aristotelian philosophy, it is worth remembering that “the whole is greater than the sum of its parts” when systems are created and altered.

• Both individual and organization readiness to change can vary as people navigate the many changes presented in their personal and work lives.

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http://www.wmbridges.com/articles/assessment_tools.html

Section 2.3Levels of Change

2.3 Levels of Change As discussed, change might be very personal or might affect an organization or even an entire community. This section examines changes typical of the individual, group, and organization levels and explains when they constitute OD.

Individual Change

Change that involves activities related to employee staffing, training, or coaching is individual change. Although individual change efforts are often not OD, they become so when implemented to help the organization system change or adopt a new direction. There are three types of indi- vidual OD changes.

Staffing and Talent Management Burke (2014) noted that activities related to the recruitment, selection, replacement, and displacement of workers are fundamental to assembling a team of the right people to help achieve the organization’s change initiative. This is known as staffing (or talent manage- ment). Think about your own experience of change in an organization. How often were the players changed in order to implement a new direction? Losing football teams recruit new players and replace old coaches, growing schools select and retain new teachers, and failing businesses displace and replace the management.

Training and Development Training and development activities can also be classified as individual-level OD when they advance systemic organization change. As mentioned in Chapter 1, training is a costly inter- vention and should only be conducted when it clearly addresses a problem or desired change. Training is probably an OD intervention when it is used for management and leadership devel- opment to reposition the organization strategically or culturally or to train employees around a total quality implementation that changes how groups interact, problems are solved, and qual- ity is ensured. What types of training have you experienced? Would you classify them as OD?

Coaching A third individual OD intervention is coaching. Coaching aims to identify and improve dysfunc- tional behaviors that prevent employees from having productive relationships in the organi- zation (Corbett & Colemon, 2006). Just as the other individual interventions profiled here, coaching is not OD unless it is tied to a broader organization change effort. So when coaching is used for an individual who has very nonproductive behaviors that negatively affect the work team, that is not OD. Coaching becomes an OD intervention when the organization com- mits to a strategy such as participative management and provides it to all managers to help them make a cultural and leadership shift.

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Section 2.3Levels of Change

Individual Responses to Change This section has profiled three individual change interventions and shown when they become OD. Whenever we are tasked to change, we experience a range of emotions and responses, including resistance and coping (Anderson, 2012). Hall and Hord (1984, 2011) developed a model to illustrate the concerns individuals have when experiencing change. According to their model, people experience a hierarchy of concerns. Each stage of concern must be resolved before a person can move to the next stage of implementing change.

Hall and Hord’s (2011) model (see Table 2.2) identifies seven stages of concern (numbered from 0 to 6) associ- ated with implementing change. Stage 0 is unconcerned. If you are unaware of an impending change, you will not have any apprehension about it. So the model only becomes relevant once there is awareness of change. The first two levels of the model relate to how the change will affect the self. If we become aware that a new software program is being implemented, usually the first thing we want to know is “What is it?” With this inquiry we move into Stage 1, learning information about the change. Stage 2 relates to personal concerns. Now that we have more information about the change, we begin to wonder,

“How will it affect me?” Next, in Stage 3 we become concerned about the task or management of the change. “Will I have time to do this?” “Will this slow down my work?”

The next three stages pertain to the impact of the change. Stage 4 concerns are about the consequences of the change on other people in the system. We wonder, “How will this new software affect work flow, scheduling, customer service, and response time?” Once these con- cerns are resolved, we are ready to move on to Stage 5, collaboration. At this point, most of our self and task concerns have been resolved, and we begin integrating the change into our daily lives. Collaboration involves working with colleagues on how to integrate the change. We might ask, “How can we work together to use this new software to improve scheduling?”

Finally, we are ready for Stage 6, refocusing. This level of concern is aimed toward building on the change and perhaps improving it or moving on to new issues. You might hear, “Now that the software has so revolutionized scheduling, what other processes can we automate?”

JLP/Jose L. Pelaez/Corbis

Effectively responding to change involves address- ing employee concerns throughout the process.

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Section 2.3Levels of Change

Table 2.2: Hall and Hord’s stages of concern model

Concern clusters Stage number Stage of concern

Impact 6 Refocusing

You focus on exploring more universal benefits from the change, including the possibility of major changes or replacement with a more powerful alternative. You have definite ideas about alternatives to the proposed or existing form of the change.

5 Collaboration

You focus on coordination and cooperation with others regarding the change.

4 Consequence

You focus on the impact of the change on others within their immediate sphere of influence. Concerns relate to the rel- evance of the change for employees, evaluation of outcomes, and changes needed to improve outcomes.

Task 3 Management

You focus on the processes and tasks of using the change and the best use of information and resources. Issues related to efficiency, organizing, managing, scheduling, and time demands are utmost.

Self 2 Personal

You feel uncertain about the demands of the change, your adequacy to meet those demands, and your role with the change. You may be questioning the change and your role as it relates to rewards, organization structure, and decision making. You might consider potential conflicts with exist- ing structures or personal commitment. Financial or status implications of the program for yourself and colleagues may also be reflected.

1 Informational

You are generally aware of the change and interested in learning more about it. You are not worried about your- self in relation to the change, but rather curious about the change characteristics, effects, and requirements for use.

Unrelated 0 Awareness

Little concern about or involvement with the change is indicated.

Source: Adapted from Hall & Hord, 2011.

Group or Team Change

Chapter 1 established that groups and teams do the primary work of the organization. When the change implemented involves activities related to action learning, team building, or network formation, it is a group or team change. Groups are very important because

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Section 2.3Levels of Change

they (a) create the context for which individuals experience the organization, (b) represent the interface between the individual and the organization, (c) bound the primary social relationships people experience in the organization, and (d) determine employees’ percep- tions of the organization (Burke, 2014).

Consider, for example, that you are on the board of a nonprofit organization. The board—which is fiscally and strategically responsible for the organization—creates the context (leadership) and the relationships you experience with the other board members, volunteers, donors, and beneficiaries of the nonprofit’s program. The social experiences in the organization range from business meetings to fund-raisers, and these experiences determine how members perceive the foundation—which is likely different for each member.

Distinct types of group or team OD initiatives include action learning, team building, and networks.

Action Learning Chapter 1 defined a learning organization as a strategic commitment and infrastructure to capture and share learning to improve the organization. A common way to achieve this cul- ture is to apply a cycle of reflection and action on problems that plague groups and teams. This is known as action learning.

Action learning is a process of addressing the team’s real problems, in real time, in the real workplace. So if the team experiences interpersonal conflict, rather than send members to an off-site training on conflict resolution, an action learning approach would engage members in reflection and dialogue about the conflict, much like a T-group. A course of action would be decided collectively (for instance, to follow ground rules during meetings or avoid taking things personally). The new action would be tried for a time, and then the team would recon- vene to reflect on how it worked and commit to new action. The process is ongoing and helps build a culture of learning within the organization.

Team Building Since groups and teams are so fundamental to achieving the work and goals of an organi- zation, it is desirable for them to function at a high level, set goals, have clear norms and roles, and build strong interpersonal relationships. Activities to enhance team functioning are known as team building. Team building serves four purposes:

1. to establish goals or priorities; 2. to determine roles and responsibilities; 3. to examine group process (norms, decision making, communications); and 4. to examine interpersonal relations (Beckhard, 1972).

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Section 2.3Levels of Change

Beckhard (1972) viewed this listing of purposes as hierarchical. For instance, if goals are not clear, there will be problems in the succeeding three areas (roles and responsibilities, group pro- cess, and interpersonal relations). A common mistake in team building is to assume that interpersonal rela- tions need intervention, when they can usually be addressed by the first three purposes. Team building is an OD intervention when the work of the team supports making an organizat- ion change.

Network Formation Groups of employees that band together to support one another are known as a network, in-company network, or affinity group. It is common for groups that share gender, race, or sexual orientation to assemble to strategize and collectively represent group interests. These networks form in order to serve as a collective voice, raise awareness about their issues, and create mutual support. Network formation is OD when it is linked to an organization strategy such as becoming more diverse and inclusive.

Group or Team Responses to Change The more that work units in the organization are involved in helping to plan and implement change, the more they are likely to embrace rather than resist the organization change. Resistance by organizational groups, on the other hand, can take at least four forms. (Burke, 2014, pp. 120–121)

These four forms include:

1. Turf protection and competition: Different groups become secretive, are unwilling to share information and resources with other groups, and compete for things like budgets, the best employees, and so forth.

2. Closing ranks: A group will close in on itself and refuse to work with others or join ranks with other groups.

3. Changing allegiances or ownership: A group may seek to separate from the organiza- tion as a means of avoiding change.

4. The demand for new leadership: At times the change situation may warrant a new leader. Just as often, though, calls for new leadership are a diversion tactic to attempt to put off change.

Helping groups cope with change is similar to helping individuals, as discussed in the stages of concern model. Most people have concerns that must be addressed before they can fully embrace the change. Additionally, the group will benefit by closure activities such as con- ducting a “funeral” for past ways of operating and then celebrating the new change. It is also productive to provide a platform for people to share their feelings about the change. It can be

©Zero Creatives/Image Source/Corbis

Effective teams have clear goals and priorities.

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Section 2.3Levels of Change

useful to take the group to an off-site location to engage in problem solving related to change implementation. Creating new group compositions may also be helpful and even necessary for the group to transition successfully through a change process (Burke, 2014).

Organization or System Change

Change rarely begins at the organization or system level, especially if the organization is large (Burke, 2014). Instead, organization or system change typically originates with individuals and groups or teams around training or strategic plans that incorporate change. Alternatively, change may begin within a subsystem of the organization. For example, one division may try new practices in a manufacturing process and, if successful, promote the change to other divisions.

OD consultants may also intend change to be rolled out to the organization, but usually large changes are piloted with small groups first and then extended across the organization. For example, a mentoring program might be piloted with a certain group of employees, modified, and then expanded.

Organization or system change can also involve multiple interventions that would be imple- mented gradually. For example, a change to increase the diversity and inclusion of the orga- nization might involve recruitment and retention practices, rewards systems, leadership development, and sensitivity training.

OD is key to successful organization or system change because it provides a planned pro- cess to implement the change as well as a value system geared toward employees’ partici- pation and involvement, which helps support the change. Three examples of organization- or system-level change include survey feedback, large-scale interventions, and mergers and acquisitions.

Survey Feedback As discussed in Chapter 1, survey feedback is an organization- or system-level change in which members of the entire organization are surveyed about the climate, the management, and their overall satisfaction. This information is then analyzed, and the results are shared with employees in a series of feedback meetings. During these, the results are processed and a set of action items are determined. This type of intervention impacts the organization as a whole in multiple ways and is effective when trying to improve or change the culture. It was one of the earliest OD interventions and is widely used today to provide data to justify change.

Large-Scale Interventions Imagine a company bringing its top 100 executives together to examine its mission. This type of activity is known as a large-scale intervention and entails assembling a strategi- cally important, large group within the organization to problem solve, plan strategy, or revise mission statements. These types of interventions have also been used by the entire organiza- tion to create shared vision in a collaborative, participative manner. Conducting a large-scale intervention requires careful planning and attention to logistics, but it can be very impactful for activating change.

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Mergers and Acquisitions Much system-level change occurs as a result of mergers and acquisitions, when the organization is forced to make changes to integrate separate cultures. Companies merge when it becomes advantageous to share resources and find cost-effective ways to operate. Yet smoothly merging two separate organizations is difficult. These types of interventions often fail when employees do not understand the organization’s goals. They also suffer when power and expertise imbal- ances prevail, there is a lack of realistic understanding about the success of the merger and a lack of perceived equity, and there are no contingency plans (Burke, 2014).

Organization or System Responses to Change Burke (2014) identifies five ways organizations or systems resist change and offers sugges- tions to combat them. First, the organization’s effort to revolutionize may devolve to evolution. This means that the ambitious efforts to change, perhaps by merging businesses or entering new markets, result in the adoption of a few changes, but the original culture remains intact. Such an outcome can be prevented by involving affected employees at the beginning of the pro- cess so they have input and a sense of ownership, and understand the reasons for the change.

A second response is when the organization fails to develop a sense of urgency to change. People resist by questioning, “Why change?” Or they adopt an attitude of, “If it ain’t broke, don’t fix it.” Employees may lack motivation or be skeptical of the change. Such responses can be avoided if the organization achieves closure on the previous ways of operating. For exam- ple, a session that identifies the old operating procedure’s challenges may help those affected see the advantages of shifting to a new procedure. In addition, management needs to make a compelling case for change and ensure that organization members are actively involved in making the change.

A third way organizations resist change is when their employees assume they have “been there, done that” and chalk up the change effort to another attempt to do the same old thing. To prevent this resistance, leaders need to show how this change effort is different and why there is a compelling need for it. They also need to demonstrate that the organization is committed to mak- ing the change over the long term.

A fourth way organization members may respond to change is by creat- ing diversionary tactics that demand resources and time that would have otherwise been devoted to the change. People might also complain about the change’s timing or that they lack the resources to implement it. This form of

Sean De Burca/Corbis

The ability to clearly communicate changing operat- ing procedures is crucial to overcoming employees’ resistance to change.

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Section 2.4Models of Change

resistance requires management to pay attention to and defuse or redirect efforts that divert individuals, groups, and the organization from fully implementing the change. Ensuring the ready availability of resources necessary to implement the change also helps avoid this type of resistance.

Fifth and finally, organizational resistance to change can take the form of refusing to follow the leader. This usually involves employee collusion. These behaviors require leadership to be steadfast in its commitment to the change and set clear expectations around supporting it across the organization. Saboteurs must also be dealt with swiftly and strictly (job changes, retirements, or severance).

Take Away 2.3: Levels of Change

• Organization change generally occurs on one of three levels: individual, group or team, or organization or system.

• Examples of individual change include staffing and talent management, training and development, and coaching. Individuals more readily accept change when their concerns about how the change will personally affect them are addressed.

• Examples of group and team change include action learning, team building, and network formation. A key to helping teams and groups embrace change is to have them participate in its planning and implementation.

• Examples of organization and system change include survey feedback, large-scale change, and mergers and acquisitions. Change at the organization or system level is the most complex, and several forms of resistance can occur during implementation. Management and OD consultants need to pay close attention and intervene quickly when organization change begins to derail.

2.4 Models of Change This section introduces five models by which OD practitioners promote lasting, effective orga- nization change.

Lewin’s 3-Step Change Model and Field Theory

Lewin, regarded as “the intellectual father of contemporary theories of applied behavioral science” (Schein, 1988a, p. 239) made significant contributions to what is known today as OD, including originating the field of group dynamics and creating action research. He also designed a 3-step model for creating successful change and invented field theory—a process of mapping change.

Lewin’s 3-Step Model Lewin’s (1947) 3-step model of system change (Figure 2.2) depicts change as an ongoing, fluid process of unfreezing, moving, and refreezing.

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Unfreezing RefreezingMoving

Section 2.4Models of Change

Unfreezing is a stage in which people become aware of a need to change and wish to create a change. One might think of it as a releasing from the way things were. Unfreezing may occur due to a crisis, learning, or feedback. For example, if Jill suffers a heart attack (crisis) she becomes aware of the need to change her lifestyle. If Morrie receives negative feedback about his performance, he becomes aware of a need to improve it.

The stage in which one takes action to change the system is known as moving. Moving involves both initiating interventions and providing support to implement them. Returning to the exam- ple of the heart attack, Jill might enroll in a cardiac rehabilitation program. An organization team might decide to improve its meeting effectiveness and commit to learning new methods and taking roles to make this change. Moving represents the actual process of changing.

After moving, an organization needs to reinforce the change and ensure its permanence. This step is known as refreezing. Just as fitness gained in a cardiac rehabilitation program needs to be reinforced with daily exercise and healthy eating, the organization team that adopts improved meeting management must continue practicing its new procedures and sharing them with other groups. Changes fail when they lack infrastructure to support the movement that has occurred; in this case, conditions are likely to return to the pre-unfreezing state.

Field Theory Lewin viewed change as a complex activity mired in social context that created tension between initiating the change and resisting the change. Lewin called the group environment a “field,” noting that individual behavior was a function of it. Changes in behavior stem from changes in the field. Lewin (1943) noted, “One should view the present situation—the sta- tus quo—as being maintained by certain conditions or forces” (p. 172). These forces func- tion either to restrain change—and thus reinforce the status quo—or to drive change. Think about a change you have experienced at work. What were the forces preventing change? What forces facilitated it?

Restraining and driving forces affect both individual behavior and group structure. These forces can be depicted in a diagram known as force field analysis. Both driving and restrain- ing forces impact a change effort. Creating a force field analysis helps illustrate how to maxi- mize forces driving the change and minimize the forces restraining the change.

Figure 2.2: Lewin’s 3-step model of change

This figure shows Lewin’s change model, which goes through the steps of unfreezing (recognizing the need for change), moving (taking action to change), and refreezing (permanently incorporating the change).

Unfreezing RefreezingMoving

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Section 2.4Models of Change

Case Study: Implementing Team Change

“Meetings, meetings, meetings!” Alex mutters as he looks at his calendar for the week. “We need to do something to have fewer, more productive ones if we want to meet our production goals.”

His colleague, Dave, hears Alex’s lament and strolls over to his cubicle. “Alex, I feel your pain. I was just reading a book about improved meetings and think there are some things we can do to improve here. Plus, I know that Julie, over in OD, has some tools to help us.”

Dave gives Alex a copy of his book, which Alex reads as he waits for his first meeting of the day—which, like most, starts late. He runs into Julie on his way to his next meeting. “Hey, what are you reading?” she asks.

“Oh, I’m fed up with nonproductive meetings and want to do something about it,” Alex answers. “I hear you know some strategies. Can you help?”

Julie, Alex, and Dave meet the next week, and she gives them a tutorial with some key things they can immediately do to improve their group meetings. Dave and Alex decide to invite Julie to their next team meeting to introduce some ideas.

The entire group suffers from meeting fatigue, and thus are skeptical when they hear that yet another meeting is scheduled. However, most group members remain optimistic that a fix might be available. After Julie presents some options, the group reaches consensus on some things they can try to improve their meetings. They agree to make changes in how they create agendas, assign roles, record tasks and decisions, and evaluate their process. The team realizes its new meeting agenda is a learning curve but likely worth it in the long run.

After some practice, trial and error, and adjustments, the team meetings become shorter, more productive, and more engaging, since the agendas are thought out in advance, everyone is more engaged as they take on roles, and people are more organized about recording action items and holding each other accountable. The team members feel they are on to something, although staying on track requires discipline, since it is easy to slip back into their old mode of meetings.

The team members also meet resistance when they invite non-team members into their meetings. This resistance includes remarks like, “What are you doing?” or “My, aren’t you all getting a bit formal here?” Still, the team members persist with their new changes. Other departments take notice when team members begin pressuring other company employees to improve their meetings by being more action oriented or by adopting roles.

After about a month of trying, the team members meet to assess how their change implementation is going. They create a force field analysis to evaluate their progress to date (Figure 2.3).

(continued)

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DESIRED CHANGE

Improve team meetings

DRIVING FORCES

• Shorter meetings • Full engagement of team • Better problem solving and

decision making • More time for other activities

RESTRAINING FORCES • Time to learn new skills • Regression to old ways • Pressure from other

colleagues to not change • No organization incentives

Section 2.4Models of Change

Figure 2.3: Lewin’s force field analysis

This figure shows how Lewin’s force field analysis would be used to evaluate a team’s progress to date.

DESIRED CHANGE

Improve team meetings

DRIVING FORCES

• Shorter meetings • Full engagement of team • Better problem solving and

decision making • More time for other activities

RESTRAINING FORCES • Time to learn new skills • Regression to old ways • Pressure from other

colleagues to not change • No organization incentives

Case Study: Implementing Team Change (continued)

Schein’s Modified 3-Step Change Model

Schein (1987) elaborated on Lewin’s 3-step model by adding “how to’s” and further detail to make it more comprehensive. Moreover, Schein observed that the stages occur rapidly and may overlap, making them difficult to accurately identify.

Stage 1: Unfreezing At Stage 1, Schein (1987) identified three ways unfreezing happens: (a) disconfirmation or lack of confirmation, (b) guilt or anxiety about the problem situation, and (c) creation of psy- chological safety to make the change.

First, motivation and readiness to change may arise via disconfirmation or lack of con- firmation. Employees embrace change when they perceive a need for it. This perception of need can be prompted by disconfirmation; for instance, a manager’s perception of her leadership might be contradicted by critical feedback from an employee survey. Lack of confirmation—for instance, the lack of evidence for a manager’s belief in his leadership abilities—may also motivate a change.

Second, guilt or anxiety may drive change. Individuals who eat an unhealthy diet or fail to exercise may harbor guilt about their lifestyle because it contradicts their health goals or self-image. Anxiety over anticipated health consequences (obesity, heart disease, etc.) may motivate change. Or a manager may feel guilty for being autocratic and commit to being more participative.

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Section 2.4Models of Change

Third, Schein observed that neither disconfirmation nor induction of guilt is enough to moti- vate change. The creation of psychological safety is key to unfreezing. Psychological safety means that making the change will not humiliate others or diminish their self-esteem. OD practitioners ease this stage by helping those experiencing change save face and feel safe. This means helping individuals make health changes by finding an exercise group in which they do not feel self-conscious or pointing out a manager’s skills while also helping him see the need for and benefits of change.

Stage 2: Moving Schein modified stage 2, moving, by incorporating two processes: (a) identifying with new role models; and (b) environmental scanning. When we identify with a new role model, boss, coach, or consultant, we develop new views and perspectives. OD practitioners help clients surface their own perspectives and learn to appreciate those of others. This might involve helping the heart attack survivor connect with other survivors who have successfully adopted new health behaviors or connecting the manager with a coach who can provide feedback and perspectives from others on the manager’s performance.

Scrutinizing surroundings to learn what other leaders or organizations are doing is known as environmental scanning. This process can propel us toward change as we learn new strate- gies for achieving our goals. The heart attack survivor might read health-related magazines or journals or join a support group to learn what other survivors are doing. The manager might attend conferences, read management literature, follow management links on social media, or observe other successful managers and then implement the best practices discovered.

Stage 3: Refreezing Recall that, in refreezing, people solidify the change and integrate it into permanent practice. Refreezing is where changes get integrated into one’s self-concept and understood by oth- ers. The process involves incorporating new behaviors, habits, and thinking into our reper- toire, whether in life or work. The refreezing process shares similarities with transformative change and usually relies on support and feedback from family members or work colleagues. Refreezing requires patience because it may require practice with new ideas and time for roles and behaviors to stick. This is also an important phase for feedback so adjustments can be made if the change permanence appears at risk. As Schein noted, the rapidity and over- lapping of the three stages can make them challenging to distinguish. There may be shifting between refreezing and the prior two stages until the change becomes permanent.

These changes can be personal, as in the case of the heart attack survivor, or professional, as in the case of the manager. Integrating change is never easy, and some experts suggest it takes an average of 66 days before new behavior begins to feel natural (Lally, van Jaarsveld, Potts, & Wardle, 2010).

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Section 2.4Models of Change

Lippitt, Watson, and Westley’s Change Model

Lippitt, Watson, and Westley (1958) expanded Lewin’s 3 steps to 5 steps and shifted the ter- minology from step to phases. The phases are:

1. Developing a need for change (Lewin’s unfreezing) 2. Establishing a change relationship 3. Working toward change (moving) 4. Generalizing and stabilizing change (refreezing) 5. Achieving a terminal relationship

This model assumes the role of a change agent, an individual who acts as a catalyst for the change and has influence over the process. Phase 1, development of a need for change, is prompted in one of three ways:

1. A change agent creates awareness of a problem or need for change. For example, a new leader seeks to change the culture.

2. A third party sees a need for change and brings it to the change agent. For example, a customer raises a quality complaint.

3. The client system becomes aware of a problem, such as declining revenues and shift- ing markets, and seeks the help of a consultant to respond to the problem.

Phase 2, establishing a change relationship, focuses on creating collaboration between the change agent and the client system. This is usually when an OD consultant enters the picture. In the case of the new leader aiming to change the culture, a consultant might help the leader engage with other managers to create a collective vision for the new culture.

In phase 3, working toward change, Lippitt and colleagues (1958) suggest three subphases that involve (a) clarifying or diagnosing the client’s problem via data collection and analysis, (b) examining alternatives for addressing the issue, and (c) transforming intentions into actual change efforts, or implementation. These steps are similar to the steps of action research.

The fourth phase, refreezing, involves spreading the change to other parts of the organization and creating infrastructure to reinforce the change. This phase is most effective when affected parties are involved in planning and implementing the change.

In the fifth phase, termination, Lippitt and colleagues (1958) advocate ending the relationship between the client and consultant once the client can independently maintain the change. The client system becomes capable of problem solving, taking measures to maintain the changes, and refreezing.

Bridges’s Transitions Model

In his books Transitions (1980) and Managing Transitions: Making the Most of Change (2003), Bridges points out that people often erroneously equate change with beginnings, but it is really about endings. “It isn’t the changes that do you in, it’s the transitions. . . . Change is situational. . . . Transition, on the other hand, is psychological” (Bridges, 2003, p. 3). People get stuck hanging on to the end and therefore cannot move toward change. Bridges (1980)

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Section 2.4Models of Change

explains, “We have to let go of the old thing before we can pick up the new—not just out- wardly, but inwardly, where we keep our connections to the people and places that act as definitions of who we are” (p. 11).

Benetton: A Case Study in Failed Transition Bridges (2003) recounts the story of Benetton, a large Italian clothing firm that planned to diversify its business in 1999. It spent almost $1 billion acquiring some top sporting goods companies (Nordica, Kästle, Rollerblade, Prince, and Killer Loop) with the idea that it could cross-market these goods with the workout and postworkout Benetton clothing line. The firm erroneously assumed that all of the acquired companies would relish becoming part of an international brand, and it combined sales forces and marketing groups at a new headquar- ters in New Jersey.

What Benetton did not consider was what drew people to work in the sporting goods busi- nesses in the first place—their love of the sport. The only way Benetton could lure the Roll- erblade workers to New Jersey from Minnesota, for example, was by offering them raises, promotions, and a promise that if things did not work out, the firm would move them back to Minnesota. The Rollerblade staff members were accustomed to spending their lunch hours skating in local parks near the headquarters. They found themselves in New Jersey, suddenly reporting to Nordica representatives and missing their easygoing natural environment to test in-line skates just outside the door. Soon 21 of the Rollerblade employees elected to move back to Minnesota.

The transition was managed badly, and Benetton went from making a profit of $5 million to posting a $31 million loss. What went wrong? Bridges (2003) explains this transition went badly because Benetton failed to help its workers navigate three phases:

1. The company did not provide a way for employees to let go of their old ways and identities. There was a blunt ending.

2. There was no support for navigating the in-between time when the old sporting goods company vanished but the new organization was not fully implemented. Bridges calls this the neutral zone.

3. There was no clear transition and new beginning that allowed for workers to establish a new identity as a Benetton employee or discover a new beginning and sense of purpose.

Endings Bridges’s books explore why letting go is so difficult. “Endings begin with something going wrong” (Bridges, 1980, p. 109). When people experience an ending, willingly or unwillingly, they usually feel disengaged from activities, relationships, settings, or roles that were previ- ously important. Bridges (1980) explains, “Divorces, deaths, job changes, moves, illnesses, and many lesser events disengage us from the contexts in which we have known ourselves. They break up the old cue-system which served to reinforce our roles and to pattern our behavior” (pp. 95–96). Not only did the workers from the various sporting goods companies get acquired, they also had to relocate, which signaled a very abrupt end to their work and passion for their product.

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Section 2.4Models of Change

People may also feel lost when they encounter an ending in ways that shatter how they previ- ously defined themselves—or what Bridges (1980) calls disidentification—particularly when endings are vocational, perhaps due to a reorganization or downsizing. Endings can spur an identity crisis until people are more secure in their self-identity following a transition. Iden- tity crises do not just afflict individuals. Organizations can also lose sight of who they are, as seen in the stories of Blockbuster and Kodak and in the case of the newly merged Benetton. People can also become disenchanted when experiencing an ending: “separated from the old identity and the old situation or some important aspect of it, a person floats free in a kind of limbo between two worlds” (Bridges, 1980, p. 98).

People can also become disoriented during an ending when they feel lost and confused and are unsure of where to go next. The next time you find yourself in transition, allow yourself some time to react to it and remember, you are going through a natural process of dealing with an ending.

Tips and Wisdom

Bridges (2003) offers advice to help people identify their losses during a change:

1. Describe the change in as much detail as possible. 2. Identify as many “domino effect” changes as you can (changes that will be caused by

the primary change). 3. Recognize that a chain reaction of changes is occurring for those affected. Consider

who is going to have to let go of something. 4. Acknowledge that some of the losses are not concrete—rather, they are caught up

in values, assumptions, and identities and our individual understandings of the way things are.

5. Beyond the individual, specific losses may entail something that is over for everyone—perhaps a chapter in the organization’s history or assumptions about how the employer will take care of its employees. Whatever has ended, Bridges (2009) recommends coming up with a phrase such as “We take care of our people” or “We promote from within” (pp. 25–26) to serve as a mantra going forward.

Beyond identifying who is losing what, Bridges recommends that leaders also accept the reality and importance of the subjective losses, expect overreaction, acknowledge the losses openly and sympathetically, expect and accept the signs of grieving, compensate for the losses, continually share information, define what is over and what is not, mark the endings, treat the past with respect, let people take a piece of the old way with them, and show how endings ensure the continuity of what really matters.

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Neutral Zone The transitional space in which we often find ourselves struggling to compose an ending and move on to the new beginning is what Bridges (1980) calls the neutral zone. He notes that this is an empty time or “fallow period,” especially if the ending did not provide a clear start- ing point—perhaps when someone experiences an unexpected loss. The newly reorganized and relocated Benetton workers were clearly stuck between the ending and the new, without much support for making a transition. When people are stuck in the neutral zone, they are often grieving the ending of something, rather than the change to something new. For exam- ple, the Rollerblade workers missed their skating trails and surroundings.

Sometimes people struggle with a change in health status, a life change such as becoming a new parent, or a job change or relocation as in the case of Benetton. Part of the difficultly of these changes is that people want to hang on to the way things were and find it very difficult to embrace the new. They cannot embrace the new change until they effectively navigate out of this neutral zone. Yet this is problematic because people often do not reflect on how changes affect their lives. Bridges (1980) identifies the following changes that often pose challenges:

1. relationship losses 2. changes in home life 3. personal changes 4. work and financial changes 5. inner changes

The neutral zone can be frustrating. It can also be a highly creative time that lends itself to collaboration. It is important for organization members to have people they trust to follow during the neutral zone so they have role models for navigating the change. Assigning tem- porary roles, groups, and reporting relationships can also ease the neutral zone. Creating transition teams can be an effective strategy to get multiple individuals focused on working through the change.

Mikael Damkier/iStock/Thinkstock

The neutral zone is that empty period between an ending and a new beginning. You may feel like a fish out of water as you make this transition.

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Section 2.4Models of Change

Bridges (1980) urges people in the neutral zone of a change or transition to

1. find a regular time and place alone to reflect on the change, 2. log their neutral zone experiences, 3. work on their autobiography, 4. use the time to discover what they really want, 5. think of what would be unlived in life if it ended today, or 6. take a few days to go on their own version of a passage journey.

New Beginning Finally, the ending has brought a new beginning. After working through the ending and the neutral zone, Bridges recommends taking action to embrace the new change, identify with the change, and tune out fears of the new. Although Bridges writes about transition, Lewin’s influence is clear. Unfreezing is comparable to endings when people realize things cannot continue as they were. The neutral zone represents the moving phase when people prepare to embrace a new beginning, where the changes are refrozen. It is natural for people to feel ambivalent about new beginnings. Bridges (2003) recommended that leaders provide the four P’s to help employees start anew: A purpose, a picture, the plan, and a part to play.

Appreciative Inquiry

Change models tend to be deficit oriented; that is, they look for problems, shortcomings, and ways to minimize negative outcomes. The positive model emerged as an alternative to

Assessment: Holmes and Rahe Stress Management Quiz

Take the Holmes and Rahe stress management quiz (http://www.stress-management .net/stress-test.htm) to identify key stressors in your life. These often tend to be within the categories of change identified in Bridges’s model. You can interpret your scores in Table 2.3.

Table 2.3: Holmes and Rahe stress management quiz interpretation

Score Chance of illness or accident within 2 years

Below 150 35%

From 150 to 300 51%

More than 300 80%

As evidenced by this quiz, everyone experiences life transitions that cause stress. Realizing that life’s changes create stress helps people learn to recognize and cope with these changes.

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http://www.stress-management.net/stress-test.htm

Section 2.4Models of Change

Lewin’s and other similar change models that were critiqued for their deficit basis. It was developed by David Cooperrider and colleagues during the 1980s and achieved popularity in the early 2000s. A strengths-based organizational change model, the positive model focuses on what the organization is doing right (Cooperrider & Whitney, 2005; Cooperrider, Whitney, & Stavros, 2008). In doing so, it uses an approach known as appreciative inquiry (AI).

AI is a strengths-based approach that attempts to shift away from the traditional problem- solving mindset that searches for things going wrong. AI is based on the assumption that every organization has things that are working effectively, and it seeks these variables out as the starting point for change (Doggett & Lewis, 2013). AI is more than a positive means to an end. AI attempts to collaboratively promote generative investigation that propels the organi- zation to achieve a future that everyone has helped construct. AI is contrasted with traditional problem solving in Table 2.4.

Table 2.4: Problem solving versus appreciative inquiry

Problem solving Appreciative inquiry

Felt need Problem identification

Appreciating Valuing the best of “what is”

Causal analysis Envisioning “what might be”

Analysis of potential solutions Dialoguing about “what should be”

Action planning (treatment) Innovating “what will be”

Underlying belief: Organization is a problem to be solved.

Underlying belief: Organization is a mystery to be embraced.

Source: Adapted from Cooperrider & Srivastva, 1987; Doggett & Lewis, 2013.

AI’s Philosophical Principles AI has five core philosophical principles (Cooperrider, Whitney, & Stavros, 2008; Doggett & Lewis, 2013):

• The constructionist principle assumes that self-knowledge and the world are formed through our interactions with each other.

• Simultaneity is the assumption that inquiry and change are intricately linked and occur instantaneously.

• The poetic principle posits that organization life comes alive through storytelling. • The anticipatory principle features the role of vision in propelling the organization

toward a desired future. • The positive principle is AI’s focus on the positive as an alternative to traditional

problem-solving paradigms for promoting change.

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Section 2.4Models of Change

AI’s 4-D Cycle AI’s 4-D cycle asks a series of questions that make an affirmative inquiry to help the organi- zation discover, dream, design, and identify its destiny. AI can be done with work groups or teams or with a large, diverse group that is representative of the organization. The AI cycle can take up to 2 months to plan. The initial implementation takes from 3 to 4 days, with sev- eral months of further implementation and follow-up once the cycle is completed (Ludema & Fry, 2008). See Table 2.5 for an illustration of how the 4-D cycle works.

Table 2.5: The 4-D appreciative inquiry cycle

AI stage Inquiry

Affirmative topic of choice (topic around which the inquiry is based, such as positive change initiatives in the organization): appreciating and valuing.

1. Discovery: Participants share stories and insights about achievements, strengths, values, and competencies.

The organization focuses on appreciating and valuing the best of what already exists. Participants answer questions such as: • What is a high point about working here—when

you were most alive and engaged? • What is it that you most value about yourself and

your work? • What is the key thing that gives life to this

organization? • Imagine the organization 5 years from now with

everything the way you had envisioned it would be. What has happened? What is different? How have you contributed to this future?

2. Dream: envisioning • The participants create and present a shared vision for how the high points identified in the discovery stage can occur more frequently.

• Key questions at this step are: “What might our future be?” and “What do we hope to accomplish?”

3. Design: coconstructing a future • A phase of earning, empowering, and improvis- ing to sustain a future.

• The organization develops a formal statement or provocative proposition that expresses the new vision.

• The vision is described in the past tense to con- vey a sense that it is already occurring.

4. Destiny: action and Implementation • Action plans are created to ensure the new vision is implemented.

• Priorities are created to actualize the plan.

Source: Adapted from Cooperrider, Whitney, & Stavros, 2008; Doggett & Lewis, 2013; Moore, 2008.

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Summary and Resources

Chapter Highlights • There are several ways to describe the nature of change in OD, which is the altera-

tion or complete transformation of people, processes, products and places. • OD can focus on first- or second-order change. First-order change alters the inten-

sity, frequency, or duration of a behavior and is easily reversed. Second-order change radically alters the thinking, behaviors, or processes of the organization in irrevers- ible ways.

• Developmental change is stimulated when new skills, challenges, or relationships require growth and learning. Transitional change involves making incremental steps toward a desired state over a specified period. Transformational change revolution- izes the thinking and actions of the organization’s members.

Take Away 2.4: Models of Change

• Just as there are many ways to define change, so too are there several models for describing the process. This chapter profiled five common change models.

• Lewin created the first model of change, with three steps of unfreezing, moving, and refreezing. Most change models are a variation of these three stages.

• Lewin also created field theory and developed the force field analysis as a tool for evaluating the forces that both drive and restrain change.

• Schein and Lippit, Watson, and Westley all improved on Lewin’s 3-step model, adding more psychological explanation (Schein) and more steps, points on working on the client relationship, and description (Lippitt, Watson, and Westley).

• Bridges’s transition model describes why people and organizations tend to get stuck in the midst of change and how to help people successfully navigate the stages of endings, the neutral zone, and beginnings.

• Appreciative inquiry (AI) was created as a more positive alternative than other change models. Rather than focusing on problems, AI seeks to identify what is working well, rather than on what is not working, and capitalize on it to cocreate a vision of the future.

Critique of AI AI has been critiqued for its Pollyanna-ish stance and failure to acknowledge and address negative issues. The positive approach risks silencing critical voices and maintaining unequal power relations (Doggett & Lewis, 2013; Zandee & Cooperrider, 2008). AI has also been crit- icized for lacking an emphasis on reflection at the expense of taking action. Finally, some research has shown that AI practitioners have not adequately or authentically followed its principles and philosophy (Doggett & Lewis, 2013).

In spite of some of its challenges, AI alters the focus of the conversation and can shift a change effort’s focus from the negative to the positive. It can be especially powerful for teams and sys- tem-level change and may also help an organization make it through a transition more smoothly.

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Summary and Resources

• Change can be operational or strategic. Operational change involves shifts that affect day-to-day functioning or operations. Strategic change involves more revolutionary shifts in tactics to better achieve organization mission and vision.

• The systems framework for understanding organizations originated with the devel- opment of general systems theory, or GST.

• In keeping with Aristotelian philosophy, it is worth remembering that “the whole is greater than the sum of its parts” when creating and altering systems.

• Both individual and organization readiness to change can vary as people navigate the many changes presented in their personal and work lives.

• Organization change generally occurs on one of three levels: individual, group or team, or organization or system.

• Examples of individual change include staffing and talent management, training and development, and coaching. Individuals more readily accept change when their con- cerns about how the change will personally affect them are addressed.

• Examples of group and team change include action learning, team building, and net- work formation. A key to helping teams and groups embrace change is to have them participate in its planning and implementation.

• Just as there are many ways to define change, so too are there several models to describe the process. This chapter profiled five common change models.

• Lewin created the first model of change, with three steps of unfreezing, moving, and refreezing. Most change models are a variation of these three stages.

• Lewin also created field theory and developed the force field analysis as a tool for evaluating the forces that both drive and restrain change.

• Schein and Lippit, Watson, and Westley all improved on Lewin’s 3-step model, add- ing more psychological explanation (Schein) and more steps, points on working on the client relationship, and description (Lippitt and colleagues).

• Appreciative inquiry (AI) was created as a more positive alternative than other change models. Rather than focusing on problems, AI seeks to identify what is work- ing well, rather than on what is not working, and capitalize on it to cocreate a vision of the future.

Think About It! Reflective Exercises to Enhance Your Learning 1. The chapter began with vignettes about failures to change at Blockbuster and Kodak.

Reflect on a personal failure to change or a failure to change that you have witnessed in another organization. What caused the failure? What were the consequences?

2. Reflect on a change you made successfully. How did it differ from the failure?

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Summary and Resources

3. Reflect on the endings in your life, recalling Bridges’s (1980) transitions model of change. Bridges recommends the following exercise (pp. 14–17).

a. List all of the endings you recall, tracing all the way back to your childhood.

• These endings might include major events such as the loss of a loved one or moving away from your hometown, to things that others might view as minor, such as a friend moving or losing a pet.

• Endings might be physical, relational, geographical, social, academic, civic, and so forth.

b. Note your reaction to the endings, including your feelings and thoughts. Bridges suggests that your old mindset is likely reactivated in the present whenever something ends in your life. How true is that for you?

c. Do you notice a particular style for how you handle endings?

• Is it abrupt or aimed at delaying the change? • Do you take an active or passive role? • How receptive are you to change? • How in control of your fate do you tend to feel during change?

d. How does your approach to endings affect your ability to make transitions?

4. Review the five change models presented in this chapter. Which one resonates with you? Why?

Apply Your Learning: Activities and Experiences to Bring OD to Life 1. View the video links on change and identify the key challenges you think change

presents to you and your organization.

2. Review the results of the What Is Your Own Change Leader Style? and Readiness for Change assessments. What insights did you gain from these assessments about how you approach change?

3. Create a map of a system you belong to and note its five elements (semipermeable boundary, inputs, throughputs, outputs, and feedback loops).

4. Think about a change you are currently attempting. Perhaps you want to lose weight, keep a journal, or learn a new skill. Create a force field analysis identifying the driv- ing and restraining forces impacting your change efforts. Explain steps you can take to bolster the driving forces and minimize the restraining forces.

5. Recount a change you have experienced (personal, work, or community). You can keep a journal or find a family member, friend, or classmate and share your:

a. reaction b. learning c. results

6. Conduct an appreciative inquiry on a personal or work issue using the 4-D cycle described in this chapter.

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Summary and Resources

Additional Resources

Web Links

Association of Change Management Professionals, a professional organization that offers professional development opportunities in change management. http://www.acmpglobal.org/

The Society for Organizational Learning, an excellent resource, particularly for tools related to the systems approach in OD. http://www.solonline.org/?home

Become a certified change manager through the Association for Talent Development: http://www.astd.org/Education/Certificate-Programs/Change-Management-Certificate

5 Books to Help you Build Better Habits and Embrace Change (Fast Company). http://www.fastcompany.com/3026359/work-smart/5-books-to-help-you-build -better-habits?utm_source=facebook

Key Terms

action learning A process of addressing the real problems of the team, in real time, in the real workplace.

appreciative inquiry (AI) A positive approach to planned change that seeks to identify what is working well, rather than what is not working, and capitalize on it to cocreate a vision of the future.

beginning As defined by Bridges (1980), the point at which we become ready to embrace change, after we have brought closure to the ending of the previous way of being and navi- gated through the neutral zone.

change agent An individual who acts as a catalyst for the change and has influence over the process.

developmental change A change associ- ated with the growth and learning people acquire through experiences and formal education or training.

ending As defined by Bridges (1980), the “beginning” point for change; the cessation of a prior way of being that marks the start of a change process or transition.

environmental scanning The scrutinizing of the world for information to understand what others (competitors, innovators) are doing to learn ideas that might help predict the future.

first-order change A gradual or incremen- tal change that usually involves making mod- erate adjustments to existing procedures and practices. First-order change essentially tweaks what is already being done and is easily reversed.

force field analysis A tool to depict the variables that both support or drive the change and those that restrain or prevent it.

group or team change Change processes involving two or more people and often the site of OD interventions.

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http://www.acmpglobal.org/

http://www.solonline.org/?home

http://www.astd.org/Education/Certificate-Programs/Change-Management-Certificate

http://www.fastcompany.com/3026359/work-smart/5-books-to-help-you-build-better-habits?utm_source=facebook

Summary and Resources

individual change Change processes involving a single person.

inputs The raw materials that are entered into a system for throughput and output.

large-scale intervention Processes involv- ing strategically selected groups in orga- nizations, such as the top executives, to implement change.

network A group based on affinity or simi- larity that is usually disenfranchised in some way in the organization and bands together for collective voice and action.

neutral zone As defined by Bridges (1980), the fallow, lost space people find themselves in after an ending and before the beginning of a new change.

operational change Change that occurs when organizations make shifts that affect day-to-day functioning or operations of the organization.

organization or system change Alteration of the entire organization or system. This is the most difficult level of change.

outputs The products of a systems approach in which a series of inputs are put through the system to emerge as products or services.

refreezing The process of cement- ing change and ensuring it is stable and maintained.

second-order change A type of change that significantly and irreversibly alters thinking, behaviors, or processes.

system Viewing the organization as an interconnected network of parts that are interdependent.

team building The practice of helping work groups develop effective working relation- ships, processes, and procedures.

throughputs The transformation of system inputs (raw materials and resources) into outputs (goods and services).

transformational change A change that revolutionizes the organization and the ways its members think and act.

transitional change Incremental steps toward a desired state over a specified period.

unfreezing The process of becoming aware of the need to change and building the desire to create change.

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