Lecture 3 -v2.ppt

8/14/2019 Lecture 3 -v2.ppt

1/24

Lectu re Three-

Ch . 5Organizational Diagnosis

Frameworks (cont.)

Manag ing Organisat ional Change


2/24

Chapter 5

Diagnosis forChange:

How to

Change?

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.


3/24

Need for Change

Change = D x M x P > C

D = dissatisfaction with status quo M = new management model

P = process for managing change

C = cost of change


4/24

The Formula for Changewas created by Richard Beckhardand David Gleicher, refined by KathieDannemiller and is sometimes called Gleicher's Formula. This formulaprovides a model to assess

the relative strengths affecting the likely success or otherwise of organisational change programs.

D x V x F > R

Three factors must be present for meaningful organizational change to takeplace. These factors are:

D= Dissatisfaction with how things are now;

V= Vision of what is possible;

F= First, concrete steps that can be taken towards the vision;

If the product of these three factors is greater thanR= Resistancethen change is possible. Because D, V, and F are multiplied, if any one is absent or low, then the

product will be low and therefore not capable of overcoming the resistance.

To ensure a successful change it is necessary to use influence and strategic thinking in order to

create vision and identify those crucial, early steps towards it. In addition, the organization must

recognize and accept the dissatisfaction that exists by communicating industry trends, leadership

ideas, best practice and competitive analysis to identify the necessity for change.
http://en.wikipedia.org/wiki/Richard_Beckhardhttp://en.wikipedia.org/w/index.php?title=David_Gleicher&action=edit&redlink=1http://en.wikipedia.org/wiki/Formulahttp://en.wikipedia.org/wiki/Formulahttp://en.wikipedia.org/w/index.php?title=David_Gleicher&action=edit&redlink=1http://en.wikipedia.org/wiki/Richard_Beckhard


5/24

Quiz 5

Change = D x M x P > C

Give live Example from Your own or fromBusiness History

2 pages max with seperate analysis for

each Keyword


6/24

Learning vs. Unlearningas a major leap in Organisational

Change

Organisational Change Sustain by:

LearningEarning - Returning

Pre- Requisite before Change


7/24

Learning vs. Unlearningas a major leap in Organisational

Change

Organisational Change Sustain by:LearningEarning - Returning

Quiz 6

Give Example of UL vs. L in

relevance to change


8/24

Ref: http://artsfwd.org/4-types-org-culture/

Type of Organisation Challenge & Lean Thinking
http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/


9/24

Ref: http://artsfwd.org/4-types-org-culture/

Quiz 7
http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/http://artsfwd.org/4-types-org-culture/


10/24

Diagnostic Tools

The image of the change

manager has an impact on the

types of tools that may be used.

The different images highlight the

range of reasons why tools like

these may be utilizedthey

illustrate the numerous wayschange can be interpreted.

DiagnosticTools

Images of

Managing

Change

Advantages

of diagnostic

tools

Diagnostic

Models:-Organization

-Components

Readiness for

Change

5-10


11/24

Images of Managing Change

DiagnosticTools

Images of

Managing

Change

Advantages

of diagnostic

tools

Diagnostic


-Components

Readiness for

Change

Images Diagnostic Tools

Director Using diagnostic tools to build up your own knowledge baseand confidence about what needs to change by using models

that specify relationships among variables and pinpoint

where change is needed when things are not going well.

Navigator You will find the diagnostic tools attractive; models are waysof mapping the environment they describe.

Caretaker You will be less convinced of the capacity of the diagnostictools to support radical change, but several of the tools (see,

e.g., PESTEL and scenario analysis) provide insights into the

trends in the external environment that you will have to take

into account.

Coach You will focus on the diagnostic tools that highlight the goalsbeing sought and the competencies needed to attain them

Interpreter You will be attracted to the diagnostic tools that emphasizeimages, framing, and cognitive maps

Nurturer Having an interest in emergent strategy, you may remainunconvinced as to the value of such diagnostic tools.

5-11


12/24

Advantages of Diagnostic Tools

Simplify a complex situation.

Identify priorities for attention.

Highlight interconnectedness of

various organizational properties (e.g.,strategy and structure).

Provide a common language with

which to discuss organizationalcharacteristics.

Provide a guide to the sequence of

actions to take in a change situation.

DiagnosticTools

Images of

Managing

Change

Advantages

of diagnostic

tools

Diagnostic


-Components

Readiness for

Change

5-12


13/24

Diagnostic Models: Organization

DiagnosticTools

Images of

Managing

Change

Advantages

of diagnostic

tools

Diagnostic


-Components

Readiness for

Change

Six-box organizational model: The key focus here is on six variablespurpose,

structure, rewards, helpful mechanisms,relationship and leadership. This model is usefulto maintain awareness of all areas forconsideration even though one variable may beidentified as the main area for attention.

7-S framework: The 7-S framework: this focuses on seven key

components that affect organizationaleffectivenessstructure, systems, style, staff,

skills, strategy and superordinate goals. Theinterconnectedness of these variables is vital tothe success of change.

Star model: An organization is effective when the five

components of organizational designstrategy,

structure, processes and later capability, rewardsystems and people practicesare in alignment. 5-13


14/24

Diagnostic Models: Organization

Congruence model: The organization is broken down into four components

task, individuals, formal organizational arrangementsand informal organisation. This is influenced by thecontext where the strategy is formulated and the outputis then the performance of the organization.

Burke-Litwin model: This model identifies the transformationalexternal

environment, mission and strategy, leadership andorganizational culture - and transactional sources ofchange.

Four frame model:

This offers four frames for the managers toconceptualize how the organization operates. Theseframes are structural, human resource, political andsymbolic frames.

Diagnosis by image: This technique allows organizational members to use

images to describe the organizations and this can be

used as a basis for discussion.

DiagnosticTools

Images of

Managing

Change

Advantages

of diagnostic

tools

Diagnostic


-Components

Readiness for

Change

5-14


15/24

Diagnostic Models: Components

PESTEL Framework: This analyses the external environment in terms of six factors

political, economic, social, technological, environmental andlegal.

Scenario analysis: Creating stories of possible future scenarios that are

considered to be vital to the future of the organization

Gap analysis This is a tool used for reviewing the organizations position

based on where they are and where they want to get to.

Elements of strategy These are five elements of strategy that are considered

mutually reinforcingarenas, vehicles, differentiators, stagingand lowest costs through scale advantage. Any misalignmentof these signifies the need for change.

Strategic inventory This aims to identify the strategic assumptions of managers

and determine their consistency with the businessenvironment. This determines whether the strategy should bea focal point for change.

DiagnosticTools

Images of

Managing

Change

Advantages

of diagnostic

tools

Diagnostic


-Components

Readiness for

Change

5-15


16/24

Diagnostic Models: Components

Newsflash exercise: This is an exercise that encourages managers to be

very specific and succinct about change and clearerabout the intended outcomes.

Cultural web: This provides a way of mapping the organizational

culture through seven elementsparadigm, rituals androutines, stories, symbols, control systems, powerstructures and organizational structure

Structural dilemmas: Six possible structural dilemmas that can be

encountered during change are diagnosed so areas

that have been traded-off during the change processcan be identified

The Boundaryless Organization: Success is arguably achieved only if four types of

organizational boundaries are diagnosed and reduced.These are vertical, horizontal, external andgeographical boundaries.

DiagnosticTools

Images of

Managing

Change

Advantages

of diagnostic

tools

Diagnostic


-Components

Readiness for

Change

5-16


17/24

Readiness for Change

Assessing the organization's readiness tochange can be a mediating variable betweenchange management strategies and theoutcomes of desired strategies.

A perchance audit of the readiness of anorganization for change can provide anindication of the likely outcome of a changeinitiative at a particular point in time. Someways of doing this include: Questionnaires

Stakeholder analysis: This focuses on the positionof stakeholders in the change process and allowsthe manager to be better informed of how toconfront potential issues.

Force-field analysis: This identifies factors that aredriving forces for change as well as restraining

forces.

DiagnosticTools

Images of

Managing

Change

Advantages

of diagnostic

tools

Diagnostic


-Components

Readiness for

Change

5-17


18/24

EXERCISE 5.1p.132Scenar io Construction

Purpose

Understanding diagnostic models, and developing the skill and confidence to use

them increases the available tools that a change manager has available in a change

situation. Often models are left for the academics to worry about, or at the other

extreme, managers choose one model and wont use anything else whether it is

appropriate or not! Different types of change managers (referring to the change

images) discussed in earlier chapters will have a preference for certain diagnostics,

and will tend not to use others. The student should be encouraged to at least

understand the available options (even if they dont intend to use them), and be

aware of their reasons for the ones they do use, as well as the strengths and

limitations of each model.

Options/Techniques/Requirements Format:

Individual or small groups of two to three students.

Materials:

Table 5.4 Scenario Methodology.

Select an organization.

Quiz 8-In Group


19/24

Potential Problems and Helpful HintsIdentification of key drivers may take some time for the students with less

business experience.

The writing of a scenario could be modified to point form to place the importance

on the information, rather than a good story, although students with the skill to

capture the information in a story will be developing their communication skills.

Students may find 100 words or less to be restricting for the writing of each

scenario. Developing the skill to capture information and restrict the story to this

size is a valuable skill to learn. The equivalent in business is the elevator pitch

that entrepreneurs or skilled networkers use to promote their ideas or business.


20/24

Lecture Handou t MGT634 30SEP13

K.B.F( Key Business Factors) What you try to sell, inspire or contribute to the

society, life and world

4 Ms

Manpower

Material

Method Machines

Example of K.B.F

Quality of life

Energy sustainability

Knowledge EconomyNational Economy

Education

Shaping of change is different than managing of change

Shaping of change is more difficult but it has more

effects

The secret behind change is setting the common sense


21/24


Lean thinking Lean thinking is about pull and its against push

For example, you have to select where to work,

how to live and what to know

In lean thinking, whole values should be seen and

considered

In lean thinking, take one, work on it then finish it beforestarting other tasks

Impacts of push style

Moda ( Waste, ie extra information)

Mory ( If Moda increase, it will causes mental and

physical strain)

Mora ( no sustainability) Pull style and lean thinking will reduce the above

Agility is important concept of change

In paradigm shifts, Agility will contribute in changing

the following

Mind

Heart


22/24


Case of PUSH/PULL stylesIncreasing number of beds in wards in Salmaniya

hospital will not solve problem

Where end-customer-end method ( empathetic

thinking) , you shouldnt allow people to become

patients

Equation of changeD M P > C

Implications of the equation

Total change benefit should be greater than total

costs

D & M can be started in parallel but to start P , D

&M has to be completedModel can be started from best point or worst

point

Example, We have to increase M, D and P as much as we


23/24


Learning VS Unlearning Nobody can change before unlearning

Unlearning assume that you will keep your

perceptions and thoughts aside to open the door for

new learning process

Learning steps

Observation Absorbing Reflection

Learning can be achieved only by doing

The main obstacle for change is people are not

willing to unlearn

To sustain the change, three things has to happenLearning

Earning

Returning

Diagnostics Tools example

KBC factors

Formula of change


24/24


Quizzes & Exercises Quiz 5 ( Situation analysis)

Quiz 6 ( You can give examples about

your organization or about yourself)

Quiz 7 , two ways can be done, either

choose your organization or

organization you know and explainwhy it is belong to certain type.

Explain in details your answer

Give example for companies for

every type.

For example Hierarchy

organizations tend to be Push style

Stability

Control

Clan organizations tend to be

Customer delight

Exercise 5.1 ( p132) , 2 students at least

Documents

Lecture 3 -v2.ppt