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Theoretical Perspectives on Change
Dr Rajeev SharmaMBA and DBA Course Coordinator
Tel: 89466528
Presentation Title | 00 Month 2010 | Slide 2
• Rational change perspective Sequential, planned search for optimal
solutions• Learning approach to change
Change occurs through a series of small steps of experimentation and action
• Cognitive approach to change A change in managerial and employee
cognition must occur before behaviour will change
Theoretical perspectives on change
Presentation Title | 00 Month 2010 | Slide 3
• The three perspectives of change suggest quite different approaches to change
• Each perspective adds a useful dimension• It is therefore relevant that all perspectives
should be included in the change process• It is important to be aware of both the content
of change and the process of change
Integrating the change perspectives
Presentation Title | 00 Month 2010 | Slide 4
• A change model should consider: How much change is needed? How widespread across the
organisation is change required? What style of change process should
be used? How much time and resources are
available?
A General Model of Change
Presentation Title | 00 Month 2010 | Slide 5
• The amount and type of change required comes from the gap analysis performed during the analysis phase
• If the gaps are large – transformational change will be required
• If the gaps are small – incremental change will be appropriate
How much to change?
Presentation Title | 00 Month 2010 | Slide 6
• Fine-tuning Minor changes that have no major impact
• Incremental adjustment Minor change that impacts across the whole
organisation• Modular transformation
Major change in a part of the organisation• Corporate transformation
New strategic orientation or realignment, new structure and/or significant change to the culture, workforce or skills mix
Breadth or Scope of change
Presentation Title | 00 Month 2010 | Slide 7
• Collaborative Relevant knowledge spread through
organisation Most appropriate in knowledge-based
organisations
• Consultative Management has a draft plan but requires
input and different perspectives Helps to focus on areas of contention
Styles of change
Presentation Title | 00 Month 2010 | Slide 8
• Directive Most of the knowledge resides in the centre of
the organisation Plan is developed that is not open for discussion Useful style where deliberate cultural change is
required
• Coercive Appropriate when the organisation is in crisis Limited time and resources Assumes that behaviour will change
Styles of change
Presentation Title | 00 Month 2010 | Slide 9
• Strategy implementation involves change
• Changes can be: incremental (evolutionary)
• or
transformational (revolutionary)• Changes may be:
reactions to unexpected conditions • or
proactive results of good planning
Time and resources available
Presentation Title | 00 Month 2010 | Slide 10
• Incremental or evolutionary change requires small movements from the current set of operational practices
• Transformational change requires major changes in those practices, often scrapping practices altogether
Incremental change process
Presentation Title | 00 Month 2010 | Slide 11
• Periodically organisations can get out of alignment with their environment
• Misalignment can be due to: Strategic drift A change in the ‘rules of the game’
• It could be argued that if incremental changes resulting from good strategic analysis of processes was done well, there would be little or no need for transformational change
Transformational change
Presentation Title | 00 Month 2010 | Slide 12
• Transformational change is often triggered by a crisis in the organisation
• Such a crisis can arise from: An event in the external environment Change in internal management An internally created ‘crisis’ to shake up
organisation
Transformational change
Presentation Title | 00 Month 2010 | Slide 13
• The unfreeze/change/consolidate theory of change posits that: The crisis triggers the unfreezing of the
established mindset, routines and systems Changes are implemented The new position is reinforced by new
capabilities, systems, culture and structures
Unfreeze/change/consolidate
Presentation Title | 00 Month 2010 | Slide 14
• Unfreeze Crisis triggers shift out of established mindset Breaks down routines and systems
• Change Changes to the content of the organisation are
enacted May often be short term, organisational
survival may be paramount Change processes vary depending on
organisation and context
Unfreeze/change/consolidate
Presentation Title | 00 Month 2010 | Slide 15
• Consolidate Need for consolidation with new systems,
culture and structures New ideas and individual actions
institutionalised Without the rigidity implied by ‘freezing’,
organisation is not simply moving from A to B, but from A to B on the way to C… Z
Unfreeze/change/consolidate
Presentation Title | 00 Month 2010 | Slide 16
• A key problem of implementing change is unwillingness of people to accept change.
• Some reasons for resistance to change include: Lack of understanding/uncertainty about
proposed change Self-interest/loss of power/loss of face Different perceptions/frames of reference Change means extra work Change is a surprise Lack of trust in management
Resistance to change
