Change Management Plans

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Any change management plan must take into account the culture of an organization. For instance, some organizations prize the inclusion of their employees in all aspects of operations, while other organizations have a top-down approach to management. Creating a plan without taking this cultural background into context can be problematic for the success of a change initiative.

In a 5-page paper, search the virtual library to find scholarly articles relative to change initiatives which apply to an organization in the Saudi arabia. Assess the cultural elements that you believe may impact the development of change strategies and implementation of change plans. Synthesize the information and discuss challenges and strategies that should be considered to address (or overcome) these cultural elements which could negatively affect the implementation of a change strategy.

Your well-written paper should meet the following requirements:

  • Be 5 pages in length, which does not include the title page, abstract or required reference page, which are never a part of the content minimum requirements.
  • Use APA style guidelines.
  • Support your submission with course material concepts, principles and theories from the textbook and at least 4 scholarly, peer-reviewed journal articles.

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Organizational Change 3e ******ebook converter DEMO Watermarks******* This book is dedicated to our partners: Heather, Bertha, and Steve. ******ebook converter DEMO Watermarks******* Organizational Change An Action-Oriented Toolkit 3e Tupper F. Cawsey Wilfrid Laurier University Gene Deszca Wilfrid Laurier University Cynthia Ingols Simmons College ******ebook converter DEMO Watermarks******* FOR INFORMATION: SAGE Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail: order@sagepub.com SAGE Publications Ltd. 1 Oliver’s Yard 55 City Road London EC1Y 1SP United Kingdom SAGE Publications India Pvt. Ltd. B 1/I 1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044 India SAGE Publications Asia-Pacific Pte. Ltd. 3 Church Street #10-04 Samsung Hub Singapore 049483 Copyright © 2016 by SAGE Publications, Inc. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. Printed in the United States of America Library of Congress Cataloging-in-Publication Data Cawsey, T. F. Organizational change: an action-oriented toolkit / Tupper F. Cawsey, Gene Deszca, Cynthia Ingols. — Third edition. pages cm Includes index. ISBN 978-1-4833-5930-4 (pbk.: alk. paper) 1. Organizational change. I. Deszca, Gene. II. Ingols, Cynthia. III. Title. HD58.8.C39 2016 ******ebook converter DEMO Watermarks******* 658.4′06—dc23 2015006458 This book is printed on acid-free paper. Acquisitions Editor: Maggie Stanley Associate Editor: Abbie Rickard Editorial Assistant: Nicole Mangona eLearning editor: Katie Bierach Production Editor: Libby Larson Copy Editor: Terri Lee Paulsen Typesetter: C&M Digitals (P) Ltd. Proofreader: Bonnie Moore Indexer: Will Ragsdale Cover Designer: Michael Dubowe Marketing Manager: Liz Thornton ******ebook converter DEMO Watermarks******* Brief Contents Preface Acknowledgments Chapter 1. Changing Organizations in Our Complex World Chapter 2. Frameworks for Leading the Process of Organizational Change: “How” to Lead Organizational Change Chapter 3. Frameworks for Diagnosing Organizations: “What” to Change in an Organization Chapter 4. Building and Energizing the Need for Change Chapter 5. Navigating Change Through Formal Structures and Systems Chapter 6. Navigating Organizational Politics and Culture Chapter 7. Managing Recipients of Change and Influencing Internal Stakeholders Chapter 8. Becoming a Master Change Agent Chapter 9. Action Planning and Implementation Chapter 10. Measuring Change: Designing Effective Control Systems Chapter 11. Summary Thoughts on Organizational Change Appendix: Case Studies Case Study 1: Building Community at Terra Nova Consulting Case Study 2: Food Banks Canada: Revisiting Strategy 2012 Case Study 3: “Not an Option to Even Consider:” Contending With the Pressures to Compromise Case Study 4: Diego Curtiz at Highland State University Case Study 5: Ellen Zane—Leading Change at Tufts/NEMC Case Study 6: Ellen Zane at Tufts Medical Center: Spring 2011 Notes Index About the Authors ******ebook converter DEMO Watermarks******* Detailed Contents Preface Acknowledgments Chapter 1. Changing Organizations in Our Complex World Defining Organizational Change The Orientation of This Book Environmental Forces Driving Change Today The Implications of Worldwide Trends for Change Management Four Types of Organizational Change Planned Changes Don’t Always Produce the Intended Results Organizational Change Roles Change Initiators Change Implementers Change Facilitators Common Challenges for Managerial Roles Change Recipients The Requirements for Becoming a Successful Change Leader Summary Key Terms End-of-Chapter Exercises Chapter 2. Frameworks for Leading the Process of Organizational Change: “How” to Lead Organizational Change Differentiating How to Change From What to Change The Processes of Organizational Change (1) Stage Theory of Change: Lewin Unfreeze Change Refreeze (2) Stage Model of Organizational Change: Kotter Kotter’s Eight-Stage Process (3) Giving Voice to Values: Gentile GVV and Organizational Change (4) Emotional Transitions Through Change: Duck Duck’s Five-Stage Change Curve (5) Managing the Change Process: Beckhard and Harris (6) The Change Path Model: Cawsey–Deszca–Ingols Application of the Change Path Model Awakening: Why Change? Mobilization: Gap Analysis of Hotel Operations Acceleration: Getting From Here to There Institutionalization: Measuring Progress Along the Way and Using Measures to Help Make the Change Stick Summary Key Terms End-of-Chapter Exercises Chapter 3. Frameworks for Diagnosing Organizations: “What” to Change in an Organization Open Systems Approach to Organizational Analysis ******ebook converter DEMO Watermarks******* (1) Nadler and Tushman’s Congruence Model History and Environment Strategy The Transformation Process Work The Formal Organization The Informal Organization People Outputs An Example Using Nadler and Tushman’s Congruence Model Evaluating Nadler and Tushman’s Congruence Model (2) Sterman’s Systems Dynamics Model (3) Quinn’s Competing Values Model (4) Greiner’s Model of Organizational Growth (5) Stacey’s Complexity Theory Summary Key Terms End-of-Chapter Exercises Chapter 4. Building and Energizing the Need for Change Understanding the Need for Change Seek Out and Make Sense of External Data Seek Out and Make Sense of the Perspectives of Stakeholders Seek Out and Make Sense of Internal Data Seek Out and Assess Your Personal Concerns and Perspectives Assessing the Readiness for Change Heightening Awareness of the Need for Change Factors That Block People From Recognizing the Need for Change Developing a Powerful Vision for Change The Difference Between an Organizational Vision and a Change Vision Examples of Organizational Change Visions Google’s Implied Vision for Change in Telecommunications Xerox’s Vision for Creating Agile Business Processes IBM—Diversity 3.0 Ronald McDonald House Charities (RMHC) Vision Tata’s Vision for the Nano World Wildlife Fund: Vision for Its Community Action Initiative—Finding Sustainable Ways of Living Vision for the “Survive to 5” Program Change Vision for “Reading Rainbow” Summary Key Terms A Checklist for Change: Creating the Readiness for Change End-of-Chapter Exercises Chapter 5. Navigating Change Through Formal Structures and Systems Making Sense of Formal Structures and Systems Impact of Uncertainty and Complexity on Formal Structures and Systems Formal Structures and Systems From an Information Perspective Aligning Systems and Structures With the Environment Structural Changes to Handle Increased Uncertainty Making Formal Structure and System Choices ******ebook converter DEMO Watermarks******* Using Structures and Systems to Influence the Approval and Implementation of Change Using Formal Structures and Systems to Advance Change Using Systems and Structures to Obtain Formal Approval of a Change Project Using Systems to Enhance the Prospects for Approval Ways to Approach the Approval Process Aligning Strategically, Starting Small, and “Morphing” Tactics The Interaction of Structures and Systems With Change During Implementation Using Structures and Systems to Facilitate the Acceptance of Change Developing Adaptive Systems and Structures Summary Key Terms Checklist: Change Initiative Approval End-of-Chapter Exercises Chapter 6. Navigating Organizational Politics and Culture Power Dynamics in Organizations Departmental Power Organizational Culture and Change How to Analyze a Culture Tips for Change Agents to Assess a Culture Understanding the Perceptions of Change Identifying the Organizational Dynamics at Play Summary Key Terms Checklist: Stakeholder Analysis End-of-Chapter Exercises Chapter 7. Managing Recipients of Change and Influencing Internal Stakeholders Stakeholders Respond Variably to Change Initiatives Not Everyone Sees Change as Negative Responding to Various Feelings in Stakeholders Positive Feelings in Stakeholders: Channeling Their Energy Ambivalent Feelings in Stakeholders: They Can Be Useful Negative Reactions to Change by Stakeholders: These Too Can Be Useful Make the Change of the Psychological Contract Explicit and Transparent Predictable Stages in the Reaction to Change Stakeholders’ Personalities Influence Their Reactions to Change Prior Experience Impacts a Person’s and Organization’s Perspective on Change Coworkers Influence Stakeholders’ Views Feelings About Change Leaders Make a Difference Integrity Is One Antidote to Skepticism and Cynicism Avoiding Coercion But Pushing Hard: The Sweet Spot? Creating Consistent Signals From Systems and Processes Steps to Minimize the Negative Effects of Change Engagement Timeliness Two-Way Communication Make Continuous Improvement the Norm Encourage People to Be Change Agents and Avoid the Recipient Trap Summary ******ebook converter DEMO Watermarks******* Key Terms Checklist: How to Manage and Minimize Cynicism About Change End-of-Chapter Exercises Chapter 8. Becoming a Master Change Agent Factors That Influence Change Agent Success The Interplay of Personal Attributes, Situation, and Vision Change Leaders and Their Essential Characteristics Developing Into a Change Leader Intention, Education, Self-Discipline, and Experience What Does Reflection Mean? Developmental Stages of Change Leaders Four Types of Change Leaders Internal Consultants: Specialists in Change External Consultants: Specialized, Paid Change Agents Provide Subject-Matter Expertise Bring Fresh Perspectives From Ideas That Have Worked Elsewhere Provide Independent, Trustworthy Support Limitations of External Consultants Change Teams Change From the Middle: Everyone Needs to Be a Change Agent Rules of Thumb for Change Agents Summary Key Terms Checklist: Structuring Work in a Change Team End-of-Chapter Exercises Chapter 9. Action Planning and Implementation Without a “Do It” Orientation, Things Won’t Happen Prelude to Action: Selecting the Correct Path Plan the Work Engage Others in Action Planning Ensure Alignment in Your Action Planning Action Planning Tools 1. To-Do Lists 2. Responsibility Charting 3. Contingency Planning 4. Surveys and Survey Feedback 5. Project Planning and Critical Path Methods 6. Tools to Assess Forces That Influence Outcomes and Stakeholders 7. Leverage Analysis 8. Operation Management Tools Working the Plan Ethically and Adaptively Developing a Communication Plan Timing and Focus of Communications Key Principles in Communicating for Change Influence Strategies Transition Management Summary Key Terms Checklist: Developing an Action Plan End-of-Chapter Exercises ******ebook converter DEMO Watermarks******* Chapter 10. Measuring Change: Designing Effective Control Systems Selecting and Deploying Measures Focus on Key Factors Use Measures That Lead to Challenging but Achievable Goals Use Measures and Controls That Are Perceived as Fair and Appropriate Avoid Sending Mixed Signals Ensure Accurate Data Match the Precision of the Measure With the Ability to Measure Control Systems and Change Management Controls During Design and Early Stages of the Change Project Controls in the Middle of the Change Project Controls Toward the End of the Change Project Other Measurement Tools Strategy Maps The Balanced Scorecard Risk Exposure Calculator The DICE Model Summary Key Terms Checklist: Creating a Balanced Scorecard End-of-Chapter Exercises Chapter 11. Summary Thoughts on Organizational Change Putting the Change Path Model Into Practice Future Organizations and Their Impact Becoming an Organizational Change Agent: Specialists and Generalists Paradoxes in Organizational Change Orienting Yourself to Organizational Change Summary End-of-Chapter Exercises Case Studies Case Study 1: Building Community at Terra Nova Consulting Case Study 2: Food Banks Canada: Revisiting Strategy 2012 Case Study 3: “Not an Option to Even Consider:” Contending With the Pressures to Compromise Case Study 4: Diego Curtiz at Highland State University Case Study 5: Ellen Zane—Leading Change at Tufts/NEMC Case Study 6: Ellen Zane at Tufts Medical Center: Spring 2011 Notes Index About the Authors ******ebook converter DEMO Watermarks******* ******ebook converter DEMO Watermarks******* Preface Since the publishing of the second edition of this text, the world has continued to churn in very challenging ways. Uneven and shifting global patterns of growth, sluggish Western economies, continuing fallout from the financial crisis, stubbornly high unemployment levels in much of the world, and heightened global uncertainty in matters related to health, safety, and security define the terrain. Their consequences continue to unfold. The massive credit crisis was followed by unprecedented worldwide government stimulus spending, followed by sovereign debt crises, followed by . . . ??? Wars and insurrections in parts of Africa, the Ukraine, and much of the Middle East; deteriorating international relationships involving major powers; fears of global pandemics (Ebola and MERS); and the rise of ISIS and Boko Haram and their unprecedented inhumanity have shaken all organizations, big or small, public or private. They have also made us, your authors, much more aware of the extreme influence of the external environment on the internal workings of an organization. As we point out in our book, even the smallest of firms have to adapt when banks refuse them normal credit, and even the largest and most successful of firms have to learn how to adapt when disruptive technologies or rapid social and political changes alter their realities. Our models have always included and often started with events external to the organization. We have always argued that change leaders need to scan their environments and be aware of trends and crises in those environments. The events of the past two years have reinforced our sense of this even more. Managers must be sensitive to what happens around them, know how to make sense of this, and then have the skills and abilities that will allow them to both react effectively to the internal and external challenges and remain constant in their visions and dreams of how to make their organizations and the world a better place to live. A corollary of this is that organizations need a response capability that is unprecedented, because we’re playing on a global stage of increasing complexity and uncertainty. If you are a bank, you need a capital ratio that would have been unprecedented a few years ago. If you are a major organization, you need to build in flexibility into your structures, policies, and plans. If you are a public sector organization, you need to be sensitive to how capricious granting agencies or funders will be when revenues dry up. In today’s world, organizational resilience and adaptability gain new prominence. Further, we are faced with a continuing reality that change is endemic. All managers are change managers. All good managers are change leaders. The management job involves creating, anticipating, encouraging, engaging others, and responding positively to change. This has been a theme of this book which continues. Change management is for everyone. Change management emerges from the bottom and middle of the organization as much as from the top. It will be those key leaders who are embedded in the organization who will enable the needed adaptation of the organization to its environment. Middle managers need to be key change leaders. In addition to the above, we have used feedback on the second edition to strengthen the pragmatic orientation that we had developed. The major themes of action orientation, analysis tied with doing, the management of a nonlinear world, and the bridging of the “Knowing– Doing” gap continue to be central. At the same time, we have tried to shift to a more userfriendly, action perspective. To make the material more accessible to a diversity of readers, ******ebook converter DEMO Watermarks******* some theoretical material has been altered, some of our models have been clarified and simplified, and some of our language and formatting has been modified. As we stated in the preface to the first edition, our motivation for this book was to fill a gap we saw in the marketplace. Our challenge was to develop a book that not only gave prescriptive advice, “how-to-do-it lists,” but one that also provided up-to-date theory without getting sidetracked by academic theoretical complexities. We hope that we have captured the management experience with change so that our manuscript assists all those who must deal with change, not just senior executives or organizational development specialists. Although there is much in this book for the senior executive and organizational development specialist, our intent was to create a book that would be valuable to a broad cross section of the workforce. Our personal beliefs form the basis for the book. Even as academics, we have a bias for action. We believe that “doing is healthy.” Taking action creates influence and demands responses from others. While we believe in the need for excellent analysis, we know that action itself provides opportunities for feedback and learning that can improve the action. Finally, we have a strong belief in the worth of people. In particular, we believe that one of the greatest sources of improvement is the untapped potential to be found in the people of the organization. We recognize that this book is not an easy read. It is not meant to be. It is meant as a serious text for those involved in change—that is, all managers! We hope you find it a book that you will want to keep and pull from your shelf in the years ahead, when you need to lead change and you want help thinking it through. Your authors, Tupper, Gene, and Cynthia ******ebook converter DEMO Watermarks******* Acknowledgments We would like to acknowledge the many people who have helped to make this book possible. Our students and their reactions to the ideas and materials continue to be a source of inspiration. Cynthia’s Leadership and Organizational Change course, spring 2014, included Mshael Alessa, Daniella Comito, Katrice Krumplys, Jill Peterson, and other students who applied the concepts in this book and made a difference through their change projects at Simmons College. Managers, executives, and frontline employees that we have known have provided insights, case examples, and applications while keeping us focused on what is useful and relevant. Ellen Zane, former CEO of Tufts Medical Center, Boston, is an inspiring change leader; her turnaround story at Tufts Medical Center appeared in the second edition of this book and is published again in this third edition. Cynthia has also been fortunate to work with and learn from Gretchen Fox, founder and former CEO, FOX Relocation Management Corporation. The story of how she changed her small firm appeared in the second edition of the book and the case continues to be available through Harvard Business Publishing (http://hbr.org/product/fox-relocation-management-corp/an/NA0096-PDF-ENG). Katharine Schmidt, a former student of Gene‘s and the CEO of Food Banks Canada, is another of the inspiring leaders who opened her organization to us and allowed us to learn from their experience, and share it with you in this edition. Several colleagues have provided guidance and feedback along the way that have helped us test our logic and develop our thinking and writing. Cynthia would like to especially thank Professor Mary Shapiro, a colleague at the School of Management, Simmons College, who read each chapter thoroughly and gave insightful feedback on the manuscript. Dr. Paul Myers, consultant, Boulder, CO, read Chapters 2 and 3 with a fine-tooth comb and gave us astute criticism, allowing us—paradoxically—to both simplify and add complexity to those chapters. Our research assistants have provided valuable support. John Schappert and Charles Newell assisted with the search for relevant research articles, reports of change initiatives, and websites of interest. We owe a HUGE THANKS to Paige Tobie. She searched for articles and web-based materials, participated in our conference calls, made sure ideas and changes didn’t get lost, and kept us on track, on time, and working with the right versions of the manuscript. She provided valuable input on drafts of the manuscript from a student/practitioner’s perspective, and then read the entire manuscript one last time, catching problematic areas. She did all these tasks while retaining her sense of humor and remaining a pleasure to work with. Thank you so very much, Paige: You have been a wonderful project manager, researcher, and colleague! As with the last edition, our partners Heather Cawsey, Bertha Welzel, and Steve Spitz tolerated our moods, our myopia to other things that needed doing, and the early mornings and late nights spent on the manuscript. They helped us work our way through ideas and sections that were problematic, and they kept us smiling and grounded when frustration mounted. ******ebook converter DEMO Watermarks******* Our editors at Sage have been excellent. They moved the project along and made a difficult process fun (well, most of the time). Thank you, Maggie Stanley, our acquisitions editor, for keeping us on task and on time (or trying to keep us on time . . . ). We appreciate your style of gentle nudges. Nicole Mangona, editorial assistant, was constantly on top of the various parts of the book and helped us push through to the end. Finally, we would like to recognize the reviewers who provided us with valuable feedback on the second edition. Their constructive, positive feedback and their excellent suggestions were valued. We thought carefully about how to incorporate their suggestions into this third edition of the book. Thank you, Jeff Zimmerman, Northern Kentucky University; Lorraine M. Henderson, Nazareth College of Rochester; Ross A. Wirth, Franklin University; Ericka Kimball, Augsburg College; Whitney McIntyre Miller, Northern Kentucky University; Sandra R. Bryant, Tiffin University; John Anthony DiCicco, Curry College; and Paul M. Terry, University of South Florida. In short, our thanks to all who made this book possible. ******ebook converter DEMO Watermarks******* Chapter 1 Changing Organizations in Our Complex World It is not the strongest of the species that survive, nor the most intelligent, but the most responsive to change. ******ebook converter DEMO Watermarks******* Chapter Overview The chapter defines organizational change as “planned alteration of organizational components to improve the effectiveness of organizations.” The orientation of this book is to assist change managers or potential change leaders to be more effective in their change activities. The social, demographic, technological, political, and economic forces pushing the need for change are outlined. Four types of organizational change are discussed: tuning, adapting, reorienting, and re-creating. Four change roles found in organizations are described: change initiators, change implementers, change facilitators, and change recipients and stakeholders. The terms change leader and change agent are used interchangeably and could mean any of the four roles. The difficulties in creating successful change are highlighted, and then some of the characteristics of successful change leaders are described. Organizations fill our world. We place our children into day care, seek out support services for our elderly, and consume information and recreational services supplied by other organizations. We work at for-profit or not-for-profit organizations. We rely on organizations to deliver the services we need: food, water, electricity, and sanitation and look to governmental organizations for a variety of services that we hope will keep us safe, secure, well governed, and successful. We depend on health organizations when we are sick. We use religious organizations to help our spiritual lives. We assume that most of our children’s education will be delivered by formal educational organizations. In other words, organizations are everywhere. Organizations are how we get things done. This is not just a human phenomenon—it extends to plants and animals—look at a bee colony, a reef, a lion pride, or an elephant herd and you’ll see organizations at work. And these organizations are changing—some of them declining and failing, while others successfully adapt or evolve, to meet the shifting realities and demands of their environments. What exactly is organizational change? What do we mean when we talk about it? Defining Organizational Change When we think of organizational change, we think of major changes: mergers, acquisitions, buyouts, downsizing, restructuring, the launch of new products, and the outsourcing of major organizational activities. We can also think of lesser changes: departmental reorganizations, installations of new technology and incentive systems, shutting particular manufacturing lines, or opening new branches in other parts of the country—fine-tuning changes to improve the efficiency and operations of our organizations. In this book, when we talk about organizational change, we refer to planned alterations of organizational components to improve the effectiveness of the organization. Organizational components are the organizational mission, vision, values, culture, strategy, goals, structure, processes or systems, technology, and people in an organization. When organizations enhance their effectiveness, they increase their ability to generate value for those they serve.* The reasons for change are often ambiguous. Is the change internally or externally driven? In winter 2014, Tim Hortons (a Canada-based coffee restaurant chain) announced that it was aiming to open 1,000 new stores globally by 2018, joining their network of 3,468 outlets in Canada, 807 in the United States, and 29 in the Persian Gulf. It has also been busy revising its menu to shore up flattening same-store sales, adding Wi-Fi access, undertaking major store ******ebook converter DEMO Watermarks******* remodeling, and making changes to its sustainability and corporate social responsibility initiatives. What is driving these changes? The executives reported that they were undertaking these actions in response to competitive pressures, customer needs, market opportunities, and the desire to align their efforts with their values. For Tim Hortons, the drivers of change are coming from both the internal and external environment. Dunkin’ Donuts, a much larger U.S. chain with similarities to Tim Hortons’ business model and competitive pressures, seems to be pursuing similar adaptive responses.1 It is essential for managers to be sensitive to what is happening inside and outside the organization, and adapt to those changes in the environment.† Note that, by our definition and focus, organizational change is intentional and planned. Someone in the organization has taken an initiative to alter a significant organizational component. This means a shift in something relatively permanent. Usually, something formal or systemic has to be altered. For example, a new customer relations system may be introduced that captures customer satisfaction and reports it to managers; or a new division is created and people are allocated to that division in response to a new organizational vision. Simply doing more of the same is not an organizational change. For example, increasing existing sales efforts in response to a competitor’s activities would not be classified as an organizational change. However, the restructuring of a sales force into two groups (key account managers and general account managers) or the modification of service offerings would be, even though these changes could well be in response to a competitor’s activities rather than a more proactive initiative. Some organizational components, such as structures and systems, are concrete and thus easier to understand when contemplating change. For example, assembly lines can be reordered or have new technologies applied. The change is definable and the end point clear when it is done. Similarly, the alteration of a reward system or job design is concrete and can be documented. The creation of new positions, subunits, or departments is equally obvious. Such organizational changes are tangible and thus may be easier to make happen, because they are easier to understand. When the change target is more deeply imbedded in the organization and is intangible, the change challenge is magnified. For example, a shift in organizational culture is difficult to engineer. A change leader can plan a change from an authoritarian to a more participative culture, but the initiatives required to bring about the change and the sequencing of those initiatives are trickier to get a hold of than more concrete change initiatives. Simply announcing a new strategy or vision does not mean that anything significant will change since: “You need to get the vision off the walls and into the halls.”2 A more manageable way to think of such a culture change is to identify concrete changes that reinforce the desired culture. If management alters reward systems, shifts decision making downward, and creates participative management committees, then management increases the likelihood that it will create cultural change over time. Sustained behavioral change occurs when people in the organization understand, accept, and act. Through their actions, the new vision or strategy becomes real.3 The target of change needs to be considered carefully. Often, managers choose concrete tangible changes because they are easiest to plan for and can be seen. For example, it is relatively easy to focus on pay and give monetary incentives in an attempt to address employee morale. But the root cause of these issues might be managerial styles or processes —much more difficult to recognize and address. In addition, intervening through ******ebook converter DEMO Watermarks******* compensation may have unanticipated consequences and actually worsen the problem. An example of this can be found in the story below. In this example, if the original analysis had been accepted, turnover rates might have declined since staff may have been persuaded to stay for higher wages. But the agency would be facing monetary issues and would have had a festering morale problem. Change at a Social Service Agency In a mid-sized social service agency’s family services division, turnover rates climbed to more than 20%, causing serious issues with service delivery and quality of service. The manager of the division argued that staff were leaving because of wages. According to him, children’s aid societies’ wages were higher and staff left to join those organizations. Upon investigation, senior management learned of morale problems arising from the directive, noninclusive management style of the manager. Instead of altering pay rates, which would have caused significant budgetary and equity problems throughout the organization, senior management replaced the manager and moved him to a project role. Within months, turnover rates dropped to less than 10% and the manager decided to leave the agency.4 The Orientation of This Book The focus, then, of this book is on organizational change as a planned activity designed to improve the organization’s effectiveness. Changes that are random (occur simply due to chance) or unplanned are not the types of organizational change that this book will explore, except, insofar, as they serve as the stimulus for planned change initiatives. Similarly, changes that may be planned but do not have a clear link to attempts to improve organizational effectiveness are not considered. That is, changes made solely for personal reasons—for personal gain, for example—fall outside the intended focus of this book. There is a story of two stonecutters. The first, when asked what he was doing, responded, “I am shaping this stone to fit in that wall.” The second, however, said, “I am helping to build a cathedral.” The jobs of the two stonecutters might be the same, but their perspectives are dramatically different. The personal outcomes of satisfaction and organizational commitment will likely be much higher for the visionary stonecutter than for the “just doing my job” stonecutter. Finally, the differences in satisfaction and commitment may well lead to different organizational results. After all, if you are building a cathedral, you might be more motivated to stay late, to take extra care, to find ways to improve things, and to help others when help is needed. In other words, the organizational member who has a broader perspective on the value of his or her contributions and on the task at hand is likely to be a more committed and capable contributor. As a result, we take a perspective that encourages change leaders to take a holistic perspective on the change and to be widely inclusive in letting employees know what changes are needed and are happening. If employees have no sense of the intended vision and see themselves as “just doing a job,” it is likely that any organizational change will be difficult to understand, be resisted, and cause personal trauma. On the other hand, if employees “get” the vision of the organization and understand the direction and perspective of where the organization is going and why, they are ******ebook converter DEMO Watermarks******* more likely to embrace their future role—even if that future means they leave the organization.5 This book is aimed at those who want to be involved in change and wish to take positive action. We encourage readers to escape from passive, negative change recipient positions and to move to more active and healthy roles—those of change initiators, facilitators, and implementers. Readers may be in middle-manager roles or may be students hoping to enter managerial roles. Or they may be leaders of change within an organization or a subunit. The book is also intended for the informal leaders in organizations who are driving change, sometimes in spite of their bosses. They might believe that their bosses “should” be driving the change but don’t see it happening, and so they see it as up to them to make change happen regardless of the action or inaction of their managers. This book has an action, “how to do it” emphasis. Nothing happens unless we, the people, make it happen. As one wag put it, “The truth is—the cavalry aren’t coming!” There will be no cavalry charging over the hill to save us. It is up to us to make the changes needed. At the same time, this “how-to” orientation is paired with a focus on developing a deep understanding of organizations. Without such an understanding, what needs to be changed, and what the critical success factors are, change efforts will be much more difficult. This twin theme, of knowing both how to do it and what to do, underpins the structure of this book and our approach to change. To paraphrase Zig Ziglar: “It’s not what happens to you that matters. It’s how you respond that makes a difference.”6 Change capability is a core managerial competence. Without skills in change management, individuals cannot operate effectively in today’s fluctuating, shifting organizations.7 Senior management may set the organizational direction, but, in this decentralized organizational world, it is up to managers and employees to shift the organization to accomplish the new goals and objectives. To do this, change-management skills are paramount. In many organizations, those managers are looked to for insights, innovative ideas, and initiatives that will make a positive difference in their firms. Investigate firms such as Google, the Mayo Clinic, Cisco, and others listed among the 100 best to work for here and offshore, and you will find many examples of firms embracing these practices.8 They do so with a realistic appreciation for the fact that change management is often more difficult than we anticipate. We believe, as do Pfeffer and Sutton, that there is a Knowing–Doing gap.9 Knowing the concepts and understanding the theory behind organizational change are not enough. This book is designed to provide practicing and prospective managers with the tools they will need to be effective change agents. Environmental Forces Driving Change Today Much change starts with shifts in an organization’s environment. For example, government legislation dealing with employment law pushes new equity concerns through hiring practices. Globalization means that marketing, research and development, production, and other parts of an organization (e.g., customer service’s call centers) can be moved around the world and/or outsourced. International alliances form and reform. These and related factors mean an organization’s competition is often global in nature, rather than local. New technologies allow purchasing to link to production within an integrated supply chain, changing forever supplier–customer relationships. Concerns over global warming, sustainability, and environmental practices give rise to new laws, standards, and shifts in consumer preferences for products and firms that exhibit superior environmental ******ebook converter DEMO Watermarks******* performance. A competitor succeeds in attracting an organization’s largest customer and upsets management’s assumptions about the marketplace. Each of these external happenings will drive and push the need for change. These factors are summed up in the acronym PESTE. PESTE factors include political, economic, social, technological, and ecological/environmental factors that describe the environment or context of an organization. These are not simply private sector realities. Not-for-profits, hospitals, schools, and governments all experience these environmental challenges as the world shrinks and the seeming pace of change accelerates and increases in complexity. Not-for-profits or NGOs (nongovernmental organizations) and various governmental bodies respond to hunger in wartorn Somalia and Syria, public universities and hospitals respond to for-profit competitors. Governments around the world deal with issues related to enhancing their economic competitiveness and attract employment, hopefully in sustainable and socially responsible ways. No one is immune. Sometimes organizations are caught by surprise by environmental shifts, while other organizations have anticipated and planned for new situations. For example, management may have systems to track the perceived quality and value of its products versus its competition’s. Benchmarking data might show that its quality is beginning to lag behind that of a key competitor or it might be instrumental in identifying product changes that can lead to market advantages. These environmental scanning and early warning systems allow for action before customers are lost or provide paths to new customers and/or new services. Toyota had such systems in place, but management appears to have responded inadequately. It’s beyond the scope of this book to provide an in-depth treatment of all of the various trends and alterations in the environment. However, we will highlight below some of the important trends to sensitize readers to their environments. As is always the case, organizations find themselves influenced by fundamental forces: changing social, cultural, and demographic patterns; spectacular technological achievements that transform how we do business; concerns about the physical environment and social responsibility that are producing demands for changes in our products and business practices; a global marketplace that sends us competing worldwide and brings competition to our doorsteps; political and legal forces that have the potential to transform the competitive landscape; continued political uncertainty in many countries that has the potential to introduce chaos into world markets; and the aftermath of the economic turmoil that rocked the world economy in 2008, 2009, and 2010. The Changing Demographic, Social, and Cultural Environment Age Matters. The social, cultural, and economic environment will be dramatically altered by demography. Demographic changes in the Western world and parts of Asia mean that aging populations will gray the face of Europe, Canada, China, and Japan.14 The financial warning bells are already being sounded. Even before the huge government deficits of 2009 and beyond that Western nations have been digging themselves out from under, Standard & Poor’s predicted that the average net government debt-to-GDP ratio for industrialized nations will increase from 33% in 2005 to 180% by 2050, due to rising pension and health care costs,15 if changes are not undertaken. ******ebook converter DEMO Watermarks******* Although the United States will age less quickly, Europe and Japan will face a dependency crisis of senior citizens requiring medical care and pension support. By 2050, the median age in the United States is projected to be 36.2 versus 52.7 in Europe. The United States will keep itself younger through immigration and a birth rate that is close to replacement level,16 though even here growth assumptions have come under question as the rate of immigration has declined in the aftermath of the economic slowdown and questions around emigration policies remain highly politicized. Even with this influx, if nothing changes, Standard & Poor’s estimates the U.S. governmental debt-to-GDP ratio will grow to 472% of GDP by 2050, due mainly to pension and health care costs.17 Aging European countries will be around 300–400% of GDP, despite older populations, due to more cost-efficient approaches to these areas. On the high side, Japan is predicted to reach 729%. Europe’s population is projected to peak in 2015 at around 400 million, while the United States passes that number in 2020 and continues to grow thereafter. Throughout the world, fertility rates are falling and falling fast.18 In 1974, only 24 countries had fertility rates below replacement levels. By 2009, more than 70 countries had rates below 2.1. In some countries, the swings are dramatic. The fertility rate in Iran dropped from 7 in 1984 to 1.9 in 2009, a huge shift. Source: U.N. Population Division. Approximate data from the bar graph are summarized in the following table: Some see a close tie between female education, fertility rates, and economic growth. When economies are poor, the fertility rate is high and there are many young dependents relying on working adults and older siblings for sustenance. When fertility rates drop, there is a bulge of people, meaning the ratio of working adults to dependents increases, leading to an increase in per capita wealth. Mexico and China are examples of this currently. When this bulge ages, dependent, nonworking seniors become a larger percentage of the population, so these advantages tend to disappear over time, as incomes rise and fertility rates fall.19 As discussed above, this has happened and is happening in Europe and Japan. India, Africa, and Mexico are examples of areas with a smaller proportion of dependents (the young and the old) relative to their working populations, and this is something referred to as an economic dividend. However, it is only a dividend if the population has the skills and abilities needed, and there is infrastructure and policies in place to support such employment—something many developing nations are finding very challenging.20 These demographic shifts can take decades to work their way through, and the economic implications for organizations are significant. Imagine 400 to 500 million relatively wealthy ******ebook converter DEMO Watermarks******* Americans and the impact that will have on global economic power, assuming that pension and health care challenges are effectively managed. Consumer spending in emerging economies is expected to more than double from $4 trillion to more than $9 trillion in the next 10 years.21 Also imagine the impact of a graying Europe and Japan’s declining workforce. Some estimates put the fiscal problems in providing pensions and health care for senior citizens at 250% of national income in Germany and France.22 Pension costs can become a huge competitive disadvantage at the company level as well. At General Motors, there were 2.5 retirees for every active worker in 2002. These so-called “legacy” costs were $900 per vehicle at that time due to pension and health care obligations. These costs rose to $1,800 by 200623 and retired employee–related costs were one of the key reasons that GM sought bankruptcy relief in 2009. Companies appear to be ill prepared to deal with this aging population.24 Both private and public sector employers are waking up to these pressures and attempting to bring about changes to their pension programs that will be more sustainable, but the journey will not be easy. Public pushback to reductions in pension income and other entitlement programs has been strong, and even relatively modest proposals for shifts to policies such as increasing the age of retirement by a year or two have faced widespread resistance. This is resistance that scares politicians because these are also people who are most likely to vote and who are also feeling vulnerable as they find their savings are insufficient to sustain their lifestyle.25 An aging population also provides new market opportunities—would you have predicted that the average age of a motorcycle purchaser would be over 49? That’s Harley-Davidson’s experience.26 With aging populations, organizations can expect pressures to manage age prejudice more effectively. Subtle discrimination based on age will not be accepted. Innovative solutions will be welcomed by aging members of the workforce and an increasing necessity for employers. See the story below. Did Toyota or GM Know About the Safety Defects? Misreading the Environment and Associated Risks On April 5, 2010, the U.S. government’s transportation department stated it would seek $16.4 million from Toyota for not notifying the government about potential accelerator pedal problems. “In taking the step, federal authorities are sending the strongest signal yet that they believe the carmaker deliberately concealed safety information from them.”10 Did Toyota know about these deficiencies and respond by denying they existed and covering up? If so, this is an example of an inappropriate organizational response to environmental stimuli. The same question could be asked of General Motors concerning ignition switch problems in the Cobalt and other brands. By GM’s admission, they first became aware of this problem in 2001. It was the subject of a technical service bulletin in 2005, but there was no recall until 2014, in the aftermath of multiple deaths and injuries, mounting public scrutiny, and lawsuits. The global recall totaled 2.6 million vehicles by May 2014, there have been humiliating U.S. congressional hearings, Mary Barra (GM’s new CEO) has publically apologized, and GM is seeking immunity from the courts for lawsuits related to periods before its 2009 bankruptcy. To say this has the potential to undermine confidence in GM and its brand would be a gross understatement and points to the danger of failing to act and implement needed changes in a timely manner.11 ******ebook converter DEMO Watermarks******* The Risks of Excessive Push From the External Environment The financial crisis of 2008 occurred because banks failed to comprehend the risks they took with asset-backed securities and other derivatives. Incentive systems drove bankers to take on excessive risks for excessive profits. They denied the evidence presented to them, and when the bubble burst, the results were catastrophic. For example, when warned by his chief risk officer, who proposed shutting down the mortgage business in 2004, the head of Lehman Brothers threatened to fire him! This rush for profits drove many banks. Chuck Prince, the head of Citigroup at the time, just before the credit markets seized up in August 2007, said: “As long as the music is playing, you’ve got to get up and dance. We’re still dancing.”12 Clearly both bankers misread the ethical and business implications of what was going on inside their firms. Either there was collective myopia at work with respect to mounting evidence of excessive risk from very credible sources13 or the rewards and short-term performance pressures were such that they chose not to attend to the warning clouds. Older Workers Can’t Be Ignored “The day is coming when employers are going to embrace the value of older workers. They don’t have a choice,” writes Kerry Hannon. Demographic and fiscal realities are making the retention of older members of the workforce escalate in importance and give rise to the innovations in working relationships, from full time to flexible work relationships and contract positions. Some employers are realizing the benefits that these employees can bring with them and are recognizing the importance of investing in them before their knowledge walks out the door. Employers that fail to adjust their approach to older employees could find themselves seriously at risk as U.S. labor markets reflect the demographic realities.27 KPMG has publically recognized the benefits, noting that “older workers tend to be more dedicated to staying with the company, a plus for clients who like to build a relationship with a consultant they can count on to be around for years.”28 Diversity Matters Other demographic issues will provide opportunities and challenges. In the United States, Latinos will play a role in transforming organizations. The numbers of Latinos jumped from 35.3 million during the 1990s, to 50.5 million or 16% of the population in 2010 (up from 13% in 2000), making them the largest ethnic/racial group in the United States. They are also much younger (27 versus the national average age of 37.2), and 63% of its members have been born in the United States. Significantly, the largest growth often is in “hyper-growth” Latino destinations such as Nevada and Georgia,29 some of which have seen an increase of more than 300% in Latino populations since 1980. The immigration component of this growth rate was adversely affected by the U.S. economic downturn and improvements in the Mexican economy, but it is predicted to continue upward due to domestic population growth, plus the impact that a return to economic health will have on immigration. One of the outcomes of hyper-growth in certain urban areas has been an imbalance of Latino males and females. In the non-Latino population, the ratio of males to females is 96:100. In the Latino population, ratios as high as 118:100 are seen in the hyper-growth destinations.30 While the specific implications for businesses are unclear, the general need for response and change is not. Notions of cultural norms (including those around English literacy and dominant language used) and markets could be shattered by such demographic shifts. There have also been significant demographic shifts in Europe and parts of Asia, as people move from disadvantaged areas (economic, social, and political) in search of greater opportunities, security, and social justice. These trends are likely to continue, and as in the United States, they provide both challenges and opportunities. For countries like France and ******ebook converter DEMO Watermarks******* Austria, they help to moderate the effects of an aging population by providing new entrants to the workforce and new customers for products and services. However, they also represent integration challenges in terms of needed services and there has been a backlash from some groups, who see them as both an economic and social threat. Resistance to immigration reform in the United States, the tightening of emigration rules in Canada, and the rise of antiimmigration political parties in Western Europe are evidence of this. Our assumptions about families and gender will continue to be challenged in the workplace and marketplace of the future. Diversity, inclusiveness, and equity issues will challenge organizations with unpredictable results. The heated debates that occurred in the United States in 2006 concerning legislation related to illegal or undocumented immigrants, temporary workers, and family unification continue to provoke passionate positions and no resolution as of 2014. In Europe, debate around these topics has given rise to some electoral success by what used to be fringe parties, and isolated examples of violence. Some nations have implemented laws around certain religious practices (typically associated with dress and visible symbols in schools and workplaces) that are viewed by many as discriminatory.31 Matters related to same-sex marriage, gender identity, and gender equity continue to be challenging for many organizations, as laws and behavioral norms related to what is acceptable slowly evolve. The front-page coverage devoted to the drafting by the St. Louis Rams of Michael Sam, the first openly gay professional football player, testifies to the attention and emotions these matters can generate.32 In too many parts of the world they represent life and death issues. In some nations, employment- and human rights–related legislation have gone a long way toward advancing the interests and acceptance of diversity, by providing guidance, rules of conduct, and sanctions for those who fail to comply. However, issues related to race and diversity still need to be attended to by organizations. Participation and career advancement rates and salary level differences continue to attract the attention of politicians, the public, and the courts. Further, they constrain the development of talent in organizations and have adverse consequences on multiple levels—from the ability to attract and retain to performance and attitudinal outcomes that can, in turn, influence the culture and work climate of the firm.33 What happens when this boils over? In 2014 the intense news coverage and disciplining of Donald Sterling, the owner of the Los Angeles Clippers NBA franchise, for racist comments made during a private conversation, point to the extreme distress it caused members of the team and the reputational and brand consequences his behavior had on the franchise and the league itself. Only the swift actions of NBA Commissioner Adam Silver contained the damage, facilitated the sale of the franchise, and clearly signaled what was expected of owners.34 Risks in this area are not just related to the actions of senior management. Social media exposure extends the risks to all levels of the firm, where postings from organizational members can and do go viral with adverse consequences (more will be said about this later). Employees in the United States have certain protections when it comes to discussing working conditions with others online. In the case of fast-food restaurants, this has manifested itself into a very public national campaign to increase the minimum wage from $7.50 to $15.00 per hour. This campaign began on social media and firms are finding they must respond very carefully, in part because of the public’s connection to a workforce where matters of age, gender, race, ethnicity, and economic fairness are very visible.35 ******ebook converter DEMO Watermarks******* When employee postings go over the line on matters of race, gender, diversity, and equity, firms need to act and be seen to be acting quickly and appropriately in order to control damage.36 Being viewed as proactive and progressive in these areas can create advantages for firms in terms of attraction, retention, and the commitment levels of employees and customers. Firms such as TD Bank communicate this commitment very publically and have been recognized as one of the best employers by Diversity Inc., Corporate Knights, and the Human Rights Campaign.37 Multinational corporations, such as IBM, view workforce diversity management as a strategic tool for sustaining and growing the enterprise.38 That doesn’t mean it is easy. Google has sought to increase the diversity of its workforce for several years. In May 2014 it publically recognized its current lack of diversity (30% women, 2% black, and 3% Hispanic), and committed itself to aggressively address this through significant external and internal initiatives geared to attracting more individuals from these groups to technical careers and Google.39 Smaller and medium-size firms (particularly tech start-ups) are increasingly recognizing the importance of this, as they attempt to scale their operations. Race, gender, age, and diversity-related challenges multiply once organizations extend their footprints internationally. Differing rules, regulations, cultural norms, and values add to the change leadership challenges that need to be managed, as people learn to work with one another in efficient, effective, and socially appropriate ways. Think of the workforce challenges that a North American, Brazilian, or Indian firm needs to address when establishing their presence in a different part of the world. How will they deal with norms and values in these areas that run contrary to their core values? This is not just an issue for larger organizations. Increasingly, smaller firms find themselves facing international challenges as they seek to grow. These come in many forms—from managing virtual, globally dispersed teams and supply chains, to dealing with the complexities of joint ventures. While the challenges can seem daunting, an increasing number of small and midsize companies are succeeding on the global stage. A study of 75 such firms highlights the strategies and tactics that have produced positive results. Change leadership skills in these firms play a critical role in their survival and success.40 The Physical Environment and Social Responsibility Matters Concerns over global warming, the degradation of the environment, sustainability, and social responsibility have escalated societal pressure for change at the intergovernmental, governmental, multinational and national corporate, and community levels. Accountability for what is referred to as the “triple bottom line” is leading firms to issue audited statements that report on economic, social, and ecological performance with the goal of sustainability in mind.41 The 2013 fire and building collapse involving garment suppliers in Bangladesh (1,100 workers killed) and the 2014 spread of the Ebola virus in West Africa intersect with questions about the role of multinational corporations in the health and safety of people in developing countries. The 2010 pictures of BP’s oil well gushing millions of gallons into the Gulf of Mexico combined with pictures of oil-coated pelicans, drought, extreme heat, stormrelated flooding, and disappearing ice masses reinforce the message that action is urgently needed. These pressures will intensify in the years ahead. There is also mounting evidence of the advantages that can accrue to organizations that think about these issues proactively and align their strategies and actions with their commitment to sustainability and corporate social responsibility.42 ******ebook converter DEMO Watermarks******* New Technologies In addition to responding to environmental and demographic changes in the workplace and marketplace, organizations and their leaders must embrace the trite but true statements about the impact of technological change. Underpinning technological change is the sweeping impact that the digitization of information is having. The quantity of data available to managers is mind-boggling. It is estimated that digital data will grow from 400 billion gigabytes of Web-enabled data in 2013 to 40 trillion gigabytes by 2020.43 The explosion in the amount of data available will be aided by the impact of inexpensive nano-scale microelectronics that will allow us to add sensors and collection capacity to just about anything. Data mining is becoming an increasingly common function in organizations that seek to transform data into information.44 The following list of technological innovations points to the breadth of changes we can anticipate. This is not the stuff of science fiction. In most of these areas applications are already present and costs are declining rapidly: Software that writes its own code, reducing human error Health care by cell phone and laptop Vertical farming to save space and increase yield45 Mobile Internet, the Internet of Things, cloud technology, and crowd sourcing The automation of knowledge work Advanced robotics, from industrial applications to surgery Wearable computing, from basic data gathering to human augmentation and computer– brain interfaces Autonomous and near autonomous vehicles Next-generation genomics, from agricultural applications to substance production (e.g., fuel) and disease treatment applications Renewable energy and energy storage breakthroughs that will change energy access and cost equations 3-D printing for applications as varied as the production of auto parts and human body parts Advanced materials (e.g., nano technology) for a host of applications that will result in dramatic reductions in weight and improvements in strength, flexibility, and connectivity Advanced oil and gas exploration and recovery technologies46 Technology has woven our world together. The number of international air passengers rose from 75 million in 1970 to an estimated 2.9 billion in 2012.47 The cost of a 3-minute phone call from the United States to England dropped from more than $8 in 1976 to less than $0.06 in 2014 when VoIP (voice over Internet protocol) is used for a call to a landline or cell phone. The number of transborder calls in the United States was 200 million in 1980.48 Estimates of the numbers today are in the tens of billions. VoIP has disrupted traditional long-distance telephone markets dramatically, and the proliferation of alternative communication channels, including SMS texting, BBM (Blackberry Messenger), Facebook, and their equivalents on other platforms have transformed the communication landscape. There were a total of 6.8 billion cell phones in use in 2013, meaning one for almost every person alive.49 In 2013, an estimated 968 million smartphones were shipped, meaning access to digital information and apps for everything from weather forecasts to online purchasing and the transfer of funds. Even those without access to a bank or smartphone can transfer cash safely and securely on a ******ebook converter DEMO Watermarks******* regular cell phone in some developing parts of the world—google “M-Pesa” for an example of this.50 Our embrace of digital technology and connectedness has opened the world to us and made it incredibly accessible, but it has come with costs. Security concerns related to viruses and hacking have also escalated, and serious breaches are a common occurrence. The Ponemon Institute estimates that in the United States alone, 110 million adults had their personal information exposed by hackers during a 12-month period in 2013. The cost to firms responding to these threats and breaches are in the billions, and that doesn’t include the damage done to customer trust/loyalty. Costs related to online fraud and identity theft are in the billions and growing rapidly. These issues will not go away any time soon.51 Issues related to the loss of privacy, industrial espionage, and sabotage involving both firms and government agencies have also become common.52 On a business-to-business level, supply chains woven together through software allows them to operate effectively and efficiently, while at the same time opening them to risks.53 With the Internet, students around the globe can access the same quality of information that the best researchers have, if it is in the public domain (which is increasingly the case) and if their government hasn’t censored access to it. At the same time, the technology that has made the world smaller has also produced a technological divide between haves and have-nots that has the potential to produce social and political instability. Aspects of the gap are closing, as is seen in the growth of cell phones, smartphones, and Internet access in the developing world. Laptops and tablets are now available at well under $100, and the cost in India has dropped to below $50.54 Lack of access to clean water, sufficient food, and needed medication is less likely to be tolerated in silence when media images tell people that others have an abundance of such resources and lack the will to share. Events such as the Arab Spring, Occupy Wall Street, and the 2014 election of Narendra Modi as India’s prime minister point to the power this technology has in mobilizing public interest and action. Technology transforms relationships. Facebook, LinkedIn, Twitter, and their equivalents keep us connected, a third of U.S. newlyweds in 2012 were reported to have met online, and people have even been found attempting to text in their sleep.55 The New Change Tool on the Block Social media has fundamentally altered thinking about change management. It has changed how information is framed, who frames it, and how quickly it migrates from the few to the many. It can stimulate interest, understanding, involvement, and commitment to your initiative. Or it can create anxiety and confusion and be used to mobilize opposition and resistance by those opposed. The one thing it can’t be is be ignored! Our purpose is not to catalogue all new and emerging technologies. Rather, our intent is to signal to change leaders the importance of paying attention to technological trends and the impact they may have on organizations, now and in the future. As a result of these forces, product development and life cycles are shortened, marketing channels are changing, and managers must respond in a time-paced fashion. Competitors can leapfrog organizations and drop once-market-leaders into obsolescence through a technological breakthrough. The advantages of vertical integration can vanish as technical insights in one segment of the business drive down the costs, migrate the technology through outsourcing to other segments, or otherwise alter the value chain in other ways that had not been anticipated. Is this overstating the importance of paying attention to how rapidly technological and social change can alter the competitive landscape? BlackBerry went from creating and dominating the smartphone business to less than 3% market share in five years. Dramatic downsizing and reinvention are now the order of the day, as the BlackBerry executives search for new paths forward and renewed market relevance.56 Now shift your thoughts to the automotive sector. What will the emergence of self-driving electric vehicles mean for manufacturers and their suppliers and distributors? What will they mean for city planners, urban transit, and the taxi driver? Prototypes are currently driving on the streets of Mountain View, California, and expectations are that these sorts of vehicles ******ebook converter DEMO Watermarks******* will be for sale in a few years.57 The watchwords for change leaders are to be aware of technological trends and to be proactive in their consideration of how to respond to organizationally relevant ones. Political Changes The external political landscape of an organization is a reality that change leaders need pay attention to and figure out how to engage. Even the largest of multinationals has minimal impact on shaping the worldwide geo-political landscape and the focus of governing bodies.58 However, if they are attentive and nimble, their interests will be better served. The collapse of the Soviet Empire gave rise to optimism in the West that democracy and the market economy were the natural order of things, the only viable option for modern society.59 With the end of communism in Russia, there was the sense that there was no serious competitor to free-market democracy and the belief existed that the world would gradually move to competitive capitalism with market discipline. Of course, this optimism was not realized. Nationalistic border quarrels (India–Pakistan, for example) continue. Some African countries have become less committed to democracy (Zimbabwe and Ethiopia). Nation-states have dissolved into microstates (Yugoslavia and Sudan) or had portions annexed as in the case of Crimea. While American power may be dominant worldwide, September 11, 2001 (9/11), demonstrated that even the dominant power cannot guarantee safety. Non–nation–states and religious groups have become actors on the global stage. The Middle East, North Africa, and Central Asia continue to be in turmoil, creating political and economic uncertainty. Changes in the economic performance of nations have also altered the geo-political landscape. Growth in China and India, though it has slowed, continues to advance much more than twice the rate of the developed world.60 They led the world out of the 2007–2008 crash, and have now been joined by other African and Asian nations that are experiencing more rapid economic growth than the developed world. However, grinding poverty rates, though improving, are still the reality for hundreds of millions of people who live in these areas.61 As organizations become global, they need to clarify their own ethical standards. Not only will they need to understand the rules and regulations, they will also have to determine what norms of conduct they will work to establish for their organizational members, and what constitutes acceptable and unacceptable behavior. Peter Eigen, chairman of Transparency International, states: “Political elites and their cronies continue to take kickbacks at every opportunity. Hand-in-glove with corrupt business people, they are trapping whole nations in poverty and hampering sustainable development. Corruption is perceived to be dangerously high in poor parts of the world, but also in many countries whose firms invest in developing nations.”62 Left unaddressed, this political corruption becomes imbedded in organizations. Transparency International finds bribery most common in public works/construction and arms and defense as compared with agriculture.63 The accounting and governance scandals of 2001 to 2002 (Enron and WorldCom), followed by an almost uninterrupted series of major ethical lapses in global financial services/banking, pharmaceutical, and government sectors (to name just three), have created public demands for more transparency, accountability, regulations with teeth, and heightened expectations that firms should be expected to behave in socially responsible manners. Some companies, Hewlett-Packard, H&M, Tesco, Loblaw, ******ebook converter DEMO Watermarks******* and Apple, for example, have responded by requiring that they and the participants in their supply chain adhere to a set of specified ethical standards. Further, they are committed to working with their suppliers to ensure they reach these standards.64 The politics of globalization and the environment have created opportunities and issues for organizations. The United States’ Obama administration appears committed to the introduction of new green energy initiatives. The desire to reduce the environmental impact and the United States’ dependence on foreign oil and coal has meant subsidy programs for new technologies and opportunities for businesses in those fields. It has also led to an explosion of energy recovery methods such as fracking, which bring with them their own ethical issues. Some organizations are restructuring themselves to seize such opportunities. For example, Siemens has reorganized itself into three sectors—industry, energy, and health care—to focus on megatrends.65 Senge and his colleagues argued that the new environmentalism would be driven by innovation and would result in radical new technologies, products, processes, and business models.66 The rapid rates of market penetration for such technologies and the decline in their costs are evidence that Senge was right. The politics of the world are not the everyday focus of all managers, but change leaders need to understand their influence on market development and attractiveness, competitiveness, and the resulting pressures on boards and executives. Firms doing business in jurisdictions such as Russia, China, and Argentina know this all too well. Issues related to climate change, water and food security, power, urbanization/smart cities, public transport, immigration, health care, education, trade, employment, and our overall health and safety will continue to influence political discussion and decision making at all levels—from the local to the international context. A sudden transformation of the political landscape can trash the bestlaid strategic plan. Successful change leaders will have a keen sense of the opportunities and dangers involved in global, national, and local political shifts. If they are behaving in a manner consistent with corporate social responsibility, they will also have a keen sense of the opportunities and dangers related to the issues themselves. The Economy In 2007, the world economy crashed into financial crisis and appeared headed for a 1930s depression. Trillions of dollars of asset-backed paper became valueless, seemingly overnight. Investors and pension funds lost 20% of their value. Global stock markets shrank by $30 trillion, or half their value.67 The American housing market, which provided an illusory asset base, collapsed and led to the credit crisis. Firms that were chastised for having too much cash on hand and were seen as missing opportunities suddenly became the survivors when credit vanished. At the individual firm level, the economic crisis led to layoffs and bankruptcies. Firms saw their order books shrink and business disappear. Entire industries, such as the automotive industry, were overwhelmed and certain large automotive manufacturers perhaps would have vanished if not for government bailouts. An example of the impact on one small firm is shown in the story below. Governments responded to the economic crisis with Keynesian abandon. G20 countries ran huge deficits as governments tried to stimulate their economies out of recession. America’s federal deficit hit 10% of GDP in 2009, and the overall debt to GDP went from 65% in 2007 ******ebook converter DEMO Watermarks******* to over 100% in 2012.69 In December 2010, economists were talking about a slow recovery in America and an almost nonexistent one in Europe, and they were right.70 Economists also predicted that China would have an 8.6% GDP growth and 11.1% investment growth, with significant growth also predicted for India and the other BRIC nations. While growth in these economies has not been as robust as expected, most have performed relatively well. Clearly, there has been a shift in the economic order of the world.71 The lessons from the economic crisis are centered on risk management and capacity building. In a world where everything is interconnected, organizations need to be able to respond quickly. In order to do so, organizations need the capacity to weather such challenges. Ideally, organizations will incorporate the mechanisms to anticipate these challenges and adapt into management, leadership, and the underlying social fabric of the firm. In many situations, these anticipatory mechanisms will not be available and organizations will need to rely on their ability to adapt and change as the environment shifts. See Toolkit Exercise 1.2 to practice thinking about environmental forces facing your organization and their implications. The Impact of the 2007–2009 Recession on a Small Business Serge Gaudet operates a wholesale/retail drapery and window blind business in the small Canadian town of Sturgeon Falls, Ontario. The world economic crisis suddenly became real when banks would no longer extend him credit. In his words, “I had signed orders, contracts in hand, and my bank refused my line of credit so that I could buy the inventory. How was I to finance this deal? I had the contract and it was with a government hospital. Surely, this was credit worthy? What else could I do?” Mr. Gaudet managed through the crisis by negotiating newer, tougher terms with his bank. But the lack of credit was not his only problem. “Normally, I bid on requests for proposals and win a reasonable percentage of them,” he reported. “Suddenly, there was nothing to bid on. Nothing. Every institution that was going to buy blinds was waiting—waiting for government aid that was very slow in coming. It was touch and go whether I could last until new contracts came in.” Mr. Gaudet’s story is typical of the situation faced by many small businesses as they struggled through the economic crisis of 2007–2009. Many did not survive. Those that did were able to do so because they had low overhead and debt.68 The Implications of Worldwide Trends for Change Management The economic globalization of the world, the demographic and social shifts in the Western and developing world, technological changes, environmental and ecological pressures, and the upheaval and political and economic uncertainties that flair up around the globe form the reality of organizational environments. Predicting specific short-run changes is a fool’s errand. Nevertheless, change leaders need to have a keen sense of just how these seemingly external events impact internal organizational dynamics. “How will external changes drive strategy and internal adjustments and investments?” has become a critical question that change leaders need to address. For example, the rise of the sharing economy has disrupted traditional business structures of the hotel and taxi business. Airbnb and Uber have both capitalized on globalization trends and technological innovations to improve access to information relevant to travelers, increase social trust, and through these mechanisms change the way that people travel.72 ******ebook converter DEMO Watermarks******* Barkema, Baum, and Mannix suggest that macro environmental changes will change organizational forms and competitive dynamics and, in turn, lead to new management challenges.73 (Table 1.1 summarizes Barkema and colleagues’ article.) They describe three macro changes facing us today: digitization of information, integration of nation states and the opening of international markets, and the geographic dispersion of the value chain. These are leading to the globalization of markets. This globalization, in turn, will drive significant shifts in organizational forms and worldwide competitive dynamics. Table 1.1 Source: Adapted from Barkema, H. G., Baum, J. A. C., & Mannix, E. A. (2002). Management challenges in a new time. Academy of Management Journal, 45(5), 916–930. The early decades of the 21st century suggest accelerated change in comparison to the latter part of the 20th century. Diversity, synchronization and time-pacing requirements, decision making, the frequency of environmental discontinuities, quick industry life cycles and in consequence product and service obsolescence, and competency traps all suggest greater complexity and a more rapid organizational pace for today and tomorrow. Barkema et al. argue that much change today deals with mid-level change—change that is more than incremental but not truly revolutionary. As such, middle managers will play increasingly significant roles in making change effective in their organizations in both evolutionary and revolutionary scenarios. Four Types of Organizational Change Organizational changes come in many shapes and sizes: mergers, acquisitions, buyouts, downsizing, restructuring, outsourcing the human resource function or computer services, departmental reorganizations, installations of new incentive systems, shutting particular manufacturing lines or opening new branches in other parts of the country, and the list goes on. All of these describe specific organizational changes. The literature on organizational change classifies such changes into two types, episodic or discontinuous change and continuous change. That is, change can be dramatic and sudden—the introduction of a new ******ebook converter DEMO Watermarks******* technology that makes a business obsolete or new government regulations that immediately shift the competitive landscape. Or change can be much more gradual, such as the alteration of core competencies of an organization through training and adding key individuals. Under dramatic or episodic change, organizations are seen as having significant inertia. Change is infrequent and discontinuous. Re-engineering programs are examples of this type of change and can be viewed as planned examples of injecting significant change into an organization. On the other hand, under continuous change, organizations are seen as more emergent and self-organizing, where change is constant, evolving, and cumulative.74 Japanese automobile manufacturers have led the way in this area with kaizen programs focused on encouraging continuous change. In the technology sectors, collaborative approaches, facilitated by social networks that extend beyond corporate boundaries and even crowd sourcing, are giving rise to continuous change models for organizational adaptation, growth, and renewal.75 A second dimension of change is whether it occurs in a proactive, planned, and programmatic fashion or reactively in response to external events. Programmatic or planned change occurs when managers anticipate events and shift their organizations as a result. For example, Intel, a multinational semiconductor chip maker headquartered in California, anticipates and appears to encourage a cycle of computer chip obsolescence.76 As a result, the organization has been designed to handle this obsolescence. Alternately, shifts in an organization’s external world lead to a reaction on the part of the organization. For example, the emergence of low-cost airlines has led to traditional carriers employing reactive strategies, such as cutting routes, costs, and service levels in an attempt to adapt.77 Nadler and Tushman combine these two dimensions in a useful model illustrating different types of change (see Table 1.2). They define four categories of change: tuning, adapting, redirecting or reorienting, and overhauling or re-creating. Table 1.2 Source: Adapted from Nadler, D. A., & Tushman, M. (1989, August). Organizational frame bending: Principles for managing reorientation. Academy of Management Executive, 3(3), 196. Tuning is defined as small, relatively minor changes made on an ongoing basis in a ******ebook converter DEMO Watermarks******* deliberate attempt to improve the efficiency or effectiveness of the organization. Responsibility for acting on these sorts of changes typically rests with middle management. Most improvement change initiatives that grow out of existing quality-improvement programs would fall into this category. Adapting is viewed as relatively minor changes made in response to external stimuli—a reaction to things observed in the environment such as competitors’ moves or customer shifts. Relatively minor changes to customer servicing caused by reports of customer dissatisfaction or defection to a competitor provide an example of this sort of change, and once again, responsibility for such changes tends to reside within the role of middle managers. Redirecting or reorienting involves major, strategic change resulting from planned programs. These frame-bending shifts are designed to provide new perspectives and directions in a significant way. For example, a shift in a firm to truly develop a customer service organization and culture would fall in this category. Finally, overhauling or recreation is the dramatic shift that occurs in reaction to major external events. Often there is a crisis situation that forces the change—thus, the emergence of low-cost carriers forced traditional airlines to re-create what they do. Likewise, the credit crisis bankrupted General Motors and forced a complete overhaul and downsizing of the company. The impact of the change increases as we move from minor alterations and fine-tuning to changes that require us to reorient and re-create the organization. Not surprisingly, reorienting and re-creating an organization is much more time-consuming and challenging to lead effectively. They also have a greater impact on individuals who must reorient themselves. Regardless of difficulty, the financial crisis and recession of 2008–2009 forced companies to react. While there are no data that we know of to confirm this, anticipatory organizational change does not seem to be sufficient to prepare organizations for the dramatic shift in the global business environment presented by 2008–2009. While planning can help organizations think about risk and opportunities, it was their sense of awareness and adaptive capacity that allowed firms to respond and survive the crisis. An examination of the history of British Airways provides a classic example of a single organization facing both incremental and discontinuous change while both anticipating issues and being forced to react.78 Nadler and Tushman raise the question: “Will incremental change be sufficient or will radical change be necessary in the long run?” Suffice it to say that this question has not been answered. However, the Japanese provided a profound lesson in the value of incremental, daily changes. Interestingly enough, it was a lesson the Japanese industrialists learned from North American management scholars such as Duran and Deming. If one observes employee involvement and continuous improvement processes effectively employed,81 one also sees organizational team members that are energized, goal directed, cohesive, and increasingly competent because of the new things they are learning. Such teams expect that tomorrow will be a little different from today. Further, when more significant changes have to be embraced, these teams are likely to be far less resistant and fearful of them because of their earlier experiences with facilitating change within group structures. Organizational change is part of daily life for them. Many think of incremental/continuous change and discontinuous/radical change as states rather than a perspective or a spectrum of change size. From the organizational a point of view, a departmental reorganization might seem incremental. However, from the department’s perspective, it may seem discontinuous and radical. As Morgan puts it: ******ebook converter DEMO Watermarks******* A mythology is developing in which incremental and quantum change are presented as opposites. Nothing could be further from the truth... True, there is a big difference between incremental and quantum change when we talk of results (but) incremental and quantum change are intertwined. As we set our sights on those 500% improvements, remember they’re usually delivered through 5, 10, and 15% initiatives.82 The perception of the magnitude of the change lies in the eye of the beholder. Incremental changes at the organizational level may appear disruptive and revolutionary at a department level. However, as noted earlier, those who are accustomed to facing and managing incremental change on a regular basis will likely view more revolutionary changes in less threatening terms. Those who have not faced and managed change will be more likely to view even incremental changes as threatening in nature. Organizational members need to learn to accept and value the perspectives of both the adaptor (those skilled in incremental change) and the innovator (those skilled in more radical change).83 As a change agent, personal insight regarding your abilities and preferences for more modest or more radical change is critical. The secret to successful organizational growth and development over time lies in the capacity of organizational members to embrace both approaches to change at the appropriate times and to understand that they are, in fact, intertwined. British Airways: Strategic and Incremental Change Todd Jick’s case study describes the crisis of 1981. British Airways’ (BA’s) successful response in the 1980s was revolutionary in nature. During that period, BA revolutionized its culture and its view of the customer with outstanding results. In the 1990s, BA entered a period of slow decline as the systems and structures at BA became increasingly incongruent with the new deregulated environment and the successful competitors that were spawned by that environment. Major upheavals in international travel pushed BA into a reactive mode following 9/11, and the results of management’s attempts to develop new strategies were unclear for a considerable period. A strike in the summer of 2003 created more uncertainty for the firm.79 The dramatic rise in oil costs during 2007 and 2008 forced BA to cut costs and implement a merger with Iberia. These strategic moves to cut costs were matched by more incremental internal actions to limit the wages of cabin staff, to match those of its competitors. These changes led to limited strike action in 2010 and a negotiated resolution in 2011, which was facilitated by the arrival of new chief negotiators on both sides—Keith Williams, BA’s new president, and Len McCluskey, the union’s new general secretary. Fleet renewal (their first Airbus A380 was put into service in 2013), along with ongoing changes to systems, processes, and procedures, mark the continuance of their change journey, marked by both strategic and incremental change initiatives.80 Planned Changes Don’t Always Produce the Intended Results To this point, it is clear that change—from simple fine-tuning to radical reconstruction—is a necessary prerequisite to organizational survival. However, successful change is extremely difficult to execute as the scope and complexity increases. Many types of change initiatives have failed: reengineering, total quality management, activity-based costing, joint optimization, strategic planning, and network structures.84 If change leaders were to fully consider the failure rates when designing interventions or acquisitions, fear would trump action. As one manager put it, “The opportunity has turned out to be 10 times what I thought it would be. The challenges have turned out to be 20 times what I thought they were”!85 Fortunately or unfortunately, inaction and avoidance are no solution. Maintaining the status quo typically does not sustain or enhance competitive advantage, particularly in troubled ******ebook converter DEMO Watermarks******* organizations. Delays and half-hearted efforts that begin only after the problems have become critical increase costs and decrease the likelihood of a successful transformation. As Hamel and Prahalad put it: “No company can escape the need to re-skill its people, reshape its product portfolio, redesign its process, and redirect resources.”86 Organizations that consistently demonstrate their capacity to innovate, manage change, and adapt over the years are the ones with staying power.87 Hamel and Prahalad believe that restructuring and re-engineering, on their own, do little to increase the capabilities of the firm. These two Rs increase profitability and can enhance competitiveness but “in many companies... re-engineering (and restructuring)... are more about catching up than getting out in front.”88 Hamel and Prahalad argue that companies need to regenerate their strategy and reinvent their industry by building their capacity to compete. These transformations and realignments that result are sustained marathons, not quick fixes. Skilled change leaders provide a coherent vision of the change and do all that they can to help people adapt and embrace the changes with realistic expectations. When change recipients understand that things will often get worse before they get better, but also believe that the benefits are well worth the effort, change initiatives are more likely to be sustained.89 For example, as costs rise in China, the environment is shifting manufacturing elsewhere, including a rebirth of manufacturing in the United States. This trend demands a continuing evolution of strategy as well as reshaping of supply chains to alter ingrained overseas production practices that have evolved over the past 15 years—changes that manufacturing and supply chain managers may have difficulty adjusting to.90 Radical solutions both terrify and fascinate managers. Often managers are comfortable with relatively small technological fixes as the source of products, services, efficiency, and effectiveness. However, they tend to fear interventions that seem to reduce their control over situations, people, and outcomes. When organizations embrace technology but not people, they pay a steep price. They reduce the likelihood that the change will produce the desired results and they fail to take advantage of the collective capacity of organizational members to improve operations, products, and services. To say the least, this practice is extremely wasteful of human capacity and energy, causing them to atrophy over time. And recent evidence suggests that true productivity increases come only when the forms are reorganized, business practices reformulated, and employees retrained. Investment in infrastructure alone is insufficient.91 Organizational Change Roles Without a sense of vision, purpose, and engagement, it is easy to become the passive recipient of change. As a passive recipient, you see yourself as subject to the whims of others, as relatively helpless, perhaps even as a victim. As a passive recipient, your selfesteem and self-efficacy may feel as if they are under attack.92 Your perception of power and influence will diminish and you will feel acted on. Years ago, Jack Gordon talked about aligning employees. That is, once top management has decided on the strategic direction, employees need to be aligned with that direction. We cannot help but think that if you are the recipient of change, “being aligned” just won’t feel very good.93 Who are the participants in organizational change? Many employees will step up and make the change work. They will be the change implementers, the ones making happen what ******ebook converter DEMO Watermarks******* others, the change initiators, have pushed or encouraged. Change initiators, or champions, also frame the vision for the change and/or provide resources and support for the initiative. Or they could be on the receiving end of change, change recipients. Some will play a role in facilitating change—change facilitators won’t be the ones responsible for implementing the change, but they will assist initiators and implementers in the change through their contacts and consultative assistance. Of course, one person might play multiple roles. That is, a person might have a good idea and talk it up in the organization (change initiator); take action to make the change occur (change implementer); talk to others to help them manage the change (change facilitator); and, ultimately, be affected by the change too (change recipient). In this book, we use the terms change leader and change agent interchangeably. Change initiators, change implementers, and change facilitators represent different roles played by the change leader or change agent. At any given moment, the person leading the change may be initiating, implementing, or facilitating. Table 1.3 outlines the roles that people need to play in organizational change. Change Initiators Change initiators get things moving, take action, and stimulate the system. They are the ones seeking to initiate change to make things better. They identify the need for change, develop the vision of a better future, take on the change task, and champion the initiative. Change initiators may face considerable risk in the organization. To use a physical metaphor, action creates movement, movement creates friction, and friction creates heat! And creating heat may help or hurt one’s career. Change agents need to take calculated actions and be prepared to undertake the work needed to create and support the powerful arguments and coalitions to effect change in organizations from the top or the middle of the organization. Change initiators will find useful aids for change in this book. We, as authors, cannot supply the passion and powerful vision needed by initiators, but we can point out the requirements of successful change: planning, persuasion, passion, and perseverance. And we can provide frameworks for analysis that will enhance the likelihood of successful change. Table 1.3 Change initiators need to be dogged in their desire and determination. Those who succeed ******ebook converter DEMO Watermarks******* will earn reputations for realistic, grounded optimism, for a good sense of timing, and for not giving up. If nothing else, the opposition may tire in the face of their persistence. Better yet are those who have the uncanny ability to creatively combine with others into a coalition that turns resisters into allies and foot draggers into foot soldiers and advocates for change. Change Implementers Many would-be and existing managers find themselves as change implementers. Others, including their bosses, may initiate the change, but it is left to the implementers to make it work. This role is critical. Pfeffer argues that effectiveness doesn’t come from making the critical decision but rather from managing the consequences of decisions and creating the desired results.94 As he says, “If change were going to be easy, it would already have happened.” The change implementer’s role is important and needed in organizations. Without it, there is no bridge to the desired end state—no sustained integrated approach.95 Change implementers will find much in this book to assist them. They will find guidance in creating and increasing the need for the changes that change initiators are demanding. They will find tools for organizational diagnosis and for identifying and working with key stakeholders. And they will find concepts and techniques to facilitate the internal alignment of systems, processes, and people; improve their action plans and implementation skills; and help them sustain themselves during the transition. At the same time, we encourage and challenge change implementers to stay engaged, to stay active, and to initiate change themselves. Oshry identifies the dilemma of “middle powerlessness,” where the middle manager feels trapped between tops and bottoms and becomes ineffective as a result.96 Many middle managers transform their organizations by recognizing strategic initiatives and mobilizing the power of the “middles” to move the organization in the direction needed. Change Facilitators Today’s complex organizational changes can fail because parties lock into positions or because perspectives get lost in personalities and egos. In such cases, an outside view can facilitate change. Change facilitators understand change processes and assist ...
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Running Head: CHANGE MANAGEMENT PLANS

Organization Culture
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ORGANIZATION CULTURE

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Introduction

Change is inevitable in all aspects of life including the corporate world. Occasionally, a
new system needs to be put in place to replace the normal one or make improvements to it.
However, a lot has to be considered while undertaking these changes to ensure they work for the
good of everyone. In organizations and in the corporate world at large, a change in the typical
day to day running of business needs to be effected after extensive consultation with all
stakeholder, i.e. employees and the managers, and after a keen analysis of the effect, it would
have on a company's performance. Hence, an organization needs to come up with a Change
Management Plan. This is a framework that guides an organization on the steps, factors to
consider and implications of adopting a new way of running the day to day business (Dessler,
2015).
Organizational changes are influenced by some reasons. It could be due to changes in
technology, changes in government policies, globalization and organization culture.
Organizational culture is a key factor that influences organization changes. This is because it is
an internal factor and it relates to the employees' cultural values. Organizational Culture refers to
a set of beliefs and values that influence the behavior of everyone in an organization (Cawsey,
Deszca, & Ingols 2016). It dictates how people dress, act and perform their duties at work. It is
the values that people working in a specific organization can be identified with. These
Organization cultures differ from one organization to another depending on factors like religion,
subscription to specific political ideologies, type of business being carried out by the
organization and the geographical location of the business. This paper looks at the...


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