Diagnosis of Change in Organizations

Diagnosis of Change

• Diagnosis of change is crucial for problem identification and resolution.
• Understanding the problem's context helps to identify unforeseen issues.
• Stakeholder identification and management build consensus and increase positive outcomes.
• Change models highlight various aspects of change, acknowledging multiple, overlapping perspectives.

Objectives

• Analysis of Volkswagen stakeholders.
• Diagnostic questions to understand the situation.
• Comparison of closed and open systems in organizations.
• Evaluation of various diagnostic models.

Change as a Process

• Recognizing the need for change initiates the process.
• Diagnosing needs and creating a future vision.
• Managing people-related issues during change.
• Planning the change and reviewing progress.
• Sustaining the change effort.

Volkswagen Stakeholder Analysis

• Stakeholders were categorized based on interest and power.
• The categories include customers, competitors, government, and management.
• Volkswagen's actions regarding each stakeholder were examined, and impact on their positioning was assessed.
• The analysis took place before and after the emissions scandal.

Stakeholder Salience (Prioritization)

• A model from Mitchell et al. (1997) used to prioritize stakeholders based on power and urgency.
• Eight stakeholder categories exist: Dormant, Dominant, Dangerous, Definitive, Demanding, Discretionary, Dependent, and Nonstakeholder.
• The model categorizes stakeholders based on power, legitimacy, and urgency.

Stakeholder Salience Revisited

• Factors considered: political and social context, especially regarding young people and their needs and demographic advantages..
• Outcomes before and during a crisis.
• Response: meso-level and macro-level perspectives for stakeholder leadership.

Stakeholder Analysis Process

• Steps include listing relevant stakeholders, mapping stakeholders and their relations, considering stakeholder positioning and desired future state, and planning action points.
• Be specific about action points, involving who, what, when, and where

Diagnostic Models

• Models help in understanding what is happening, how problems arose, organizational challenges and organizational components.
• These models seek to identify the crucial underlying problem.

Closed vs Open Systems

• Closed systems are organizational units independent of the external environment.
• Open systems interact with other internal and external systems.
• Change management requires a holistic understanding of interconnected variables.

Force Field Analysis

• A model to analyze driving and restraining forces for change.
• Driving forces push for change; restraining forces resist it.
• Used to evaluate the balance of forces at a particular point in time.
• A practical example illustrates the method of calculating forces.

McKinsey 7S Framework

• This model consists of seven interconnected elements (strategy, structure, systems, skills, staff, style, and shared values).
• The elements have to be in alignment for the organization to be successful.
• A diagnostic tool to evaluate inter-relationships and assess organizational functioning.

McKinsey 7S Diagnostic Grid

• A grid to assess and chart different interdependencies between the seven elements of the model.
• The grid helps to analyze misalignments between elements for problem identification.

McKinsey 7S Review

• Positives: Integrating softer aspects, evaluating current state, adaptability.
• Critiques: Neglect of external factors, static view of performance.

Weisbord's Six Box Model

• A model that focuses on six key areas of an organization (purpose, structure, relationships, leadership, rewards, and internal and external environments).
• Helping identify problematic areas in an organization.
• Helpful in understanding relationships, and leadership's central role in shaping organizational environment.

Burke-Litwin Model

• A causal model with 12 interconnected aspects, providing a holistic view of organizational performance.
• Understanding input-output relationships and interdependencies within an organization.
• Identifying transformative aspects and the details of transactional aspects.

Models: Caveat Emptor

• Models have limitations; none are perfect.
• Capture key aspects and relationships.
• Relevance to issues and guiding change agents are important.
• Cause and effect relationships, identified issues, and necessary changes should be clearly defined.

Summary

• Diagnostic models assist in problem identification and resolution.
• Understanding the problem's context helps identify potential issues.
• Stakeholder involvement facilitates consensus and increases the likelihood of success.
• Recognizing multiple overlapping perspectives is essential for effective change management.

Reading

• Various academic articles and books provide further theoretical information on the topics covered.
• These materials provide in-depth information and various perspectives on change management, stakeholder theory and the models.