Managing Change, Creativity, and Innovation - MGT436 Chapter 8 PDF

Managing Change, Creativity and Innovation © Patrick Dawson and Constantine Andriopoulos  Chapter 8 Conventional frameworks: Planning, diagnostics and sequence Planning approaches and stage models 1. Advocate sequence of stages from initial state through transition to desired stat...

Managing Change, Creativity and Innovation © Patrick Dawson and Constantine Andriopoulos  Chapter 8 Conventional frameworks: Planning, diagnostics and sequence Planning approaches and stage models 1. Advocate sequence of stages from initial state through transition to desired state. 2. Focus on the importance of people involvement to gain commitment. 3. Poor communication and lack of buy-in seen as prime reason for resistance (or slow reluctant compliance). 3 Organisational development (OD) A long-range effort to improve an organisation's problem- solving and renewal processes... with the assistance of a change agent or catalyst and the use of the theory and technology of applied behavioural science, including action research. (French and Bell, 1983:15) 4 Values underpinning OD 1. Treat people with respect and dignity. 2. Develop a climate of trust, openness and support. 3. Hierarchical control mechanisms are not effective. 4. Problems and conflicts should be confronted and reconciled. 5. People affected by change should be involved in its implementation. 5 Major steps in OD programme 1. Identifying a need for change. 2. Select an intervention technique (often use a change agent external to company). 3. Gain top management support. 4. Plan the change process. 5. Engage people and resolve any conflicts or resistance. 6. Monitor and evaluate the change process. 6  Three Stage Model One of the cornerstone models for understanding organizational change was developed by Lewin , and is still effective in the modern era Creating a sense a change is needed His model, known as Unfreeze – Change – Refreeze, refers to the three-stage process of change he describes. Moving towards a new and desired behavior He explained organizational change using the analogy of changing the shape of a block of ice. Setting this behavior as the new normal Lewin’s three phases of planned change Unfreezing – create a need for change. – minimize resistance (reduce resisting forces). Changing (or moving) – implementation of new systems of operation. – employees learn new attitudes and behaviours. Refreezing – positive reinforcement of desired outcomes to promote internalization of new behaviours. – evaluation to ensure new ways habitualised. 8  Lewin’s Block of Ice Metaphor Let’s say you have a ‘cube’ of ice but you’d like to have a ‘cone’ of ice. To transform the cube shape you must: 1. “unfreeze” or melt the ice 2. “change” the mold to a cone shape and 3. “refreeze” the water into the new, desired shape It’s a simple three-stage process that allows you to easily diagnose which stage you are in. Unfreezing for change: Field theory Analysis of current situation Use disconfirming – forces that shape information to reduce behaviours. constraining forces in Strategies of engagement creating felt need. and involvement. 10 The force field concept Work practices represent a Quasi-Stationary Equilibrium (QSE) resultant of driving and restraining forces. Attempts to increase driving forces will increase tension and higher levels of aggressiveness and emotionality. 11 Moving forward: Action research Collect data to plan action. Data feeds into action, Take action on plan. evaluation, further Evaluate. research. Collect further data A collaborative iterative (feedback). process that encourages participation and Develop plan. involvement. 12 Refreezing: Group dynamics Positive reinforcement of Successful change a group desired outcomes. activity. Internalization of new Unless group norms and attitudes and behaviours. routines change individual Appraisal of effectiveness behavioural change will not to gauge whether new ways be sustained. of doing things have become habitualised. 13 Criticisms of Lewin’s model Planned approach is seen as too simplistic and mechanistic (Dawson, 1994; Garvin, 1993; Kanter et al., 1992; Nonaka, 1988; Pettigrew, 1990a, 1990b; Pettigrew et al., 1989; Stacey, 1993; Wilson, 1992), Lewin’s work is only relevant to incremental and isolated change projects (Dawson, 1994; Dunphy and Stace, 1992, 1993; Harris, 1985; Miller and Friesen, 1984; Pettigrew, 1990a, 1990b), Lewin’s stands accused of ignoring the role of power and politics (Dawson, 1994; Hatch, 1997; Pettigrew, 1980; Pfeffer, 1992; Wilson, 1992), Lewin is seen as advocating a top-down, management-driven approach to change (Dawson, 1994; Kanter et al., 1992; Wilson, 1992). 14 Problem with the refreezing image May develop cultures and structures not conducive to continuous change. Creates image of the need to design in stability (refreezing). – ‘Organizations are never frozen, much less refrozen, but are fluid entities.’ (Kanter et al., 1992: 10) 15 Dunphy and Stace situational model of change Scale of change Style of leadership – Fine tuning – Coercive – Incremental adjustment – Directive – Modular transformation – Consultative – Corporate transformation – Collaborative 16 Dunphy and Stace Four types of change strategies 1. Participative Evolution: refers to incremental change through collaboration 2. Forced Evolution: refers to directive incremental change 3. Charismatic Transformation: used to describe large- scale collaborative change 4. Dictatorial Transformation: describes large-scale coercive change programmes 17  A typology of change strategies and conditions for use Incremental change strategies Transformative change strategies Forced evolution Dictatorial transformation Authoritative Use when organisation is in fit Use when organisation is out of fit, but needs minor adjustment, or there is no time for extensive is out of fit but time is available participation and no support for and key interest groups oppose change, but radical change is vital change. to organisational survival and fulfilment of basic mission. Participative evolution Charismatic transformation Participative Use when organisation is in fit Use when organisation is out of fit, but needs minor adjustment, or there is little time for extensive is out of fit but time is available participation but there is support for and key interest groups favour radical change within the change. organisation. Source: Dunphy, D. and Stace, D. (1990: 90) Under New Management. NSW: McGraw- 18 Hill Weaknesses of situational model Suggest that there is a single strategy appropriate for regaining internal fit with the external environment. Snapshot that ignores timeframe of change. No account of political dimension (trade unions, negotiation) and power plays. Contingency approach tends to impose unidirectional rational models on what is a complex and dynamic process is. 19 JOHN KOTTER: LEADING AND MANAGING SUCCESSFUL CHANGE Transforming your organisation 1. Establish a sense of urgency – Examine the market and competitive realities. – Identify and discuss crises, potential crises, or major opportunities. 2. Form a powerful guiding coalition – Assemble a group with enough power to lead the change effort. – Encourage the group to work together as a team. 20 Vision and communication 3. Create a vision – Create a vision to help direct the change effort. – Develop strategies for achieving the vision. 4. Communicate the vision – Use every vehicle possible to communicate the new vision and strategies. – Teach new behaviours by the example of the guiding coalition. 21 Empowerment and short-term wins 5. Empower others to act on the vision – Get rid of obstacles to change. – Change systems or structures that seriously undermine the vision. – Encourage risk taking and non-traditional ideas, activities and actions. 6. Create short-term wins – Plan for visible performance improvements. – Recognize and reward employees involved in improvements. 22 Consolidate and institutionalize 7. Consolidate improvements and change – Use increased credibility to change systems, structures and policies that do not fit the vision. – Hire, promote and develop employees who can implement the vision. – Reinvigorate the process with new projects. 8. Institutionalize new approaches – Articulate the connections between the new behaviours and corporate success. – Develop means to ensure leadership development and succession. 23 Three criticisms of the model 1. Kotter’s model implies that change is a sequence of events that if managed correctly guarantees success. 2. Very top-down and difficult to change direction once started (flexibility issue). 3. In practice stages often overlap and re-order. 24 Kotter’s Dual operating system Mounting complexity and rapid change create strategic challenges that even a souped-up hierarchy can’t handle. That’s why the dual operating system – a management- driven hierarchy working in concert with a strategy network – works so remarkably well. (Kotter, 2012: 48) 25 Kotter’s (2012) dual operating system for making change happen in an accelerating world Two systems in concert The Strategy system The Operating system – Networks. – Hierarchies. – Flexibility and agility. – Structure and regulation. – Seeks strategic – Maintains daily opportunities. operations. – Dynamic innovative – Performance and creative force. efficiency driven. – Searching, doing, – Predictability, control learning, modifying. effectiveness. 26 The five guiding principles Kotter advocates comprise: Five principles Many change agents, not just the usual few appointees (volunteers). A ‘want-to’ and a ‘get-to’ not just a ‘have-to’ mind-set (desire to engage). Head and heart, not just head (give meaning to work, appeal to emotions). Much more leadership, not just more management. Two systems, one organisation (strategy network and hierarchy inseparable). 27 Kotter’s eight accelerators (1-4) 1. Create a sense of urgency around a single big opportunity: ongoing, abiding urgency. 2. Build and maintain a Guiding Coalition (GC): volunteers from all areas, all equal. 3. Formulate a strategic vision and develop change initiatives designed to capitalize on the big opportunity. 4. Communicate the vision and the strategy to create buy-in and attract a growing volunteer army. 28 Kotter’s eight accelerators (5-8) 5. Accelerate movement towards the vision and the opportunity by ensuring that the network removes barriers. 6. Celebrate visible, significant short-term wins. 7. Never let up. Keep learning from experience. Don’t declare victory too soon. 8. Institutionalize strategic changes in the culture as evidence in day-to-day activities. 29 The process that enables the strategy network to function Formulate Never let up, do strategic vision not declare and develop victory too soon, change initiatives learn from to realise experience IN Communicate to Institutionalise get buy-in and strategic Create a sense attract changes in the of urgency ‘volunteer army’ culture around a single big opportunity Celebrate Institutionalise Build and visible strategic maintain a significant changes in the guiding coalition Network short-term culture wins Institutionalise removes barriers strategic to accelerate changes in the movement to culture vision Kotter’s Eight Accelerators (Source: adapted from Kotter, 2012: 52) 30 Volunteer army on the move The volunteer army are regular employees – not consultants or new hires – that are committed and enthusiastic. It is essential that the guiding coalition and the executive committee maintain close communication. – People won’t want to do a day job in the hierarchy and a night job in the network – which is essentially how a dual operating system works – if you appeal only to logic … you must appeal to their emotions. (2012: 49) 31 Summary of areas covered Lewin’s unfreezing, changing, refreezing stages is a founding OD example. Contingency approaches advocate aligning change strategies with prevailing circumstances. Kotter’s dual strategy and operating system starts to engage with process. 32