Lecture 4 - Diagnosis of Change PDF

Diagnosis of Change Dr. Petya Koleva ©copyright, Heriot-Watt University, 2024  Objectives Volkswagen Stakeholder Analysis Diagnostic questions Closed vs open systems Diagnostic models Forcefield Analysis McKinsey 7S...

Diagnosis of Change Dr. Petya Koleva ©copyright, Heriot-Watt University, 2024  Objectives Volkswagen Stakeholder Analysis Diagnostic questions Closed vs open systems Diagnostic models Forcefield Analysis McKinsey 7S Weisbord’s Six Box Model Burke Litwin’s Causal Model ©copyright, Heriot-Watt University, 2024  Change as a Process ©copyright, Heriot-Watt University, 2024  Volkswagen Stakeholder Analysis Hig h Where would you place the following stakeholders before and after the Subjects Key Customers emissions scandal broke? Competitors Players Government CEO and Senior Inter Management est Engineers Sleepi The How has VW acted in relation to each ng stakeholder since the incident and what Crowd Elepha impact has this had on their mapping Lo nts position? w Lo Hig w Power/ h ©copyright, Heriot-Watt University, 2024 Influence The Value of Stakeholder Theory: The Volkswagen Emission Debacle (Bruijl, 2017) takes a public policy/governance view of the scandal Shareholder view Vs Stakeholder view Stakeholder Salience (Prioritization) Mitchell et al. (1997)  Stakeholer Salience Revisited Koleva et al. (unpublished work)  Stakeholder Analysis Process 1. List the relevant stakeholders 2. Map stakeholders 3. Consider where you want stakeholders to be in future 4. Plan action points to enable stakeholder shifts 5. Be specific – who, what, when, where ©copyright, Heriot-Watt University, 2024  Diagnostic Models Ask… What is going on? How did we get here? What are the current challenges facing the organisation? What are the key organisational elements in play? What problem are we trying to solve? ©copyright, Heriot-Watt University, 2024  Closed vs Open Systems The Systems Approach of Change Management is a useful approach, which helps the managers or employees in understanding that a change can never be implemented partly, rather it must be wholistic in nature by taking into consideration all the interrelated variables and their influence on each other. Closed Systems Closed systems are the internal sub-units of the organization that do not interact with the external environment. Open Systems Open systems are internal sub-units that interact with other systems (or sub-units within other systems) that are outside of the organization Beech and MacIntosh ©copyright, Heriot-Watt University, 2024 2012  Driving Restraining Forces Forces Wea k Wea k Moderat e Stron Force Field g Analysis No Chan Change ge Equilibri Lewin um (1951)  Force Field Example ©copyright, Heriot-Watt University, 2024  Presenter Notes 2023-10-11 11:28:15 -------------------------------------------- By Pkor43 at English Wikipedia, McKinsey's 7S CC BY 2.5, htps:/commons.wki m i eda i.org/w/n i dex.php?curd i =21898389 Strategy: Purpose of the business and the way the organization seeks to enhance its competitive advantage Structure: Division of activities, integration and coordination mechanisms, nature of informal organisation Systems: Formal procedures for measurement, reward and resources allocation, informal routines for communicating, resolving conflicts and so on. Staff: The organization’s human resources, its demographic, educational and attitudinal characteristics Style: Typical behaviour patterns of key groups, such as managers and other professionals and the organization as a whole Skills: The organizational core competencies and distinctive capabilities ©copyright, Heriot-Watt University, 2024 Shared Values: Core beliefs and values and how  McKinsey 7S Diagnostic Grid ©copyright, Heriot-Watt University, 2024  McKinsey 7S Positives Critiques Brings in softer aspects Ignores external factors, over and above STAR focusing only on model internal aspects Does not prioritise Does not look at between aspects organisational Can be used to performance audit current state Static, Strate rather than gy propose future state for dynamic view Review past changes Skillset Peop Struct Powe s/ learning Mindse ts le Directon ure r Rewards Proces ses Motivatio Informati Galbrai n on th ©copyright, Heriot-Watt University, 2024 (1977) Weisbord’s Six Box Model “six places to look for trouble” Points to note Relationships ‘Helpful’ mechanisms Leadership treated as central Weisbord, 1976  Burke- Litwin Causal model 12 Interrelated aspects Input to output Captures ‘levels’ in organisation Interdependence of elements No start/end point Recognises transformational/transactional change Burke and Litwin, 1992 ©copyright, Heriot-Watt University, 2024  Burke-Litwin Key Factors External Environm ent Transformational (INPUTS) change 5 key factors Transactional Leadership Mission Organisa change and Strateg tion Culture The details y Individual and Organisat onal Performan ce (OUTPUTS ©copyright, Heriot-Watt University, 2024 )  Models: Caveat Emptor None are perfect; all have limitations Capture key aspects and relationships Need to be relevant to issues considered Help change agents focus in on Key issues Cause and effect relationships Things that might need to change ©copyright, Heriot-Watt University, 2024  Summary Diagnosis is an important aspect of problem identification and resolution Framing of the problem can help identify unforeseen issues Identification and management of stakeholders helps in building consensus and makes positive outcomes more likely Models can help identify different aspects that are relevant to change – many overlapping perspectives here ©copyright, Heriot-Watt University, 2024  Reading Chapter 17 in Hayes, 2022 Chapter 5 in Beech and Macintosh, 2012 BEECH, N. & MACINTOSH, R. 2012. Managing Change: Enquiry and Action, Cambridge University Press. BRUIJL, G. H. T. 2017. The Value of Stakeholder Theory: The Volkswagen Emission Debacle. Available at SSRN 3022383. BURKE, W. W. & LITWIN, G. H. 1992. A causal model of organizational performance and change. Journal of management, 18, 523-545. HAYES, J. 2018. The Theory and Practice of Change Management, Palgrave. LEWIN, K. 1951. Field Theory in Social Science. New York: Harper and Row. MITCHELL, Ronald K., et al. “Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts.” The Academy of Management Review, vol. 22, no. 4, 1997, pp. 853–86. JSTOR, WEISBORD, M. R. 1976. Organizational diagnosis: Six places to look for trouble with or without a theory. Group & Organization Studies, 1, 430-447. ©copyright, Heriot-Watt University, 2024