Learning Module 10: Lasting Organisational Change for Sustainability PDF

lOMoARcPSD|11364796 Learning Module 10: Lasting Organisational Change for Sustainability Often organisational change attempts fails in reducing possible obstacles and resistance. However, not changing at all is not the solution either, as the example of Kodak shows: While competitors started to sh...

lOMoARcPSD|11364796 Learning Module 10: Lasting Organisational Change for Sustainability Often organisational change attempts fails in reducing possible obstacles and resistance. However, not changing at all is not the solution either, as the example of Kodak shows: While competitors started to shift towards digital photos, Kodak stuck to analog photos and eventually vanished from the market. Barriers to Organisational Change Organisational Inertia (Trägheit), due to Self-perpetuating tendencies of organisational structure and culture Unlearning requirements of change stop unsustainable practices Lack of motivation to change already acquired expertise becomes obsolete Uncertainty provokes strong emotions of anxiety positions might disappear For change to be successful obstacles need to be removed and a critical mass of adopters need to be convinced Structural Barriers to Change 1. The older, larger, and complex an organisation, the harder successful change. Hence it is important to focus on manageable portions of change; initially only in some parts of the company (pilot project). 2. Moreover, the embedded nature of capabilities creates path dependencies in building new capabilities. Negative side effect of Red Queen Evolution: companies adapt to one kind of competition, but when companies try to enter a new market / address new trends (sustainability) their prior adaptation now becomes a core rigidity. E.g., Kodak: They were perfectly adapted to analogous photography that they failed to connect to digital photography. Hence, it might be important for firms to buy capabilities from outside, for example by buying startups (Tesla bought battery start up) or creating alliances (German car companies). 3. Metrics and organisational politics: Managers can pose barriers to change by giving monetized incentives when becoming more sustainable Hence, turn over and building coalitions Individual resistance to change 47 / www.temagroningen.nl / [email protected] Gedownload door Bart S ([email protected])  lOMoARcPSD|11364796 A change in an organisation always necessitates the engagement and readiness to change of the individuals. Hence it is crucial to convince your employees. There are six different persuasion principles: 1. Linking: uncover real similarities and offer genuine praise 2. Reciprocity: give what you want to receive 3. Social proof: use peer power whenever its available 4. Consistency: make commitment active, public, and voluntary 5. Authority: expose your expertise; don’t assume tis self-evident 6. Scarcity: highlight unique benefits and exclusive information Advocacy Effect: Humans align their opinions once they must advocate for it. So, if they have to sell it to others, they begin to believe in it themselves. Make resisters responsible in selling the idea to someone else Nixon in China Effect: Nixon (strongly against China) went to China and opened up which sent powerful signals to others, which then opened up as well. Try to convince the most sceptical and resistant person Keeping up motivation for change Planning for small wins and plan for them. Hence prioritise Win-win initiatives (e.g., LED lights: save money) after first success you can go for more systematic initiatives. Embedding Change in Culture Institutionalise change so that it is not reversed after implementation. Hence, it must become part of the organisational culture (not only of the structure). An organisational culture further has the advantages that it is self-perpetuating (hence new hires will quickly learn it). There are various ways how to shape culture: 1. Recruiting and selection 2. Socialisation and training 3. Reward and recognition Culture cannot be tangibly designed as organisational structures, rather it must be cultivated by rewarding behaviours that you want Benefits of Sustainability Culture By offering meaning beyond financial rewards, cultures can create a sense of identity to members and generate organisational commitment, further it can create dedication and motivation among employees that is often impossible through structural means like pay 48 / www.temagroningen.nl / [email protected] Gedownload door Bart S ([email protected])