“Change management” - Irene Roele, Senior Fellow In Management, Manchester Business School
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  • Reflections on Change Mgt – having worked in it for several years and especially last 18 months of intensive work/facilitation with a number of organisations What I hear yesterday echoes with what I’m hearing across all sectors: public and for-profit: Tesco, Thales, UU FTN (NHS), GP Commissioning, MoD ‘Jumping slides’ The slides are my notes – so apologies for small print
  • I think it’s worth mentioning my experience here, working with SLTs on Strategy and Change etc.“This study is significant because it shows change to be an interpretive process. Unanticipated outcomes cannot be accounted for purely in terms of in sufficient planning and project management, as they arise from the way individuals “make sense” of change interventions. Similarly, anticipated outcomes occur when individuals make sense of interventions in a way that is consistent with those who designed them. Senior managers therefore cease to be in direct control of the outcomes of change. Some level of compliance can be forced through new structures, systems and roles, but recipients still edit senior manager plans through their interpretations and their resulting actions. Indeed, many sensemaking processes that shape individuals’ interpretations occur out of the presence and control of senior managers. While change results from the interaction between vertical (from senior managers to recipients) and lateral (inter-recipient) sensemaking and sensegiving processes, most sense is made between recipients through lateral and largely informal everyday conversational and social practices, such as the behaviour of others, and storytelling and gossip” (Balogun, 2006)
  • This is from EMJ, 2010, Keith Grint’s “The cuckoo clock syndrome: addicted to command, allergic to leadership”, obviously citing an earlier construct. “..the paper considers the extent to which we remain favourably inclined towards, if not actually addicted to, configuring the world in particular ways – as either one of permanent crises, where the only viable responses are decisive commands; or permanent tame problems, where the only viable responses are to keep rolling out the same process that led you into problem in the first place; or permanent wicked problems, where the only viable response is to delay decision-making while you engage in yet more consultation and collaboration.. These three elegant responses are actually ideal types in the Weberian sense, rather than empirically common processes, but the typology is useful to open the debate.. That is, they are archetypal tendencies not iron laws but nevertheless they remain extraordinarily difficult to displace. Of course, not every situation is a crisis or is constituted as a crisis by the decision-makers, but this tendency to assume that most things either are crises, or don’t get addressed until they become one, seems particularly appropriate intthe current climate and as a backdrop to our apparent inability to address very complex issues in any way other than through command and control.”

“Change management” - Irene Roele, Senior Fellow In Management, Manchester Business School Presentation Transcript

  • 1. 2012 ARC Conference2012 “Lightening the Admin Burden” Development Session on “Change Management” 1
  • 2. Irene’s approachIrene Roele 2 © copyright R Hurlmeier: “Zebrastreifen”
  • 3. Some issues in [Change] Management – plusthe jargon • Does change management work? • Types of change • Towards a knowledge-based view of the organisation, implications for Registry/Student Experience services • Strategic Insight (sense making) and Strategic Execution – “Awareness is only the beginning, of course. ........... But you shouldn’t expect immediate results” (Bloom, Sadun and Van Reenen, 2012) – The first question a data-driven organization asks itself is not “What do we think?” but “what do we know”? ... It requires organisations to break a habit : pretending to be more data-driven than they actually are. (McAfee & Brynjolffsen, 2012) • Leadership implications: developing a ”second operating system” (Kotter, 2012) • Communities of practice and the art of strategic conversation: driving strategy into action – Dynamic capabilities at IBM (Harreld et al, 2007) • ‘It’s big data and analytics stupid’Irene Roele 3
  • 4. What the experts are saying • “We can’t keep up with the pace of change, let alone get ahead of it.” (Kotter, HBR, November 2012) • “Change is not only dynamic, emergent and non- linear, but also frustrating and daunting” (Balogun, 2006) • “Poor management is rampant and most leaders of poorly managed institutions are unaware of the deficiencies”. (Bloom, Sadun and Van Reenen, 2012) • Failure rates of up to 70% on change initiatives in organisations (Kotter, 2012, Balogun, 2006; Beer and Nohria, 2000)Irene Roele 4
  • 5. Types of change Extent of Change Transformation Re-alignment Incremental Evolution Adaptation transformational change less fundamental change implemented gradually through implemented slowly through different stages and inter- staged initiatives related initiatives Speed of Change Revolution Re-Construction Big Bang transformational change that change undertaken to re-align occurs via simultaneous the way the organization initiatives on many fronts, and operates, but in a more often in a relatively short dramatic manner than space of time re-alignment. Often forced and re-activeIrene Roele 5 (Adapted from Hope Hailey and Balogun, 2002)
  • 6. Why do change managementinitiatives so often fail? • There remains an assumption that carefully developed plans will deliver the expected results – and that the solution to unanticipated outcomes is more and better planning. – “This study is significant because it shows change to be an interpretive process. Unanticipated outcomes cannot be accounted for purely in terms of in sufficient planning and project management, as they arise from the way individuals “make sense” of change interventions. Similarly, anticipated outcomes occur when individuals make sense of interventions in a way that is consistent with those who designed them. Senior managers therefore cease to be in direct control of the outcomes of change. Some level of compliance can be forced through new structures, systems and roles, but recipients still edit senior manager plans through their interpretations and their resulting actions. Indeed, many sensemaking processes that shape individuals’ interpretations occur out of the presence and control of senior managers. While change results from the interaction between vertical (from senior managers to recipients) and lateral (inter- recipient) sensemaking and sensegiving processes, most sense is made between recipients through lateral and largely informal everyday conversational and social practices, such as the behaviour of others, and storytelling and gossip” (Balogun, 2006)Irene Roele 6
  • 7. Exploring ‘long-term dilemmas’ Importance High Low High SHORT-TERM PRIORITIES DILEMMAS Urgency TIME STRATEGIC WASTERS Low (Adapted from Nigel Piercy, 1994, 2009)Irene Roele 7
  • 8. Typology of problems, power and authority Increasing uncertainty about solution to problem Wicked LEADERSHIP Ask Questions Tame MANAGEMENT Organise Process Increasing Critical COMMAND requirement for collaborative Provide Answer compliance Coercion Calculative Normative Physical Rational EmotionalIrene Roele (Adapted from Grint, 2005) 8
  • 9. The Full Thinking/Learning Board Model Policy Review Cycle Governance Business Strategy Review Brain Review Cycle Cycle Supervising Management Strategic ThinkingIrene Roele Operations Review Cycle 9 (Adapted from Garrat 2003 & 2005)
  • 10. So what’s the fuss about ‘Big Data’ ? • “The big data of this revolution is far more powerful than the analytics that were used in the past” ... What we’re seeing is not just flashy examples but a more fundamental transformation of the economy. We’ve become convinced that almost no sphere of business activity will remain untouched by this movement.” (McAfee & Brynjolfsson, 2012) • “If your organization stores multiple petabytes of data, if the information most critical to your business resides in forms other than rows and columns of numbers, or if answering your biggest question would involve a “mashup” of several analytical efforts, you’ve got a big data opportunity.” (Davenport and Patil, 2012)Irene Roele 10
  • 11. So what’s fuss about ‘Big Data’ ? • What’s different this time? – Volume – Velocity – Variety • “The structured databases that stored most corporate information until recently are ill suited to storing processing big data. At the same time, the steadily declining costs of all the elements of computing – storage, memory, processing, bandwidth and so on – mean that previously expensive data- intensive approaches are quickly becoming economical.” (McAfee and Brynjolfsson, 2012)Irene Roele 11
  • 12. Big data: the managerial challenges • Organisational structure and culture implications – “starting with the role of the senior executive team.” – ‘muting the HiPPOS’ (highest-paid person’s opinion relying too much on experience and intuition and not enough on data). Knowing what questions to ask becomes even more critical – “What do the data say?” – “Where did that data come from?” • Leadership • Talent Management – ‘Data Scientists: The Sexieist Job of the 21st Century’ – ‘Knowledge Orchestrators’ – a key source of competitive advantage • Technology • Decision making • Company culture (adapted from McAfee and Brynjolfsson, 2012; Davenport and Patil, 2012, Mc Gee, 2003 and 2007)Irene Roele 12
  • 13. Two comments on change by ‘the guru’s guru’ 1. Do not wait for others in the business to start changing things. Go and do it yourself. 2. Never forget that everyone in the business is interconnected, that they are all operating as part of a system, that tinkering with one part of the company is never really enough, and may even make things worse. You need to see the business as a whole, as a complete system, if you want to make lasting improvements to itIrene Roele (Russ Ackoff 2006) 13
  • 14. Recommended reading • Ackoff R, Addison H and Bibb S (2006), Management f-Laws • Balogun J, 2006, Managing Change: Steering a Course between Intended Strategies and Unanticipated Outcomes, Long Range Planning • Bloom N, Sadun R and Van Reenen J, 2012, Does Management Really Work?, Harvard Business Review • Brynjolfsson E and McAfee A (2011), Race against the machine – How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy • Brynjolfsson E and McAfee A, 2012, Winning the Race With Ever-Smarter Machines, Sloan Management Review • Davenport T H and Patil D J, 2012, Data Scientist: The Sexiest Job of the 21st Century, Harvard Business Review • Grint K, 2010, The cuckoo clock syndrome: addicted to command, allergic to leadership, European Management Journal • Harreld J B, O’Reilly C A and Tushman M L, 2007, Dynamic Capabilities at IBM: Driving Strategy into Action, California Management Review • Kotter J, 2012, Accelerate: How the Most Innovative Companies Capitalize on Today’s Rapid-Fire Strategic Challenges – And Still Make Their Numbers, Harvard Business Review • McAfee A and Brynjolfsson E, 2012, Big Data: The Management Revolution, Harvard Business Review • Mintzberg H (2009), Managing, FT Prentice Hall • Rumelt R, 2011, “Good Strategy/Bad Strategy – and Why it Matters”, Profile BooksIrene Roele 14