Learning organization internal change consultancy - organization success

MBA THESIS - FEBRUARY 2016
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Learning Organization - Internal Change Consultancy - Organization Success
Correlation Analysis
International Business School of Scandinavia - IBSS
A comprehensive Framework for Effective Change Management
Mohamed Hassanien
A thesis presented in partial fulfillment of the requirements for the
Degree of Master in Business and Administration
Cairo, Egypt
February - 2016

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Abstract:
Currently, the business environment is increasingly complex, interconnected,
unpredictable and competitive. Therefore, organizations, in every industry, are
progressively challenged to establish structures that are “built to change”, which
have capacity and capability to continuously challenge the status quo and sustain
transformation as a continuous and endless change process to redirect the
organization into the future.
Despite the considerable amounts of academic researches and articles on
organizational changes, literatures always suggest solutions on particular areas of
change management practices and processes, which continue to fall short of current
challenges. Therefore, the purposes of the thesis was to conduct an in-depth
investigation into how to build a comprehensive framework for effective and
sustainable organizational change management that can offer an integration of
different change management approaches and strategies throughout endless
allowance of one change to occur (planned) and to continuously build on another
(emergent) in order to ultimately conclude a positive compounding effect in a full
harmony and consistency over the organization performance.
Accordingly, a conceptual model was developed to incorporate the key theoretical
elements: learning organization, internal change consultancy and organizational
success (organizational continuous development and employees’ job satisfaction). A
basic research with pragmatism philosophy, inductive-deductive approach and
survey (questionnaire) strategy throughout a single-holistic case study was carried
out using cross-sectional design on two groups; group (1) included employees, who
were actively involved in high potential high performance program and group (2)
included employees, who were not yet involved in the program.
Descriptive and inferential statistics techniques were used to process and analyze
collected data. Statistical analyses clearly demonstrated that there were significant
differences between both groups in term of accessible learning opportunities,
possessed capabilities to sustain changes, active involvement into continuous
development programs, effective job performance and level of job satisfaction.
Moreover, significant positive correlations were explored between the major elements
of the proposed effective organizational change management comprehensive model:
learning organization, internal change consultancy and organization success.
Accordingly, it is recommended to implement the proposed conceptual model and
regularly review its basic elements for continuous adaptation in order to maintain the
change initiative sustainability and to enhance the transformation efforts.
Keywords: change management, learning organization, internal change consultancy,
continuous development and job satisfaction

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Acknowledgment:
The completion of this thesis has been challenging, but at the same time massively
rewarding. I have gained a great return personally and professionally. Thanks God
for granting me the persistence for coming this far.
I must thank International Business School of Scandinavia - IBSS for allowing me the
opportunity to fully enjoy my learning time and gaining insight experiences from
various industry segments and to expand my perspective through the interaction with
others (professors and classmates) inside and outside the class boundary within the
education process. Every investment targets substantial returns and really IBSS
program provided me a strong platform through promoting my knowledge, skills and
competencies to step forward not only on my career but on my entire life.
Moreover, I would like to extend my deepest gratitude to IBSS professors,
administrative staff and my colleagues for making my educational time a wonderful
experience and for their continuous support.
I want also to offer my appreciation to those who were willing to participate in my
surveys and observations, without whom, this thesis would not have been possible. I
am sincerely grateful to them for sharing their truthful and illuminating views and
valuable constructive feedback.
Last but not least, I would like to share the inspiring and prominent words cited by
Mahatma Gandhi (1869-1948) “You must be the change you wish to see in the
world”. Those words were the launching base of my thesis.

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Table of Content:
Abstract:................................................................................................................................................. 1
Acknowledgment:.................................................................................................................................. 2
Table of Content:................................................................................................................................... 3
List of Figures:....................................................................................................................................... 7
List of Charts: ........................................................................................................................................ 8
Chapter 1: Introduction....................................................................................................................... 12
1.1 Overview and Background ................................................................................................. 13
1.2 Problem Statement.............................................................................................................. 14
1.2.1 Research Gap......................................................................................................... 14
1.2.2 Research Question................................................................................................. 16
1.3 Research Objective ............................................................................................................. 17
1.4 Significance of the Research ............................................................................................. 19
1.5 Scope and Limitation of the Research.............................................................................. 20
1.5.1 Research Scope ..................................................................................................... 20
1.5.2 Research Limitation................................................................................................ 20
1.6 Research Design and Methodology .................................................................................. 21
1.7 Definition of Terms.............................................................................................................. 22
1.8 Research Structure: ............................................................................................................ 24
Chapter 2: Literature Review.............................................................................................................. 25
2.1 Introduction:......................................................................................................................... 26
2.2 Change Management: ......................................................................................................... 27
2.3 Change Management Models............................................................................................. 29
2.3.1 Three-step Model of Change.................................................................................. 29
2.3.2 PDCA Cycle of Continuous Organizational Development...................................... 31
2.3.3 Eight-step Model of Leading Change Process ....................................................... 33
2.3.4 ADKAR Model of Individual’s Change Mindset ...................................................... 36
2.3.5 STEP Model of Thinking for a Change Initiative..................................................... 38
2.4 Change Management Strategies and Approaches........................................................... 40
2.4.1 Directed, Planned and Emergent Change Strategies ............................................ 40
2.4.2 Incremental Change versus Quantum Leap Approaches ...................................... 44

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2.4.3 Proactive and Reactive Responses to Change...................................................... 45
2.5 Internal Change Consultancy............................................................................................. 47
2.5.1 Effective Change Agent Characteristics................................................................ 47
2.5.2 External and Internal Agents (Similarities - Differences)........................................ 48
2.5.3 Using External and Internal Consultancies............................................................. 50
2.5.4 Internal Change Agent and Job Satisfaction .......................................................... 50
2.6 Learning Organization and Change Mindset.................................................................... 51
2.6.1 Learning Organization and Organizational Learning.............................................. 51
2.6.2 Learning Organization Characteristics, Features and Dimensions........................ 51
2.6.3 Learning Organization Set up................................................................................. 53
2.6.4 Learning Organization and Job Satisfaction........................................................... 53
2.7 Change Resistance, Resilience and Readiness............................................................... 54
2.7.1 Change Resistance ................................................................................................ 55
2.7.2 Employees’ Resilience............................................................................................ 57
2.7.3 Organizational Readiness ...................................................................................... 57
2.8 Job Satisfaction and Change Management...................................................................... 59
2.8.1 Job Satisfaction and Organizational Success ........................................................ 59
2.8.2 “Five-Factor Theory” for Job Satisfaction ............................................................... 59
2.8.3 Job Satisfaction and Change.................................................................................. 60
Chapter 3: Conceptual Model – Case Study..................................................................................... 61
3.1 Conceptual Model................................................................................................................ 62
3.1.1 Learning Organization ............................................................................................ 62
3.1.2 “ADKAR” Model - Individual’s Change Mindset...................................................... 62
3.1.3 Effective Internal Change Agents........................................................................... 63
3.1.4 Change Drivers....................................................................................................... 63
3.1.5 “STEP Model” of Thinking for a Change Initiative .................................................. 64
3.1.6 Updated Deming’s model - “PSDCA” ..................................................................... 64
3.1.7 Organizational Dual Success ................................................................................. 64
3.2 Conceptual Model Diagram ................................................................................................ 65
3.3 Conceptual Model Formulas .............................................................................................. 66
3.3.1 Basic Equations (Definition) ................................................................................... 66
3.3.2 Developed Equations (Correlation) ........................................................................ 67
3.3.3 Complete Equations (conclusion)........................................................................... 68

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3.4 Case Study – Company Model ........................................................................................... 69
3.4.1 Egyptian Market Overview...................................................................................... 69
3.4.2 Construction Industry in Egypt - Overview ............................................................. 69
3.4.3 Orascom Construction Industries (OCI N.V.) - Overview....................................... 69
Chapter 4: Design and Methodology................................................................................................. 71
4.1 Introduction.......................................................................................................................... 72
4.2 Research Design ................................................................................................................. 73
4.2.1 Research Philosophy.............................................................................................. 74
4.2.2 Research Approach................................................................................................ 74
4.2.3 Research Strategy.................................................................................................. 74
4.2.4 Research Choice .................................................................................................... 75
4.2.5 Research Time Horizon.......................................................................................... 75
4.3 Method of Data Collection .................................................................................................. 76
4.3.1 Survey Questionnaire ............................................................................................. 76
4.3.2 Measurement Scale................................................................................................ 78
4.3.3 Pilot Testing and Validity Assessment.................................................................... 78
4.3.4 Sampling Group...................................................................................................... 79
4.3.5 Questionnaire Administration ................................................................................. 79
4.4 Method of Data Analysis..................................................................................................... 80
4.5 Ethics in Data Collection and Analysis ............................................................................. 82
Chapter 5: Findings and Discussions............................................................................................... 83
5.1 Sample Size and Response Rate ....................................................................................... 84
5.2 Survey Questionnaire Descriptive Analysis..................................................................... 85
5.2.1 Demographic Data.................................................................................................. 86
5.2.2 Job Engagement Data............................................................................................ 91
5.2.3 Learning Organization Data.................................................................................... 94
5.2.4 Change Management Data .................................................................................... 98
5.2.5 Internal Change Consultancy Data....................................................................... 102
5.2.6 Organizational Continuous Development Data .................................................... 106
5.2.7 Employees’ Job Satisfaction Data........................................................................ 109
5.3 Correlation Analysis of Variables .................................................................................... 114
5.3.1 Job Engagement and Learning Organization....................................................... 116
5.3.2 Engagement and Change Management............................................................... 117

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5.3.3 Jon Engagement and Internal Change Consultancy............................................ 118
5.3.4 Job Engagement and Continuous Improvement.................................................. 119
5.3.5 Job Engagement and Job Satisfaction................................................................. 120
5.3.6 Learning Organization and Change Management ............................................... 121
5.3.7 Learning Organization and Internal Change Consultancy.................................... 122
5.3.8 Learning Organization and Continuous Improvement.......................................... 123
5.3.9 Learning Organization and Job Satisfaction......................................................... 124
5.3.10 Change Management and Internal Change Consultancy .................................... 125
5.3.11 Change Management and Continuous Improvement........................................... 126
5.3.12 Change Management and Job Satisfaction.......................................................... 127
5.3.13 Internal Change Consultancy and Continuous Improvement............................... 128
5.3.14 Internal Change Consultancy and Job Satisfaction.............................................. 129
5.3.15 Continuous Improvement and Job Satisfaction.................................................... 130
Chapter 6: Conclusions and Recommendations ........................................................................... 131
6.1 The Research Questions and Objectives Conclusions ................................................. 132
6.1.1 The Research Objectives Conclusion .................................................................. 132
6.1.2 The Research Questions Conclusion................................................................... 135
6.2 Recommendations for Effective Change Management ................................................. 140
6.3 Opportunities for Further Researches ............................................................................ 141
List of References ............................................................................................................................. 142
List of Appendixes ............................................................................................................................ 149

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List of Figures:
Figure 1: Creasey, (2009). Three states of change model.......................................................................... 22
Figure 2: Hannagan, (2005). Strategic drift: Management Concepts and Practices............................... 28
Figure 3: Lewin (1951). Three-Step Model of Change Basic Concept...................................................... 29
Figure 4: Lewin (1951). Three-Step Model of Change phases and Mechanism ..................................... 30
Figure 5: Deming (1951). PDCA Cycle (Plan, Do, Check and Act)........................................................... 32
Figure 6: Kotter (2014). Eight-step Model of Leading Change Process ................................................... 33
Figure 7: Kotter and Cohen (2002). Dynamic Model: See, Feel and Change.......................................... 35
Figure 8: Hiatt (2006). Success Factors for Change Using ADKAR.......................................................... 36
Figure 9: Hiatt (2006). ADKAR Model of Individual’s Change Mindset..................................................... 37
Figure 10: Author, (2015). STEP Model of Thinking for a Change............................................................ 39
Figure 11: Kerber & Buono, (2007). The Guided Changing Spiral............................................................ 41
Figure 12: Kerber & Buono, (2007). The Change Continuum.................................................................... 42
Figure 13: Burtonshaw-Gunn and Salameh, (2009). Choice of Change Strategies ............................... 43
Figure 14: Lunenburg (2010). Characteristics of Effective Change Agent ............................................... 47
Figure 15: Asia University (n.d.). Characteristics of a Learning Organization.......................................... 52
Figure 16: Lewin (1951). Force Field Analysis Diagram.............................................................................. 54
Figure 17: Kubler-Ross (1969). “Grief Cycle” or “Change Curve”............................................................. 55
Figure 18: Mumford (1991). Five-Factor Theory for Job Satisfaction........................................................ 59
Figure 19: Author, 2015. A comprehensive Framework for Change Management................................. 65
Figure 20: Author, (2015). Updated Deming’s Model – PSDCA................................................................. 67
Figure 21: Saunders et al, (2009). The Research Onion ............................................................................ 73
Figure 22 : Saunders et al, (2009). Values of Correlation Coefficient....................................................... 81

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List of Charts:
Chart 1: Gender of Respondents .................................................................................................................... 86
Chart 2: Age range of Respondents............................................................................................................... 87
Chart 3: Respondents’ Length of Service Range ......................................................................................... 88
Chart 4: Job Roles Categories of Respondents ........................................................................................... 89
Chart 5: Respondents’ Length of Service in Current Job............................................................................ 90
Chart 6: Respondents’ Level of Involvement................................................................................................. 91
Chart 7: Respondents’ Level of Empowerment ............................................................................................ 92
Chart 8: Respondents’ Level of Commitment ............................................................................................... 93
Chart 9: Learning Support in Culture.............................................................................................................. 94
Chart 10: Learning Share within the Organization ....................................................................................... 95
Chart 11: Motivation to Learn .......................................................................................................................... 96
Chart 12: Opportunity for Continuous Learning ............................................................................................ 97
Chart 13: Change Mindset Generation .......................................................................................................... 98
Chart 14: Change and Re-shape a Better Future......................................................................................... 99
Chart 15: Respondents’ Resilience .............................................................................................................. 100
Chart 16: Change and Employees-Organization Equilibrium ................................................................... 101
Chart 17: Common Vision and Goals........................................................................................................... 102
Chart 18: Capabilities and Capacities to Handle Changes ....................................................................... 103
Chart 19: Internal Change Agents Empowerment...................................................................................... 104
Chart 20: Internal Change Agents Motivation ............................................................................................. 105
Chart 21: Learning Programs and Continuous Development................................................................... 106
Chart 22: Involvements in Change and Resistance Relief........................................................................ 107
Chart 23: Change Influence on Performance Enhancement.................................................................... 108
Chart 24: Effectively Using and Developing Employees’ Skills................................................................ 109
Chart 25: Development Programs and Career Opportunity...................................................................... 110
Chart 26: Satisfaction with Offered Level of Status.................................................................................... 111
Chart 27: Demands and Performance Balance .......................................................................................... 112
Chart 28: Efforts and Rewards Balance....................................................................................................... 113

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List of Tables:
Table 1: Research Design and Methodology Overview............................................................................... 21
Table 2: Kotter, 2007 & 2014: Eight-step Model Elements, Actions and Pitfalls ..................................... 34
Table 3: Scott and Hascall (2002): External and Internal Consultancies Differences............................. 49
Table 4: Mind (2014b): Correlation between Change Curve Stages and Reactions.............................. 55
Table 5: OCI N.V., 2013: Annual report, Consolidated Income Statement.............................................. 70
Table 6: Research Design Structure in line with the “Research Onion” Layers ....................................... 73
Table 7: Sample Size and Response Rate.................................................................................................... 84
Table 8: Descriptive Analysis of Respondents Gender................................................................................ 86
Table 9: Independent t-test of Respondents Gender................................................................................... 86
Table 10: Descriptive Analysis of Respondents’ Age Range...................................................................... 87
Table 11: Independent t-test of Respondents’ Age Range ......................................................................... 87
Table 12: Descriptive Analysis of Respondents’ Length of Service........................................................... 88
Table 13: Independent t-test of Respondents’ Length of Service Range.................................................. 88
Table 14: Descriptive Analysis of Respondents’ Job Roles Categories.................................................... 89
Table 15: Independent t-test of Respondents’ Job Roles Categories ....................................................... 89
Table 16: Descriptive Analysis of Respondents’ Length of Service in Current Job................................. 90
Table 17: Independent t-test of Respondents’ Length of Service in Current Job .................................... 90
Table 18: Descriptive Analysis of Respondents’ level of Involvement....................................................... 91
Table 19: Independent t-test of Respondents’ Level of Involvement......................................................... 91
Table 20: Descriptive Analysis of Respondents’ level of Empowerment .................................................. 92
Table 21: Independent t-test of Respondents’ Level of Empowerment..................................................... 92
Table 22: Descriptive Analysis of Respondents’ level of Commitment...................................................... 93
Table 23: Independent t-test of Respondents’ Level of Commitment........................................................ 93
Table 24: Descriptive Analysis of Learning Support in Culture................................................................... 94
Table 25: Independent t-test of Learning Support in Culture...................................................................... 94
Table 26: Descriptive Analysis of Learning Share within the Organization .............................................. 95
Table 27: Independent t-test of Learning Share within the Organization.................................................. 95
Table 28: Descriptive Analysis of Motivation to Learn ................................................................................. 96
Table 29: Independent t-test of Motivation to Learn..................................................................................... 96

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Table 30: Descriptive Analysis of Opportunity for Continuous Learning................................................... 97
Table 31: Independent t-test of Opportunity for Continuous Learning....................................................... 97
Table 32: Descriptive Analysis of Change Mindset Generation ................................................................. 98
Table 33: Independent t-test of Change Mindset Generation..................................................................... 98
Table 34: Descriptive Analysis of Change and Re-shape a Better Future................................................ 99
Table 35: Independent t-test of Change and Re-shape a Better Future................................................... 99
Table 36: Descriptive Analysis of Respondents’ Resilience ..................................................................... 100
Table 37: Independent t-test of Respondents’ Resilience......................................................................... 100
Table 38: Descriptive Analysis of Change and Employees-Organization Equilibrium .......................... 101
Table 39: Independent t-test of Change and Employees-Organization Equilibrium.............................. 101
Table 40: Descriptive Analysis of Common Vision and Goals.................................................................. 102
Table 41: Independent t-test of Common Vision and Goals ..................................................................... 102
Table 42: Descriptive Analysis of Capabilities and Capacities to Handle Changes .............................. 103
Table 43: Independent t-test of Capabilities and Capacities to Handle Changes.................................. 103
Table 44: Descriptive Analysis of Internal Change Agents Empowerment............................................. 104
Table 45: Independent t-test of Internal Change Agents Empowerment ................................................ 104
Table 46: Descriptive Analysis of Internal Change Agents Motivation .................................................... 105
Table 47: Independent t-test of Internal Change Agents Motivation........................................................ 105
Table 48: Descriptive Analysis of Learning Programs and Continuous Development.......................... 106
Table 49: Independent t-test of Learning Programs and Continuous Development ............................. 106
Table 50: Descriptive Analysis of Involvements in Change and Resistance Relief............................... 107
Table 51: Independent t-test of Involvements in Change and Resistance Relief .................................. 107
Table 52: Descriptive Analysis of Change Influence on Performance Enhancement........................... 108
Table 53: Independent t-test of Change Influence on Performance Enhancement............................... 108
Table 54: Descriptive Analysis of Effectively Using and Developing Employees’ Skills....................... 109
Table 55: Independent t-test of Effectively Using and Developing Employees’ Skills........................... 109
Table 56: Descriptive Analysis of Development Programs and Career Opportunity............................. 110
Table 57: Independent t-test of Development Programs and Career Opportunity ................................ 110
Table 58: Descriptive analysis of Satisfaction with Offered Level of Status ........................................... 111
Table 59: Independent t-test of Satisfaction with Offered Level of Status .............................................. 111
Table 60: Descriptive analysis of Demands and Performance Balance.................................................. 112
Table 61: Independent t-test of Demands and Performance Balance..................................................... 112

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Table 62: Descriptive analysis of Efforts and Rewards Balance.............................................................. 113
Table 63: Independent t-test of Efforts and Rewards Balance ................................................................. 113
Table 64: Correlation of Job Engagement and Learning Organization ................................................... 116
Table 65: Correlation of Job Engagement and Change Management .................................................... 117
Table 66: Correlation of Job Engagement and Internal Change Consultancy ....................................... 118
Table 67: Correlation of Job Engagement and Continuous Improvement.............................................. 119
Table 68: Correlation of Job Engagement and Job Satisfaction .............................................................. 120
Table 69: Correlation of Learning Organization and Change Management........................................... 121
Table 70: Correlation of Learning Organization and Internal Change Consultancy.............................. 122
Table 71: Correlation of Learning Organization and Continuous Improvement..................................... 123
Table 72: Correlation of Learning Organization and Job Satisfaction ..................................................... 124
Table 73: Correlation of Change Management and Internal Change Consultancy............................... 125
Table 74: Correlation of Change Management and Continuous Improvement...................................... 126
Table 75: Correlation of Change Management and Job Satisfaction ...................................................... 127
Table 76: Correlation of Internal Change Consultancy and Continuous Improvement......................... 128
Table 77: Correlation of Internal Change Consultancy and Job Satisfaction......................................... 129
Table 78: Correlation of Continuous Improvement and Job Satisfaction................................................ 130

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Chapter 1: Introduction
1.1 Overview and Background
1.2 Problem Statement
1.3 Research Objective
1.4 Significance of the Research
1.5 Scope and Limitation of the Research
1.6 Research Design and Methodology
1.7 Definition of Terms
1.8 Research Structure
Chapter Summary:
Introduces a brief overview and background information to the research,
statement of the problem clarifying the research gaps, questions and
objectives, emphasizes the significance of the research, describes the
research scope and limitation as well as the research design and
methodology. Also, outlines the research key terminologies and ultimately
the research structure.

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1.1 Overview and Background
Change is one of life few unquestionable facts (realities of yesterday are proving
wrong today) and as pointed out by the Greek philosopher Heraclitus (525 – 475BC)
“change alone is unchanging”.
Change becomes now a basic feature of business life and not an option. Accordingly,
organizations undertake changes as a matter of survival. Failure to adequately
change in a timely manner has turned down largest business conglomerates into
subsidiaries, seemingly overnight (Mowat, 2002, p.2). Change downside is inevitable
and change period is often painful and stressful, through which anxiety increases,
morale deteriorates, sacrifice imposes, resistance occurs, productivity falls and
confusion prevails (Calvello & Seamon, 1995, p. 16-19.). Whilst it is difficult to
undertake changes, John F. Kennedy (1917-1963), 35th
President of the United
States stressed the point that those who fail to endorse changes would have limited
future “Change is the law of life and those who look only to the past or present are
certain to miss the future”.
Organizational change is evoked by major external driving forces such as
technology, globalization, market demands and competition in order to capitalize an
opportunity or to avoid a potential future threat (McNamara, 2001, para. 2).
Regardless of the reasons, evolving into different level of organizations lifecycle is a
must through accepting changes, as a natural part of the business life. Furthermore,
presently it is not adequate to only respond to changes (reactive approach),
organizations have to induce and drive changes (proactive approach) in order to
promote their valuable competitive position, while minimizing the pressure and
maintaining the control of business.
Currently, the pace of business life changes is dramatically accelerating; Scottish
psychiatrist R. D. Laing (1927-1989) cited that “We live in a moment of history where
change is so speeded up that we begin to see the present only when it is already
disappearing”. There is no sign that the rate of change is going to slowdown; on
contrary most evidences suggest that the rate of macro-economic forces and
environmental movements will increase and consequentially the pressure on
organizations will extremely grow over the next few decades to consciously and
continuously adapt and change (Kotter, 1996, p.30).
Accordingly, effective change management that facilitates the organizational
continuous adaptation, development and transformation process becomes a strategic
imperative and an increasingly crucial part of running a successful business.

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1.2 Problem Statement
“Change is a common thread that runs through all businesses regardless of industry,
size and age. Our world is changing fast and organizations must rapidly change too.
Organizations that proactively handle change well thrive; whilst those that do not may
struggle to survive” (Bourda, 2013, p.16). Organizations must either lead and
manage changes or die.
1.2.1 Research Gap
Nevertheless, it is a fact that managing change is a tough process and organizations
likely encounter the following challenges:
 Change is a hard work and it is almost always reactive. Accordingly,
organizations most likely miss the momentum of being a change leader.
Considering the current dynamic business environment, organizations have to
refer to changes as an initiative continuous open-end process of adaptation to
both internal and external influences.
 The pace of change in the contemporary business environment over the past
decades is extremely high and shows no signs of slowing down; most credible
evidences suggest the opposite. Hannagan, T. suggested that the business
environment change is faster than the organization’s change leap; the gap
between the pace of change and the organization’s change movement (ability
to correspondingly and continuously adapt) is commonly referred to as a
“Strategic drift” (as cited in Burtonshaw-Gunn & Salameh, 2009, p.5).
 Organizations become far too large and too complex to be controlled from the
center. The days in which organizations can solely count on managers and
leaders (top-down and directive change management approach) in initiating
and managing changes are in most circumstances gone. The present problem
is that one person can never make a revolution in the organization’s change
movement to match the current accelerating pace of dynamic business
environment (Morgan& Zohar, n.d.a, para. 1).

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 While the pressures of external and internal environments impose changes,
the resistance plays a crucial role in influencing the organizations stability
bearing in mind the old adage that states “organizations don’t change; people
change and then they change the organization”.
 Change is a painful because people often overestimate the value of what they
have and underestimate the value of what they may gain. Therefore, selling a
change to people and being right is neither enough nor sustainable strategy
for success because it will not guarantee the people involvement in validating
and refining the change. People must be empowered (wining their hearts and
minds) to find their own initiatives, solutions and responses; subsequently
change becomes a real (Mowat, 2002, p.3).
 People resist change due to fear of unknown and routine change. It is a major
challenge to assist the people to safely leap the transition point from danger
phase (denial and resistance) to opportunity phase (exploration and
commitment) overcoming the negative emotions and being resilient.
This research shall investigate the following themes (gaps and concerns) in change
management process:
a- Reactive and proactive approaches
b- Gap between the pace of business environment change and the organization
change movement (strategic drift)
c- Managers and leaders limited but always significant sphere of influence
d- Gap in employees’ capabilities that affects the role of being effective internal
change agents to facilitate the change processes and practices within the
organization
e- Directive and participative change management approaches and associated
motivation factors
f- Organizations stability and balancing the external/internal environments
pressure and resistances force
g- Gap between danger phase (denial and resistance) and opportunity phase
(exploration and commitment)
Academic researches and articles on organizational changes always focus on
specific areas of change management processes and practices on a fragmental
basis. There is no comprehensive organizational change management operating
models exist to enhance the ongoing transformation initiative while filling the
research gap and addressing above concerns.

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1.2.2 Research Question
This study is basically guided by the following research question:
How do the development and the application of a comprehensive organizational
change management operating model lead to an organization’s global success?
In short, this research intends to respond to a basic question how an organization
could develop an inclusive change management model that inspires the
organization’s employees (main source and vehicle of change) to work hard and to
be more effective in order to envisage the movement for a change through the
implementation of internal consultancy philosophy. This is to lay the foundation for a
successful change management having a true quantum leap resultant from steady
incremental steps in change performance and to conclude a global success at both
the individual and organization levels.
Furthermore, this study simultaneously shall respond to the following sub-questions:
a- How to create contexts in which meaningful change can occur?
b- How to guide a successful change?
c- How to develop an organization “built to change” for an initiative and a
continuous open-end process of adaptation to both internal and external
influences?
d- What are the change movement drivers?
e- What is the relation between making the journey of change easier to
employees and the more likely to achieve the organizational success?
f- How to fill the following gaps in change management?
 Strategic drifts
 Managers/leaders capacities and employees’ capabilities limitations
 External and internal environments influence forces
 Danger phase (denial and resistance) and opportunity phase
(exploration and commitment)

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1.3 Research Objective
Currently, building an effective and matured change management capability and
foundation is a priority for any organization. Therefore, the purpose of this study is to
conduct an in-depth investigation into change management, and to develop a
comprehensive framework for effective organizational change management. More
specifically, the below objectives reflect the strategic intent of the research:
1- Examine the existing change management theories/models and interrelation
with other relevant topics
2- Identify the change initiative significant outcome in term of impact
3- Investigate the role of internal change agents on the organization performance
4- Explore the relation between establishing learning organization, developing
individual’s change mindset, generating internal change agents, implementing
organizational continuous development and promoting employees’ job
satisfaction as a road map toward organizational dual success at both
individuals and organizations levels
5- Formulate a comprehensive framework for effective organizational change
management operating model
Accordingly, the basic outcome of this research is a change management model
developed on the basis of the learning organization principles that contribute
between both the organizations’ and the employees’ goals to generate effective
Internal change agents that would be fueled to facilitate the organizational continuous
development to achieve a global success at both individual and organizational levels.
Also, this study intends to investigate how an organization could inspire its
employees (main source and vehicle of change) to work hard and to be more
effective to envisage the movement for a change through the implementation of
internal consultancy philosophy. Generating internal change agents is more similar to
external consultation and has inherent advantages of being a part of the organization
culture. So, coaching and challenging the employees to be an effective internal
change agent are essential to conclude simple and practical solutions to
organizational challenges, save money, increase loyalty, build a strong relationship
within the organization and be more effective in improvement.
Consequentially, the directive-participative movement of change would establish a
network through which the employees at different levels could collaborate with each
other in generating and exchanging ideas for growth and maintaining the products
and services sustainability, while jointly releasing the pressure resulted from the fear
of unknown and the routine change. This approach would secure dual successes:
employees’ job satisfaction and organization’s continuous development while
meeting the organization’s goals and promoting its valuable competitive position and
the principles of value innovation.

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This study focuses on construction industry in Egypt. Construction is one of the most
active sectors of the Egyptian economy, the sector accounts for 7% of national GDP.
There are around 31 public and 36,000 private construction companies working in a
very tough competitive environment.
Changes represent major challenges to all parties involved in the construction
process due to globalization, quantum leaps in technology, market demands and in
particular after introducing the fast tacking construction concept (reduces the project
time by overlapping the project design and construction phases) on 1960s, which
significantly increases the pace of changes that becomes more suddenly and more
frequently.
Therefore, developing a comprehensive framework for effective organizational
change management operating model is crucial for organizations success in
construction industry.

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1.4 Significance of the Research
“It is not the strongest of the species that survives, nor the most intelligent . . . but the
one most responsive to change” Charles Darwin (1809 – 1882). Accordingly,
Continuous change and adaptation approach is a survival instrument for life and
business. In competitive environment of today, change is a race without an end;
there are no winners only losers when miss the momentum of being change leaders.
Consequentially, change management represents a rapidly growing discipline on all
scales and types of organizations. Moreover, effective change management
practices and processes have therefore become an increasingly indispensable part
of running successful business.
Recent surveys have showed that organizations failed in two-thirds of their change
efforts and correspondingly, changes programs did not deliver the desired outcome
(Mckinesy, 2008, p. 1). This is an important reason to continue the academic and
field researches efforts in order to investigate the failures root causes recommending
a road map toward a successful and consistent change implementation. This
provides a preliminary justification for such study.
Despite the considerable amounts of academic researches and articles on change
management, literatures always suggest solutions on particular areas of change
management practices and processes such as change three-phase (Lewin’s model),
creating individual change mindset (ADKAR model), continuous incremental change
process (PDCA cycle) … etc. Introduced models tend to disclose why change occurs
(change driving forces), how change will occur (stages, scale, and process
characteristics), and what will occur (content, resistant and outcome). This is to
understand different change aspects; but all on a fragmental basis.
This study tries to fill the research gap, while avoiding the piecemeal basis approach
and solutions for initiating and managing organizational changes and provides an
inclusive view to build a comprehensive and effective change management model to
achieve a global success at both individual and organization levels. Also, this
research intends to address the different gaps in change implementation such as
strategic drift, influence forces …etc.; as an attempt to draw a constructive feedback
to allow organizations adapting their change management models accordingly.
Such studies give prominence to concerns and gaps, while overlooking the overall
change management process, present findings and recommend a framework through
which the change implementation can be viewed holistically to develop the initiative
sustainability. This research should pave the road for further future researches on
comprehensive organizational change management operating models to enhance
the ongoing transformation efforts.

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1.5 Scope and Limitation of the Research
The scope of the study refers to the research objectives and the problem statement
that the research seeks to respond, while the limitations are matters beyond the
researcher’s control that limit the extension to which a study can go and may affect
the quality of the study conclusion (Simon & Geos, 2013, p 1-3).
1.5.1 Research Scope
This research intends to investigate and understand the role of change management
in order to conclude an appropriate conceptual framework toward the organization
global success considering the accelerating pace of change and the tough market
conditions. This study focuses on the construction industry in Egypt and seeks to
conclude how best managing changes in construction industry influences the
organization success.
1.5.2 Research Limitation
This research is limited by the constraints of being a non-full time researcher. Owing
to resources and time constraints, the study has been limited to one industry
segment “Construction” in a specific geographic region “Egypt” of a single case
“Orascom Construction Industries”. Whereas this study provides significant insights
into organizational change management, the findings should be considered in the
light of the following important limitations:
a- Findings are based on a single case study. The behavior of one unit may or
may not reflect the behavior of similar entities. Also, casual inferences cannot
be made because alternative explanation cannot be ruled out.
b- Correlational study involves specific groups of people and the relationship
between the variables is only investigated under specific circumstances in one
industry segment in a specific geographic area.
c- Survey instruments often suffer the limitation of the survey text and may
impose the respondents into particular direction (response categories). Also,
the time constraints may make the people overworked, who may struggle
between real and perceived positions in their responses.
d- The way businesses manage change and how successful they are depends
largely on the business nature, pace of industry change, involved people
profile, industry culture, leadership style …etc.
Accordingly, the research findings are limited and might not be fully generalized
beyond the study areas as a global representative of the construction industry or
other industry segments. The study however, has a value and constructed an
effective research instrument that pursued to provoke general and specific
information on challenges of change management.

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1.6 Research Design and Methodology
The research design and methodology were carefully chosen in order to facilitate
answering the research question and concluding the research objective.
Both desk research (secondary) and field research (primary) techniques in data
collections were implemented. Secondary research focused on examining the
literatures on the topics; various management research websites, articles and
periodicals provided another source for desk research to identify key concepts and
also were utilized to develop questionnaires for survey. Primary research was mainly
used through quantitative technique (a questionnaire comprises of closed questions)
to provide different perspectives and confirm the topics involved in the research.
Finally, the collected data was analyzed using both descriptive and inferential
statistics tools to conclude the trends and the patterns to eventually investigate the
validity of proposed conceptual model.
The research design and methodology has been given a serious attention to ensure
the quality of the research outcome and to reduce or eliminate both bias and errors
where practically possible. Despite the fact that the survey was carried out on one
geographic region of one organization, a debate may arise concerning the validity
and the level of generalization of the research outcome; nevertheless, the findings
still have a significant value in addressing the problem statement and concluding a
modern conceptual framework for a participative change management approach. The
research design and methodology is lengthily described in Chapter 4.
Table 1: Research Design and Methodology Overview
Research Purpose Descripto-explanatory
Research Type Basic
Research Investigation Type Correlation analysis
Research Philosophy Pragmatism (positivism and intrepretivism)
Research Approach Inductive and deductive
Research Strategy Survey and single - holistic case study
Research Choice (collection) Qualitative method (questionnaire)
Measurement Scale Nominal and interval (Likert five-point scale)
Sampling Strategy-Technique Probability approach-stratified random technique
Sample Size Basis Rough guide-confidence level 95%-interval 5%
Questionnaire Administration Mixed-mode (personal and electronic-mail)
Research Choice (analysis) Descriptive and inferential statistics tools
Analysis Software Excel and SPSS
Research Time Horizon Cross-sectional
Source of Data Desk (secondary) and field (primary) researches
Industry Segment Construction
Target Population Large and medium organizations
Company Model Orascom Construction Industries (OCI N.V.)
Company Segment Engineering and Construction Group
Geographical Area Egypt operations

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1.7 Definition of Terms
This research presents an overview on change management and particularly a
correlation analysis of three key elements: learning organization, internal change
agent and organizational success. Therefore, definitions are provided for the
following keywords: change, change management, organization, learning
organization, internal change agent, job satisfaction and organizational success in
order to endorse a common understanding for the research basic elements.
“Change”, as defined by Creasey (2009) is a movement from a current state (where
we are now) to a desired future state (where we would like to be) through a transition
state (change process) to improve the likelihood of organizational success and
capture return on investment (ROI). Change is typically evoked as a reaction to an
opportunity or a threat and it often has impact on one or more of the following
organizational elements: process, system, structure, or job roles; such impact will
involve both technical side and people side that must be managed (p.1-7).
Figure 1: Creasey, (2009). Three states of change model
“Change Management”, as defined by Creasey (2009) is the process, tools and
techniques that an organization may utilize to manage the people side of change to
make successful personal transition resulting in adaption and realization of change,
while project management addresses the technical side management of change.
Change management directly supports promoting the return on investment (ROI)
through more efficient transition state and more effective future state (p.1-7).
“Organization”, as defined by the BusinessDictionary is “a social unit of people that
is structured and managed to meet a need or to pursue collective goals. All
organizations have a management structure that determines relationships between
the different activities and the members, and subdivides and assigns roles,
responsibilities, and authority to carry out different tasks. Organizations are open
system. They affect and are affected by surrounding environment’ (Organization,
2010, para. 1). Accordingly, organizations continuously adapt themselves.
Current State Transition State Future state

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“Learning Organization”, as defined by Pedler, Burgoyne and Boydell (1997) is “an
organization that facilitates the learning of its members and consciously transforms
itself and its context” (p.3). Learning organization develops both capacity and
capability to rapidly learn, adapt and change though enable learning, share
knowledge, seek knowledge, create opportunity and create new knowledge to
maintain its competitive edge. Learning organization, as defined by Senge (1990),
has five main disciplines (features): personal mastery (individuals’ involvement and
commitment), mental models (corresponding espoused theories and theories-in-use),
shared vision (common organizational and individuals’ goals) and team learning
(conversational and collective thinking skills in a boundary crossing and openness
environment) and system thinking (integrates and evaluate all five disciplines as part
of a common process) (p.8-13).
“Internal Change Agent”, as defined by Weis (2003) is a person working for an
organization and has a wide variety of tools techniques and methodologies that can
initiate; facilitate and sustain changes. It is more similar to external consultation and
has inherent advantages of being a part of the organization culture and offers a
smoother transition during the change process (p. iii).
“Job Satisfaction”, as defined by Davis and Nestrom (1985) is the level of
contentment (combination of positive and negative emotions) an employee feels
toward his or her current job. The affective satisfactions level is mainly based on an
employee's perception of satisfaction (cognitive) and extends to affect the
performance (conation). Therefore, job satisfaction is closely linked to the employee's
behavior in the work place and may influence his/her ability to successfully complete
assigned tasks (p.109).
“Organizational Success”, this study suggests that organizational success is
measured by how well an organization simultaneously and effectively sustains
individual goals of its business plan (generating revenues, seizing opportunities,
aligning works and strategies, mitigating risk, increasing efficiency and effectiveness,
...etc.) to maintain its valuable competitive position whereas attains its employees’
job satisfaction. This correlation is a fundamental perception materialized by the
organization definition as a major social unit, where its satisfied employees represent
the most valuable and important assets and basically stand behind its achievements.

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1.8 Research Structure:
The purpose of this outlines is to introduce an overview presentation of the research
structure and a short summary of chapters’ contents.
Chapter 1: introduces a brief overview and background information to the research,
statement of the problem clarifying the research gaps, questions and objectives,
emphasizes the significance of the research, describes the research scope and
limitation as well as the research design and methodology. Also, outlines the
research key terminologies and ultimately the research structure.
Chapter 2: displays a review of current academic literatures, theories, models and
analysis of the previous researches on the topics to build a framework for the
research question and to offer insight into what literatures were considered in
formulating the study perspectives and relevant critiques toward concluding the
research objective.
Chapter 3: presents a comprehensive framework for effective organizational change
management operating model developed in conjunction with literatures review to
substantially respond to the research question and provide a solution to introduced
problem together with a real-life business case study (company model).
Chapter 4: describes the research design: purpose of study, type of investigation,
study setting, unit of analysis, sampling design, time horizon, sources of data, data
collection and data analysis methodologies. Furthermore, justifications introduced for
research design different selections.
Chapter 5: summarizes the research findings and outcomes; furthermore it discusses
the findings within the context of theoretical body of knowledge introduced in
literatures review and in light of the proposed and developed conceptual model. The
data was interpreted and analyzed using descriptive statistics: means and standard
deviations for between-group differences and inferential statistics: correlation
analysis to identify the relationship strength between dependent variables.
Chapter 6: introduces the conclusions, recommendations and subsequent
implications of the research.

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Chapter 2: Literature Review
2.1 Introduction
2.2 Change Management
2.3 Change Management Models
2.4 Change Management Strategies
2.5 Change Readiness and Change Resilient
2.6 Learning Organization and Change
2.7 Internal Change Agents
2.8 Job Satisfaction and Change
Chapter Summary:
Display a review of current academic literatures, theories, models and
analysis of the previous researches on the topics to build a framework for
the research question and to offer insight into what literatures were
considered in formulating the study perspectives and relevant critiques
toward concluding the research objective.

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2.1 Introduction:
During the past years, change management and organizational change have been
subject of countless articles and books.
Literature review (desk review) provides a summary of current academic literatures
and theories on change management and relevant aspects. The scope of desk
review (secondary research) included books, articles, periodicals, journals, university
dissertations material and various management research websites, where the works
of authorities on the research subject were referenced.
The literature review attempts to outline and build a conceptual foundation for the
research question and offer insight into what literatures were considered in (a)
formulating the study perspectives, (b) relevant arguments and disagreement, and (c)
flaws in the body of existing researches for better understanding of the research
question and ultimately concluding the research objectives.
Below are the major revisited themes, followed by the literature review per theme:
 Change management (theories and models)
 External and internal environments influences forces
 Change initiative and the role of internal change agent
 Learning organization and creating change mind set
 Organizational global success (individuals’ job satisfaction and organization
continuous development)
This review tends to establish a common baseline for further discussion on the
research analysis of the outcome.

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2.2 Change Management:
The realities of yesterday are proving wrong today. Accordingly, change is an
ongoing and continuing process. Organizations are most likely to be successful when
viewing the change as unique and endless opportunity to evolve the business and to
positively reframe its future. The size and scope of the change could be anything
from a major framework (organizational-wide change) down to a simple and trivial
process change at a specific single unit. Thus, change management represents a
rapidly growing discipline on all scale and types of organizations and becomes an
increasingly indispensable part of running successful business (Bourda, 2013, p.4).
As cited by Creasey (2009), change management concept integrates three different
perspectives (i) change management as a systematic process and techniques to
change, (ii) change management as an instrument to manage people side of change
for successful transformation, and (iii) change management as a tool to maximize the
outcome (p.1-7).
Organization as defined by the Business Dictionary is a major social unit of people,
who have devised in order to get things happen and work together to continuously
adapt themselves to external and internal environmental forces to survive
(organization, 2010, para. 1). Organizations do not change; people (organizations’
basic element) change and they change the organization. Facilitating the people
change is crucial to a successful change management considering that people
adopt/adapt to change at a different pace (Crawford, 2013, p.8)
Whenever an organization changes due to new systems and/or processes;
restructure, consolidation of services or workforce, the pressures of change create
stress for those within the organization. The key to successful change management
and transformation journey is to put the people at the center and to engage them in
the process as early as practically possible “Do something for them rather than to
them”. When involving the people into either change initiative or design, they would
become more willing to buy into the final plan and reinforce the change
implementation toward the success (Leung, B., 2013, p.2).
There is no doubt that one of the most difficult responsibilities is to deliver a change.
Therefore, organizations have developed change management programs in order to
facilitate and control the change process. These models intent to formulate change
initiatives, generate organizational buy-in, overcome barriers to change and launch
appropriate models to maintain continues success in future change efforts (Rigby,
2013, p. 21-22). Nevertheless, every organization is unique and changes are not
alike, consequently successful strategic change models cannot be simply copied
amongst organizations weather in the same industry or not. Change management
does not work with a “one-size-fits-all” and has to be tailored in order to meet the
organization conditions and the business needs (Mitchell 2002, p. 18-32).

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Recent surveys have showed that organizations failed in two-thirds of their change
efforts and correspondingly, changes programs did not deliver the planned and
desired outcome (Mckinesy, 2008, p. 1). Simultaneously, the business environment
change is faster than the organization’s change step; and the strategic drift between
the pace of business change and organization’s change movement (ability to
correspondingly and continuously change and adapt) is extremely extensive (as cited
in Burtonshaw-Gunn & Salameh, 2009, p.5).
Figure 2: Hannagan, (2005). Strategic drift: Management Concepts and Practices
(as cited in Burtonshaw-Gunn & Salameh, 2009, p.19)
Therefore, the management of change in business life has sustained to evoke the
academics’ efforts in order to determine the best approaches and models to conclude
a successful change initiative and application methods consistent with the industry
segments nature and associated circumstances (Building effective change
management capabilities that assists in delivering the desired outcome). In short,
change management is a strategic tool targeting the best outcome from the change
process: maximize the opportunities, overcome impediments, secure the employees’
engagement and maintain the harmony internally within the organization and
externally with the stakeholders (Australian National Training Authority, 2003, p.3-4).
Chang
e
Business Environment Change Strategic drift
Time
Organization Change Steps

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2.3 Change Management Models
Change management models have been developed in a form of steps or processes,
which tend to disclose why change occurs (change driving forces), how change will
occur (stages, scale, and process characteristics), and what will occur (content,
resistant and outcome), all on a fragmental basis. Furthermore, common introduced
models offer “how to change?” rather than “why to change?” Therefore, the majority
of change efforts have been failed nowadays.
There are numerous change management theories and approaches; this research
presents few of commonly employed models and displays associated strengths and
weaknesses.
2.3.1 Three-step Model of Change
Kurt Lewin (1890-1947) is a psychologist and social scientist, who introduced the
“Three-step” process of change” in his book “Field theory in social science: selected
theoretical papers” published on 1951. It is often cited as Lewin’s key contribution to
organizational change.
The “Three-step” model is also known as “Unfreeze-Change-Refreeze”. Lewin
described the organizational change using the same concept of changing the shape
of an ice cube. Moreover, it provides an outline to visualize, plan and manage the
change stages. Although, Lewin’s model is one of the early developed change
management models, it remains very relevant nowadays because it is a simple and
easy framework for managing changes; it introduces the basic concepts of a straight
forward change management process (Bourda, 2013, p.6-7).
Figure 3: Lewin (1951). Three-Step Model of Change Basic Concept
The “Three-step” model in conjunction with Lewin’s other introduced basic concepts
“Field Theory, Group Dynamics and Action Research” shaped his planned approach
to change, which is also known as top-down and management-driven change
approach (Burnes, 2004, p. 985).

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The “Three-step” model suggests that every organization, prior introducing a change
and/or adaptation starts with creating motivation (change drivers) to unfreeze the
status quo and breakdown the business as usual and routines to move through the
changing process to anticipated state, while controlling the direction and the forces at
work (reinforce the change) and ultimately ends with refreezing process to secure the
change from regression and to permanently incorporate it into the organization’s
culture, norms, policies and practices; this is to stabilize the operation at the better
desired state upon getting the organizational stability sense (Bourda, 2013, p.7).
Below figure further explicates the “Three-step” model phases and mechanism
“Unfreeze-Change-Refreeze” in correlation with the change movement from a current
state (where we are now) to a desired future state (where we would like to be)
through a transition state (change process) to improve the likelihood of organizational
success and capture return on investment as cited by Cook, W.C., Hunsaker, L.P. &
Coffey, R.E. (1997) in Management and Organizational Behavior: McGraw-Hill Inc.
(Ogola, 2004, p.24).
Figure 4: Lewin (1951). Three-Step Model of Change phases and Mechanism
Correlated with Change Movement (As cited in Ogola, 2004, p.24)
The “Three-step” model attracted major academic criticisms; many argued that the
planned approach is too simplistic and systematic and does not accommodate the
dynamic and the complex nature of today business. Accordingly linear and static
plans are inadequate for change management and more flexibility and active plans
are essential for success.
In Burnes (2004), he referred to (Collins, 1998; Hatch, 1997), who argued that
change cannot be driven from the traditional top-down (command-and-control) style
but must be developed through bottom-up approach (emergent change) from the day
to day activities to conclude a continuous and open-ended change process (p.988).
Current State
Unfreezing
Challenge the organizational
beliefs, values, ..etc.
Create a necessity and need
for change
Introduce a motivation to
change
Change resistance reduction
Break down status quo
Transation State
Changing
Change initiatives
Take time to understand the
benefits of the change
Proactively paricipate and
reinforce the change
Change the routines to shift
the organization to new form
Future State
Refreezing
Internalize the change into
the organization
Stop any attempt to revert
back to old status
Return the statbility sense
Celebrate the success of
change implementation

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Moreover, organizations become far too large and too complex to be controlled from
the center through (command-and-control) style. The days in which organizations
can solely count only on managers and leaders (top-down and directive change
management approach) in initiating and managing changes are in most
circumstances gone. The present dilemma is that one person could never make a
revolution in the organization’s change movement to accommodate the current
accelerating pace of dynamic business environment (Morgan& Zohar, n.d., para. 1).
Nevertheless, Lewin supported the top-down approach; while he recognized that
both involvement and commitment of all concerned employees in the change process
(active and equal participation of all) is a basic condition for successful process
(Burnes, 2004, p. 995).
Also, Burnes (2004) referred to (Dawson, 1994) argument that planned approach to
direct an organization from one stable state to another does not take into account the
concept of continuous and overlapping changes that currently prevails in the
business environment. Furthermore, the refreezing phase is not anymore possible,
as there is no new status quo just continuous change in responding to business
challenges (p. 990). However, Burnes (2004) further clarified that Lewin referred to
refreezing stage as a process to secure the change from regression in order to avoid
coming back to old state and not as a stable state (p. 993).
2.3.2 PDCA Cycle of Continuous Organizational Development
William Edwards Deming (1900 – 1993) was an American statistician and professor.
In 1951, Deming introduced “Deming Wheel” at the Japanese Union of Scientists and
Engineering (JUSE); it comprised four straight line steps (Design, Production, Sales
and Research). The Japanese interpreted and correlated “Deming’s Wheel” into
Plan, Do, Check and Act or “PDCA” cycle (Moen & Norman, n.d., p. 1-6). It is also
known as Deming’s cycle, Deming’s quality wheel and Deming’s management wheel.
The “PDCA” cycle is a change management model for organizational development,
which represents a systematic serious of steps for valuable learning and continual
business (product or process) improvement, while maintaining continues feedback
loop, so the deficiencies are routinely identified for immediate and endless corrective
process (Change Management Consultant, 2014, para. 1-2). According to Deming’s
concept, doing the best efforts is not sufficient for success; the continuous
improvement (adapt as learning occurs) is a must. The first step is to recognize how
to change and to help people work smarter and not harder throughout empowering
pragmatic learning-acting plans and facilitating the teamwork principles and
interactions (Groberg, n.d., p. 1).
Organizational development and continuous improvement concepts are basically
driven by Kurt Lewin’s pioneering works on planned changes (Burns, 2004, p.987).

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According to Boer, Berger, Chapman and Gertsen (2000), continuous improvement
is a “planned, organized and systematic process of ongoing, incremental and
company-wide change of existing practices aimed at improving company
performance” (p. 77).
As clarified by Moen and Norman (n.d.), “PDCA” cycle follows four basic steps (p.7):
1- Plan, design an improvement (desired change) using current available data of
existing practices and performance (possible problem causes and solutions)
2- Do, implement the plan (after training) and measure the performance
3- Check, assess whether changes have led to expected improvement and
report the results to decision makers
4- Act, if the results are unsatisfactory, review lessons learned and decide on
changes necessary to further improve the process. If the new practices are
satisfactory and standardized within the process, opportunities for further
improvement remain open.
Figure 5: Deming (1951). PDCA Cycle (Plan, Do, Check and Act)
The “PDCA” cycle together with other quality theories and techniques were the
foundation of “Kaizen” Japanese philosophy (Moen & Norman, n.d., p. 7). “Kaizen” is
a process oriented framework directed at the people’s efforts from bottom-up
perspective that focuses on the employees’ engagement and empowerment at all
levels to use their common sense in order to introduce small positive changes/steps
on a regular and never-ending basis.
Plan
Do
Check
Act

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Also, Kaizen involves establishing standards and continuously improve those
standards through massive training, close supervision, teamwork approaches and
effective communication within the organization (Thessaloniki, 2006, p. 2-7).
The “PDCA” cycle has major limitations: (i) it only focuses on the individual’s role in
change (activity improvement) rather than organizational change (operational and
strategic objectives); (ii) it does not deliberate the people’s competency level (as a
key factor in the improvement cycle), while it fully counts on every individual’s
capabilities to incorporate the improvement concept in his/her daily job; and (iii) it
does not address the people side of change (resistance and motivation), which is the
change management core (Change Management Consultant, 2014, para. 28).
2.3.3 Eight-step Model of Leading Change Process
Dr. Johan Paul Kotter was a professor at the Harvard business school and
maintained steady records of publications on change management and leadership.
He introduced the “Eight-step” change process in his 1996 book “Leading Change”.
Kotter cited that “organizations that do not or cannot evolve into permanent context of
rapid change will not last” (Kotter, 2014, para. 4). Thus, leading change is an
imperative to survive. Nevertheless, the majorities of organizational change efforts
were failed because of leadership and management failures to understand that
transformation is not an event, but it is a process going through series of phases.
They failed to effectively engage people into transition process (Kotter, 2007, p. 1-3).
Figure 6: Kotter (2014). Eight-step Model of Leading Change Process
8
INSTITUTE
Change
7
SUSTAIN
Acceleration
6
GENERATE
Short Term Wins
5
ENABLE
Action by Removing
Barriers
4
ENLIST
Volunteer Army
3
FORM
Strategic Vision &
Initiatives
2
BUILD
Guiding Coalition
1
CREATE
Sense of Urgency
The Big
Opportunity

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Therefore, Kotter identified and compiled the crucial elements of change into an
actionable eight-step process for a successful change transformation. Understanding
the change stages and relevant possible pitfalls increases the success opportunities
of change initiatives efforts (Kotter, 2007, p. 1).
Nr Process Stage Actions Pitfalls
1 Create sense of
urgency
 Assist, at least, 75% of people to
understand the importance of
immediately changing the status
quo (it is more risky than unknown)
 Examine the business demands &
opportunities
 Understanding the difficulty of
driving the people though
transformation process from their
comfort zone
 Becoming paralyzed by potential
risk consequences
2 Build guiding
coalition
 Assemble a group with shared
values, enough power and energy
to lead change & commitment
 Encourage the teamwork principles
within the group (organization)
 Lack of teamwork principles
 Absence of senior line manager
role in driving/leading the change
process
3 Form strategic
vision &
initiatives
 Shape a vision to drive the change
initiatives efforts
 Develop strategic initiatives to
achieve the vision
 Lacking a vision
 Introduce vague and/or
complicated vision
4 Enlist volunteer
army
 Raise a large force of people, who
are ready & willing to drive change
 Communicate vision & strategies
 Keep communication simple
 Introduce new behavior through
leading by example
 Miscommunicating and/or under
communicating the vision
 Inconsistent behavior, which is not
aligned with the vision (Not walking
the talk)
 Pushing information is not enough
5 Enable action by
removing
barriers
 Remove obstacles &
systems/structures that may pose
threats to vision & change
 Empower others to act on vision
Encourage risk-taking & innovative
ideas and actions
 Failing to remove powerful
individuals, who may resist change
efforts
 Not removing systems/structures
that may threat successful change
process
6 Generate short
term wins
 Design & plan visible performance
improvement
 Celebrate small/large achievement
 Recognize/reward employees, who
have contribution in improvement
 Failing to plan short-term
successes (leaving it to chance)
 Ignoring to score and recognize
early successes (short-term)
7 Sustain
acceleration
 Use increased credibility to change
systems, structures & policies that
are not aligned to the vision
 Promote and develop employees,
who can implement the vision
 Reinforce the change process with
new projects & change agents
 Declaring success early with the
first performance improvement
without focusing on ultimate goals
 Allowing room to resistors to
convince “troops” that the war has
been won and change process is
successfully concluded
8 Institute change  Incorporate change into
organization culture/structure
 Articulate connection between new
behavior and organization success
 Ensure leadership development &
succession plans
 Not creating social norms & shared
values consistent with the changes
initiatives
 Promoting leaders are not able to
support new approaches
Table 2: Kotter, 2007 & 2014: Eight-step Model Elements, Actions and Pitfalls

Page 35 of 154
Kotter’s change model comprises eight sequential and overlapping steps. The first
three are all about creating a climate for change readiness; the next on engaging
(buy in) and enabling the organization’s employees; and the last regarding
implementing, incorporating and sustaining change. The model has to be built on a
solid infrastructure of effective communication and collaboration, extensive
engagement and empowerment as well as focus on organizational vision and goals.
According to Kotter (2007), “Leaders who successfully transform business do eight
things right and do them in the right order”. So, the “Eight-step” phases and actions
cannot be skipped or re-ordered; they are sequential and cumulative in order to
ultimately conclude successful transformation process (p. 3).
In “The Heart of Change: Real-Life Stories of How People Change Their
Organizations” book, John P. Kotter and Dan S. Cohen present how to sustain
transformation to continue the wave of changes. They emphasized that “Emotion is
at the heart of change” because people are only change when they recognize the
reason for change (when they feel and think differently). Accordingly, they introduced
new dynamic model “see, feel and change” that evoke the people emotions toward
change (Soundview, 2002, p. 1-2).
Figure 7: Kotter and Cohen (2002). Dynamic Model: See, Feel and Change
The “Eight-step” model is a simple and easy to understand framework for change
initiatives/leading and it is people-driven approach that focuses on people
engagement and empowerment through helping people to see the reason for change
(urgency sustains change). However, it has several limitations: (i) it is a top-down
approach that does not allow room for active role and participation of employees in
proposing changes; (ii) it does not give consideration for the contribution between
organizational goals and individual goals; (ii) while it focuses on change initiatives
(seven steps), it does not offer much attention to sustain change (one step); (iii) it is
very difficult to adapt the steps direction once starting the process, as it is basically
launched from a new vision and/or vision alteration; and (iv) the model linearity may
lead to incorrect assumptions (Nauheimer, 2009, para. 6-7).
See
• Help people see the need for change through compelling and eye-
ctaching dramatic situations to visualize probles and solutions
Feel
• Help people feel the need to act through visualising ideas evoke a
powerful emotional response that motivates people into action
Change
• Let people take their emotionally charged ideas into action/change to
make the vision reality and keep up the momentum

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2.3.4 ADKAR Model of Individual’s Change Mindset
“ADKAR” is acronym for Awareness, Desire, Knowledge, Ability and Reinforce. The
“ADKAR” model was first published by Prosci (The world leader in change
management research and content creation) in 1998. In 2006, Prosci released the
first complete text on the ADKAR model in J. M. Hiatt’s book “ADKAR: a model for
change in business, government and our community” (Bourda, 2013, p.5).
“ADKAR” model deliberates that organizations do not change, but people within
organizations change and refers to organizational change concept as a collection of
individual’s changes, which occur by a person at a time. Therefore, the model starts
with understanding how to manage and sustain a successful change at individual’s
level, which is termed “individual change management” and ends with organizational
change management (Bourda, 2013, p.5).
Consequently, “ADKAR” is an initiative framework and a goal-oriented change
management model that allows focusing on two fundamental perspectives:
Individual’s change management (people dimension) and organizational change
management (business dimension). Accordingly, successful change is only
recognized upon the common success at both individual’s and organization’s
dimensions (Hiatt, 2006, p. 59-60).
Figure 8: Hiatt (2006). Success Factors for Change Using ADKAR
Business dimension of change typically comprises the project elements (business
needs, business opportunities, scope and objectives, proposed changes to process
or structure, change implementation and ultimately the control, evaluation and
corrective actions (Hiatt, 2006, p. 59).
Successful
Change
Post-Implementation
Business Need
Concept and Design
Implementation
Awareness Desire Knowledge Ability Reinforcement
Phases of a change for employees
PhasesofachangeProject

Page 37 of 154
People dimension of change has the following five critical elements and steps for
individuals’ change (Hiatt, 2006, p. 43-58):
 “Awareness” of the business reasons for change is a goal of change early
communications within the organization. Successful change starts with
answering the most basic question “Why this change is needed?” because no
commitment could be gained without full understanding and involvement.
Accordingly, building awareness (sense of urgency) is the power of “ADKAR”
model as an individual’s change initiative tool.
 “Desire” to support and participate in the change is a decision solely made by
individuals to get on board with proposed change. Desire energizes individuals
to continue in the change process to the end. Changes are likely to fail in
absence of individual’s awareness and desire due to resistance increases and
engagement decreases.
 “Knowledge” of how to change is the goal of conducted off-job training and
on-job coaching. Therefore, “ADKAR” is viewed as a coaching tool to support
creating individual’s change mindset.
 “Ability” to implement indispensable competencies to change. This is to
effectively plan and manage the available resources and to develop potential
opportunities toward implementing a successful change process.
 “Reinforcement” to sustain the change through the ability to incorporate the
change into day to day activities of existing process.
Figure 9: Hiatt (2006). ADKAR Model of Individual’s Change Mindset
Knowledge
ADKAR Model
Create
Change
Mindset

Page 38 of 154
The “ADKAR” steps (Awareness, Desire, Knowledge, Ability and Reinforce) cannot
be skipped or re-ordered; they are sequential and cumulative in order to eventually
conclude the individual’s change mindset (Hiatt, 2006, p. 60).
Also, “ADKAR” model offers a simple and easy measurable standard to evaluate the
individual’s performance throughout the change process and identify the potential
barrier points to change (weak points that may breakdown the change process) to
take necessary corrective actions (Hiatt, 2006, p. 60-61).
The “ADKAR” model has oversimplified the change management concept and
process; it has the following limitations (Warrilow, 2011, para. 4-7):
(i) It does not involve the following factors in the change process: scope, size,
priority and complexity. Accordingly, it is an effective change management
checklist’ and it may address incremental changes of continuous
improvement, but not step initiative changes of quantum leap;
(ii) It does not incorporate the role and the function of leadership (which drives
and innovates changes) and management (which delivers and
administrates changes) in the change process because it is limited to
individual’s role. The role of leadership and management is vital for change
success because change failures are mainly attributed to the absence of
effective leadership in change initiative and management;
(iii) It ignores the leadership role in addressing the emotional dimension
(people side of change). Transition stage typically includes loss/change to
involved people: routines of business as usual, job roles, working
relationship, organizational structure and may have a negative impact on
the employees’ job satisfaction; Leaders play a key role in assisting people
to positively cross over the line into transition;
(iv) It fails to recognize the difference between change management
perspectives at the macro level (large-scale environment surrounding an
organization) and micro level (strategy, culture and operation within an
organization). It only focuses on the micro environment.
2.3.5 STEP Model of Thinking for a Change Initiative
“STEP” is acronym for Stop, Think, Evaluate, and Proceed differently and it is a
commonly communicated problem solving, decision making and stress management
strategy. It is a powerful strategic tool to adopt a mindset of change initiatives. The
main idea behind “STEP - Thinking for a Change” model is the people’s ability to
always think in more effective manners (Bush, Glick & Taymans, 1997, lesson 1-16).
“STEP” is similar to “STOP”, whereas introduces different equivalent words, which
are Step back, Think consciously, Organize the thoughts, and Proceed with the next
step presenting the new ideas.

Page 39 of 154
Both “STEP” and “STOP” are “The Tool of All Tools” assist people to proactively
evade from the constraints of the performance momentum toward a better future
through positive change initiative (Gallwey, 1999, p. 144-152).
Figure 10: Author, (2015). STEP Model of Thinking for a Change
“STEP” and “STOP” models calls for frequently:
 “Stop” and take a mental step back from the momentum of action, emotion
and thinking to recognize “What is really going on here?
 “Think” and consider what is at stake “What could you have done better? How
will you handle a similar situation in the future?” It focuses on “How?” rather
than “What?” in order to improve the performance and to avoid re-producing
the same efforts to generate the same unproductive/uncreative efforts. In short
work smarter rather than harder.
 “Evaluate” the enabling and blocking factors (pros and cons); and accordingly
organize the thoughts
 “Proceed” in an initiative manner and differently presenting the new ideas.
Currently, the application of “STEP” and “STOP” are fundamental key for a
successful business because they allow for (i) adopting a mindset of change
initiatives within the organization, (ii) switching on lights on dark spots and routines,
where improvements must take place. They may stop the performance momentum
and take minutes, where there is a serious pressure of fast tracking in today
business, but certainly they will save valuable hours (Gallwey, 1999, p. 144-152).
Stop
Think
Evaluate
Proceed

Page 40 of 154
2.4 Change Management Strategies and Approaches
The literature on change management suggests that there is broad range of
interrelated change management approaches and strategies. Neither one is better
than others and is an appropriate way for organizational change, as each approach
has its own advantages and disadvantages; accordingly they are adequate in
different circumstances. Organizations may move back and forth among these
approaches based on the following factors: (i) situation urgency; (ii) anticipated level
of employees’ resistances; (iii) change initiator power and sphere of influence; and
(iv) organization culture and infrastructure in respect of handling change programs
(Burtonshaw-Gunn & Salameh, 2009, p. 1-2).
2.4.1 Directed, Planned and Emergent Change Strategies
The main three change management approaches in term of self-organizing are
“directed decisive change”, “planned change initiatives” and “emergent unplanned
change” (Kerber & Buono, 2007, p. 82).
“Directed Decisive Change” approach is a top-down scheme, where the
management can use their authority in order to impose the necessary changes
affording only the decision makers’ views. It reflects a fast tactic in introducing radical
changes within an organization. This approach does not largely count on the
employees’ involvement and engagement; so it is likely to increase the employees’
resistances; it may also extend to undermine the overall change implementation
efforts (Burtonshaw-Gunn & Salameh, 2009, p. 2).
“Planned Change Initiatives” approach allows change initiative and introduction at
the organization different levels, but it eventually must be sponsored, directed and
controlled by the senior management. Therefore, it is perceived as a top-down action
(Kerber & Buono, 2007, p. 83).
Planned change initiatives approach provides the organization with a roadmap
toward its goals and outlines possible shortest path for moving from present state to
desired state through pre-planned sequential steps. It involves establishing methods
and timetable in advances ignoring the complexity and dynamic nature of
environmental factors and organizational process. Planned change initiatives are
often criticized as slow, static, linear and robotic approach. It assumes smooth
movement from state to another without disruption. It does not address crucial
elements such as the continuous need for adaptation and flexibility. Furthermore, it
assumes that common agreement on the directions and shared interest can be easily
concluded within the organization (ignoring the reality of organizational conflicts and
assuming that disagreement can be easily identified and resolved); as well as it
assumes that managers have full understanding and control of the consequences of
the change plans and actions (Liebhart & Lorenzo, 2014, p. 5-6).

Page 41 of 154
As Stacey suggests “Currently, most organizations operates at the edge of chaos
and far from equilibrium with instability and willing to maintain such conditions, since
too much stability and control will cause the organization to become unresponsive to
its environment”. Given the present circumstances of the business environment
turbulent and uncertainty, so solely relaying on pre-planned, static and mechanistic
change approach becomes inadequate for organizations to survive (as cited in
Liebhart & Lorenzo, 2014, p. 6).
“Emergent Unplanned Change” approach is also recognized as “Guided Changing”;
it is developed in order to enhance the organization ability to continuously change
and adapt (not just once) in a rapid pace to accommodate the current challenges of
business environments (Kerber & Buono, 2007, p. 83).
Emergent approach emphasizes the unpredictable and intentional nature of change
that can come from anywhere within the organization taking the full advantage of the
employees’ capabilities and effective interaction to generate emergent changes and
incorporate such changes into the organization through informal self-organizing.
Subsequently, it is developed on the concept of introducing changes during the
transformation implementation phases that have never been forecasted earlier, while
it assumes that planned change initiative may give a proper direction for the overall
process (Liebhart & Lorenzo, 2014, p. 6-7).
On contrary to be seen as a serious of linear steps within a period of time, emergent
unplanned change “guided changing” is characterized by unforeseen events,
disruptions, breakdowns and opportunities that emerge within that period to formulate
a learning spiral for continuous improvement of exiting change efforts and opportunity
for new creative solutions (Kerber & Buono, 2007, p. 84).
Figure 11: Kerber & Buono, (2007). The Guided Changing Spiral
(Adapted from Kerber and Buono - 2005)
[RE-] ESTABLISH DIRECTION &
[RE-] DESIGN ACTION
[CONTINUE TO]
HOLD ACCOUNTABLE & LEARN
[CONTINUE TO]
SHARE THE LEARNING
SYSTEM-WIDE
[CONTINUE TO]
IMPLEMENT ACTIONS
& IMPROVISE

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