Value based change management - variables ,differentiation/ fragmentation model, nuturing organizational change

1. VALUE-BASED CHANGE MANAGEMENT

2. Introduction
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 Values are deeply held principles that people adhere to
when making decisions.
 Individuals express their values through their actions
and behaviour.
 Organizations express their values through their work
culture.
 Value-driven organizations are more successful (Senge,
Collins & Porras, Kotterand Heskett).

3. Contd…
1. Values drive culture
2. Culture drives employee fulfilment
3. Employee fulfilment drives customer satisfaction
4. Customer satisfaction drives shareholder value
 Kotter and Heskett - In corporate culture and
performance, companies with a strong adaptive culture
based on shared values outperformed other companies
by a significant margin.
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4. Contd…
 Value based management is the management approach
that ensures corporations are run consistently on value
(maximizing shareholder’s wealth).
1. Creating value – ways to increase future value
2. Managing for value – Governance, Change
Management, Organizational Culture, Communication,
Leadership etc.)
3. Measuring value (Valuation)
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5. Organizational Approach (Collins and Porras)
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6. Differentiation/Fragmentation Model
 Joanne Martin (1992, 2002)
 In a differentiation perspective, employees will rarely
share the vision and values of management and will not
increase their effectiveness.
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7. Contd…
 In a fragmentation perspective, employees will
sometimes share the vision and the values of
management, but will chose what suits them.
 People can be motivated by common values–but they
also have their own motivational base.
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8. Variables of Value-Based Change Management
 Corporate mission (business philosophy)
 Corporate strategy
 Corporate culture
 Corporate governance
 Corporate communication
 Decision making
 Performance management
 Compensation management
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9. Nurturing Organizational Change
1. Controlling
 Top-down view of management
 Fayol’s theory of management: planning, organizing,
commanding, coordinating and controlling.
2. Shaping
 Participative style of management
 Improving the capabilities of people within the
organization
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10. Contd…
 Intended Change
 Change is a result of planned action
 Partially Intended Change
 Change may need to be re-modified after it is
initially implemented
 Unintended Change
 Forces beyond the control of the change manager
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11. Images of Change Managers
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Images of Managing
Controlling
(activities)
Shaping
(capabilities)
Images of
Change
Outcomes
Intended DIRECTOR COACH
Partially Intended NAVIGATOR INTERPRETER
Unintended CARETAKER NURTURER

12. Contd…
1. Caretaker
 The manager’s control is severely impeded by a variety of
internal and external forces beyond their scope. The caretaker take
their organizations along as best they can.
 Supported by life-cycle, population-ecology and institutional
theories.
2. Nurturer
 Even small changes may have a large impact on organizations and
managers are not able to control the outcome of these changes but
may nurture their organizations.
 This facilitates organizational qualities that enable positive self-
organizing to occur.
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