Learning Objectives • Understand the importance of organizational images and mental models. • Identify different images of managing and of change outcomes. • Outline six different images of managing change. • Identify the theoretical underpinnings of these six change management images. • Understand the practical implications of the six images and how to use them.
Images of Managing ChangeImages ofManagingChange Controlling…Images of ◦ Top-down view of managementChangeOutcomes ◦ Fayol’s theory of management: planning, organizing, commanding,Images ofChange coordinating and controlling.Managers:-Director Shaping…-Coach-Navigator ◦ Participative style of management-Interpreter ◦ Improving the capabilities of people-Caretaker-Nurturer within the organizationThree CoreUses of theImages
Images of Change OutcomesImages ofManagingChange Intended Change:Images of ◦ Change is a result of planned action Partially Intended Change:ChangeOutcomes Images of ◦ Change may need to be re-modifiedChange after it is initially implemented Unintended Change:Managers:-Director -Coach-Navigator ◦ Forces beyond the control of the-Interpreter-Caretaker change manager-NurturerThree CoreUses of theImages
Images of Change ManagersImages ofManagingChange Images of ManagingImages ofChangeOutcomes Controlling . . . Shaping . . .Images of (activities) (capabilities)ChangeManagers:-Director Intended DIRECTOR COACH-Coach Images of-Navigator Partially NAVIGATOR INTERPRETER-Interpreter Change-Caretaker Intended Outcomes-Nurturer Unintended CARETAKER NURTURERThree CoreUses of theImages
Images of Change ManagersImages ofManaging Director CoachChange Based on an Relies upon buildingImages of image of in the right set ofChangeOutcomes management as values, skills and control and of “drills” that areImages ofChange change outcomes deemed to be theManagers: as being best ones to be-Director-Coach achievable. drawn upon in order-Navigator-Interpreter Supported by the to achieve desired-Caretaker n-step models and organizational-Nurturer contingency outcomes.Three CoreUses of the theory. Related to ODImages approaches.
Images of Change ManagersImages ofManaging Navigator InterpreterChange Control is the heart of The managerImages of management action, creates meaning forChange although a variety of other organizationalOutcomes external factors mean members, helpingImages of that managers may them to make senseChange achieve some intended of variousManagers:-Director change outcomes and organizational-Coach others will occur over events and actions.-Navigator-Interpreter which they have little Supported by the-Caretaker control. sense-making-Nurturer Supported by the theory ofThree CoreUses of the contextualist and organizationalImages processual theories of change change.
Images of Change ManagersImages ofManaging Caretaker NurturerChange The manager’s control Even small changes mayImages of is severely impeded by have a large impact onChange a variety of internal organizations andOutcomes and external forces managers are not able toImages of beyond their scope. control the outcome ofChange The caretaker these changes but mayManagers:-Director shepherds their nurture their organizations.-Coach organizations along as This facilitates-Navigator-Interpreter best they can. organizational qualities-Caretaker Supported by life- that enable positive self--Nurturer cycle, population- organizing to occur.Three Core ecology and Related to chaos andUses of theImages institutional theories. Confucian/ Taoist theories.
Three Core Uses of the ImagesImages ofManagingChange These six images of changeImages of managers have three core uses:Change 1) They highlight a variety of assumptionsOutcomes that change managers make about changeImages of and increase the awareness of differentChange interpretations of change.Managers:-Director 2) They draw attention to the dominant-Coach images of change within an organization.-Navigator-Interpreter 3) They highlight a range of perspectives-Caretaker available to change managers.-NurturerThree CoreUses of theImages
Table 2.5Chapter Reflections for the Practicing Change Manager
Why Change?Why Change?External Pressures-Fashion Change is a risky activity – many organizational changes fail or do-Mandated-Geopolitical-Market decline-Hyper- competition-Reputation & not realize their intendedcredibility outcomes. This raises theRole of theEnvironment question: why is change soInternal Pressures prevalent?-Growth-Integration &collaboration Pressure to change comes from:-Identity-New broom ◦ External, environmental pressures-Power & political ◦ Internal, organizational pressures
Environmental PressuresWhy Change?External Pressures-Fashion-Mandated Pressure Examples Description-Geopolitical-Market decline Neo-institutionalism: mimetic-Hyper- competition-Reputation & Fashion Boeing isomorphism. Managers imitatecredibility pressures Co. practices associated with successfulRole of the organizationsEnvironment Neo-institutionalism: coerciveInternal Pressures Mandated Chevron isomorphism. An organization-Growth pressures Texaco changes through formally or-Integration &collaboration informally mandated requirements.-Identity-New broom Macroeconomic changes (or crises)-Power & political Geopolitica place pressure on organizations to 3M l pressures change the way they operate.
Environmental PressuresWhy Change?External Pressures Pressure Examples Description-Fashion-Mandated-Geopolitical Market When current markets begin to-Market decline AOL Time-Hyper- competition decline decline there is pressure to find Warner-Reputation & pressures newer, more viable markets.credibilityRole of the The highly intensified rate ofEnvironment business – including shortened Hyper- product life cycles and rapidInternal Pressures competition Gateway-Growth responses by competitors – pressures-Integration & produces pressure for change atcollaboration-Identity the organizational level.-New broom-Power & political In light of recent corporate Reputation governance scandals, the Walt Disney and credibility pressure to maintain a good Company pressures reputation and high level of credibility has increased.
Debate: Role of the EnvironmentWhy Change?External Pressures Organizational learning vs. threat-rigidity-Fashion ◦ whether external pressures facilitate or inhibit the process of change.-Mandated-Geopolitical-Market decline Environment as an objective entity vs. environment as a cognitive-Hyper-competition construction-Reputation & credibility ◦ The former treats the environment as an objective entity to which managers must respond. The latter emphasizes the centrality ofRole of the managers’ interpretations of environmental conditions as the keyEnvironment determinant of behavior.Internal Pressures Forces for change vs. forces for stability:-Growth ◦ External forces can vary; they either promote change or promote stability.-Integration &collaboration-Identity Bridging (adapting) vs buffering (shielding):-New broom ◦ These represent either strategies that can maintain effectiveness by-Power & political adapting parts of the organization to changes happening in the outside environment (bridging) or focusing on efficiency by avoiding change through shielding parts of it from the effects of the environment (buffering).
Internal PressuresWhy Change?External Pressures Pressure Examples Description-Fashion-Mandated Existing systems and processes in-Geopolitical-Market decline Growth an organization may no longer be-Hyper-competition Microsoft pressures applicable when the size of the-Reputation &credibility organization increases.Role of the Integration Integration and creatingEnvironment and economies of scale can lead to EDS collaboration pressure for change inInternal Pressures-Growth pressures organizations.-Integration &collaboration A common organizational identity-Identity and the unified commitment of-New broom-Power & political staff in different Identity Forte areas/departments of an pressures Hotel organization can be difficult to manage and may encourage change.
Internal PressuresWhy Change?External Pressures-Fashion-Mandated Pressure Examples Description-Geopolitical-Market decline-Hyper-competition-Reputation & Change at the seniorcredibility New management level – particularly of Bank ofRole of the broom CEO - can often be a catalyst for AmericaEnvironment pressures significant changes in an organization.Internal Pressures-Growth-Integration &collaboration Power and Power relationships and-Identity Morgan-New broom political politicking can change internal-Power & political Stanley pressures processes and decision making.
Theories of Organizational Change• Life cycle theories: linear and irreversible sequence of prescribed change • Organizations go through different stages: birth, youth, midlife, maturity,…. When reached maturity, revitalization is needed.• Teleological theories: recurrent and discontinuous sequence of goal setting, implementation, and adaptation• Dialectic theories: recurrent and discontinuous sequence of confrontation, conflict, and synthesis• Evolutionary theories: recurrent, cumulative and probabilistic sequence of variation, selection, and retention
Economic Pressures• globalization: Deregulation, opening of national economies• Unpredictable and Rapidly changing markets• Service and knowledge base business• profitability based on machine power to profitability based on intelligence and skills
Social Pressures• Flexible working arrangements• Women in management• Educated workforce/society• Demographics• Immigrations• People more independent, questioning• Lack of loyalty between the workers and companies
Technological Pressures• Information and Communication Technology • High performance work systems • Integrated information systems • Access to information • Global networking • New media• Shortening product life cycles• High quality
Sustainable Development PressuresSD Elements:Social 1. Employee Well-Being 2. Quality of Life 3. Business EthicsEconomic 4. Shareholder Value Creation 5. Economic DevelopmentEnvironmental 6. Environmental Impact Minimization 7. Natural Resource Protection
Organizational Self-renewal• Challenging old assumptions• Understanding the new rules of competition• Capturing the potential of new paradigms by rethinking business processes• Constant innovation• Improving continually as part of normal functioning• Transforming while keeping purpose and direction Continuous learning
Organic type of organizations, adopted to unstable conditions • continual new and unfamiliar problems cannot be broken down and distributed among the existing specialists roles • continual adjustment and redefinition of individual tasks is needed • Interactions and communication may occur at any level as required by the process • organization charts are not always useful
Emerging Mindset• Industrial mindset: • Invalidity of the internal reality of human consciousness • Scarcity of resources • Separate parts • Discrete events• emerging mindset: • Consciousness is causative • Abundance • Relationships and Wholeness • Continuous Process parts are connected and they are connected to the whole, change is a continuous process, and the internal and external dynamics are both important.