Leading innovation and change presentation
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Leading innovation and change presentation
- 1. Leading Innovation and Change Case Study Designed and Edited by S.S.S. Charles Samarasekara Sunday, March 24, 2013
- 2. Leadership Challenges in introducing change and innovation • Winning the mind of the stakeholders of the company • Refreshed and innovative ideas that is not in the marketplace today • As to Lewin, he has brought this model clearly. – The Direction of Change – The Change Process/Mechanism • Quality and Effective services
- 3. ‘Old’ and ‘New’ Model of Organization • The gas company is a old model structure • It includes some of the features such as – Individual position in the organization – Relations of the environment – Vertical flows of information – Decisions come down and information flow up – Many layers which refer to “tall” • This is therefore a structured, hierarchical and control model of a firm
- 4. Organizational Culture • Competing Value framework gives in the more towards the rational goal model compared to other models • The Gas Company , if you take with reference to the cultural type it would be more of an “Role Culture” also referred to as “Greek Temple
- 5. Drivers and Barriers to Change - Lewin’s Force Field Analysis Direction of Change
- 6. Environmental Forces for Change Sources: Referencing Strategic Change (2011) • Changes have been there for the last 3 years • Customer demand for better service • Changes to regulatory framework • Staff questioning validity of new framework • Increased sick leaves of employees • Reduced performance • Relationship with union deteriorating
- 7. Types of Change Source: referencing Strategic Change (2011) • Customer discontent is to an increase • Changes to regulatory framework • Staff questioning validity of new framework • Reduced performance Financial security • Desired state by affecting change is not achieved
- 8. Organization type and what model of change to manage effectively? If we take this organization that is the Gas Company, it is more of a “Machine” • Morgan (2006) has stated 8 forms of metaphors that organizations but; • If we take a look at some of the other theoretical models such as Lewin, Grundy and etc; • From all of the change models decide on which is to be used in order to manage change effectively • Best model I would suggest is Dunphy and Stace’s since it gives a better idea for how to manage change effectively.
- 9. Suggested Mode of Change as per Dunphy & Stace’s (1993) Source: referencing Strategic Change (2011) • At departmental levels • Making re-alignments to ensure; – that there is a match between strategy, – structure, – people and – Processes • It is usually manifested in divisional or departmental level
- 10. Dealing with resistance to change Source: Kotter & Schlesigner (1989)
- 11. Recommendation • If we are to let change to take effect in the gas company it is the leaders responsibility to make change simple and easy. – Naturally change would take place since the leader is a part of change – The “first move is the best move” – J.K. Rowling (In an interview) • There is fact that the customer service must be improve if the company is to move any further • Build on the features, understand the advantages and disadvantages (depth understanding of why? - 5) • If a proper change is implemented from “current state to the desired state (expected level)”, then there would or sometimes wouldn’t be any resistance for change. • Like wise it is decided upon once again on proper leadership and guidance to making the change effective and efficient and finally to its success
- 12. List of References Ansoff and McDonnel (1990), Strategic Change, < www.ln.edu.hk/mgt/staff/robin/Change/EMBA%202%20revised.pp t > (Accessed: 15 May 2011) Dunphy and Stace (1993), Strategic Change, <www.ln.edu.hk/mgt/staff/robin/Change/EMBA%202%20revised.p pt> (Accessed: 15 May 2011) Grundy (1993), Strategic Change, <www.ln.edu.hk/mgt/staff/robin/Change/EMBA%202%20revised.p pt> (Accessed: 15 May 2011) Stacey (1996), Strategic Change, <www.ln.edu.hk/mgt/staff/robin/Change/EMBA%202%20revised.p pt> (Accessed: 15 May 2011) Strebel (1996), Strategic Change, <www.ln.edu.hk/mgt/staff/robin/Change/EMBA%202%20revised.p pt> (Accessed: 15 May 2011) Tushman et al’s (1998), Strategic Change, <www.ln.edu.hk/mgt/staff/robin/Change/EMBA%202%20revised.p pt> (Accessed: 15 May 2011)
Editor's Notes
- If we take in this company which is gas/electricity supplier for well over 12 million customers it will make a great impact to its business if it makes a change. The company in relation to introducing change by way of leadership would allow the company to move even further. This is because when leader shows the path to the followers, the followers always respect the leader and does what he says. Likewise, if an effective leader from the gas company wants to make a change the other stakeholders would definitely accept it. According to Lewin. He has brought in to paths for change management, when we are doing a change to our organization, employees or any other stakeholder. These two paths would include:The Direction of Change &The Change Process/MechanismMany people get lost of words when understanding this model sometimes.
- Features in the Gas Company: Old Model OrganizationIndividual positionof organization - The companies structure shows as to this very wellRelations of the environmenthandled by specialist – This is by Team Leaders, Operators interact one on one with the clientele. The operators are specifically trained for the purpose.Vertical flows of information – This likewise, the decisions are decided by the top level management (strategic level) filtered down to the Middle level management (operational managers) and then only it is funneled to the staff via line managers.Decisions come down, information flows up – As discussed earlier the decisions are flowed down and the information flows up naturally. This means that the information that is given from the bottom level is going all the way to the top for the decision making.Tall – It has many layer to itStructure of emphasis – There is chain of command as expectedRules and Procedures – As stated in the case itself “Outcomes are driven by standardised processes and procedures. Non conformance is a disciplinary offence. Operational Managers are responsible for decision making within the strategic parameters and expected to rise to the challenge of implementing change, leading and managing the resources (both physical and human) in order to achieve the objectives in a timely and efficient manner.” Fixed hours, long hours – According to the case, the weekly/daily workload planning is undertaken by line managers and operational staff receive their daily task allocation via computerised systems. Evaluation and reward systems standardized – Staff are appraised on an annual basis in which measurable performance objectives are agreed and personal development needs relating to the role are also identified. Strong culture with strong expectations of behaviour - achievement and conformity are seen as positive attributes. Individuals specialized and focused - Limited lateral movement, and training is mainly upfrontThese would be the main features in the gas company
- Organizational Culture : The Competing Values Framework:It has mainly two dimensional;The horizontal axis has an Organizational focus which is - Internal on the left side - External on the right sideThe vertical axis has an Organizational structure which is - Control based on the bottom half - Flexibility based on the top halfIf we now take a look at the four models when referring to the Competing Value framework it gives us an idea to where the company stands when comparing with other models. It is given belowHuman Resources Model-based on cohesion and morale with emphasis on human resource and training Open Systems Model- based on an organic system, emphasis on adaptability, readiness, growth, resource acquisition and external supportInternal Process Model- based on hierarchy, emphasis on measurement, documentation and information management. Rational Goal Model- the organisation is seen as a rational, efficiency seeking unity. They define effectiveness in terms of production or economic goals that satisfy external requirements.The Internal places an emphasis on the well-being and development of people in the organisation.The External places an emphasis on the well-being and development of the organisation itself. According to this, the gas company tends more towards the Rational Goal Model because of the following characteristics;Rational seeking unitsDelivering increased efficiencies Satisfy the external expectation in both the customer and regulatory bodyEmphasis on the well-being and developmentOrgainsationalCultural Types :Then the four types of cultures as described by Charles Handy in (1993). It is given below:PowerCulture (the web) – Concentration of power of a family-owned business, which can either be extremely large or small. The family operation with strict responsibilities going to family members responsibility given to personalities rather than expertise creates the power structure of the ‘web’.Role Culture (the Greek temple) – Symbolized as a Greek temple and has often been stereotyped as portraying bureaucracy in its purest form. The apex of the temple is where the decision making takes place, the pillars of the temple reflect the functional units of the organization which have to implement the decisions from the apex. The strength of the culture lies in specialization within its pillars. Interaction takes place between the functional specialism by job descriptions, procedures, rules and systems. Task Culture (the lattice) – The organizations which are involved in extensive research and development activities they are much more dynamic. They are constantly subject to change and have to create temporary task teams to meet their future needs. Information and expertise are the skills that are of value here. The culture is represented best by a net or lattice work.Person Culture (the cluster) – A consensus model of management, where the individuals within the structure determine collectively the path which the organization pursues. If there is a formalized structure, it tends to service the needs of the individuals within the structure. Organizations which portray this culture reject formal hierarchies for ‘getting things done’ and exist solely to meet the needs of their members. With its hierarchical organizational structure, vertical downward flow of instructions and limited lateral movement. The gas company if we refer to the case looks like it is more of a Role CultureHandy (1993) adopted referencing Sherwin L. (2011)
- Ansoff and McDonnellsmodel (1990), I suggest that the change was partially predictable and/or forecastable by extrapolationThe environmental forces for change are:*The department has undergone into variety of changes already, which has resulted in the staff feeling discontented with the recently introduced work procedure and the staff are questioning the validity of these practices in terms of improving the performance*The changes to the regulatory frameworks which have been introduced. The penalty scheme means the current performance level of the department has become a considerable risk to the company funding, reputation and industry standing. *Customer service and satisfaction is a key initiative in the organisation – as complaints are 5% above the target level. This is of significant concern to the organisation as the regulators will financially penalise the organisation for complaints out of target. This will cost the organisation £150,000 for every percentageover target.
- *If we take a look at the Grundy (1993) Model, the change seems to be a hybrid between bumpy incremental and discontinuous where changes are responses to crisis, or high turbulence.*Then next is Dunphy & Stace (1993) Model, of change which ought to have been Fine Tuning at departmental level, making re-alignments to ensure that there is a match between strategy, structure, people and processes seems to have take place as Modular Transformation, a major realignment of one or more departments or divisions.*Finally, Tushman et al. (1986) Model, is the change seems to be Discontinuous/frame-breaking. It is a major, rapid and revolutionary changes in strategy & processes in order to meet radically new or different circumstances.
- They have brought in various model for change but we have to use these models consciously in deciding where is it appropriate and identify the prominent features in order to manage change effectivelyWell the best Model I would suggest would be Dunphy and Stace’s since it gives a better idea for how to manage change effectively. As per Lewin there seems to be no clash in the change, in the case study organisation. The clash seems to be in the mechanism of change.
- Kotter J.P. & Schlesinger L.A. (1989) has stated methods of how to deal with resistance to change. He has given the following: Education + Communication - where there is lack of information or inaccurate information and analysis Participation + Involvement - where the initiators do not have all the information they need to design the change, and where others have considerable power to resist Facilitation + Support - where people are resisting because of adjustment problems Negotiation + Agreement - where someone or some group will clearly lose out in a change, and where that group has considerable power to resist Manipulation + Co-operation - where other tactics will not work, or are too expensive Explicit + Implicit coercion - where speed is essential, and the change initiators possess considerable power