rethinking organizational change

Anthony F. Buono Professor of Management & Sociology

Rethinking Organizational Change:

Thoughts on Intervention

and Change Management

Context Changing

nature of change

Realities of change

Conceptualizing approaches

to change

Framework for

thinking about

organizational

change &

change

capacity

Agenda

Low Low High

High Many Locations

Multiple Contexts

Many, Diverse Stakeholders

Few, Similar Stakeholders

Common Context

Single Location

Definitive Problem No Definitive Problem

& Solution or Solution

Tame

Problems (Linear Thinking)

Wicked

Problems (Systems Thinking)

Nature of Organizational Problems

Business

Complexity

Adapted from J. Conklin, Wicked Problems

and Social Complexity (Wiley, 2005)

Scenario # 1

Scenario # 2

Two Organizational Change Scenarios

Scenario # 1 Scenario # 2

Isolated, episodic transitions Multiple, simultaneous transitions

Linear Cyclical, iterative

Moderate pace Accelerating pace

Predictable Unpredictable

Delayed results Instantaneous results

Time to recover

Cascading, overlapping stress

Single organization focus Interorganizational focus

Two Worlds of Organizational Change

Growing Change Gap:

[ Expectation of Change – History of Successfully Managing Change]

From ... To ...

Changing Organizational Forms

Evolution of Organizational Forms

Low environmental uncertainty High environmental uncertainty

Pooled & serial task interdependence Reciprocal & team interdependence

Centralized decision making Decentralized decision making

Indirect integrative mechanisms Direct integrative mechanisms

Coordination: Standardization Collaboration: Mutual adjustment Source: Bowditch, Buono & Stewart, A Primer on Organizational Behavior (Wiley, 7th ed. 2008)

Coordination Cooperation Collaboration

D x V x F > R

D = Dissatisfaction with present situation

V = Vision

F = First Steps

R = Resistance to change

The Basic Change Equation

R. Beckhard & R. Harris, Organizational Transitions (Addison-Wesley, 1987)

The Nature of Change

Change and its outcomes are tangible

Change sponsors are

clear

Key change stakeholders are known, similar to one another, and work at the same location

Change vision is well-defined from the outset

Change is intangible and its outcomes are difficult to conceptualize

Complex relationships exist

among diverse groups of change sponsors

Change stakeholders are diverse and geographically dispersed

Change vision is emergent and evolving

Changing

^

1. Most organizations are designed for

stability, over emphasizing control, rules,

decision and communication lines, and

precedence.

2. Most change leaders use one approach

for implementing change regardless of

the situation.

3. Most change implementers overly focus

on the rational drivers of change.

Rethinking Change Dynamics...

Reasons = rational & logical analysis

Inspirations = values-based & visionary

aspirations

Emotions = affective & reactive feelings

Politics = individual & group interests

Mindsets = culture & basic beliefs

Visible

Hidden

Rational

Non-

Rational

Adapted from R. Marshak, Covert Processes at Work (2006).

Change Drivers

Technical Political

Socio-cultural

The Art of

The Art of Persuasion

Diagnosis

& Execution

The Art of

Motivation

Realities of Change

RECIPIENTS: Users & Adapters

Focus on consequences: Personal Impact

(Costs & Benefits)

STRATEGISTS: Visionaries

Focus on Ends: Corporate Values & Business

Results

IMPLEMENTERS: Translators

Focus on Means: Overcoming Resistance

& Encouraging Practice

Key Changemakers

1. Match the change approach to the

situation

2. Develop organizational change

capacity

3. Leverage the hidden, less rational

drivers of change

Increasing Change Success Rates

Conceptualizing Change:

From Directed Change to Guided Changing

Unfreezing

Changing

Refreezing

Planned

Change

Guided

Changing

Freezing

Translating/

Reinterpreting

Unfreezing/

Improvising

Directed

Change

Present

State

Desired

State

Authority

Acceptance

Persuasive Communication

Adapted from K.W. Kerber & A.F. Buono, “Rethinking Organizational Change,”

Organization Development Journal (2005)

Authority

Acceptance


•Clarity

•Trustworthiness

•Reliability

So that …

Directed Change

Managing Planned Change

Unfreezing • Confirming/Disconfirming Expectations

• Coping with Learning Anxiety

• Providing Psychological Safety (anxiety motivation)

Changing • Restructuring & Redefining Jobs &Responsibilities/

Introducing New Systems

• Changing Expectations

• Creating New Standards

Refreezing • Creating a Supportive Infrastructure: Social

(Informal) & Organizational (Formal)

So that …

Conceptualizing Change:

From Directed Change to Guided Changing

Unfreezing

Changing

Refreezing

Planned

Change

Guided

Changing

Freezing

Translating/

Reinterpreting

Unfreezing/

Improvising

Directed

Change

Present

State

Desired

State

Authority

Acceptance


Adapted from K.W. Kerber & A.F. Buono, “Rethinking Organizational Change,”

Organization Development Journal (2005)

Guided Changing

Freezing

• Making Sequences Visible through Cross-unit Sharing and Envisioning (Cultural Maps)

Translating/Reinterpreting • Re-framing & Re-sequencing Patterns to Reduce Blocks

(Personal & Organizational)

• Applying the Logic of Attraction (Pull) rather than the Logic of Replacement (Push)

Unfreezing/Improvising

• Guiding Improvisation & Learning in Mindful Ways

• Sharing the Learning System-wide

SHARE THE

LEARNING

SYSTEM-WIDE

IMPLEMENT

ACTIONS

&

IMPROVISE

HOLD ACCOUNTABLE & LEARN

ESTABLISH DIRECTION

&

DESIGN ACTIONS

[CONTINUE TO]

[CONTINUE TO]

[CONTINUE TO]

Guided Changing Spiral

Adapted from K.W. Kerber & A.F. Buono, “Rethinking Organizational Change,” Organization Development Journal (2005)

[RE-]

[RE-]

When Is Each Approach to Change

Appropriate?

Low

Low High

High

Planned

Guided

Business

Complexity

Directed

K. Kerber & A.F. Buono, “Rethinking Organizational

Change,” Organization Development Journal (2005)

Key Factors

Business Complexity:

Intricacy of the system due to interdependencies, size, geographical dispersion, the number of products and services, array of critical stakeholders, industry dynamics and other key factors.

Socio-technical Uncertainty:

Amount of information processing and decision-making required for implementation based on the extent to which the work is determined, established and/or exactly known.

Intervening Factors

Change Capacity:

Willingness & ability of change makers (recipients, implementers, change leaders/strategists)

Facilitative infrastructure (e.g., communication technology, flexible systems & processes, responsive training)

Appropriate resources (e.g., mind share, time, budget)

Urgency:

Risks associated with no or slow change (e.g., customer safety, organizational survival)

Low

Low High

High

Directed

Planned

Guided

Socio-technical

Uncertainty

Willingness & Ability

Time

Business

Complexity

Intervening Factors

K. Kerber & A.F. Buono, “Rethinking Organizational

Change,” Organization Development Journal (2005)

A Infinite Number of Approaches

to Change?

Constrained Unconstrained

Directed

Planned

Guided

Danger of

Under-Constrained

Change

Danger of

Over-Constrained

Change

Sustainable Change:

A Question of Change Rhythm?

Low

Low High

High

Business

Complexity

Authority

Acceptance


Change

Capacity

Interventions:

Micro-Level

Meso-Level

Macro-Level

Change & Self-Organizing Systems

The Container

Parameters of the

Change & the

Change Process

Constrain Self-

Organization

Unleash Self-

Organization

Boundaries

Tightly defined

Unchanged

Differences

Minimize

Hide

Exchanges

Minimize

Monologue

Boundaries

Flexible

Expand or Reduce

Differences

Diversify

Highlight

Exchanges

Maximize

Dialogue

K. Kerber & A.F. Buono, “Enhancing

Change Capacity,” Symphonya (2008)

Change Readiness

A mental state that

typically focuses on the

extent to which

organizational members

recognize the need for a

particular change at a

specific point in time.

Change Capacity

The ability of an

organization to change

not just once, but as a

normal course of events

in response to and in

anticipation of external

shifts.

Change Readiness v. Change Capacity

Relatively Narrow Concept Broader Concept

Preparation for Specific Change Foundation for Sustainable Change

Requires Extensive Set of Interventions

Micro-Level

Meso-Level

Macro-Level

Facilitative

Organizational Culture

Ongoing Strategizing

Change-Supportive

Infrastructure

Ensuring

Sufficient Resources

Understanding &

Acceptance of Different

Change Approaches

Willingness & Ability

to Change

Enhancing Organizational

Change Capacity

Questionnaires:

Q1: Situational Change

Q2: Change Capacity

Tools intended to frame complexity and help

translate uncertainty into grounded,

coordinated action

Goal: Stimulate deep, ongoing conversations

new learning, new mindsets, new skills

Questionnaires as

“Semi-Finished Instruments”

Adapted from: H. Lobnig, “Strategy Work in an International Setting: Entangling Top-down and Bottom-up

Approaches via Continuous Conversations, Learning Cycles and Semi-finished Instruments,” 4th International

Conference on Management Consulting, Vienna, Austria, 2009.

Circle one number on the following scale to indicate

where you think your change initiative falls:

0 1 2 3 4 5 6 7 8 9 10

Directed

Change

Guided

Changing

Planned

Change

Change Intuition: Your “Gut” Feel

Item Score A._____________ D._____________ G._____________ J._____________ M._____________ TOTAL/5 = ______

Socio-Technical

Uncertainty

Item Score B._____________ E._____________ H._____________ K._____________ N._____________ TOTAL/5 = ______

Business

Complexity

Item Score C._____________ F._____________ I.______________ L._____________ O._____________ TOTAL/5 = ______

Constraints

SCORING

0

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10

Socio-Technical Uncertainty

Bu

sin

ess

Co

mp

lexi

ty

Directed

Change

Guided

Changing

Planned

Change

1. Plot your results for Business

Complexity and Socio-Technical

Uncertainty on the grid to the left.

2. Plot your Constraints on the

continuum below

0 1 2 3 4 5 6 7 8 9 10

Directed Planned Guided

Micro-Level

Acceptance of Different

Change Approaches Adopt a common, enterprise-wide

framework for thinking about change

Widespread knowledge about different

approaches to change & when each is

appropriate

Develop deep expertise about change in

the organization

Change coaching & consulting services

Create change agent networks

Debrief change initiatives with a focus

on learning from experience

Willingness and Ability

to Change Select, hire, evaluate & reward people

based on their ability to thrive on

change

Form diverse teams to encourage

innovation & creativity

Develop, reward & promote

supervisors & managers who enable

change

Enhance the personal credibility of

organizational leaders

Listen to, encourage & reward

mavericks & trailblazers

Create a climate of trust, honesty, &

transparency

Developing Organizational Change Capacity:

Micro-Level Interventions

Meso-Level

Change-supportive Infrastructure Frequent meetings focused on

identifying & critically assessing new

opportunities

Low cost experiments with new ideas

Recognize & reward those who support,

encourage, lead & share learning about

change

Fluid structure that allows the formation

of new groups easily

Systems to share knowledge, information

& learning

Responsive /proactive training &

education

Sufficient Resources Designate an owner of the goal to

develop change capacity

Devote resources to continually

scanning the environment for new ideas

Encourage external contact, especially

with customers

Appoint committed change sponsors

for specific initiatives

Target key change initiatives with

enough resources to get public

successes

Shelter breakthroughs with their own

budgets & people



Macro-Level

Change-facilitative Culture Emphasis on learning & information

sharing

Encouragement to ask questions & speak

the truth

Empathizing with & valuing alternative

viewpoints

Support for taking risks & applying

innovative ideas

Tolerance of mistakes in the interest of

learning

Value conflict for understanding &

creativity

Ongoing Strategizing Create a shared purpose

Think dynamically & systemically so

that strategies can change quickly

Examine future markets, competitors, &

opportunities

Factor future scenarios into today’s

decisions

String together a series of momentary

advantages

Create & communicate a change friendly

identity both internally & externally



• Make the invisible visible:

Interrogate reality ~ “What do you think?”

Encourage learning ~ Welcome dissent

• Make the “best” decision(s) possible, then take the most appropriate actions in light of your purpose

• Enrich relationships among the participants

Co-creating Change Strategies

& Authenticity

Guided

Changing

Planned

Change

Guided

Changing

Planned

Change

Near Future Recent Past

Directed Change

Directed Change

Change v. Changing

The Underlying Dilemma …

Neely’s dictum:

The first step in

change management

is to change

management.

Richard Neely, quoted in Evan Dudik, Strategic Renaissance (AMACOM,

2000).

[email protected]

rethinking organizational change

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