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Pathways Plus
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Level 7
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Strategic Management
and Leadership
Unit 7010V1
Implementing Organisational Change Strategies
Pathways Plus
Unit 7010V1: Implementing Organisational Change Strategies
Copyright © Chartered Management Institute, Management House, Cottingham Road, Corby,
Northants NN17 1TT.
Peter Cumpstey and Phil Lindsay
Bob Croson
Roger Merritt Associates
Trevor Weston
Suzanne Pattinson
Decent Typesetting
Revised July 2013
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Authors:
Consultant:
Series consultant:
Project manager:
Editor:
Page layout by:
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First edition 2009
ISBN 0-85946-518-7
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British Library Cataloguing-in-Publication Data. A CIP catalogue record for this publication is available from
the British Library.
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Applications for the copyright holder’s written permission to reproduce any part of this publication should be
addressed to the publisher. Permissions may be sought directly from the Chartered Management Institute in
Corby, UK. Phone Publications on (+44) (0) 1536 207379, or email [email protected].
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This publication is sold subject to the condition that it shall not, by way of trade or otherwise, be lent,
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Approved centres may purchase a licence from the publisher, enabling PDF files of the publication to be
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terms and conditions of the licence.
Further information is available on the licence from the Chartered Management Institute.
Phone (+44) (0) 1536 207379, or email [email protected].
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Every effort has been made to trace holders of copyright material reproduced here. In cases where this has
been unsuccessful or if any have inadvertently been overlooked, the publishers will be pleased to address
this at the first opportunity.
The publishers would like to thank the following for permission to reproduce copyright material:
Harvard Business School Press for Figure 3.1d on p. 47, Christensen, C.M., Marx, M., and Stephenson,
H.H., ‘The tools of cooperation and change’, Harvard Business Review, Oct 2006, Vol 84, Issue 10, pp.
73–88 and for Figure 3.1e on p. 49, Kotter, J.P., and Schlesinger, L.A., ‘Choosing strategies for
change’, Harvard Business Review, Jul/Aug 2008, Vol 86, Issue 7/8, pp. 130–9
Cengage Learning Services Ltd for Figure 2.1a, Creativity level vs style, on p. 90; Figure 2.1b,
Approaches to problem solving, on p. 91; Figure 2.1c, KAI Dimensions, on p. 93; Figure 2.1d, Adaptors
vs Innovators, on p. 95, from Kirton, M.J., 2003, Adaption-Innovation in the Context of Diversity and
Change, Routledge.
Pearson Education for Figure 2.1a, The change kaleidoscope, on p. 30; Figure 2.1b, Glaxo’s change
kaleidoscope, on p. 33; Figure 3.1a, Inner ring of the change kaleidoscope, on p. 40 (all from Balogun,
J., Hope Hailey, V., Johnson, G., and Scholes, K., Exploring Strategic Change, 2008), Figure 2.2a, The
cultural web, on p. 34; Figure 2.2b, Cultural Web case study: Forestry Commission, on p. 37 (all from
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Johnson, G., Scholes, K., and Whittington, R., Exploring Corporate Strategy 7e, 2005, pp. 200, 202
Reprinted by permission of Pearson Education, Inc., Upper Saddle River, New Jersey).
Pearson Education, Inc, for Figure 1.2a, Staged process of change, on p. 19; Figure 1.3a, The change
equation, on p. 21; from Beckhard, R.F. Harris., Organizational Transitions, © 1987, p.29. Adapted by
permission of Pearson Education, Inc., Upper Saddle River, New Jersey.
Random House Inc for Figure 1.3a, How pain drives change, on p. 75; Figure 1.2a, Change disruption
and recovery, on p. 126; Figure 1.2b, Impact of multiple changes, on p. 128; Figure 1.2c, Capacity vs
Demand, on p. 127; Figure 3.2a, Transformation curve – positive change, on p. 156; from Managing at
the Speed of Change by Daryl R Conner, copyright © 1993 by O.D. Resources, Inc. Used by permission
of Villard Books, a division of Random House Inc.
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Taylor & Francis Informa UK Ltd – Journals for Comparative analysis of management frameworks, on p.
201, Lippett N., Journal of Change Management, 2006, Vol 6, No 2, pp. 121-142; Figure 3.1a, Types of
change, on p. 113, Higgs, M.J.D., and Rowland, D., Journal of Change Management, 2005, Vol 5. No 2,
pp. 121-151
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Academy of Management (NY) for KEYS environmental scales, on p. 105, Amabile, T.M., Conti, r et al
from Academy of Management Journal, Assessing the Work Environment for Creativity, 1996 – 39 (5):
pp. 1154-1184
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Contents
About Pathways Plus .....................................9 Introduction ............................................. 13 AL
Section 1 Processes for change ...................... 15 Topic 1: Process models of change ............................... 17 ER
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1.1 Unfreeze, change, refreeze........................................ 17 1.2 Present, transition and future states ............................. 18 1.3 The change equation ................................................ 20 1.4 Kotter’s eight-stage process ....................................... 22 AT
Topic 2: Organisational context for change..................... 30 2.1 The change kaleidoscope ........................................... 30 2.2 The cultural web..................................................... 33 M
Topic 3: Approaches to implementing change.................. 40 3.1 Five design choices .................................................. 40 M
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Section summary .................................................... 54 Section 2 Exploring change ........................... 55 Topic 1: Drivers for change ........................................ 57 1.1 The pioneer journey ................................................ 57 1.2 Competitive and environmental drivers of change ............. 62 1.3 Making the case for change ........................................ 71 1.4 Types of change...................................................... 79 SA
Topic 2: Creativity and improvement ............................ 85 2.1 How do we get more creativity? .................................. 86 2.2 Models to focus and drive improvement ......................... 97 2.3 The climate for creativity and innovation ...................... 102 Topic 3: A new paradigm for change............................ 112 3.1 The future of change............................................... 112 Section summary ................................................... 117 5
Section 3 Impact of change on people .............119 Topic 1: Surviving change ........................................ 121 1.1 Experiencing change ............................................... 121 1.2 Changing behaviour ................................................. 124 1.3 Resilience and competencies ..................................... 129 1.4 Coaching to increase competencies ............................. 133 AL
Topic 2: Leading change .......................................... 139 2.1 Leadership and management functions ......................... 139 2.2 Leadership practices ............................................... 144 ER
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2.3 Leadership practices and change requirements ............... 147 Topic 3: Tackling resistance to change......................... 152 3.1 Causes of change resistance ...................................... 152 3.2 Dealing with emerging resistance ................................ 156 AT
3.3 Handling resistance associated with negative perceptions .. 159 Section summary ................................................... 167 M
Section 4 Evaluating strategic change initiatives 169 Topic 1: Start with the end in mind ............................ 171 M
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1.1 Achieving what was planned ...................................... 171 1.2 Strategic versus operational evaluation ......................... 172 1.3 Success criteria...................................................... 175 1.4 Applying measures to rate success ............................... 177 1.5 A full evaluation .................................................... 179 Topic 2: Gathering evaluation data ............................. 181 2.1 Valid and reliable data ............................................. 181 SA
2.2 Reviewing data-gathering methods .............................. 184 2.3 Gathering good data ................................................ 187 Topic 3: Evaluating change success and promoting learning 190 3.1 Agreeing on the evaluation ........................................ 190 3.2 Learning from the experience .................................... 193 3.3 Assessing the evaluation ........................................... 196 3.4 The difficulties with evaluation .................................. 197 Section summary ................................................... 199 6
Further reading ........................................ 201 Before you move on ................................... 202 Preparing for assessment ................................................ 202 The Management and Leadership Standards .......................... 202 AL
Appendix: Comparative analysis of management
frameworks ................................ 203 SA
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References ................................................................. 206 7
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About Pathways Plus
Development guides
There are 12 development guides in the Pathways Plus series to
cover the 14 units of the qualifications at CMI Level 7: Strategic
Management and Leadership.
Personal leadership development as a strategic manager
(ISBN: 0-85946-572-1)
7002V1
Developing performance management strategies
(ISBN: 0-85946-577-2)
7003V1
Financial management
(ISBN: 0-85946-582-9)
7004V1
Strategic information management
(ISBN: 0-85946-587-X)
7005V1
Conducting a strategic management project
(ISBN: 0-85946-592-6)
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7001V1
Financial planning
(ISBN: 0-85946-503-9)
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7007V1
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7006V1/ Reviewing organisational strategy plans and
7011V1 performance/Strategic planning
(ISBN: 0-85946-597-7)
Developing a marketing strategy
(ISBN: 0-85946-508-X)
7009V1
Strategic project management
(ISBN: 0-85946-513-6)
7010V1
Implementing organisational change strategies
(ISBN: 0-85946-518-7)
7012V1
Strategic human resource planning
(ISBN: 0-85946-523-3)
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7008V1
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7013V1/ Strategic leadership/Strategic leadership practice
7014V1 (ISBN: 0-85946-528-4)
7021V1
Introduction to strategic management and leadership
(ISBN: 0-85946-533-0)
7022V1
Developing risk management strategies
(ISBN: 0-85946-538-1)
7023V1
Strategic corporate social responsibility
(ISBN: 0-85946-543-8)
For further details on the development guides:
Phone: (+44) (0)1536 207379
Fax:
(+44) (0)1536 207384
Email: [email protected]
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Implementing Organisational Change Strategies
How to use the development guide
The development guides provide a critical commentary to the
ideas of writers and thinkers in the management and leadership
field. They offer opportunities for you to investigate and apply
these ideas within your working environment and job role.
Structure
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Each guide is divided into sections that together cover the
knowledge and understanding required for the equivalent unit or
units of the Chartered Management Institute Level 7 Strategic
Management and Leadership qualifications.
Activities
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Each section starts with a clear set of objectives linked to the
learning outcomes of the qualification. You don’t have to
complete the sections in the order they appear in the guide (the
mind map at the beginning of each guide will help you decide
which sections and topics are of particular need or interest) but
you should try to cover all sections if you are aiming for a full
diploma qualification.
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Throughout the guides there are activities for you to complete.
These activities are designed to help you reflect on your own
situation and apply your research to your organisation. Space and
tables are provided within the activities for you to enter your
own thoughts or findings, but in some cases you may choose to
copy out the table or make notes in a separate notebook.
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Timings
Timings are suggested for each activity to give you a rough idea
of how long you should devote to them. They’re not hard and
fast, and you must decide whether you will benefit from
spending longer on some activities than stated.
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SR
Supporting resources
The text of the guides is designed to provide you with an
introduction to the subject and a commentary on some of the
key issues, models and thinkers in the field. The activities are
there to help provide a framework for your thinking. A key
component of Pathways Plus (Pathways Plus because the
development guides work together with the online supporting
resources to provide an overall learning journey) is the list of
references given throughout the text and at the end of each
topic guiding you to the most appropriate supporting resources
for you to explore yourself. These are marked with the symbol SR
(as shown above).
You have the opportunity to select those resources that are of
most interest or relevance to you and to use them as a source of
guided research on a particular topic. Many of the supporting
resources are immediately available by logging into CMI’s online
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About Pathways Plus
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P+
management and leadership portal, ManagementDirect (MDir)
(http://mde.managers.org.uk/members), or where you work for
an organisation that subscribes to this service use the specific
link for your organisation
(http://mde.managers.org.uk/(organisation name) . These
resources are marked in the reference list at the end of each
topic with P+ standing for Pathways Plus. Once logged into
ManagementDirect click on More…. on the navigation bar and
select Senior Manager Resources, this will take you straight to
the list of supporting resources as listed in the Pathways Plus
topics. When there, click on the title of your development guide,
the section and the topic you’re interested in and then click
straight to the article, video, checklist, extract or report that
you want to find.
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For those resources that are not available through the CMI site,
you will be directed to other sources (some also online) to reach
what you need.
Preparing for assessment
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Further information on assessment is available in the Student
Guide produced as part of the Pathways Plus series. If you have
any further questions about assessment procedures, it’s
important that you resolve these with your tutor or centre
coordinator as soon as possible.
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Further reading
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Suggestions for further reading and links to management
information are available via ManagementDirect through the
Study Support section of the Institute's website at
http://mde.managers.org.uk/members. Alternatively, email
[email protected] or telephone 01536 207400. You will also
find titles for further reading in the Bibliography at the end of
this workbook.
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The CMI Management Library holds an extensive range of books
and pamphlets for loan to members. A postal loan service is
offered to members in the UK only. You will only pay your return
postal charges. Go to www.managers.org.uk/library to review
the collection and to place your requests.
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Implementing Organisational Change Strategies
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Introduction
There is no sign that the rate of change is going to slow down any
time soon. In fact, every measure seems to indicate that it’s
continuing to accelerate — and the unprecedented and largely
unexpected global financial crisis that emerged in 2008/9 has
driven even more change.
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New technologies add to the pace; increasing efficiency in the
availability of information and knowledge adds breadth and
heightens competition. The increased competition in turn means
that the life cycle of many products has become shorter and
therefore the volatility of the organisations that depend on those
products becomes greater. Investors are ruthless in seeking new
opportunities for gain and in squeezing performance from
existing investments. Those that fail to make the necessary
return on capital are picked off by the venture capitalists and
the hedge funds for ‘performance improvement’ before being
sold back to the market … at a significant profit!
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At the same time, people are facing longer working lives and
increasing numbers of job changes during their working lifetime
due to reducing employer loyalty and loss of the ‘job for life’
perspective. While standards of living achieve new heights and
continue to justify the ‘never had it so good’ descriptor, there is
increasing evidence of stress at work, longer working hours and a
welter of work—life balance and job security issues. While the
general standard of living may be rising, many would argue that
the quality of their lives is moving in the opposite direction.
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High on many organisations’ list of needs is the ability to
implement more change more effectively. High on many people’s
wish lists is for fewer new initiatives and more time to catch up.
In this development guide on organisational change you’ll
examine the increasing tensions between employees and their
employers and look at approaches and methodologies that might
improve the change implementation experience for both parties.
Section 1 looks at developing a change strategy using
implementation models. Section 2 goes on to look at how to
apply solutions to organisational change. Section 3 analyses an
organisational response to change. Finally, in Section 4 you’ll
evaluate the impact of change strategies.
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Implementing Organisational Change Strategies
Development guide mind map
Section 1: Processes
for change
Section 3: Impact of
change on people
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Organisational
change
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Section 2: Exploring
change
Assessment
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Section 4: Evaluating
strategic change
initiatives
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If you’re studying for the Level 7 in Strategic Management and
Leadership qualifications you will be assessed by your approved
centre on your knowledge and understanding of the following
learning outcomes:
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Unit 7010V1:
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1
Understand how to apply solutions to organisational change
2
Understand how to develop a change strategy using
implementation models
3
Understand how to analyse an organisational response to
change
4
Be able to evaluate the impact of change strategies.
Section 1 Processes for change
Introduction
SR 3
Charles Handy in his aptly named book Age of Unreason asks ‘Can
any other word be asked to do so much?’ Even in the context of
how we use the word itself:
‘Change is a part of life’ (a noun universal)
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‘Make a change in your schedule’ (a noun particular)
‘Count your change’ (a noun metaphorical)
‘Can you change a wheel?’ (a verb transitive)
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‘I will not change’ (a verb intransitive)
‘Where do I change trains?’ (a verb metaphorical)
‘She was a great change leader’ (an adjective)
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This section focuses on change, not from a grammatical
perspective, but from a process perspective.
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In this section you’ll review a range of processes that have been
chosen for their particular insight and perspective on how to plan
and implement organisational change. Second, you’ll look at a
process for analysing an organisation’s preparedness for change.
Finally, you’ll look at some of the approaches to driving change
and the key roles in the process.
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All of these elements focus on developing awareness and
understanding of how best to plan and prepare for change from a
process perspective. While no change process is complete
without its people perspective, you’ll balance this initial process
driven perspective by looking closely at the impact of change on
people.
Learning outcomes
This section covers the following learning outcome:
Understand how to develop a change strategy using
implementation models
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7010V1.2
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Implementing Organisational Change Strategies
Section mind map
There are three topics in this section as shown below. Check the
subjects within each one and then continue with the areas you
need to explore.
1.1 Unfreeze,
change,
refreeze
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Section 1:
Processes for
change
Topic 1: Process
models of
change
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Topic 2:
Organisational
context for
change
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1.3 The
change
equation
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2.1 The change
kaleidoscope
Topic 3:
Approaches to
implementing
change
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1.4 Kotter’s
eight-stage
process
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1.2 Present,
transition and
future states
3.1 Five design
choices
2.2 The
cultural web
Section 1 Processes for change
Topic 1:
Process models of change
Introduction
There have been many processes for change espoused by many
authors over the years. In this topic you’ll look at a selection of
processes that hold particular insights into the ways that aspirant
leaders should approach the process of change.
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Many authors have offered their outline processes for planning
and implementing change, and most of the models do have some
merits. Four models are discussed in detail which each carry an
important insight for aspirant change leaders.
Unfreeze, change and refreeze is a model by Kurt Lewin that
dates back to the late 1940s. The important points from the
perspective of the change leader are that the model highlights
the fact that action needs to be taken to dismantle or break
down the initial status quo. Too many leaders take the start
point as a given and begin focusing on the changes that need to
be made. Lewin reminds leaders that the status quo is how it is
for a reason and unless actions are taken to disrupt that status
quo it is highly likely to persist.
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Unfreeze, change, refreeze
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1.1
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Nigel Leppitt undertook a detailed analysis and comparison of 18
of the more recent change process models (dating from 1990
onwards). For a more complete overview of a broad range of
relatively recent models, his summary analysis is included as an
Appendix at the end of this book.
Unfreezing
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‘Unfreeze’ the
present state
SR 1
Challenge
Question
Disrupt
Innovate
Transition
Provide structure, guidance,
confidence, and trust while
encouraging movement
Refreezing
Embed the future
state
Tactics
Sponsor improvement and
involvement
Legitimise and discuss concerns
Encourage ideas and experiments
Seek new best practice
approaches
Confirm new ways
and procedures
Acknowledge
improvement
Incentivise new
approaches
Figure 1.1a: Lewin’s unfreeze, change and refreeze model
Typical actions might revolve around breaking up traditional
relationships and reporting lines, de-layering departments or
organisations. Ricardo Semler radically reorganised his business
Semco by reducing the number of layers from ‘too many to
reliably count’ to three and changed the organisation chart from
the familiar pyramid to three concentric circles. Alternatively,
you can encourage groups to challenge and question existing
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Implementing Organisational Change Strategies
processes and procedures or identify better ways of working that
would highlight inefficiencies in the existing system.
At the end of the change period Lewin also reminds us that
refreezing needs to take place. Actions are needed to embed the
changes in the culture and operation of the business. This may
involve modifying objectives or pay and bonus schemes to focus
on and incentivise new behaviours. Without these changes people
will often regress back to old ways.
Activity 1.1a
45 minutes
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Activity
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Outline a change you wish to make in your own organisation or
department.
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Consider how you might approach ‘unfreezing’ the present state
for this change activity. What steps can you take to lessen the
grip on what people know well and encourage them to work for
change and improvement?
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1.2
SR 4
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Present, transition and future states
Superficially, Beckhard and Harris’s three states model looks very
similar to Lewin’s model. However, it adds a further clarification
in pointing to the transition period as a distinct stage or phase in
the process that the change leader should expect to be a distinct
period of uncertainty and flux and a stepping-stone to the
intended future state.