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08 Jan Typed, single-spaced, one-inch margins all around (top, bottom, right and left) Student name, assignment information, date in, and page number upper right-hand corner Times New Roma

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Required articles from library electronic periodical databases – No textbook will be used
Atkinson, P. (2005). Managing resistance to change. Management Services, 49(1): 14-19.
Ford, J.D., & Ford, L.W. (2009, April). Decoding resistance to change. Harvard Business
Review, 87: 99-103.
Humphreys, J., & Langford, H. (2008). Managing a corporate culture slide. MIT Sloan
Management Review, 49(3): 25-27.
Kotter, J.P. (1998, Fall). Winning at change. Leader to Leader, 10: 27-33.
Kotter, J.P. (2007). Leading change: Why transformation efforts fail. Harvard Business Review,
85(1): 96-103.
Kotter, J.P., & Schlesinger, L.A. (2008). Choosing strategies for change. Harvard Business
Review, 86(7): 130-139.
Loup, R., & Koller, R. (2005). The road to commitment: Capturing the head, hearts and hands of
people to effect change. Organizational Development Journal, 23(3): 73-81.
Schaffer, R.H. (2010, September). 4 mistakes leaders keep making: How to overcome deep-
seated obstacles to change. Harvard Business Review, 88(9): 86-91.

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Organizational Culture

The key characteristics that the organization values and that distinguish it from other organizations.

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What is Organizational Culture?

The set of important assumptions (often unstated) that members of an organization share in common.

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Culture

CULTURE IS TO HUMAN COLLECTIVITY WHAT PERSONALITY IS TO AN INDIVIDUAL

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Why is Culture Important?

Even firms doing well on traditional business criteria can stumble in blending their corporate personalities.

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Dimensions of Culture

Innovation and Risk Taking

Attention to Detail

Outcome Orientation

People Orientation

Team Orientation

Aggressiveness

Nonstability

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Innovation and Risk Taking

The degree that employees are encouraged to be innovative and take risks

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Attention to Detail

The degree that employees are expected to exhibit precision, analysis, and attention to detail

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Outcome Orientation

The degree that management focuses on results rather than process used to produce those results

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People Orientation

The degree that management decisions take into account how people in the organization will be affected

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Team Orientation

The degree that work is organized around teams rather than individuals

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Aggressiveness

The degree that people are aggressive and competitive rather than easygoing

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Non-stability

The degree that organizational activities emphasize growth as opposed to maintaining the status quo

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Reasons to Strive for a Strong Culture

They are associated with high organizational performance.
Increased employee commitment and loyalty
Yield a sustainable competitive advantage

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Where Does
Culture Come From?

Founders hire and keep employees who think and feel the way they do.
Founders indoctrinate and socialize these employees to their way of thinking.
Founders act as role models.

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How is Culture Transmitted to Employees?

Stories
Rituals
Material Symbols
Language

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How to Read an Organization’s Culture

Observe the physical surroundings
Ask to sit in on a team meeting
Listen to the language
Note to whom you’re introduced and how they act
Ask different people the same questions and compare their answers
Get the views of outsiders

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Conditions for Changing Culture

A Dramatic Crisis
Turnover in Leadership
Young and Small Organization
Weak Culture

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Changing the Culture

Actions to Change Culture
Do a Cultural Analysis
Create Sense of Urgency
Appoint a Visionary Change Agent
Create Supporting Conditioning Components

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Why is it Important to Adapt to Change?

Individuals, teams, or organizations that do not adapt to change in timely ways are unlikely to survive.

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Adapting to Change

Individuals, teams and organizations that recognize the inevitability of change, learn to adapt to it, and attempt to manage it, will be the most successful.

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What is Change?

Coping process of moving from a unsatisfactory present state to a desired state

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Reacting to Change

Unplanned
“Fire fighting”

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Planned Change

Results from deliberate attempts by managers to improve organizational operations

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Change Language

The literature usually refers to these forms of change as:

Emergent change

Deliberate change

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Unfreeze

Change

Refreeze

Three Phases of Planned Change

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Unfreezing

Help people accept that change is needed because the existing situation is not adequate

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Changing

Involves rearranging of current work norms and relationships to meet new needs

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Refreezing

Reinforces the changes made so that the new ways of behaving become stabilized

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I Disagree

“Disagree” is probably not the right word. Let’s just say I have concerns over this terminology.

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Managing the Planned Change Process

Improving the organization’s ability to cope with unplanned changes that are thrust upon it
Modifying employee’s attitudes and behaviors to make them more effective contributors to the organization’s goals

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Steps in the Planned Change Process

Recognize the need
for change

Diagnose and
plan change

Manage the
transition

Measure results
Maintain change

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Initiating the Planned Change Process

Recognize the need for change
Diagnose and plan change
Formulate Goals
Determine stakeholders’ needs
Examine driving and restraining forces

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Force-Field Analysis

Process of analyzing the forces that drive change and the forces that restrain it

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Driving Forces

Factors that push toward the new, more desirable status quo

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Restraining Forces

Factors that exert pressure to continue past behaviors or to resist new actions

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Force-Field Analysis Model

Restraining Forces

Driving Forces

Quasi-
Stationary
Equilibrium

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Managing the Planned Change Process

Consider contingencies to determine the best interventions
Manage the transition
Measure results
Maintain change

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Targets for Organizational Change

Strategy – Develop new visions, missions, strategic plans
Structure – Add a new department or division, or consolidate two existing ones
People – Replace a person or change knowledge, skills, attitudes, or behaviors
Technology – upgrade a data processing system
Management –Encourage participation by those involved in solution of problems

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Reasons for Resistance to Change

Selective Perception
Lack of Information
Fear of the Unknown
Habit

Resentment Toward the Initiator
Sub-Optimization
Structural Stability

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Overcoming Resistance to Change (Kotter & Schlesinger, 2008)

Education and Communication
Participation and Involvement
Facilitation and Support
Negotiation and Agreement
Manipulation and Co-optation
Coercion
Promote Positive Attitudes Toward Change

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Leading Organizational Change (Kotter, 1998)

Establish a Sense of Urgency
Form a Powerful Guiding Coalition
Develop a Compelling Vision and Strategy
Communicate Widely
Empower Others to Act on the Vision
Generate Short-term Wins
Consolidate Gains and Create Greater Change
Institutionalize Changes in the Organizational Culture

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Key Levers to Implement Strategy

Leadership (Style, staffing, and skills)

Structure (Organization of firm’s activities)

Culture (Shared values creating behavioral norms)

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Remember …

Strategy must always drive structure, NOT the other way around !

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Guidelines to Match Structure to Strategy

Restructure to emphasize and support strategically critical activities

Reengineer strategic business processes

Downsize, outsource, and self-manage

Recognize that strategy and structure often evolve in a predictable pattern

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Restructuring

Concept – Some activities within a business’s value chain are more critical to the success of the strategy than others
Considerations in restructuring
Strategically critical activities must be the building blocks for designing the structure
Organizational structure must be designed to help coordinate and integrate support activities to
Maximize their support of primary activities
Minimize their costs and time

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Reengineering Processes

Concept – Involves reorganizing a company to create value for the customer by eliminating barriers that create distance between employees and customers
Potential outcomes of BPR
Reduces fragmentation by crossing traditional department lines
Reduces overhead by compressing formerly separate tasks that are strategically intertwined in the process of focusing on the customer

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Steps Involved in Business Process Reengineering

Develop a flow chart of the total business process

Try to simplify the process first, eliminating unnecessary tasks and streamlining remaining tasks

Determine which parts of the process can be automated

Benchmark strategy-critical activities

Consider outsourcing non-critical activities

Design a structure for performing remaining activities and reorganize personnel accordingly

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Guidelines Regarding the Strategy-Structure Fit

1. A single-product firm or dominant product business should employ a functional structure

2. A firm in several related businesses should employ a multidivisional structure

3. A firm in several unrelated lines of business should be organized into strategic business units

4. Early achievement of a strategy-structure fit can be a competitive advantage

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Advantages

Already know key people, practices, and conditions

Personal qualities are better known and understood by associates

Have established relationships with peers, subordinates, suppliers, and buyers

Symbolizes organizational commitment to individual careers

Disadvantages

Less adaptable to major strategic changes because of their knowledge, attitudes, and values

Past commitments hamper the hard decisions required in executing a new strategy

Have less ability to become inspired and credibly convey the need for change

Using existing executives to implement a new strategy

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Advantages

May already believe in and have “lived” the new strategy

Are unencumbered by internal commitments to people (the “poor ol’ Fred” problem)

Come to the new assignment with heightened commitment and enthusiasm

Can send powerful signals throughout the organization that change is expected

Disadvantages

Is often costly in terms of compensation and “learning-to-work-together” time

Candidates suitable in all respects may not be available, leading to compromise choice

Uncertainty in selecting the right outsiders to bring in

“Morale costs”

Bringing in outsiders to implement a new strategy

Organizational Transformation …,

However, does NOT require mystical capacities, it simply requires effective leadership, thought, planning, formulation, and implementation. In short, it requires MANAGEMENT.

My Experience as a Change Agent

Just to provide some foundation for my thoughts going forward, let me describe to you the last change effort I was involved with during my corporate career.

Successful Transformation …</p

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