Change Management

1
Change Management

• Prof. Steve Phelan
• Lecture 6

2
Today

• Awareness of Change
• Meeting the challenge of disruptive change (2000)
• Motorola The Next Generation (2000)
• LMZ Chs10-12
• Schein, Intergroup problems in organizations
  (1980)
• Schein, Organizational Culture (1990)
• Fox, Sociotechnical System Principles (1995)

3
Meeting the challenge

• Some points
• Its not that managers in big companies cant
  see disruptive change coming
• Nor do they lack resources to confront them
• Function (and dysfunction) lies in
• Processes
• Particularly back-office resource allocation
  processes
• Values
• Prioritization of customers/jobs/orders/projects
• Reflect cost structure or business model
• Gross margin and growth expectations make small
  markets unattractive

4
Meeting the challenge ctd.

• Culture
• Locus shifts from resources (people) to values
  and processes (crossing the chasm)
• When processes and values become assumptions
  rather than conscious choice then culture is
  created
• Disruptive technologies
• Are initially inferior to mainstream offerings
  and inconsistent with company values
• No company has a routine for handling disruptive
  technologies (except maybe Microsoft)
• Small companies have the values for embracing
  disruptive change

5
Meeting the challenge ctd.

• Solutions
• Create new structures to develop new processes
  and values
• Problem overcoming existing assumptions
• Spin out independent organizations
• Problem CEO might forget about it
• Leads to agency problems, lack of focus, money
  pit
• Acquire a different organization with the right
  processes and values
• Problem how to preserve the values/processes
• OR merge resources into existing processes
• Need to know reason for acquisition

6
Motorola The Next Generation

• Apply the framework to
• Yincom and Yangcom
• AA/UA vs. Southwest
• What is the cause of Motorolas failures?
• From Christiansens framework?
• Generally?
• What should they do to create more awareness of
  the need to change?

7
Debunking two myths about change (from an article
about ethics)

• Its easy to change
• Change decisions are complex
• Awareness is required
• Org context creates additional pressures and
  complexity
• Failure to change is simply the result of a few
  bad apples
• Most people are the product of their context.
  They look up and look around and they do what
  others around them do or expect them to do

8
Schein on Conflict

• Inter-group Conflict
• Focus on group level change
• Discusses Sherifs famous boys camp studies
• Ingroup/outgroup phenomena
• Solutions
• Locating a common enemy (or using superordinate
  goals)
• Bringing leaders (or subgroups) into interaction
• T-groups, rotation, avoiding win-lose situations

9
Schein on Culture

• Diagnosis
• Can culture be measured with surveys?
• What are clinical, analytical, ethnographic,
  historical approaches?
• What are the importance of artifacts, anomalies,
  assumptions?
• Does cultural analysis provide a roadmap for
  future action?
• Dynamics
• How is culture created (and changed)?
• Highlight threats, articulate new assumptions,
  bring in new blood, reward the new/punish the
  old, seduce or coerce into new behaviors, visible
  scandals/destroy traditions, create new symbols
  and rituals
• What is the role of socialization?

10
Socio-technical Systems

• Guidelines
• Dual focus and joint optimization of social and
  technical systems
• Always a choice of how much control and
  coordination is left to people
• Design of work system uses an action research
  approach PDCA
• Sharing of power is a generic feature
• Gainsharing is also important
• Participative or self-managing coaching and
  support not direction
• Simple structures, complex tasks not complex
  structures and simple tasks job enrichment