TEC 401 Session FiveJoseph Lewis AguirreHuman Factors In Technology

Characteristics of Technology-Driven Change with Regard to The Implementation of Technology. Human resources.Functional resources.Technological capability.Organizational abilities.

Joseph Lewis AguirreChange Management

Managing Resistance to Technological Change Process re-engineering and restructuring.Innovating application of goods and services.Managing employees as a vital element in the value chain.Achieving and maintaining customer loyalty.

Internal or External FocusAn externally focused company can be difficult to identify because it uses standard problem-solving strategies, supply chain processes and product delivery models.

What separates externally focused companies from internally focused ones is the use of outside data as key inputs to these models. For example, externally focused companies look at non-traditional competitors because they might re-define the customer problem.- Traditionally, McDonald's looked at Burger King, KFC, and Taco Bell as competitors.

- But if the problem is redefined as a need for quick, low-cost food and drinks, a new set of competitors come into play such as convenience stores, frozen meals at grocery stores and gas stations

Internal Focus Time Spent OutsideIf the senior team spends the majority of its time solving operational problems, the company is internally focused. Internally focused companies also avoid and deny negative feedback. It's tough to uncover the truth; and once a company decides to venture outside, the chance of hearing negative feedback is high. The risk in ignoring negative information threatens the survival of the organization.

Example of an externally focused executive is Jack Welch, former CEO and chairman of General Electric.

According to David Jones, chairman and CEO of Wallace Computer Services Inc., routine contact by senior level executives from all functional disciplines has been critical for winning contracts without significant price concessions. Mr Jones himself attends major account presentations as just one more person on the account team.

Business DriversCustomer problems or business processes? If business processes drive the business, the organization is internally focused.

A company is externally focused if it understands its rules need to be flexible so that front line staff can immediately and effectively solve customer's problems - without a dozen supervisors' signatures.

How a company handles customer returns and complaints provides great clues about the focus of an organization. For example, Nordstrom's has a legendary external focus with virtually no restrictions on customer returns.

Home Depot and CDW (Computer Discount Warehouse) exhibit their external focus by employing knowledgeable staff who are willing to answer endless customer questions.

Internally focused organizations keep everyone appraised of each process with time-consuming meetings. Walk around any internally focused corporate headquarters and observe the number of people in meetings or the number of conference rooms available. Then stop and think about the extent to which internal meetings are solving customer problems or producing profits.

To determine who owns the business processes, ask these two questions:Are business processes too complicated to document? How many times during a month do key processes go unexecuted because someone is absent?

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Internal Focus RisksExtinction:

For example, consider a company that uses only one supplier of a key raw material or services or two customers that contribute 80 percent of total revenue.

US auto industry in the 1980s when overseas companies introduced products that were superior in quality, more durable and less expensive. The US auto industry failed to listen to customers' quality and fuel efficiency concerns until consumers had an alternative buying source - foreign car manufacturers that addressed these concerns with a value price. The auto industry changed again when gas prices started going north of 50 cents a gallon, and customers wanted fuel-efficient cars rather than large sedans. Obviously, that didn't last. Trends have reversed yet again as extra large SUVs remain in high demand. Being ahead of the market as these changes occur is the way to profitability. It's not good enough to watch the market trends as they play out.

Planning Management of Personal and Organizational Change Business description, objectives, and technological environment.Personal and organizational responsibilities for moral and ethical use of technology.Current and potential uses of technology for the global success of business objectives.Human factors within the enterprise that utilize current and emerging technology more effectively.

Knowledge Based Strategic ChangeConcepts of organizational knowledgeStrategic change as the process of knowledge creationA case studyDiscussing the caseConclusion

Organizational KnowledgeWhat is knowledge?Knowledge is more than processed data, it results the processing or sense making of information by intellects. Knowledge consists of phenomena that amounts to more than just facts, it also consists of beliefs and values acquired through the meaningfully organized accumulation of information through experience, communication and inference

Knowledge Based EconomyKnowledge-based economy is an economy in which knowledge is the most important productive factor Knowledge-based company (enterprise) is a company in which knowledge is the most important productive factor

Knowledge and Organizational CultureOrganizational culture: set of assumption and beliefs held in common and by the organizations membersValues and beliefs are examples of tacit knowledge-- culture is a stock of knowledge that has been codified into patterns of recipes for handling situations, then very often with time and routine they become tacit and taken for granted and forms the schemes which drive action

Change Management is it possible?Managers want to transform their organizations on a planned basis70% failure rate for organizational change initiatives in generalIncreasingly the feasibility of managing change is being questionedChange is about issuing objectives and instructions and explaining to individuals how need to change

Change Management is it possible?

For change to occur in organizations, the routines and their associated meanings have to evolveThus the strategic change can be identified as the process of new knowledge creation This approach can be defined as knowledge-based change

Design Co.Engineering division of a parent companyEstablished in 1999Re-branded in 2000Tough growth targetsChanging from engineering focused organization to an entrepreneurial engineering serviceExternal customer instead of internal customer

Change InitiativeChanging Structure from hierarchical to matrix, team based structureUsing assessment centers to pick people for new positionsHiring new people for sales, marketing, finance & HR Introducing a new boardAsking many of old managers to leaveNew performance management for paying according to achievement of personal objective

Resistance to ChangeConflict between new and old staffsNew staffs dont add value?Traditional, hierarchical, very macho, conservative and male oriented cultureFixed cost pricing vs. hourly basis wagingCommunications problems

Knowledge base approach to Design Co.Architectural & component Knowledge

Entrepreneurial and commercial targets of the company, challenged both the component and architectural knowledge bases.

Knowledge base approach to Design Co.Absorptive capacity

Engineers had no prior knowledge of new working circumstances to ease their absorption of the new knowledge they were being asked to take on board.

Knowledge base approach to Design Co.Knowledge codification and diffusion

The issue in change is to do with the codification and diffusion of the new architectural and component knowledge necessary for change to occur, rather than existing knowledgeThose who have developed new procedures, systems or routines that work, can share them with others who have not progressed so far

Knowledge base approach to Design Co.Redundancy

Redundancy is a key enabler of the types of communication mechanisms described under knowledge codification and diffusion. Requisite variety

Knowledge base approach to Design Co.Enabling context

The enabling context would be about how, through structures and informal groups, as discussed above, to facilitate sharing and development of new ways of working

Knowledge base approach to Design Co. ConclusionManagement implicationsIndividual are not passive recipients of changeChange is a process of innovation and creativityThe individuals need to be enabled to re-create their ways of working, their daily routines and behaviors Senior management cannot impose the detail of what individuals need to do differently to meet the aims of change

Knowledge base approach to Design Co. Conclusion Management ImplicationsNew critical areas of focusCommunicationCreating and enabling context

Technology Trends, Predictions

Headlines CIA Overseeing 3-Day War Game on InternetThe CIA is conducting a war game this week to simulate an unprecedented, Sept. 11-like electronic assault against the United States. The three-day exercise, known as "Silent Horizon," is meant to test the ability of government and industry to respond to escalating Internet disruptions over many months, according to participants. 05-25-05http://online.wsj.com/article/0,,SB111627924241235058,00.html?mod=2%5F1153%5F2

Headlines Under Pressure to make cars safer, smarter and more fuel efficient, auto makers are going back to the drawing board and the testing lab. The result: A surge of innovation abd experimentation is coming that the industry has not seem since its earliest days.

Increasingly, cars will become electronic thinking machines - not just mechanical devices

WSJ 07-25-05

Decision Making FrameworkStrategic Management Executives, Directors -TransformationTactical Management Business Unit Managers -Effective, right thingOperational Management Efficient, do thing rightDecision StructureStructuredSemi StructuredUn StructuredInformation CharacteristicsAd Hoc Unscheduled Summarized Infrequent Forward looking External Wide ScopePre specified Scheduled Detailed Frequent Historical Internal Narrow FocusRELATIVE TIME SPANBusiness Professionals

Thinking Like A Board MemberWhat CIO is Thinking1. Technology Integration2. Vendor Management 2. Buying or SellingWhat BOD is thinking1. Corporate Profitability3. Compliance 3. Sarbannes-Oxley4. Business Alignment 4. Succession Planning5. IT Governance 5. Corporate Governance6. IT Security 6. Risk Management7. Sourcing 7. Long-Term Shareholder Value8. Talent Management 8. Executive CompensationSource: From IT to the Board Room, John Byrnes MD for Mason Wells.

Mission VisionStrategic Management Executives, Directors -TransformationTactical Management Business Unit Managers -Effective, right thingOperational Management Efficient, do thing rightMission, Vision, Goals GOALS (SOP)MISSIONVISIONInformation CharacteristicsAd Hoc Unscheduled Summarized Infrequent Forward looking External Wide ScopePre specified Scheduled Detailed Frequent Historical Internal Narrow FocusRELATIVE TIME SPANBusiness Professionals

Organizational EffectivenessValuesGOALSSTRUCTURECLIMATEENVIRONMENTMarketplaceOther TeamsCultureCompetitionPressuresClarityCommitmentReward SystemReporting RelationshipsFeedback SystemBehavior NormDecision MakingCompetitionEnthusiasmStressTrustInvolvementFlexibilityCollaborationMission PhilosophyAccountabilityCreativity

Traditional MFG. OrganizationalValuesGOALSSTRUCTURE MechanisticCLIMATEENVIRONMENTMarketplaceOther TeamsCultureCompetitionPressuresClarityCommitmentReward SystemHierarchicalFeedback SystemControl: StandardizationCentralized Decision MakingCompetitionEnthusiasmStressTrustInvolvementFlexibilityCollaborationMission PhilosophyFunctional StructureCreativity

Advanced MFG Technology OrganizationalValuesGOALSSTRUCTURE OrganicCLIMATEENVIRONMENTMarketplaceOther TeamsCultureCompetitionPressuresClarityCommitmentReward SystemFlatFeedback SystemControl: Mutual AdjustmentsDecentralized Decision MakingCompetitionEnthusiasmStressTrustInvolvementFlexibilityCollaborationMission PhilosophyProduct TeamCreativity

ValuesHonestyCustomersEmployeesSafetyCompetitorsRevenueProfitsAlliancesNew ProductsNew MarketsEcologyCutting EdgeImageFunGrowthFamilyCapitalQualitySocial CapitalLocationHedonismRiskCollaborationCentralizationCreativityOther

Technology Trends, Predictions

Predictions1990 2000: John Seely Brown, Paul Duguid, The Social Life of Information, 2000--> experts predicted the end of newspapers, television, paper, office, established universitymissed the The Internet 1893-1993: Dave Walter, Today thenIn the early 1890s,a news agency commissioned 74 prominent Americans to write brief essays on what life would be like in 1993, as part of the fanfare for the future-oriented World's Columbian Exposition, which opened in Chicago in May 1893.

PredictionsCorrect Forecasts An income tax was coming. Homes would be air-conditioned. Women would vote. Florida would boom as a leisure state. Cities would become groups of suburbs Erroneous Forecasts Hypnotism would replace anesthetics in surgery. The government would set up colleges to train servants. Houses and cities would be built of aluminum. Unemployment would disappear. 1893-1993: Dave Walter, Today then

MAJOR AI APPLICATIONSCognitive Science (Human Information Processing) Expert Systems Learning Systems Fuzzy Logic Neural Networks Intelligent Agents

Robotics ApplicationsVisual Perception Tactility Dexterity Locomotion NavigationNatural Interface ApplicationsNatural Languages Speech Recognition Multi sensory Interfaces Virtual Reality

Artificial Intelligence DriversNew Scientist 04-2005 Editorial:AI pervades our world and may soon start evolving faster than humans can track it - in whose hands should this awesome power reside? When it comes to emerging technologies we know what we are afraid of, even though we may not know why. There is no shortage of public debate about genetically modified crops, nanotechnology and cloning. And policy makers have responded: Many countries have laws that restrict they way these technologies can be used.

So why the deafening silence about the potential dangers of artificial intelligence? Here is a technology that is already changing the world: AI is used in everything from guided missiles to air-traffic control. It is not yet "intelligent" in the human sense, but looks likely to change"

Social Perception MachineSocial Signals: Tone of Voice, Facial Movement, Gesture

Listen in to social signals within conversations, ignoring words

Predictions:Next moveWinner in negotiationsConnector within the groupFeelings about negotiations.

Applications:Badge - social context sensing by infrared, audio and motionGroupMedia PDA - Attraction signaling in social eventsSerendipity Phone - Compares interests and makes socially appropriate introductions

Source: Alex Pentland MIT Media Arts and Sciences, Computer 3,2005

Socially Aware CommunicationPotential Commercial Applications:

Mood Ring (jerk-o-meter) - enhance couples communication

Comfort Connection - call center application

Personal Trainer - immediate feedback

Winning Combination - Paring right salesperson with right client

Source: Alex Pentland MIT Media Arts and Sciences, Computer 3,2005

Worlds Cafe

Knowledge ManagementIt's been said that if NASA wanted to go to the moon again, it would have to start from scratch, having lost not the data, but the human expertise that took it there the last time.

Knowledge Networks Vs Repositories

usersusersusersusersQueryResponseusersusersusersusersusersQueryCodified knowledge

Wearables

WearablesSony GestureWrist and GesturePad This Sony GestureWrist and GesturePad..IBM Research's Meta Pad IBM's research to explore how humans interact with computers and define the technologies needed for future pervasive devices. ViA II PC a lightweight, wearable design of the PC, Matsucom onHand PC The onHand PC "wristwatch" is a full-featured PDA Xybernaut Poma Wearable PC Hitachi PCCharmIT wearable development kit The CharmIT is Charmed Technology's first wearable development kit. Bitsy-Borg wearable computer A single board computer and a MicroOptical eyeglass-mounted display unit, targeted at the OEM developer. Xybernaut's XyberKids Wearable Computing Platform The Xybernaut XyberKids product is a multi-component solution for students who face the challenge of a disability, OQO wireless handheld computer The OQO is the smallest high performance WindowsXP computer with complete PC functionality. Xybernaut Mobile Assistant V The MA V is a powerfulsuper lightweight wearable computer .

Wearables Fashion Dockers Mobile Pant. Great for keeping cell phones, PDAs and beepers handy.Scott eVest with personal area network SeVs have up to 42 hidden pockets and a patent-pending Personal Area Network (PAN). Sanyo Fashion House Raincoats for Palm Devices Has a special pocket for Palm devices lined with static shielded material as well as a cell phone pocket lined with anti-magnetic material.Bristol Wearable Computing Project Concerned with exploring the potential of computer devices that are as unconsciously portable and as personal as clothes or jewellery. IBM Linux-based watch Linux on a wrist watch including Bluetooth capabilitiesSamsung SPH-S100 cell phone watch PCS Single Mode (1,900 MHz) Watch Type Phone with SMS, Dedicated Ear-microphone, Vibrating Alert Alarm/World Time, Automatically Call Lock, Voice Dialing(20), Speaker Phone Function, Phone Book(80) and Calendar Casio digital camera watch You can use IR data communication to transfer images to a computer Casio PAT2GP-1V GPS Satellite NAVI watch uses GPS satellites that ring the globe to tell you your current location. Timex Internet Messenger Watches Timex Internet Messenger Watches can receive email messages Timex Watch - Speedpass System Inside the timepiece is a miniature Speedpass radio frequency transponder that allows customers to instantly pay for purchases at Exxon and Mobil gasoline stations nationwide and at select Microsoft Smart Personal Objects Technology (SPOT) Smart Personal Objects are common, everyday items, such as wristwatches, clocks, pens, key-chains and refrigerator clock magnets that are made smarter, more personalized and more useful through the use of specialized technology

Persuasive Technology - CaptologyPersuasive Technology - Insight into how computing products can be designed to change what people believe and what they do in domains such asHealthBusinessSafetyDesign, theory, and analysis of persuasive technologies: "captology."

Virtual RealityVT CAVE Virginia Tech "Future Watch", a CNN Documentary on Applications of a CAVE

Virtual RealityVirtual Reality Modeling Language (VRML)

VRML Gallery of ElectromagnetismAmpere's Law anim (255 kb) Assorted anim (940 kb) A line-integral (166 kb) VRML ResourcesWeb3D ConsortiumVRML97VRML ViewersFreeWRLGLViewOpenVRMLWeb3D pageVRweb: A Multi-System VRML Viewer

Human Mind FrameworkPerceptionLearningInternal ImageryCognitive neuroscience acknowledges only three principal activities going on within the brain: learning, perception, and internal imagery (imagination). Creative Machines http://www.imagination-engines.com/

Life CreationBiologist J. Craig Venter once raced the US Government to complete the decoding of the human gnome. Now after a maverick career studying the code of life, Dr. Venter has a new goal: Life itself

WSJ 06-29-05

Trends to WatchUbiquitous wireless microchips: socks, brain, toasterMove toward human-centric designs: reliable softwareMoores Law will continue indefinitelyQuantum computers will obsolete current cryptography methodsWe will face social conflicts with robotsGreen living possible as a result of Ubiquitous computersElectricity will grow as a function of the InternetAll software, books, documents and information will be free.Robots will explore space and our bodiesBionic bodies parts will expand lifespan

Evaluating the ClaimsInstead of extrapolating a trend, examine the social consequences if the claim becomes true

ORGANIZATIONAL HORSEPOWEROrganizational SpeedOrganizational ForceJITTEAM CULTUREKPAsyncVIRTUALLEARNINGKP: Knowledge partnershipGlobalOHP

Planning Management of Personal and Organizational Change

Key elements to consider when planning for the management of personal and organizational change, driven by technology, include the following: Business description, objectives, and technological environment.Personal and organizational responsibilities for moral and ethical use of technology.Current and potential uses of technology for the global success of business objectives.Human factors within the enterprise that utilize current and emerging technology more effectively.

Joseph Lewis AguirreChange Management - Change Strategies

Parochial Self Interest:The best interest of individual is not the best interest of the total organizationMisunderstanding & lack of trust Few organization can be characterized as having a high level of trustThe lack of trust between the person initiating the change and the employee, can cause for misunderstanding

Change Resistance Diagnosis

Change Resistance Diagnosis (cont)

Different assessments - Remember Betsy?People may assess the situation differently from managers or those initiating the changeThe difference in information that groups work with often leads to difference in analysis

Low tolerance for changePeople will not able to develop the new skills that will be required of themPeople will sometimes resist a change even when they realize it is a good one

Change Resistance Diagnosis TOC The major obstacle to organizational growth is managers inability to change their attitudes and behavior as rapidly as their organization require.

Peter F. Drucker

Methods for dealing with resistance to changeApproach Commonly used in situation Advantages Drawbacks Education+communication Where there is a lack of information or inaccurate information and analysis Once persuaded, people will often help with the implementation of the change.Can be very time-consuming if lots of people are involved.Participation + involvementWhere the initiatiors does not have all the information they need to design the change, and where others have considerable power to resist. People who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan. Can be very time-consuming if participators design an inappropriate changes

Facilitation + support Where people are resisting because of adjustment problems.No other approach works as well with adjustment problemsCan be time consuming, expensive and still fail. Negotiation + agreementWhere someone or some group will clearly lose out in a change and where that group that has considerable power to resist. Sometimes it is a relatively easy way to avoid major resistance.Can be too expensive in many cases if alerts others to negotiate for compliance.

Methods for dealing with resistance to change

Approach Commonly used in situation Advantages Drawbacks

Manipulation + co-optationWhere other tactics will not work or are too expensive.If can be relatively quick and inexpensive solution to resistance problems.Can lead to future problems if people feel manipulated.Explicit + implicit coercion Where speed is essential and the change initiators possess considerable power. It is speedy, and can overcome any of resistance. Can be risky if it leaves people mad at the initiators.

Methods for dealing with resistance to change` (Con.)Approach Commonly used in situation Advantages Drawbacks

Strategic Continue,

Key situational variable:The amount and type of resistance that is anticipatedThe position of the initiator vis--vis resistor (in terms of power, trust, and so forth)Relevant data for designing the change and of needed energy for implementing itThe presence or lack of presence of a crisis

Fast SlowerLittle involvement of othersLots of involvement of othersAttempt to overcome any resistanceAttempt to minimize any resistance

Joseph Lewis AguirreChange Management - Why Transformation Fails

EXPERT ADVICE

One of the biggest changes for companies over the last decade or so has been the emergence of the so-called "global" market. How can companies better equip themselves to deal with change on a global basis? Change

EXPERT ADVICE

"Organizational change is the implementation of new procedures or technologies intended to realign an organization with the changing demands of its business environment, or to capitalize on business opportunities.-- ODR, a consulting firm with more than 23 years of experience Change - Definition

EXPERT ADVICE

Slow, cautious, well documented, process driven, incremental change is a luxury that very few organizations can now afford. Speed has now become a key competitive advantage.Change

Managing Change

Research by The Global Future Forum (GFF) has found that as much as 58% of top executives in the Fortune Global 500 admit their organization is ineffective at managing radical change.

The research highlighted that organizations actively involved in planning for change are only planning for "more of the same."

Internal to External Focus

"it is important for businesses to anticipate the future - not just so that they can plan for it, but so that can help to shape it too.

- David Smith, CEO of The Global Future Forum

EXPERT ADVICE"I think there is a world market for maybe five computers" - Thomas Watson, IBM president, 1943.

"Television won't last because people will soon get tired of staring at a plywood box every night" - producer Darryl Zanuck, Twentieth-Century Fox, 1946.Expert Views

EXPERT ADVICEWhen Brigadier General Billy Mitchell proposed that airplanes might sink battleships by dropping bombs on them, U.S. Secretary of War Newton Baker said "That idea is so damned nonsensical and impossible that I'm willing to stand on the bridge of a battleship while that nitwit tries to hit it from the air."

Josephus Daniels, Secretary of the Navy, "Good God! This man should be writing dime novels."

Scientific American (1910) "to affirm that the aeroplane is going to 'revolutionize' naval warfare of the Future is to be guilty of the wildest exaggeration." Expert Views

EXPERT ADVICE"There is no need for any individual to have a computer in their home" - Ken Olson, president of Digital Equipment Corp., 1977. "640k ought to be enough for anybody" - Microsoft founder Bill Gates, 1981Expert Views

EXPERT ADVICEManagers who can expand their imaginations to see a wider range of possible Futures will be much better positioned to take advantage of the unexpected opportunities that will come along. Expert Views - Takeway

Change - ResearchMore than 50% of survey participants had implemented dramatic process change,

More than 90% implemented process changes that crossed departmental boundaries

Almost 50% expect the change to impact their entire enterprise. -- source: "Management Challenges for the 21st Century" by Peter F. Drucker A report published by ProSci Learning Centers (www.prosci.com)

Change - ResearchMore than 100 companies with different characteristics have been studied.The efforts have gone under many names.In almost every case the basic goal was: to make fundamental changes in how business is conducted in order to help cope with a new, more challenging market environment

Change - #1 Sense of UrgencyHow most successful changes begin.Crises, potential crises or great opportunities.Bad business results are both a blessing and curse in first phase.An almost universal tendency to shoot the bearer of bad news.When is the urgency high?Over 50% have failed in phase 1,because of :Underestimate/motivating people.Overestimate success.Lack of patience.Paralyzed senior management.

Change - #2 Power is in the WhyIn most successful cases coalition is always powerful.Senior management always forms core group.More than high sense of urgency is required.Reasons for failing:No history of teamwork at top.Expecting the team to be led by a staff executive.

Change - #3 Vision-lessIn successful cases, coalition develops a picture of future.A vision says something that helps clarify the direction in which an organization needs to move.

Change - #4 Communicating the VisionThree patterns with respect to communication:Holding single meeting or sending out a single communication.Making speeches to group of employees.Newsletters and speeches.Particularly challenging in case of short term sacrifices.Walk the talk, nothing undermines change more than wrong behavior by important individuals.

Change - #5 Force Field AnalysisEmboldened employees.Obstacles for employees:Narrow job definitions.Compensation and appraisal systems.The action is essential both to empower others and to maintain the credibility of change effort.

Change - #6 - Planning and short term metricsMost people go on a long march unlessIn one or two years you should find:Quality beginning to go up.Decline in net income stopping.Product introduction.Upward shift in market share.In successful cases manager actively plan to achieve objectives. They dont hope for.The benefits of commitments to produce short-term wins.

Change - #7 Declaring Victory Too SoonNew approaches are fragile and subject to regression.Ironically, it is often a combination of change initiators and change resistors that creates the premature victory.

Change - #8 CultureIn the final analysis changes sticks when it becomes the way we do things around hereTwo factor in institutionalizing change:To show people, the effects of new approaches.Make sure that next generation of top management will personify the new approach.

Change - SummaryChange process goes through a series of phases.Critical mistakes in any of the phases can have devastating impacts.A fewer errors can spell the difference between success and failure.

Joseph Lewis AguirreChange Management- Why Change Fails

Change is PersonalEach individual MUST think, feel, or do something different.Change programs fail because of:Having a mechanistic mental model

Breaking change into small pieces

Managing the pieces

Change is Personal (cont)The challenge is to manage the dynamics not the pieces. Teaching personnel how to think strategically, recognize patterns, and anticipate problems and opportunities before they occur.From the managerial viewpoint, change is a balancing act

Change is Personal (cont)Example: Transition Management Team, a group of company leaders, reporting to the CEO, who commit all their time and energy to managing the change process.Managing change for this group means:Managing the conversation between the people leading the effort and those who are expected to implement the new strategies.Managing the organizational context in which change can occurManaging the emotional connections

Change - Typical ApproachManagement says We have to make some changes around here (TQM, BPR, Employee Empowerment, )A task force is formedThis force works without communicating anyone else, trying to meet deadlines, testing a lot of what-ifsThe results are delivered Everyone has to do his part

Change - Organization ContextStrategic Frames BlindersProcesses RoutinesRelationships ShacklesValues DogmasPeople Change Survivors

Change - Organization Context (cont)Change Survivors: Cynical people whove learned how to live through change programs without really changing at all.They know that change programs are only managers fads. Their reaction is the opposite of commitment. In this context every change effort will fail.Managers should change their behavior.How would we act? How would we attack our problems? What kind of meetings and conversations would we have?

Change - Organization DynamicsAn organization, like a mobile, is a web of interconnections.A change in one area throws a different part off balance. Managing these ripple effects is what makes managing change a dynamic proposition with unexpected challenges.

Change - Transition ManagementPrimary responsibilities:Establish context for change and provide guidanceStimulate conversationProvide appropriate resourcesCoordinate and align projectsEnsure congruence of messages, activities, policies, and behaviorsProvide opportunities for joint creation (Empowerment)Anticipate, identify, and address people problemsPrepare the critical mass

Change - ReferencesJohn P. Kotter, Leading Change, Why Transformation Efforts Fail, HBR , April 1995."Management Challenges for the 21st Century" by Peter F. Drucker A report published by ProSci Learning Centers (www.prosci.com)Jeanie D. Duck, HBR on Change 2000, Managing Change: The Art of Balancing, Donald N. Sull, HBR on Culture and Change 2002Why Good companies Go Bad, Debra E. Meyerson, HBR on Culture and ChangeRadical Change, The Quiet WayColin A. Carnall, Pearson Education, 1999, Managing Change in Organizations (Third Edition)

Knowledge can be divided into know-who (or where to go for the necessary knowledge to enable actions), know what (to do), know-why (to do it), and know-how (to do things) Change cannot be reified as something done to individuals, since individuals play an intrinsic role in shaping change outcomes. The extent to which culture change can be consciously managed is questionable. This does not mean that organis-ational cultures cannot change, but rather that they may change in a more emergent and evolutionary way than would be suggested by planned models of change. Yet in practice it is still common for change to be seen as something that can be placed on individuals. After understanding the meaning of change in terms of knowledge, it is important to know how it is possible to apply concepts of organizational knowledge in the strategic change. knowledge-based approach to change means the premises of organizational knowledge are used to facilitate the change. This notion is completely different with change-based knowledge which means the knowledge which concerns with description and analysis of the change. In order to examine how concepts from the field of organisational knowledge may be able to provide us with alternative ways of viewing the issues that arise during change we use a case-based perspective to match patterns in the data with theoretical explanations. The case is of an engineering organisation, Design Co. The case is based on a series of interviews with senior managers, middle managers and non-managerial engineering staff in July 2000, about 18 months into the change process, and also documentary evidence.The interviews were focussed primarily on the Technical Directorate, the traditional engineering core of the organisation, and the part of the organisation most challenged by the changes. The purpose of the case is to illustrate common problems associated with change implementation. Engineers who used to run the company (and in some instances appeared to believe they still could and should), tended to view the new staff within sales and marketing and HR as non value-adding overheads, who were leading the company too far way from its true roots in engineering.It was recognised that the desired transformation necessitated changes in behaviour and attitudes, particularly from the engineers who had to date prided themselves on engineering excellence. There was a need to change the organisation from a traditional, hierarchical manufacturer to a more commercial, customer-oriented organisation with more team-based working. The overall culture of Design Co. was very much about engineering and therefore also very macho, conservative and male dominated, women are expected to either make the tea or type letters, which caused problems for some of the new female managers. Traditionally work was passed straight from an engineer at the customer site to a Design Co. engineer sales were based on customer/engineer relationships. There was no total project cost agreed. Work was done on the basis of power by the hour. An hourly rate was agreed with a customer, and Design Co. would work however many hours were necessary to deliver the project. Initiatives were put in place to improve communications. The business plan for 2000 was communicated along with the objectives for the year. The results of an attitude survey in January and February were communicated. In March 2000 there was a road show to launch the re-branding, and the half-yearly results were communicated. The intent was to achieve cascaded communication within the organisation. Managers were responsible for taking communications they received and sharing them with their teams.Although staff thought that there was increasing evidence that the management team were listening to staff views, with, for example, actions taken after the staff survey in response to the results, middle managers and the operating core generally felt that communication was not good enough. They saw few formal means of communication within the organisation now the monthly team briefing mechanism no longer operated. There was little acknowledgement of the new middle manager communication responsibilities.

The aim to transform the company from an engineering focus with a large proportion of work coming from within the parent group, to a more entrepreneurial and commercial engineering services company with more work from external customers, not just within their core sector, but also in new sectors, challenged both the component and architectural knowledge bases. First, a commercial and entrepreneurial organization required new component knowledge about functions such as sales, marketing and human resources. However, the intent also challenged the architectural knowledge of the engineers since it implied a new way of working both within the organization, with each other, and with their customers. For example, it required a move from engineering the best as defined by the engineer on a cost plus basis, to designing things that are fit for purpose, with pre-defined costing.

Given their length of service and their embeddedness within customer relationships operating off similar architectural knowledge, engineers had no prior knowledge of new working circumstances to ease their absorption of the new knowledge they were being asked to take on board. Their individual capability to undertake change was lower given their lack of previous experience of such changes.

First individual groups themselves need to generate new knowledge. For example, within the Design Co. case what does it mean for the engineers to move away from power by the hour? This illustrates that there is also scope for sharing during change on an on-going basis between those who have, for want of a better term, mastered new architectural and component knowledge and those who havent. In other words, those who have developed new procedures, systems or routines that work, can share them with others who have not progressed so far. Some of this sharing can occur in a formal way such as training. Other knowledge may be more tacit and harder to share. Furthermore, it might be that new knowledge about what the changes, such as the new Design Co. structure, mean and how it works in practice needs to be generated within some sort of pilot group, and then shared.

Without sharing of information, it is harder for individuals to learn from each other and work out new and better ways of working together. Another enabler is the associated concept of requisite variety, the presence of individuals with different knowledge bases, (in the case of change, maybe individuals with knowledge of how the future could work). As with knowledge codification and diffusion, it is the principles of the concept of enabling context that are important. In change management, there is likely to be an iterative process of discussing implications of the changes and how things should be done differently, trying it out, reflecting on learning and thinking again how to do things differently. The enabling context would be about how, through structures and informal groups, as discussed above, to facilitate sharing and development of new ways of working.

The concepts of component and architectural knowledge suggest new critical areas of focus. We should break processes of change down in to new required areas of component and architectural knowledge.We need to re-conceive the way we think of communication during change. The principles of knowledge codification and diffusion show that most types of communication utilised during change, even when face-to-face, is an inadequate way of helping people to understand what change is about and how they personally need to change. Change is not about communicating explicit knowledge, it is about the generation of new knowledge. The concept of redundancy encourages us to consider how to facilitate the process of knowledge generation -both in terms of how we get sharing and pooling of knowledge across individuals with different view points and opinions, and in terms of how we generate time for individuals to engage in the sharing of knowledge. We also need to consider the nature of redundancy required to enable knowledge generation. Particular architectures may facilitate shared communication, such as co-location or the creation of more socially driven activities across and within different knowledge domains.

Source: A/55/75E/2000/55

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