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1717

OrganizationalChange

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-2

DesiredConditions

CurrentConditions

BeforeChange

AfterChange

DrivingForces

RestrainingForces

Force Field Analysis Model

DuringChange

DrivingForces

RestrainingForces Driving

Forces

RestrainingForces

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-3

Forces forForces forChangeChange

Resistance to Change

Direct Costs

Saving Face

Fear of the Unknown

Breaking Routines

Incongruent Systems

Incongruent Team Dynamics

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-4

Resisting Change at the FBI

The FBI has been slow to shift from law enforcement to domestic intelligence due to:

Incongruent systems -- career paths, reward system, decentralized structure

Breaking routines -- unfamiliar with intelligence gathering roles

Saving face -- past turf wars with CIA created an anti-investigation mindset

AP/ Wide World Photos

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-5

Creating an Urgency for Change

Inform employees about driving forces

Most difficult when organization is doing well

Must be real, not contrived

Customer-driven change Adverse consequences for firm Human element energizes employees

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-6

Minimizing Resistance at Nissan

Carlos Ghosn launched a turnaround at Nissan Motor Company

that saved the Japanese automaker and relied on change management practices rarely seen in Japan. Employee

involvement was a key strategy to minimize resistance to the turbulent changes that occurred.

Eriko Sugita/Reuters/Corbis

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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-7

CommunicationCommunication Highest priority and first strategy for change

Improves urgency to change

Reduces uncertainty (fear of unknown)

Problems -- time consuming and costly

Minimizing Resistance to Change

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-8

CommunicationCommunication

Provides new knowledge and skills

Includes coaching and action learning

Helps break old routines and adopt new roles

Problems -- potentially time consuming and costly

Minimizing Resistance to Change

LearningLearning

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-9

CommunicationCommunication

Increases ownership of change

Helps saving face and reducing fear of unknown

Includes task forces, future search events

Problems -- time-consuming, potential conflict

Minimizing Resistance to Change

LearningLearning

Employee Employee InvolvementInvolvement

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-10

CommunicationCommunication When communication, training, and involvement do not resolve stress

Potential benefitsMore motivation to changeLess fear of unknownFewer direct costs

Problems -- time-consuming, expensive, doesnt help everyone

Minimizing Resistance to Change

LearningLearning

Employee Employee InvolvementInvolvement

Stress Stress ManagementManagement

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-11

CommunicationCommunication

When people clearly lose something and wont otherwise support change

Influence by exchange--reduces direct costs

Problems Expensive Gains compliance, not

commitment

Minimizing Resistance to Change

LearningLearning

Employee Employee InvolvementInvolvement

Stress Stress ManagementManagement

Negotiation

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-12

CommunicationCommunication

When all else fails

Assertive influence

Firing people -- radical form of unlearning

Problems Reduces trust May create more subtle

resistance

Minimizing Resistance to Change

LearningLearning

Employee Employee InvolvementInvolvement

Stress Stress ManagementManagement

Negotiation

Coercion

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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-13

Refreezing the Desired Conditions

Realigning organizational systems and team dynamics with the desired changes

Alter rewards to reinforce new behaviors

Feedback systems Help employees learn how they are doing Provide support for the new behavior patterns

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-14

Strategic Vision & Change

Need a vision of the desired future state

Identifies critical success factors for change

Minimizes employee fear of the unknown

Clarifies role perceptions

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-15

Change Agents

Change agents apply transformational leadership Help develop a vision Communicate the vision Act consistently with the vision Build commitment to the vision

Also apply transactional leadership Aligning employee behavior through rewards,

resources, feedback ,etc.

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-16

Diffusing Change with MARS Model

Motivation Successful pilot project Supervisor support and reinforcement

Ability Competencies to adopt pilot project

Role modeling from people in pilot project

Role perceptions Translating pilot project practices -- neither too specific

nor too general

Situational factors Resources and time to implement pilot project elsewhere

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-17

Action Research Approach

Change needs both action and research focus

Action orientation Solve problems and change the

organizational system

Research orientation Concepts guide the change Data needed to diagnose problem, identify

intervention, evaluate change

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-18

EstablishEstablishClientClient--

ConsultantConsultantRelationsRelations

DisengageDisengageConsultantsConsultants

ServicesServices

Action Research Process

DiagnoseNeed forChange

IntroduceIntervention

Evaluate/StabilizeChange

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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-19

Appreciative Inquiry at Canadian Tire

Canadian Tire relied on appreciative inquiry by asking staff to describe events that have made the retailer successful. The companys core values were then rebuilt around those positive experiences. Store employees were also involved in an appreciative inquiry exercise to reinforce these values.

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-20

Appreciative Inquiry Approach

Directs participants attention away from problems and towards the groups potential and positive elements.

Reframes relationships around the positive rather than being problem oriented

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-21

Four-D Model of Appreciative Inquiry

DiscoveryDiscovery DesigningDesigning

Engaging in dialogue about what should be

DreamingDreaming

Forming ideas about what might be

Discovering the best of what is

DeliveringDelivering

Developing objectives about what will be

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-22

Parallel Learning Structure Approach

Highly participative social structures

Members representative across the formal hierarchy

Sufficiently free from firms constraints

Develop solutions for organizational change which are then applied back into the larger organization

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-23

OrganizationParallelStructure

Parallel Learning Structures

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-24

Cross-Cultural and Ethical Concerns

Cross-Cultural Concerns Linear and open conflict assumptions different

from values in some cultures

Ethical Concerns Privacy rights of individuals Management power Individuals self-esteem Consultants role

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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-25

Rules for the Road Ahead

Understand your needs and values

Understand your competencies

Set career goals

Maintain networks

Get a mentor

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-26

Organizations are About People

Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.

Andrew Carnegie (1835-1919)

McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.

1717

OrganizationalChange

McGraw-Hill/Irwin 2008 The McGraw-Hill Companies, Inc. All rights reserved.

1717

Discussion of Activity 17.3 Strategic Change Incidents

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-29

Example #1: Greener Telco

Scenario #1 refers to Bell Canadas Zero Waste program, which successfully changed wasteful employee behaviors by altering the causes of those behaviors. Courtesy of Bell Canada

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-30

Bell Canadas Change Strategy

Relied on the MARS model to alter behavior:

Motivation -- employee involvement, respected steering committee

Ability -- taught paper reduction, email, food disposal

Role perc. -- communicated importance of reducing waste

Situation -- Created barriers to wasteful behavior, eg. removed trash cans

Courtesy of Bell Canada

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McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-31

Example #2: Go Forward Airline

Scenario #2 refers to Continental Airlines Go

Forward change strategy, which catapulted the

company from worst to first within a couple of

years.

McShane/Von Glinow OB4e 2008 The McGraw-Hill Companies, Inc. All rights reserved.Slide 17-32

Continental Airlines Change Strategy

Communicate, communicate, communicate

Introduced 15 performance measures

Established stretch goals (repainting planes in 6 months)

Replaced 50 of 61 executives

Rewarded new goals (on-time arrival, stock price)

Customers as drivers of change