pierre le jean master thesis

Authors: Tutor: Subject:

Level and semester:

ronnyostling

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Acknowledgment

First of all, i would like to thank two persons who especially helped me, without

whom the realization of the Master Thesis wouldn‟t have been possible, Philippe DAUDI and

Pierre JUHEL.

I would like to express my gratitude to my tutor, Mr Philippe DAUDI, for his support,

encouragement, availability and the advices‟ wealth. Throughout the realisation of my

Research, he gave me the motivation and a considerable energy. He offered me the

opportunity to complete this Thesis.

The second person that allows me to accomplish this Master thesis is my translator,

Mr. Pierre JUHEL. Since the beginning of this enterprise, he has shown reactivity and

availability.

Furthermore, they believed in me. I wish to thank all my family members for having

supported me and encouraged since the beginning of this adventure. Their presence offered

me the daily energy required until the end of the Thesis. I would like to give a particular

recognition to my father. His professional experience, skills and his advices have been a

precious help.

My dear friends also deserve to be well rewarded. We have always been used to see

each other often and they have perfectly understood my frequent unavailability along this

year. They have supported me and have shown me their presence without disturbing my work.

Their constant presence helped me to overtake rough times.

Thanks to all to have made it possible!

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Table of Content

Chapter 1 : Introduction .............................................................................................................. 7

1.1.Context of the research ......................................................................................................... 7

1.2.Why should managing the process of change be studied? ................................................. 7

1.3.Why should leadership in the process of change be studied? ............................................ 9

1.4.How is organization identity essential in the process of change? ................................... 10

1.5.Identity the change in organization needs to be managed ................................................ 11

Chapter 2 : Purpose of the research......................................................................................... 12

2.1. Research Questions............................................................................................................ 12

2.1.1. Main research question. ............................................................................................. 12

2.1.2. Related research questions. ........................................................................................ 12

2.3. Research objective ............................................................................................................. 13

Chapter 3 : Methodology ........................................................................................................... 14

3.1. Justification and motivation .............................................................................................. 14

3.2. Research approach ............................................................................................................. 15

3.2.1. Empirical research strategy........................................................................................ 15

3.2.2. Interpretive framework .............................................................................................. 15

3.2.3. Scientific approach ..................................................................................................... 16

3.3. Qualitative approach .......................................................................................................... 16

3.4. Data collection ................................................................................................................... 17

3.4.1. Primary data ................................................................................................................ 17

3.4.2. Secondary data............................................................................................................ 20

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Chapter 4 : Theoretical Framework ........................................................................................ 21

4.1. Understand the Change within Organizational and business Systems ........................... 21

4.2. Types of change ................................................................................................................. 27

4.2.1 Discontinuous and Continuous Change ..................................................................... 27

4.2.2. Endogenous and exogenous who lead to change ..................................................... 30

4.3. Change and rigidities to change ........................................................................................ 44

4.3.1. Typical Organizational Rigidities to Change ........................................................... 44

4.3.2. Resistant of Management Change and Transition.................................................... 47

4.4. Change implementation process and keys success factors ............................................. 51

4.4.1. Implement change, the Lewin's three -Step model. ................................................. 51

4.4.2. Keys success factor in change implementation ........................................................ 53

4.5. Human factor Management a leader's key success factor in the process of change...... 55

4.5.1. Identify the stages of competence development....................................................... 56

4.5.2. Identify the styles of management. ........................................................................... 58

4.5.3. What kind of management, and for what kind of associate? ................................... 60

Chapter 5 : Empirical study ...................................................................................................... 62

5.1. Case Study one: Yacht Brokerage Insurance Agency ..................................................... 62

5.1.2. Presentation of the case study .................................................................................... 62

5.1.2. Type and origin of change ......................................................................................... 67

5.1.3. Strategy and process of change ................................................................................. 68

5.1.4. Rigidities management strategy ................................................................................ 69

5.1.5. Conclusion .................................................................................................................. 69

5.2. Case Study two: French Company ................................................................................... 70




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5.2.5. Conclusion .................................................................................................................. 74

5.3. Case Study three: Spanish subsidiary ............................................................................... 74





5.3.5. Conclusion .................................................................................................................. 79

5.4. Case study four: French Multinational ............................................................................. 80





5.4.5. Conclusion .................................................................................................................. 82

Chapter 6 : Conclusion............................................................................................................... 84

Literature Review ....................................................................................................................... 86

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List of figures

Figure 1 - The Agreement Matrix ................................................................................................ 25

Figure 2 - Evolution and Revolution Dealing with the Paradox ................................................ 29

Figure 3 - Reengineering Work - Hammer ................................................................................. 29

Figure 4 - Scope of Frame-Braking Change - Tushman and Romanelli ................................... 30

Figure 5 - Evolution and Revolution as Organisational Grow ................................................... 33

Figure 6 - Organizational Life Cycles and Shifting Criteria of Effectiveness .......................... 34

Figure 7 - Organization Life Cycle .............................................................................................. 35

Figure 8 – Five Forces Michael E. Porter .................................................................................... 38

Figure 9 - The Relationship between Culture Types and Individual Consequences ................ 47

Figure 10 - Corporate transformations as a countercurrent process - Krüger ........................... 49

Figure 11 - Corporate culture and effectiveness in change implementation ............................. 50

Figure 12 - Lewin's Forcefield Analysis...................................................................................... 51

Figure 13 - Lewin's Three Step Model ........................................................................................ 52

Figure 14 - Keys success factors in change management .......................................................... 55

Figure 15 - Stage of Competence development - Hersey & Blanchard .................................... 57

Figure 16 - Styles of Management - Hersey & Blanchard ......................................................... 59

Figure 17 - Situational leadership - Hersey & Blanchard .......................................................... 61

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Chapter 1 : Introduction

1.1.Context of the research

Whatever the kind of organization, public, private or associative, it is impossible

nowadays to rest with one's achievements. The phenomenon of globalization generates an

enlarged competition which impacts on all sectors of activity and compels all types of

organizations to evolve and change much more quickly than in the past. The change is a state

that is part of the life of an organization and it incessantly becomes more difficult (Linstead

and Pullen 2009).

The expression "Organizational Change" historically refers to the alterations that may

occur in an organization. These transformations can be of structural, technological or strategic

orders .This concept of organizational change equally includes today the taking into account

of cultural values and cultural attitudes. The simple word "change" in all kinds of organization

deliberate or unexpected, internal or external, implies the taking into account of a great

number of variables whatever they may be financial, structural, cultural or behavioural. The

change has a direct influence on the conditions of work, the structure of the organization, the

roles and the behaviour of the organization.

Within a constantly evolutionary economic environment, the ability of an organization

to develop, to change, is compulsory, and it involves its viability for a more or less long

period. In order to survive, an organization must be able to change and adopt a flexible and

dynamic attitude to implement this change. In a highly competitive middle, the organizations

need to go ahead and control the change by being performing leaders. Considering that the

complexity of change management, a great deal of organizations have wonder on how

manage a change to come to a successful change.

1.2.Why should managing the process of change be studied?

The surrounding in which the organizations move has changed and progress since the

beginning whatever the technological, political, legal economic or social level might have

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been. Consequently, the numerous researches that have been conducted, the books, the

articles and magazines devoted to the theories of organization have also met deep evolutions.

In the middle of the 20th century, the economic context was characterised by an offer lower

than the demand of goods and services. This was giving the guarantee of a certain

stability that the majority of nowadays enterprises can no longer profit by as they are forced to

react to a permanent change, unlike the time when progressive evolutions took place.

Upheaval-oriented changes happened less frequently.

Today, the phenomenon of globalization has modified the rules; the conditions of

success are not the same as in the past. The actual stake of an organization, more precisely of

an enterprise, is to react and adjust itself to the evolutions of the environment. Besides, the

organization must continuously search for new opportunities of development, of economies of

scale with the aim to further its profits and growth. These solutions intervene not, only to

answer to the pressures of the competition or of the technological steps, but also to anticipate

the change (Kerber and Buono, 2005). An organization that succeeds in implementing change

process will favoured its chances to generate profits. That is why to succeed in implementing

a change process has become crucial.

Although numerous researches have been led concerning the implementing change

process and how to successfully establish a change, these theories are not often applied or

partially applied by the organizations. Nowadays, a great number of projects of implementing

change process have still proved to be a failure. Several studies have proved that 70 per cent

of the implemented changes in an organization have met such failure (J.Kotter, 1995-

Beer&Nohria,2002-McKinsay&Company,2008). These results show an important rate of

failure in what concerns the accomplishment of the implementing of change and confirm the

relative complexity of its realization. However, the different studies concerning the change

implementation have also been criticised because they didn't have an appropriate approach.

Actually, they have been blamed for not taking into account the profitability, the costs, and to

have ignored the complexity of implementing the change in an organization

(MacDonald,1998-Kotter,1998-Abraham,2000). These observations have led to a recent

further development of researches on this subject.

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The proliferation of advice leads to a certain confusion when implementing the change

process and the means used to favour its implementing show to be heavy and important

whatever the human and economic level are concerned (Beer& Norhia-"cracking the code of

change",2002 ). Another reason why implementing change process failed would be caused by

a lack of leadership. The change may be generated not only by a steady evolving environment

but it may also be due to the life-cycle of the organization, its development, its growth

(LarryE.Greiner, 1972-RobertE.Quinn&and Quinn Cameron,1983), its ageing (buildings

,machines ,manpower). The strategy to develop and renew itself becomes then primordial at

all organization level, let it be individual or organizational. Thus, the change within an

organization may refer to any alteration in activities or tasks.

1.3.Why should leadership in the process of change be studied?

The five last decades have witnessed a spurt of writing about leadership. There are

several hundred theories of leadership (Nikkilä, 1994), but no one is defining “the best”

leadership practices, and leadership can be interpreted differently by each one. The leadership

could be defined as the capacity to reach high but nonetheless feasible objectives, having in

the same time the will and the ability to supervise and manage a person or a group of persons

in relation with the "job" or the function that has to be achieved (Hersey-Blanchard,1977).

Therefore, the leadership is tightly linked to the context in which the leader moves . « For

example, when one talks about leading a meeting, the meaning of leadership is portrayed

from the chairperson or somebody who facilitates it. With respect to leading a tour, a closer

consideration is given to the tour guide. However, leading a market may employ a leader in a

very real sense as the top player, unlike the two previous examples. This shows that leaders

should have qualities which may not be easily possessed by other players or leaders” (Ph.

Daudi, 2009). Philippe Daudy describes the leader as a person having rare abilities that allow

him to differentiate himself from the other actors of the economic world. The leader must

have a "high added value".

The changes in the actual economic environment never cease to increase .The more an

organisation is able to change the more it is liable to grow in a rather important way (Edward

E. Lawler III & Christopher G. Worley, « Reward Systems, Motivation and Organizational

Change », January 2006) .The changes in the organisation may aim to resettle its mission, to

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restructure and adopt new technologies ,a higher co-operation ,total quality management

programs, re-engenering ,mergers… (http://managementhelp.org/mgmnt/orgchnge.htm). In

this kind of situations, the role of the leader will consist in creating a structure able to answer

and adapt itself to change .The concept of transformational leadership is highly regarded as

being one of the best exemplary style of leadership. Eisenbach et. Al. (1999) has shown

through descriptive researches that the transformational leaders were those who adopted the

processes of change. In 1989, Ropo states that transformational activities are required mainly

to change things in the organization. Furthermore, transformational leadership aims at

reaching significant changes in the organization

1.4.How is organization identity essential in the process of change?

In addition to the issues discussed above, the issue of organizational identity is debated

through the role of leaders in moving the image and the culture of their organizations. In the

context of a fast changing world and increasing pressures from the environment, a solid but

flexible organizational identity is an important factor for the success of an organization.

Maintaining an effective organizational identity is becoming one of the major challenges

leaders have to face. “Opinions and impressions, feelings and fantasies, hopes and

expectations expressed by employees, suppliers, customers, shareholders, governments, and

their regulatory agents as well as community members, the general public, the media, and

political activists, whether positive or negative, all contribute to defining the identity of an

organization...”(Hatch and Schultz, 2004, p.1). Additionally, media is playing an important

role and indicates differences between corporate images and organizational actions. Through

new technologies, such as just-in-time inventory, other stakeholders are more closely involved

in the organization. This creates stronger dependencies between the organization and those

stakeholders. These two aspects lead to a higher openness to external parts of the

organization and its identity (Hatch and Schultz, 2004). Furthermore, Dutton and Dukerich

(2004) indicate that organizational identity is related to personal motivation. According to

many studies, identity is one aspect which is related to the successful outcome of an

organization. It is seen as a key factor to be successful in a situation of organizational change.

Understanding, responding to and managing change are primary skills increasingly required

of managers. However, change is reciprocal: changes that managers make to their

organizations can also affect the nature of managerial work Stewart (1991) describes how

http://managementhelp.org/mgmnt/orgchnge.htm

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changes in organizations affect the kinds of jobs that managers have to do amid the shifting

nature of their lives and careers. These include: Wider networking, flatter hierarchies of

authority, reduced middle management cohorts with more responsible roles, less predictable

career paths and greater choices in their work and careers.

1.5.Identity the change in organization needs to be managed

To state that organizational identity is essential to be effective is not adequate by itself.

The issue is to know how to identify the change needs to be managed. In fact, identity is

related to human behaviour, it is a research field arising from the sociological and

psychological domains. Thus, it requires leaders to have specific skills concerning social

relationships in order to understand and to deal with actions and reactions of people. In that

sense, Chemers (1997) referred to Hour and Shamir (1993), who found transformational

leaders transform “the values, preferences, and aspirations of followers from self-interest to

collective interests” (p.89). As the organizational identity is based, influenced and

transformed by members of the organization, it would be interesting to investigate this in a

context of leadership and show how a leader can influence it. To adopt a transformational

leadership style is indicated to be important and successful in situations of change; it is

therefore interesting to study how the different characteristics of transformational leadership

can influence, adapt or transform an organizational identity. Moreover, several

recommendations for leaders are available on the way to implement change effectively in

organizations. Therefore, this study concentrates on gathering the key concepts of change and

focusing on the fundamental role of leadership and transformational leadership during the

process of change.

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Chapter 2 : Purpose of the research

Firstly I will set out the main questions to which I will try to answer throughout my

research together with the underlying questions linked to this study.

Secondly I will set out the objectives of my research together with its prospects.

2.1. Research Questions.

To begin with, I am going to set out the main questions which have guided my

research , and after ,the questions linked to the research question .

2.1.1. Main research question.

The theme of my research will be guided in order to answer two main questions: What

are the roles of the leader within an implementing change process? What is the place held by

the human factor within the implementing of change?

After I have defined a few basic elements of the implementation of change, I will underline

the role of the leader in this implementation together with his influence to successfully

manage a project. Afterwards, I will underline the role of the human factor when

implementing a change process within an organization.

2.1.2. Related research questions.

To deal with the roles of the leader and the importance of the human factor when

implementing a change process demands some beforehand acquired knowledges of the

subject consequently, the following questions will be answered in order to allow a complete

understanding of the subject.

What are the types of changes?

What are the reasons for change?

What are the main key-factors within an implementing change process?

What are the brakes when setting an implementation?

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Once all those questions will be given an appropriate answer, it will then be easier to outline

and define the roles of the leader in this implementation process, notably in what concerns the

role of the human factor and the ability to manage it in order to optimize the implementation

change success .

2.3. Research objective

As I have mentioned previously, my thesis aims to allow a global understanding of the

interest for a change within an organization, but also and above all, of the different variables

and factors which will have to be controlled by the leader to reach a change that will reveal to

be a success. We also accept a failure which on no account will prove to be a bad experience

as far as we shall draw good conclusions to avoid repeating the same mistakes in the future.

The change within an organization entails the taking into account and the control of the

different key elements which will be detailed in my theoretical framework. My

professional experiences have allowed me to participate to the implementation of change

within an enterprise and I have then realized how difficult it was to implement a change.

Furthermore, thanks to an active participation, these experiences have allowed me to analyse

and to notice that one of the main sources of failures or brakes to the progress of our projects

were due to the behaviour of some people taking part in the project. Afterwards my researches

have taught me that the problems encountered through my experiences were not isolated

cases.

My main objective when realizing this thesis will therefore be to give prominence to

the role of the manager leader in the managing of his teams, his ability to create a favourable

environment for work in order to allow a group cohesion and also reach the objectives the

organization aspires to.

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Chapter 3 : Methodology

3.1. Justification and motivation

“Methodology is a mode of thinking, but it is also a mode of acting. It contains a number of

concepts, which try to describe the steps and relations needed in the process of creating and

searching for new knowledge” Igeman Arbnor & Björn Bjerke

The objective of this chapter is to enumerate the choices which are going to direct the

approach of my research together with the specificities that are determining the interest of this

research. The aim of this part will also be to explain the method used to allow a total

understanding of the intrinsic characteristics linked to this very matter. This chapter will then

offer the opportunity to express my choices in the gathering of data by putting the stress on

advantages and disadvantages which will impact my research.

For a year and a half, my first professional experience has led me to participate to the

growth and implement change in a company; I then could confront the theoretical approaches

I came through during my training as Manager and Consulting, with a real practical situation.

This opportunity was therefore the occasion to observe the characteristics and expectations of

the senior manager of a small enterprise (10employees) by setting myself between the senior

manager and the employees of this enterprise.

I directed and realized these changes as an autodidact, and I have been deeply

surprised, dumbfounded and at the same time interested by the observation of obvious

dysfunctions. The various documentary researches undertook afterwards have allowed me to

isolate one of the main causes of failure when you manage a change, and that is the human

factor .This very human factor is, for the greatest part, the cause of the difficulties I met

through my professional experience. This is why I decided to go deeply into that matter.

Therefore, the main purpose of the research will hence to explicate and understand the

outstanding importance of the human factor in implementing change process.

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3.2. Research approach

3.2.1. Empirical research strategy

The objective of my research is to understand and analyse that one must take into

consideration the human factor in the implementing change process. I then build my research

through the help of tangible cases associated with the sharing of knowledge of

professionals who have been used to managing this implementing change process linked to

human factor. These people will have necessarily participated to the whole realization of

change project implementation or at least to its application.

It is with this perspective in mind that the empirical part of my research will be based

on two axles. The first one will be the analysis of a case study of establishing a change based

on my own enterprise experience. The second will result from the realization of interviews

with managers who are or have been confronted to implement change in their professional

life.

3.2.2. Interpretive framework

« Interpretive research methods are based on an assumption of subjective human experience

as ontologically real and accessible through dialogue within a qualitative framework »

(Terre-Blanche and Kelly, 1999)

In other words, the main interest of this concept of interpretation is to understand and

analyse all experiences gathered through a qualitative investigation.

As I previously explained, the realization of my thesis will be based on the use of a

case founded on my own experience in enterprise. In this context, I will be brought to express

the wishes, positions, and actions of my superiors and also of my subordinates. This precise

phase will lead me to develop the interpretation of the expectations and behaviours of people

working in my immediate vicinity.

Which is more, the choice I made to interview managers to obtain a better

understanding of their own role within the process of implementing change. The way I will

render these interviews will be mainly based on my ability to understand and interpret both

obligations and concerns of one another within their respective role.

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3.2.3. Scientific approach

« The systematic accumulation of knowledge is essential to progress in any profession…

however, theory and practice must be constantly interactive. Theory without practices is

empty and practice without theory is blind». Cross, 1981, p110

This sentence highlights the importance of the interdependency of theory and

empirical research. In other words, it is essential to master the positioning between the

theatrical part and the empirical research. In this way, it is primordial to choose de right

scientific approach, in accordance to the empirical research and vice versa, in order to write a

successful thesis. This approach unable me to switch between theories and practices

throughout my research. To reach this objective, my empirical research will be relying on

theoretical material through my literature review, what should lead me to formulate

hypothesis.

3.3. Qualitative approach

To establish a change in the very heart of a company is not an easy task. Actually, as it has

already been proved, there are plenty of variables to consider when implementing change.

These variables transform the change process into something complex and risky. The

important numbers of failures when launching a change justifies the interest that could be

borne with regards to this subject in order to identify the main cause of failure.

Considering this complexity, my research will be based on a qualitative approach through the

use of a concrete and real case which will show the interest to facilitate a perfect

understanding of the existence of human factor in the implementing. Although the use of one

single case will have the perverse effect of generalizing the results of this study, the tools used

for this purpose will nonetheless be able to be applied to all kind of organization.

That is why, keeping in mind the aim of going deeply into my research, the study of a case

will be completed by the carrying out of the interview managers. The interest of these

interviews will be to discern the way they apply implement change in a practical case, and the

place reserved as well as the developed arguments dedicated to human factors when

implementing change in their company.

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3.4. Data collection

3.4.1. Primary data

3.4.1.1. Case Study

The study, which is at the basis of the realization of my research, is an authentic case

and it will be founded on my very own experience in enterprise where I have been a salaried

for roughly more than one year and a half. The study of this case will consist on an objective

and impartial analysis. As this case is not officially published, and in order to protect the

confidentiality we shall call this enterprise "Alpha". This firm is a yacht insurance brokerage

agency.

The building trade of insurance brokerage agency is to found the best insurance at the

lower price for their clients. To reach this objective, the insurance brokerage company

develops agreements with national or international insurance companies to allow him to sell

insurance products. In facts, an insurance brokerage agency is an intermediary between his

clients and insurance companies.

Alpha has been bought out by the actual owner in 2008. When the actual owner

bought this agency, all the management of the firm was made without management software

and with a poor marketing investment. This confronts the actual owner to reorganize the

major part of the management of the firm, implementing a specific management software

package (controlling all the process of new contract creation, contract renewal, the

accountancy process, the cost control management, insuring the transparency regarding

insurance companies‟ requirements...) and developed the major marketing tools in order to

increment our visibility at an national and international level according to our product

specificity.

This special study case seems very interesting to me because of my specific role in this

enterprise. Actually, my main target was to establish solutions in partnership with my superior

and then to develop and apply them. This opportunity has therefore allowed me to better

conceptualize the relationship between an enterprise manager and his employees. In fact, this

strategic position gave me to understand the needs, the expectations, the concerns of

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a manager, and to confront them to the needs, the expectations and the preoccupations of his

employees.

The chapter 5 of this thesis will then be centred on the analysis of this practical case of

implementing change inside this enterprise. Besides, this chapter will offer the opportunity to

confront the methods of implementing change with the theories of the implement of change

quoted in my Literature Review.

To describe the methods of management with the theories of this implementing of

change will offer the interest of analysing and confronting the methods of management with

the different analyses and researches realized by well-known and acknowledged authors.

To establish the differences of the researches realized by famous theoreticians, based on

various experiences and analyses having led to the final result of the established theories, with

the methods and uses of these theories will offer the interest to measure the use of these

theories in the methods of the actual management. The aim of this analysis will then be to

evaluate the use of the theory for a manager moving in a logic of implementing change

process.

3.4.1.2. Interviews

The settlement of this change is a complex process to lead and approach because of

the multiplicity of the elements to take into consideration as the change is being operated

.That is why it has appeared to me important to contact and interview professionals who had

been confronted to this type of problematic .

A great deal of studies and articles reveal that the greatest part of the failures when

implementing change was mainly due to a bad estimation of the human factor in the driving

of the change (McKinsey2003).

Of course, these interviews will only give a partial view of the way to implement

change together with the taking into consideration of the human factor in an implementing

change process; nonetheless, they will allow a better comprehension and interpretation of a

true reality.

The analysis of these interviews will then permit to understand the theoretical approach of

implementing change in a practical case.

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The interest of it all will then be to underline where the theory and the reality meet.

First Interview:

Interview with Christophe RAMON, IT Systems manager in a French multinational.

The firm is a company founded in 1959. At that time, the activity of this company was

specialized in processing of maerl (seaweed‟s fragment rich in limestone). Since then the

company has continued to develop, this enterprise has a turnover of 2 milliards Euros,

employs more than 6000 persons among which more than 50% work abroad in more than 60

countries into 13 business lines: Agro-supplies, professional hygiene, Mineral and industrial

products, Magnesite, Plastics, Garden products, Food phosphates, marine biotechnologies,

Operation and transformation of seaweed, Naval equipment, Pastries, Cooked meat and

seafood.

Mr Ramon has been working in this firm for roughly 20 years. In this interview, he

will explain the complexity of change management in an IT change process, the issues they

met and the results of one IT change project.

Second Interview:

Interview with G. L.J. , Chief Executive Officer in the same French multinational than

in the first interview.

As I present previously, this firm is a multinational developed in different line of

business. With this CEO, we will focus on, a Spanish subsidiary of this multinational, bought

in January 2000 by the French multinational (60%) and a Grecian Compagny (40%).

This subsidiary is a firm which produces and commercializes two kinds of magnesia:

- Caustic magnesia for animal feeding, fertilizers and varied industrial uses such as

pulps or flames retarding panels.

- Fireproof Magnesia for iron and steel industry.

This firm extracts its raw materials from its own mine then transforms them according

to complex industrial processes before the commercialization of fully or semifinished

products. Therefore this firm is depending on the natural resources of this mine.

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Few years ago, the firm has to face to a major problem: the resources of their mine. G.

L.J. will speak us about the projects of found new mines, optimize production machinery and

develop sale forces.

Third interview:

Meeting with A. RAGUET, operational manager in a French Company.

Created in 2000, the firm is specialized in the manufacture of effervescent granulated

powders sold as such in bags or under the shape of tablets. These enterprise products are

aimed at industrial partners working food, dietetics, pharmaceuticals, cosmetics, veterinary

nets or nutritious complements for animals. This company employs 7 persons.

If the work instrument of production of this firm is rather complex, the different

circuits of information‟s flows is on the whole rather simple. The main need concerning the

follow-up of information and the total traceability are imperative in what concerns this sector

of activity, and of course this applies for each batch of manufacture.

During this interview, A. RAGUET will explain us the change management process he

apply in an Information System Management change.

3.4.2. Secondary data

The use of pertinent data gathered in books, news articles and internet sites allows a

better theoretical understanding of the subject as a whole. The books selected in the literature

review have then given me the possibility to increase not only my knowledge‟s but also to

build a strong theoretic framework. The use of news articles and internet sites give access to

snippets of informations often focused on one part of a precise subject from which emerge

both concepts and hypotheses .By their simplicity of creation and publication, unlike books,

they give the opportunity to compare with subjects connected with actual facts .The

combination between books, news articles and internet sites then give access to complete as

well as to partial researches which ,once they have been put together ,give access to a

theoretical basis rich in informations.

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Chapter 4 : Theoretical Framework

4.1. Understand the Change within Organizational and business

Systems

This research proposes that in the actual economic world, change management is a

critical issue for each type of organizations. Since the industrial revolution, the stakes of

handling change have never been so high.

In the actual economic environment, most traditional and successful organizations

have accepted the fact that they are constraint to constantly evolve or be doomed to disappear;

they have to change or die (Beer and Nohria, 2002). Due to endogenous and/or exogenous

causes, changes have to be implemented within each organization at some stage of their

existence. It can also be introduce in order to meet certain market growth expectations, or to

predict and adapt to eventual problems, etc. The ability to adapt and change is the key to

survive for organizations and it is particulary true for private firms. Elrod and Tippert (2002)

maintain that change is “pervasive - it is a constant and common element that impacts

humankind individually and organizationally, day in and day out” (p.273).

As De Wit and Meyer (2004) argued in their book “Strategy: Process, Content,

Context: an International Perspective”, “It is not a question of whether firms should change,

but of where, how and in what direction they must change. Firms must constantly be aligned

with their environments, either by reacting to external events, or by proactively shaping

the businesses in which they operate” (p.164).

Therefore, a distinction can be made between planned and unplanned change.

Planned change is a deliberate and conscious decision to improve a part or the whole

organization. It allow to change the system in a more deep and fundamental way. An

unplanned change happens when the organization is constrained to react to some

unanticipated external change, coming from the firm's environment. In unplanned change, the

answer is adaptive and habitually spontaneous.

Organizations and firms in particular are complex, multifaceted and no one is

similar. In order to have a clearer outline and understanding of implications of change for

22

these firms, a clear distinction has to be made between organizations which conducts their

own business, handle and manage their limited resources, and organizes the production of

services, and products, and how it is able to create value to customers. The organizational

structure refers to the division of tasks and people into smaller clusters. According to De Wit

and Meyer (2004), “all organizations need at least some division of labour in order to

function efficiently and effectively, requiring them to structure the organization in smaller

parts”. They also argue that the organizational system would considered “how the individuals

populating a firm (organization) have been configured, and relate to one another, with the

intention of facilitating the business system.” (De Wit and Meyer, 2004, p.165).

The structural changes concern the parts and configuration of the organization.

When the structure has to be changed, some functions and/or departments have to adapt

themselves to the new structure and appropriate it. Some department or function can be giving

up or transferred due to their inefficiency or their inaccuracy, etc. Several techniques can be

used by the manager leader to realise organisational change, and the following methods are

the most used in the corporate world for restructuring (Robbins and Cenzo, 2005).

The first method which can be used is downsizing. The main objective is to focus

all the efforts of the enterprise on the most beneficial activities and give up the other ones

which are not profitable, or not profitable enough. It means focus on the core business of the

organization, with the goal of cutting costs and maximising profits. The second method is

delaying. This step requires to concentrate all efforts on the most profitable activities and to

transfer those that impede the functioning of the activity to other parties (competitors,

suppliers or subsidiaries). The third method is divesting. This technic means the sale of all

unneeded equipment. This is relatively common in situations of organisation grows or when

merger occur. The impacts of these changes are directly visible on the organisational structure

level of the firm and the corporate culture level as well. When reorganisations occur on a

structural level, "the authority relationships within the hierarchy are temporarily or definitely

modified" - Franziska Fritz & Philippe Massart (2007 - The Process of Change: The Role and

Impact of Leadership). These changes disrupt the status quo, the company's employees are

therefore constrained to adapt to a new emergent order and hierarchy. The emergence of new

responsibilities could change levels of hierarchy. After the change, a phase control can be

implemented by either the top or bottom of the organization. On the ground, the control is

frequently achieved by lower levels for large organizations, whereas in a small organization,

control is exercised by higher levels.

23

About management system, it is interesting to compare the modern western

management models and other models of existing management. For example, the Japanese

management model and the Swedish model. According to Masaaki Imai in his book "Strategy

process, content, context” (De Wit and Meyer, 2004), the Japanese management system is

characterized by a continuous improvement process, incorporating the professional life, social

and family life. Job functions from the Japanese perception include all segments of the

organization and involve improvement and maintenance. “Consensus, the hidden code of

Swedish leadership is a book written to highlight the enigma of the Swedish leadership style

of getting everyone to agree at all levels of decision making” (Alexander, 2008). This

incorporates a strong attention on team-work, non-confrontational style of communication,

and coaching. These characteristics could be described as a Swedish model on management

styles. However the western management system is consider as vertical and individualistic,

often standardized and rather inflexible.

When changes occur within the organization, taking into account the expectations

of employees has become indispensable. “The difference between failure and success in

implementing change in an organization depends highly on the people themselves” Franziska

Fritz & Philippe Massart (2007). This concept shows the importance that must allocate the

agent of change on identifying the expectations of employees, observing their attitudes and

behavior during the implementation of change. Therefore the change agent now incorporates

changes at the individual level in order to encourage the organization to move in a new

direction. In their publication "The tools of change in cooperation", Christensen, Marx and

Stevenson, 2006 states that “managers can use a variety of carrots and sticks to encourage

people to work together and accomplish change. Their ability to get results depends on

selecting tools that match the circumstances they face”. (p.73). According to the authors, the

main key in change management is that it is imperative to make each stakeholder working

together in a methodical way. In this article, Christensen and al. presents the example of Durk

Jager, former CEO of Procter and Gamble. D. Jager unfortunately failed in implementing a

restructuring program which had the aim of changing Procter and Gamble‟s culture. The main

reason of that failure is that Jager did not include the employees in the process of change

which is, according to the authors, “a vital requirement of all change campaigns”

(Christensen et al., 2006, p.73).

According to Christensen, Marx and Stevenson (2006), the preliminary step before any

change initiative is to assess the level of agreement. This concept is evaluated along two

24

dimensions. The first dimension is “the extent to which people agree on what they want: the

results they seek from their participation in the enterprise; their values and priorities; and

which trade-offs they are willing to make in order to achieve those results” (Clayton et al.,

2006, p.74). The second dimension is “the extent to which people agree on cause and effect,

which actions will lead to the desired outcome. When people have a shared understanding of

cause and effect, they will probably agree about which processes to adopt” (Christensen et

al., 2006, p.73). Their “Agreement Matrix” sketched those dimensions. The vertical axis

represents agreement by firm‟s people on what they need; the horizontal axis represents their

agreement on cause and effect. The salaried are represented on the upper-left quadrant (A),

for example, share requirements for what they will benefit from taking part of the firm, even

if everyone can have a different vision of the type of actions that will be needed to meet these

expectations. People are result oriented, “just do it” (Service Management Art -

http://www.itsmf.ca/documents/show.php/2854/ITIL%20and%20Management%20Commitme

nt%20v1.pdf). In the upper right quadrant (B) are organizations whose employees agree on

what they hopes and how to implement to get there. Employees are Automatic Group thinking

(Service Management Art). “A clear consensus on the two dimensions makes the

organization’s culture highly hard to change because the people are generally satisfied with

what they get out of working in the organization and agree strongly about how to maintain

that status quo” (Christensen et al., 2006, p.73). Several organizations on the lower-right part

of the matrix (C) are those that involve a mess of contractors. Employees show little

investment to achieve the objectives of the company, but the procedures are strictly adhered

to, if they believe that their actions will achieve the desired results. People understand the

causes and effects of improvement (Service Management Art). Finally, the left lower quadrant

(D) represents employees who do not agree on what they want and do not understand how the

world works. People show disparate interest in improvement (Service Management Art).

There is no best position in the matrix and the relevance of this tool is to identify where the

organization is. For the leader, the agreement matrix helps him to know the degree of the

people‟s acceptance for change (figure 1).

Another aspect of change from an individual perspective is better recruitment,

selection and replacement (Burke, 2002).

The selection method‟s goal is to recruit the right people to assign them the right

function and employment. This is done to ease the major change effort and to seek and find

people with the ability to integrate the firm with a positive and participative dynamic.

25

The replacement approach is to recruit a new leader from within the organization.

But in reality, the new leader are coming from outside in most cases. This move brings new

input, approaches and leadership style to the organization.

Figure 1 - The Agreement Matrix - Source: Franziska Fritz & Philippe Massart (2007) figure based on “The tools of

cooperation and change”, Christensen, Clayton M., Marx, Matt and Stevenson Howard H., Harvard Business review,

Oct 2006, p.84, www.hbr.org

Technological changes also have an important impact on the functioning of the

firm. In effect, these gives rise to new methods and new work processes that it is imperative to

define when implementing changes. For example, the introduction of new software often

leads to new techniques of work and will requires adaptation regarding company‟s employees.

The organization does not evolve alone, it interacts with its environment. Changes in

the external environment require companies to pay attention to these evolutions in order to

stay in the competition. In this context, the organization may be anticipating changes in its

environment, so as to create new opportunities or react to these changes to stay competitive.

For example: “The organization might change its technology in order to stay competitive in

the market or to become a first-mover” (Franziska Fritz & Philippe Massart - 2007).

A B

D C

Ex

ten

t to

whic

h p

eople

agre

e on w

hat

they

wan

t

No

co

nse

nsu

s

Bro

ad c

onse

nsu

s

No consensus Broad consensus

Extent to which people agree on cause and effect

26

However, if the concept is easy to understand, the reality is far from simple. The

company who has devoted significant investment both financially and human, show some

difficulty with new changes.The company could be “investment lock-in” and “Any gradual

movement away from the past investment will increase the risk of not earning the big amount

of sunk cost” (De Wit and Meyer, 2004, p.172). In addition, organizations can also be

“system lock-in […] into an open standard (e.g. sizes in inches, GAAP accounting rules) or

proprietary system (e.g. Windows operating system, SAP enterprise resource planning

software). Once the firm has implemented a standard or system, switching to another

platform could not be done gradually or at low cost” (De Wit and Meyer, 2004, p.172).

In addition, changes can be seen at the business system level. A private or public organisation

has its own way of creating value-added. They turn or add an input to commercialize its own

products and services (output). A business system is unique for each organization. Therefore,

Company's organization is closely linked to its business system. Organizational changes will

have an impact on the business system of the firm, and vice versa. It is therefore clear that a

"business system is successful only if it creates superior value for the buyers” (De Wit and

Meyer, 2004, p.164). The characteristics of the business system are threefold on which the

organization can focus on change situation (De Wit and Meyer, 2004) :

- First characteristic: the value proposition. “In order to attract more customers and to

fit more closely their needs, an organization should be able to supply a particular

product or service. To be attractive, these outputs must target a particular segment of

the market and have superior attributes compared with other ones (e.g. the price, the

image…)” (De Wit and Meyer, 2004, p.231). I for some reason, products or services

sold do not meet consumer expectations, the organization will necessarily have to

decide to change.

- Second characteristic: the value chain. The organization must have the ability to

develop and deliver its products or services and create value effectively (R & D,

logistics ...). At this stage, technology is a point that we should not underestimate.

When the production system becomes obsolete, the organization should be replaced

with newer equipment.

- Third characteristic: stock of assets. the element of a business system consists of the

base of the resource needed to perform the value-adding activities (know-how,

relationships). These elements can serve as a basis for a superior product/service

27

offering. In order to create a competitive advantage, an “alignment must be achieved

between all three elements of a business system”.

Change can be concentrated on this these three characteristics of the business system.

4.2. Types of change

4.2.1 Discontinuous and Continuous Change

Experts tend to agree on the fact that the distinction between discontinuous and continuous

Changes has led to our current approach of the Change process.

The common assumption then consists in differentiating two kinds of changes:

Continuous change based on an evolutionary approach

Discontinuous change, based on a revolutionary approach

De Wit and Meyer qualify these two elements as “the dichotomy between discontinuous

renewal perspective and the continuous renewal perspective.” (De Wit and Meyer, 2004,

p.182).

It can occur that an immediate change would be more appropriate than a continuous one,

according to the situation to be dealt. The characteristics of the discontinuous renewal

perspective are revolution over evolution, disruptive innovation, creative destruction, radical

pace of change, sudden break of the status quo, a stable and unstable alternation of states and

a punctuated equilibrium. (De Wit and Meyer, 2004, p.182)

This former approach has been mainly adopted in western companies, or in companies from

the MEDCs (more economically developed countries). An example of a discontinuous

renewal perspective is the Splitting of the British gas in 1997; The liberalization of residential

market consumption played a big role in this radical move (from a continuous to a

discontinuous approach). For instance, British Gas Company radically changed its retailing

policy, from a simple gas supply to essential household services, as the best way to ensure

their sustainability.

28

This move enabled the company to make a step toward a competitive environment while

asserting their competitiveness, and reorganized their structure in a more customer orientated

way, appearing as a service provider.

Within 3 years, the company has broaden its product range which now integrates everything it

needs to, keeping in mind the slogan: care of the essential. By 2001, 90% of its operations

were represented by service supplies to customers (British household).

Nevertheless, it can occur that a continuous change would be rather more efficient

that an abrupt one. The main characteristics of this approach are: Evolution over revolution,

uninterrupted improvement, organic adaptation, moderate and undramatic change, gradual

and steady pace of change, continuous adjustment, and a persistent transient state and gradual

development. (De Wit and Meyer, 2004). This style of change is usually the one preferred in

Japan.

The concept of Revolutionary change is used to describe an immediate and radical change

that occurs in a rather short while. The goal of such a change is to get rid of the status quo

situation and to replace it with new orientations.

Revolutionary change usually takes place to put a final point to the common way of doing

things and thinking about the company‟s tactics. For instance, reacting to deeply rooted habits

and routines no longer suitable for the company, no other change (at a smaller scale) would

have been as efficient as a revolutionary one. Indeed, such routines or habits can paralyze the

company in a rigid business and organizational system.

According to De Wit and Meyer, 2004, the main factors which will trigger a revolutionary

change are the following: competitive pressure, regulatory pressure and first-mover

advantage. Willing to adapt to our post-modern era, organizations have to deal with as much

chaos as order and change is a constantly dynamic. (Kavanagh and Ashkanasy, 2006).

A number of theoretical and conceptual models and theories to be used and developed as

analytical tools of the process of change are shown below:

29

1. Evolution and Revolution Dealing with the paradox are presented in figure 2

Evolution and Revolution

Dealing with the paradox

Figure 2 - Evolution and Revolution Dealing with the Paradox - Source: Synthesis from De Wit and Meyer (2004)

2. Reengineering work by Hammer (1993). According to this former,

reengineering is: “a fundamental rethinking and drastic redesign of business processes to

accomplish dramatic improvements in critical, contemporary measures of performance: in

cost, quality, service and speed”. Figure 3 presents a tool haw to reengineering work by

Hammer (1990).

Reengineering work

The Essence

Figure 3 - Reengineering Work - Source: Synthesis from Hammer (1990), as cited in De Wit and Mayer (2004)

30

3. Convergence and Upheaval is presented by Tushman and Romanelli (1985) stated scope of

Frame-Breaking Change in the model is shown below:

Figure 4 - Scope of Frame-Braking Change - Source: Tushman and Romanelli (1985)

4.2.2. Endogenous and exogenous who lead to change

A. Endogenous change forces

Endogenous forces to change in an organization are often due to its life cycle. The

publication in 1972 of "Evolution and Revolution as Organizations Growth" (Harvard

Business Review -50) by Larry E. Greiner has identified five main phases ("The five phases

of growth") which require changes during the growth of an organization:

Phase 1: Creativity...

This phase corresponds to the creation of an organization during which its main

objectives are: to create a new product and a new market. At that moment, the organization

is characterized by a physical and mental investment dedicated to product and selling and in

the same time it shows certain contempt for management. The communication is frequent and

in a way informal. As the company grows, the increases of production ask for a better

organization all together with an increase of the number of employees both on the production

level and on the management level.

Reformed mission and core values

Altered power and status

Reorganization

Revised interaction patterns

New executives

31

The organization cannot then be simply managed by the means of an informal

communication, it has to be structured. The founders of this organization are then facing a

situation that impels them to assume responsibilities of management they do not wish. It is at

that moment, according to L.E Greiner that the leadership crisis arises. During that time the

founders of the company will have to delegate some responsibilities by the employment of a

business manager having knowledge and skill. This makes up one of the first phases

of important change in an organization.

Phase 2: Direction...

This phase of "Direction" is characterized by the setting of partitions between the

different services of the organization. It is also at this moment that the control of buying,

stocks and budgets creation is settled. Communication becomes more formal and impersonal

as a hierarchy of titles and positions builds. The forward integration of a new hierarchy causes

an evasion of power towards the management authority; lower- level supervisors are losing

autonomy and lower-level employees find themselves restricted by a centralized hierarchy. At

this moment a crisis of autonomy arises.

Phase 3: Delegation...

The following stage of the growth of an organization develops after the successful

establishment of its decentralization. The organization finds itself in a favourable situation

and the managers feel motivated to penetrate new markets, develop new products and

improve their reactivity. At this stage, serious problems may occur. The top executives feel

that they face a situation in which they lose control while confronted to an increased

diversification. The favourable results of the organization make the managers refer to certain

autonomy and consequently act on the fringe of the company without aiming to the

coordination of new projects and schemes of investment...within the company. “Freedom

breeds a parochial attitude ". Therefore, the top management has difficulty in getting back to

the control of the company.

Phase 4: Coordination...

This phase is characterized by the implementing of new systems allowing a better

coordination .For instance: establishing formal plans, procedures, controlled expenditures...we

32

can also observe that stock-options and company-wide profit sharing are settled in order to

endeavour a spirit of organization towards everybody.

These new systems of organization permit a better allowance of resources and at the same

time they make the capacity of control easier.

Therefore, the managers find themselves compelled to justify their actions, increasing then the

loss of confidence between line and staff, and between headquarters and the fields. So,

the excess of using systems and programs create a "red-tap crisis"; the line managers as well

as the staff directions both criticize the administrative cumbersomeness developed in the

organization.

Phase 5: Collaboration...

The phase of collaboration is characterized by its endeavour to solve the red-tap crisis

showed in phase 4. To reach that, the organization is given to favouring a greater spontaneity

by creating teams made of people having complementary abilities. The target of implementing

this kind of teams is to combine competences inner to each individuality to solve problems,

conflicts but also to manage projects...

The collaboration phase is then built within and around a more flexible environment based on

a management of the behaviours.

Larry E Greiner illustrated these 5 phases according to the following chart:

Please, refer to the next page.

33

Figure 5 - Larry E. GREINER – “Evolution and Revolution as Organisational Grow” - 1972

Robert E. Quinn and Kim Cameron has realized a study also based on the life cycle of

the organisation "Organizational Life Cycles and Shifting Criteria of Effectiveness: Some

Preliminary Evidence" Management Science 29(1983). That study can, in a very interesting

manner, lead to complete the study made by Larry E.Greiner.

In this study article, Quinn and Cameron define the life cycle of an organization according to

four major bases emerging from the analysis of the following nine theories of the life cycle of

the organization:

- Downs : Motivation for Growth (1967)

- Lippitt & Schmidt : Critical Managerial Concerns (1967)

- Scott : Strategy and Structure (1971)

- Greiner : Problems Leading to Evolution and Revolution (1972)

- Torbert : Mentality of Members (1974)

34

- Lyden : Functional Problems (1975)

- Katz & Kahn : Organizational Structure (1978)

- Adizes : Major Organizational Activities (1979)

- Kimberly : Internal Social Control, Structure of Work and Environement Realations

(1979)

Therefore, it is through these nine approaches that Quinn & Cameron have developed the four

phases of the life cycle of the organization:

1.Entreprenarial Stage 2.Collectivity Stage 3.Formalization and

Control Stage

4.Elaboration of Structure

Stage

Marshalling of

resources

Lots of ideas

Entrepreneurial

activities

Little planning and

coordination

Formation of a

« niche »

« Prime mover » has

power

Informal

communication

Sense of collectivity

Long hours spent

Sense of mission

Innovation continues

High commitment

Formalization of rules

Stable structure

Emphasis of efficiency

and maintenance

Conservatism

Institutionalized

procedures

Elaboration of structure

Decentralization

Domain expansion

Adaptation

Renewal

Figure 6 - Robert E. Quinn & Kim Cameron “Organizational Life Cycles and Shifting Criteria of Effectiveness: Some

Preliminary Evidence” - 1983

The synthesis of these two studies allows a modelling of the life cycle of the entire

organization, thus taking into account the majority of the factors of endogenous change in

relation with the growth of an organization.

35

Figure 7 - Organization Life Cycle - Adaptation from Bertrand Venard - Audencia Scool of Management

B. Exogenous change forces

The organization does not evolve by itself but in interaction with a very active circle.

A great deal of researches has proved that this circle imposes the operational and strategic

choices that the organization will make. This circle is called environment and it is the one that

will have to condition the markets through its direct influence one the organizations. As a

rule, the organization environment is defined as the whole elements external to the

organization but in relation to its activities (CERAM, 2008- The influence of environment on

the enterprise).

In a world which is becoming more complex and global (Shein, 2009 – the corporate

culture survival guide – Revised edition. Jossey-Bass, USA), organization has to face a

constantly evolutionary environment. In 1979, Michael Porter (Porter, M.E. (1979) How

Competitive Forces Shape Strategy, Harvard business Review, March/April 1979) listed five

variables having an influence on the organizations:

- The power of the client negotiation.

This client‟s power on a given market is characterized by the ability of the buyers to

negotiate. The clients degree of concentration grants them more or less power. That

stands, for instance, on an oligopsony market, (a little number of buyers are facing a

36

great number of providers thus giving them a greater power of negotiation)The

customers power of negotiation is strong when they stand all together ,when their

providers are disorganized ,when there exist products of substitution and also when the

cost of transport from one supplier to the other is low.

- The power of negotiation of the providers.

The production of an industry is bound to the providing of raw materials. Thus, there

is a battle of wills between clients and providers. Clients want to buy at the lowest

price when providers want to sell at the highest one. The power of negotiation of the

providers implies the ability of a provider to impose high prices. The resources in raw

materials, the concentrated proximity of providers, the existence of products of

substitution and the cost of transport from one provider to the other are as many

variables that will determine the power of the providers.

- The risk to see new competitors appear.

Theoretically, every enterprise should be able to enter or leave a market and that is a

threat for any firm inside any kind of market. Nonetheless, the risk to see new

competitors appear can be limited by what is commonly called "Entry Barriers". There

are different sorts of "Entry barriers":

o The entry contribution which represents the amount of necessary investments

to launch a project and also the time needed to make them profitable.

o The patents meant to protect an exclusive "know-how", thus allowing a

competitive advantage.

o The technical norms and standards, for instance UE which is compulsory to be

obeyed to distribute a product in Europe.

o The protectionist measures established by the country.

o The existence of enterprises firmly established on the market and having a

good reputation or significant market shares.

o The specific guarantee of current assets required for the production. When

specific technologies are necessary, the potential incomers are hesitant to

acquire active assets they may not resell or convert.

o The cultural barriers.

37

In the same time, obstacles to the way out are also present and must be evaluated when

wishing to enter a market. It may be difficult to leave a market when the enterprise is

made up of specific current assets, when the cost of leaving is high or when the

enterprises are interdependent.

- The existence of substitution goods

According to Porter's approach, the substitution products apply to those which come

from another industry but nonetheless able to satisfy similar needs. Porter thought that

the risk of using a substitute arises when a product is affected by the fluctuation of a

substitution product. The price elasticity of a product is directly affected by the

substitution products. As and when there are more products of substitution, the

demand becomes flexible because the consumers have a greater number of choices.

Besides, the more a substitution product satisfies a similar need, the more it becomes

difficult for an enterprise to increase its prices.

- The competitive pressure in-house the market.

The competitive pressure in-house the market can be evaluated through the

concentration of industries on the same market, in other words, through the percentage

of holding shares of this market. If the concentration ratio is high this means that the

major parts of the market share are hold by big firms. If you have a smaller number of

enterprises holding a major part of the market shares, then this sector of market is

concentrated and regarded as little competitive. On the other hand, when the

concentration ratio is low, it means that the sector of market is characterized by a great

number of competitors. Enterprises move on a competitive market. On such market,

the competition can vary in intensity (fierce, intense, moderate or weak) and it is based

on the aggressiveness of the enterprises to attempt to possess one or several

competitive advantages.

38

Figure 8 – Five Forces Michael E. Porter -Sharon Larsen - February 18th, 2009

This organization chart describes perfectly the pressures that the economic

environment can cause to an organization. Nonetheless, this approach of environment can be

completed by other variables directly affecting the functioning of an organization. Bertrand

Venard (Audencia School Management-2007) describes the organizations environment

according to 10 points:

1- The competitors, the size of the industry, the level of competition.

As shown in Porter's analysis, Bertrand Venard uses again the concept of the competition

in his definition of the environment which has an influence upon the life and the strategy

of the organization.

2- The providers, producers, estate agents, services.

The "variable" providers is active too in this analysis, nevertheless the concept of estate

agents and services has been added.

The estate cost is an important factor in the environment of an enterprise. It can act as an

opportunity or as a brake not only in what concerns the strategy of an enterprise, but also

for the strategy of its competitors or new potential in-comers.

The concept of services is then added by Bertrand Venard. In 1979,Porter's analysis aimed

mainly on the industry sector, but since then, the services sector has been considerably

39

developed, either as a service associated to the sale of a product or as the market of the

services itself. Keeping in mind the Porter's analysis on the industrial sector, we see that

the service associated to the sale of a product, provided it is a reliable one, can proved to

be a real competitive advantage.

3- The labour market, interim agencies, universities, high schools, other enterprises'

employees, trade unions.

The labour market which was not studied in Porter's analysis represents an important

factor of the enterprises environment. Actually, depending on the countries where the

enterprise is situated or in which it wishes to develop its business, the enterprise will have

to possess a perfect knowledge of the labour market. Does it provide the necessary

manpower? The required competences? What is the working flexibility? How powerful

are the trade unions?

o Concerning the competences, the education standards are primal as they allow

to know if the population of a given country has got the necessary required

skills for the functioning of an organization. This point is primordial because

the qualifications and skills vary rather much and often as the workers are not

polyvalent. Consequently, the supply and the demand of labour are not

necessarily situated in the same geographic spot.

o In a country where the labour flexibility is low, for instance France, the

presence of interim agency gives the enterprises the possibility to employ a

person for a specific or renewable period. This helps to diminish the fixed

costs of an organization which can then manage its staff either in accordance

with the seasonal possibilities of its activity sector or to adapt its working

power in case of unexpectedness.

o The power of the trade unions must also be taken into consideration. In

Europe, if we take France and Sweden as an example, the role of the trade

union is totally different. Which is more, the rate of unionization of these two

countries cannot be compared: 9.7% in 2001 for France, versus 78% for

Sweeden in 2002 (European Community -2004)

40

4- The financial markets, banks, private investments.

The rate of money acts directly on the corporate organization strategy. It then becomes

unavoidable to take into account the financial market within the organizations

environment.

5- The consumers, customers and potential users.

As showed in Porter's analysis and with the same logic, customers' or negotiation

power‟s customer are studied at that moment. The notion of users or of potential

buyers is then added to this variable. It is important to know the capacity of a market

to seduce new users. On a saturated market, new potential users are very few, the

prospects of developing market shares are therefore compromised contrary to a new or

flourishing market which offers growth perspectives concerning promising market

shares for an enterprise.

6- The techniques of production, sciences, research centres.

Within a view of toward international trade, the production techniques, sciences and

research centres for a clearly defined market are often concentrated on

specific geographic areas. For instance, concerning the pharmaceutical sector,

Germany has at its disposal strong enterprises moving in this middle and it are one of

the most powerful international actors with regards to pharmaceutical research.

Furthermore, the use of specific techniques of production limits the eventuality of new

incomers on the market. Actually, the use of specific equipments involves important

investments in current assets which become hard to convert again, and it acts as barrier

to the “natural” entry.

7- Recessions, economic growth, inflation, investment level, unemployment.

The economic context in which an organization moves or wishes to move must also be

scrupulously known. Actually, a country in which the economic rhythm of growth is

being slowed does not offer the same perspectives as an economy in expansion.

Another important factor of the economic environment is the exchange rate stability.

Indeed, to work and to develop a business trade in a country subject to a durable prices

increase leads to a loss of purchasing power of the money for the organizations as well

as for the couples (INSEE).

41

The level of investment on a market or on a precise geographic area is also a factor to

be taken into consideration. If the level of investment is important it implies that the

market is in expansion. Consequently, it will be easier for an organization to find the

possibilities of financing either through a bank or by means of private investors.

Finally, the last point of this part will deal with unemployment level. Unemployment

may have several different impacts on an organization and on the consumers. For

instance, a high rate of unemployment can lead to an increase of the contributions not

only for the organization but also for the busy workers: the State has then to finance

unemployment and more particularly must guarantee an income to the unemployed.

An unemployed person without any income is a person who does not consume, and

that cannot be envisaged for the economy of a country.

8- International and local regulations, taxes, legal and political systems.

Whatever it is international or local, the regulation is given to

establishing characteristic norms and rules of functioning. At international level, the

main organisms are OMC, FMI and the World Bank. On the local level, the European

Union, l'ALENA, l'ASEAN are in charge of the settlement of economics rules and

norms of functioning suitable to the countries of these organizations.

This implies that with regards to the country or some local agreements, the

organizations have not to respect the same legal rules, policy or taxes...

Within European Union, for instance, "since 1993, the free circulation of goods is

guaranteed within the EU. Fiscal and customs formalities linked to inta-communotary

frontier crossing have been abolished. Any person may buy, for his own use, any kind

of goods in another State member of EU without any restriction of quantity or value ".

(Service Public.fr – Administration).

This liberalization of exchanges can reveal to be a true opportunity but at the same

time a risk for an organization that is to say, the risk to see enter the market

competitive products or products of substitution in countries where the costs of

production are lower .

42

9- The population age, its social & moral values, the level of education, the influence of

belief, the ethics of work, the consumers mobility.

Each kind of population has its own specificities, history and culture. Nevertheless, if

we except History that cannot be changed, population behaviours evolve... The public

authorities have to answer, anticipate and find the solutions for these changes.

Concerning the age of the French people in the middle of the 20th century, the

population was rather young, but, nowadays France is undergoing an ageing one

which implies fundamental changes for the state as far as the legal side is concerned

(Policy of retirements, employments management...) The organizations must also

answer these developments, adapt themselves to new laws, new policies of human

resources management...

Keeping France as an example, we observe that the increase of the Muslim belief

population has driven the food mass distribution to create displays of Halal meat.

In this context Muslim populations have offered new opportunities for the enterprises.

This constitutes the emergence of a new market for France.

10- The competition of foreign enterprises, the ability of penetration of foreign markets,

the evolution of the risks of exchange rates.

The risk of seeing new incomers as Porter stated is a variable also considered in this

approach of environment. This risk is mainly focused on the arrival of foreign

incomers. Nevertheless the risks of seeing new incomers appear together with the

barriers at their entry remain at the same time unchanged.

Nonetheless, this approach includes a new variable which is: the rates of exchange that

might intervene in favour of the new incomers who produce in countries where the

value of the money is depreciated with regard to the referred market. Actually this

allows to export towards another country, goods of lower prices than those which are

locally produced. It is on the contrary for the countries which have a strong money. An

enterprise will have difficulties in commercializing its products if the prices are high.

43

Organisation

10-

International Sector

1- Industrial Sector

2- Raw material Sector

3- Human resources

Sector

4- Finacial ressources

Sector

5- Market Sector

6-

Technological Sector

7- Economic's

condition Sector

8- State Sector

9- Socio-Cultural Sector

International Context Environment

The economic environment of a market must be entirely controlled by an organization

as it has to anticipate and answer the evolutions of its environment. "Our environment

compels us to change permanently: to change means to exist tomorrow" (Atlas du

Management).

In other words, the ability for change, of an organization, and to stick to its environment

encourages its capacity to remain competitive.

To anticipate and react to the environment evolutions comes up from the ability of the

organization managers to be aware of the environment in which they move. Keeping that in

mind, the manager will be the one who will decide and successfully implement the change

with regard to his environment. Doing this, he will finally develop what will be considered as

a competitive advantage for the organization.

Figure 9 - International Context environment – Bertrand Venard – Audencia School of Management

44

4.3. Change and rigidities to change

“I'm not interested in preserving the status quo; I want to overthrow it.” Niccolo

Machiavelli (Brainy Quote, 2010)

4.3.1. Typical Organizational Rigidities to Change

Just one year after Lewin passed away, that is to say in 1948, Coch and French (1949)

published an innovating paper entitled “Overcoming Resistance to Change” (Coch and

French 1949). They conducted their research in a pyjama factory, implemented in Virginia,

USA: the Harwood Manufacturing Company (Coch and French, 1949).

This study, which led to a large number of further ones, emphasises the two following stakes:

Understand the latent explanations to such a strong people‟s resistance to change.

Draw alternatives that will help overcoming this resistance.

The authors concluded that resistance to change is omnipresent in the work place, where it

can be observed in very different ways, attitudes or behaviors.

Nevertheless, this resistance affects the environment in rather common prejudices, such as

“grievances, high turnover rates, low efficiency levels and restriction of output”. (Elrod II

and Tippett, 2002, p. 273).

Through this study, the authors highlighted the importance of participatory

management in the process of softening the resistance to change. They assumed that the direct

involvement of employees in that process was compulsory to successfully implement change

within the organization without having to face an active resistance to change.

The effects of not involving employees, who are directly concerned by the implications of

change, can be devastating. It can waste the potential of the change and even intensify an

issue.

According to Coch and French (1949), “because individual and group behaviour in an

organization are largely determined by a group norms (fundamental to the organization’s

culture), the changing of certain of these norms and their accompanying values that are

integral to culture needs to be a major focus on an organization change effort” (As cited by

Burke, 2002, p.52).

45

Besides, employees‟ resistance to change is often linked with the uncertain and

ambiguous future which characterizes the change (Burke, 2002). Indeed, the more employees

are installed in deeply rooted routine and habits, the less reactive they will be to continuous

improvement. They will not feel new management methods as a plus but as a threat for their

existing system. Quoting Deal and Kennedy (1982), Elrod II and Tippett (2002) wrote: “the

significant barriers are raised whenever change is not recognized as loss, as the death of the

old” (p. 273). Actually, people who do not recognize the loss shall be condemned to stay in

the “denial state”: this is what occurs in the majority of the models of change. The process of

change must pay a great attention to make employees understand, feel and accept the change.

According to Kegan (n.d.), this employees‟ involvement in the process would give them a

more global point of view, necessary to make them apprehend the change as a natural

progression rather than a rupture. In that way only, people may begin to accept change, “if

not, actually welcome it.” (As cited in Elrod II and Tippett, 2002, p. 273).

This idea of a global view will help employees to see the company as a common

workplace rather than compartmentalized in several self-interest. Moreover, De Wit and

Meyer (2004) state that “the stronger the organizational culture is, the more efficient in terms

of performance it is”. In another hand, if the strength of the organizational structure can

increase the resistance to change. For instance, taking the eventuality that a company, pushed

by situational factors, need to change radically its organization, the efforts for change may be

weakened by a too strong culture. “Therefore, in short, organizational culture is a double-

edged sword. People can also become immune or reluctant to change” (Franziska Fritz &

Philippe Massart - 2007).

The difficulties of implementing change can be strengthened if people have common

(and usually wrong) assumptions about the market and the way to adopt change: change

mentalities when the whole group agree upon the same can turn out to be hard.

Managers must reshape this organizational belief in order to relieve the resistance to

change. Nadler states that “for effective change to occur, and in particular cultural change,

there is no substitute for the active engagement of the CEO and executive team. Top leaders

must assume the role of chief architect of the change process” (Kavanagh and Ashkanasy,

2006, p. 83).

The authors ranked the leaders‟ actions and influences as a top priority.

Nevertheless, as we underlined above, managers must take into consideration employees‟

involvement in the change process (participative management) in order to smooth the change.

46

As stated by Cartwright and Cooper (1993), “one of the most common difficulties stems from

what might be called “cultural differences” (As cicted in Kavanagh and Ashkanasy, 2006,

p.83).

But, to be able to modify the corporate structure, managers first need to understand

and to keep in mind the ways things are organized so far. The intrinsic quality of the social

system (involving people, work and systems in general) is to be resistant to change: it seems

designed to nullify the impacts of change implementation. But the complexity of

organizational cultures increases the difficulties of change implementation. Weiek and Quinn,

(n.d.) maintain “that every cultural system will cover continuous, incremental changes

punctuated on occasion by more episodic, radical change”. Finally, Sathe and Davison (n.d.)

agreed that “culture change consists of changing people’s minds as well as their behaviour.”

(Kavanagh and Ashkanasy, 2006, p.84)

To sum-up, we have seen so far that the more people agree on common

assumptions, the harder the change implementation. Besides, an organizational culture is

complex and changing; this increase the difficulties of understanding this culture in order to

build the change process upon. Another step in the difficulty is made when talking about

international mergers or acquisitions. Cartwright and Cooper (1993) have suggested that “the

degree of constraint placed on individuals when a change from one culture type to another is

in progress, will depend on the types of cultures being merged.” (Kavanagh and Ashkanasy,

2006, p.84). The authors linked this approach with the four cultures types, namely: power;

role; task; achievement; person/support. Huge efforts in cultures adaptations would need to be

made if managers have to blend different kinds of organizations, one more “role culture

oriented” with one more “person/support oriented” for instance.

47

Figure 10 - The Relationship between Culture Types and Individual Consequences - Kavanagh, Marie H. &

Ashkanasy, Neal M., The Impact of Leadership and Change Management Strategy on Organizational Culture and

Individual Acceptance of Change during a Merger, 2007

It is important to bear in mind that change implementation there is always a winner

and a loser. Often, the strength of the winner during changes due to the fact that he has

nothing to lose and so therefore everything to gain. The personality of the winner is

characterized by a strong motivation and a creative spirit. While the loser is conservative

people, he wants to keep his gains. The loser is not risk taker, he is conservative and is the

first to show resistant to change. To cope with this situation there are two types of solutions,

negotiation or give and take agreement.

Other authors discovered why some companies resisted change. According to

Metzger (1981), for any proposed change or development project, the organization is facing

resistance. The employees of a company want to feel safe, what this translates into a desire for

stability, and thus does not change. Lewin (1951) identified three methods to reduce and

overcome resistance to change, increase the Knowledge of staff, have the ability to put

themselves in the shoes of others (empathy) and employee engagement in the process of

change.

4.3.2. Resistant of Management Change and Transition

According to the Harvard Business School (2003), the company should not wait for

a crisis to decide the change. However, the example Ford, "Change-or-die", has shown that

organization could emerge stronger from a crisis situation. In addition, this article highlights

48

the importance of the change leader, “as he can raise concern regarding a current,

problematic situation, and urge management to challenge the complacency without resorting

to “crisis mode” tactics” (Franziska Fritz & Philippe Massart - 2007). Beer (2002) has

defined a number of tools in order to ease the change and challenge the complacency

approaches:

1. Leverage information from the competition watch in order to make employees

aware of current and future problems.

2. Communicate and proceed participatory management with employees in order to

know their problems and concerns.

3. Make a discussion around the data with the shareholders in order to create an

overall understanding of the corporate problems.

4. Setting high goals and encourage employees to achieve them

The Harvard Business review (2003) highlighted that people resist to the change

because they feel as losers in the change. When the resistance to change is characterized by an

unwillingness to achieve the objectives or to follow the process outlined, resistance is called

passive resistance. Resistance is called active when the resistance is direct or subversive. The

same article also defines a method for manage resistance to change by identifying the

plausible resistant to change. Here‟s a sample of this method:

o Answer the question: “Where and how will change create pain or loss in the

organization?”

o Detect which are the people who have something to lose and try to anticipate

their reactions.

o To put across to the resistant the necessity to change by communicating with

them. Establish a situation of emergency and explain the necessity of breaking

with the status quo.

o Demonstrate and emphasize the benefits of change to the resistant. Example: job

security, wage increases…

o It is important to find a place, a role in the change implementation for resisters.

Their involvement in the change process is important to mitigate resistance to

change.

49

o Change is perceived as a loss of control by employees, which is why they

oppose the changes. In this context, the role of the leader will be to make

resistant active players in the implementation of change.

If these attempts prove to be failures, the resistance should be transferred to another

department where their skills can be utilized.

In summary, this research aims to identify and understand resistance to change and

the reasons motivating them to resist.

Other authors have developed theories and tools useful in defining the strategy for

change or during the change implementation:

1. Change management, manage evolutionary and revolutionary change - figure 11

Figure 11 - Corporate transformations as a countercurrent process - Source: Krüger (1994); (as cited in De Wit and

Mayer, 2004)

Top-down management is characterized by a weak influence of the employees of the

organisation. The corporate strategy is defined by the enterprise management which imposes

well established way of acting. The functioning of the organisation is directed by a system

of strict regulations and the developments of the enterprise are exclusively going from "top to

bottom".

Bottom-up management is characterized by a strong influence of the employees of the

organisation. This type of organisation aims to involve the employees into the enterprise

50

development: their role is to be the driving force within the organisation development. The

salaried have a definite autonomy which allows to solve by themselves the difficulties they

come across. The organisation functioning is defined by a system of little restrictive

regulations appearing under the form of general instructions. The developments within an

enterprise go from "bottom to top ".

Business reengineering is one of the most well-known kinds of top-down

management; its aim is to entirely reconsider the strategy or the processes of the organisation.

The realization of these tasks requires the help of somebody with strong capacities in order, as

well to implement a change as to encourage that change with the salaried.

The most famous among bottom-up managements is the "Kaisen" (small improvements)

Kaisen is a Japanese word meaning: improvement. The concept is based on a constant

development of the processes of production and engineering, arising as well at the level of

business processes as at the level of the enterprise management. The "Kaisen" is an approach

that could be so defined: nothing is good enough that deserves to be kept.

Both these two concepts have their advantages and their drawbacks. That is why,

nowadays, the concepts of top-down and bottom-up are associated. The top-down

management is used when there is an in-depth change (Strategic Developments) even when

continuous evolutions are developed by the bottom-up management. A constant dialogue

should then be entertained by each part in order to guarantee a steady evolution of the

enterprise.

2. De Wit and Meyer (2004) argued that the stronger corporate culture, the more

effective it is, and it is more difficult for changing, as described in figure 2.7.

Corporate

culture is: Up to date Not up to date

Strong „Accelerator‟ „Fossilisation‟

Weak „Mild Breeze‟ „Flat Tyre‟

Figure 12 - Corporate culture and effectiveness in change implmentation - De Wit & Meyer 2004

51

“The imaginary sum of values shared by all company members, their mind-sets and

behavioural patterns form the central elements of corporate culture” De Wit & Meyer (2004)

According to De Wit and Meyer, values and belief participate to the construction of

the genetic code of the organization and in the same time to the structure of the industry, the

nature of the competitive advantages and the corporate strategy. When the environment

changes, a strong culture of the enterprise can incite to struggle against or anticipate the

change. A strong organization culture accepts that if there is a possibility of change, the

organization might be in a position of "fossilisation " or "flat tyre". This concept would

explain that some enterprises formerly successful are now in decline because the change

within the organization is received as dramatic (De Wit &Meyer).

4.4. Change implementation process and keys success factors

4.4.1. Implement change, the Lewin's three -Step model.

In 1951, Kurt Lewin developed the Three-Step Model. This researcher in social

science developed the concept of Forcefield Analysis based on the observation that the "status

quo" is the result of driving forces and resisting forces. (Michael A. Beitler PhD - Strategic

Organizational Change-2003)

Figure 13 - Lewin's Forcefield Analysis

Driving forces favour the change for they push and motivate it, when resisting forces

are an impediment to that change by driving the salaried towards an opposite direction.

52

In this context, Lewin developed the Three-step Model in the aim of analysing these forces as

to unbalance the scales towards the wanted direction: the change.

The Three-Step Model takes place in three stages:

Figure 14 - Lewin's Three Step Model - Adaptation from the author

The present situation shows a state of equilibrium. It becomes necessary to unfreeze

the current situation (status quo) to overcome the resistances to change (Robbins

S.OrganizationalBehaviour-2002-Prentice hall; 10edition) to unfreeze the situation three

methods can be used:

- Increase the driving forces.

- Decrease the restraining forces which negatively affect the equilibrium.

- Find equilibrium between the two above mentioned methods.

The second stage of this theory aiming to change the behaviours is the moving phase.

To move the organisation or the unit to change behaviour requires a planned intervention.

This will be a time of insecurity and fear for many organizational members (Michael A.

Beitler, 2003). Three actions can be led to favourite the moving step (Kristonis A. –

Comparison of change theories – International journal of scholarity academic intellectual

diversity – Volume 8 N°1 – 2004-2005):

- Make the salaried understand that the status quo is not beneficent to them and

encourage them to analyse the problem with a new perspective.

- Work all together to find new perspectives.

- Connect the perspective of the team with the leader's view in favour of change.

53

In the third step, Lewin said: we must "refreeze "the situation. It is imperative that this

stage should be operated once the change has been implemented so that this stage is kept in

position during that period; if not, the members of the organisation will return to their former

and confortable habits (Michael A .Beitler2003). One of the actions that might be settled to

freeze the situation will be to reinforce the new concept through the use of formal and

informal rules (Robbins S.-2002).

This Lewin's concept shows off the influence of the forces favourable or unfavourable

to change. Therefore, the change will be implemented when the joint driving forces are more

important than the resisting forces.

4.4.2. Keys success factor in change implementation

The Kurt Lewin's model of change previously brought in indicates the different stages

of implementation. In order to implement the change, the leader will have the possibility to

influence its success through the development and the use of keys success factor. “Each key

allows to realize a function (put the change into effect, mobilize the employees, manage the

emotional aspects, etc...) and that is necessary for the success of the change” (Grouard B .&

Meston F.-1995- The enterprise on the move , be successful while implementing a change -

(Dunod-2nd edition)

John Kotter (1996) has defined "The Eight-State Process of Creating Major change" in

his book "Leading change". This method doubled with "The ten keys of change" by Benoit

Grouard and Francis Meston(1995) permits to obtain a more complete approach of the keys

factors when implementing a change. It is defined in 15 points:

Please, refer to the next page

54

Key 1 Establishing a sense of urgency

- Examining the market and competitive realities

- Identifying and discussing crises, potential crisis, major opportunities

Key 2 Creating the guiding coalition

- Putting together a group with enough power to lead the change

- Getting the group to work together like team

Key 3 Canalize

- Define the structure of the project

- Associated functioning method able to sustain, make easier and speed up the change.

Key 4 Developing a vision and a strategy

- Creating a vision to help direct the change effort

- Developing strategies for achieve that vision

Key 5 Communicating the change vision

- Using possible vehicles to constantly communicate the new vision and strategies

- Having the guiding coalition role model the behaviour expected of employees

Key 6 Mobilize

- Create a dynamics of change near the employees

- Ratify the stakes defined in the vision (project)

- Define the main axes of improvement.

Key 7 Organize the participation

- Make sure of all concerned employees‟ participation, not only to enrich their vision but

also to make its "concretisation" easier.

Key 8 Empowering broad-based action

- Getting rid of obstacles

- Changing systems or structures that undermine the change vision

- Encouraging risk tacking and non-traditional ideas, activities, and action

Key 9 Put into effect - Implement the change

- Realize the vision of project in a daily operational reality

- Change the structures, the ways of doing, the attitudes, the culture.

Key 10 Train and coach

- Bring a training as technical as relational to help the employees to participate, in the best

conditions, to the implementation, and furthermore, make them live the vision day after

day.

Key 11 Generate short term wins

- Planning for visible improvements in performance, or “win”

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- Creating those win

- Visibility recognizing and rewarding people who made the wins possible

Key 12 Manage the emotional aspects

- Get rid of resistances and "freezing" entailed by the change in order to permit its

concretisation (realization)

Key 13 Manage the stakes of power

- Redirect the relations of power to guarantee their coherence with the vision

- Make it participate efficiently to the process of change.

Key 14 Consolidating gains and producing more change

- Using increase credibility to change all systems, structures, and policies that don‟t fit

together and don‟t fit the transformational vision

- Hiring, promoting, and developing people who can implement the change

- Reinvigorating the process with new projects, themes, and change agents

Key 15 Anchoring new approaches in the culture

- Creating better performance through customer - and productivity – oriented behaviour,

more and better leadership, and more effective management

- Articulating the connections between new behaviours and organizational success

- Developing means to ensure leadership development and succession

Figure 15 - Keys success factors in change management - Adapted from the author

4.5. Human factor Management a leader's key success factor in the

process of change.

My school training and my professional experiences have led me to understand that

with regard to his stage of development and his abilities, each person could not have the same

attitudes, the same needs, and the same expectations. In a management context, the role of the

leader within the organization is therefore to analyse and know the needs and expectations of

the persons forming his teams. This knowledge of the others will then allow the manager to

adapt his management style with regard to his interlocutors. The objective being to implement

a climate of confidence adapted to each personality. “Within the today fluctuating context,

it is obviously necessary for the senior executive and the team to develop confidence within

the organization, to remove all brakes preventing everyone from concentrating on the

objectives to be reached." (Paul DAMASCENO – CadredeSanté.com –

http://www.cadredesante.com/spip/spip.php?article351). According to A .DAHMANI in his

book "Confidence and Management of Human Resources”, the confidence would arise as an

56

"invisible social lubricant" and that confirms the P. DAMASCENO'S approach. Confidence

allows to limit the resistances to change, for, if the subordinates of a manager do not trust

him, all attempt to change will bring up to the emergence of an opposition to change. The

manager will be confronted to people who will not only refuse the project, but also will not

even make the effort to understand the stakes of change. Consequently, confidence is a crucial

variable for a manager who wants to assert his leadership within the team.

4.5.1. Identify the stages of competence development.

As previously stated, the needs and expectations of the employees are different

according to their stage of abilities development. Of course, it would be tiresome, indeed

impossible for a manager to define a level of abilities development for each person. There are

some simple tools which allow to classify the stage of the development of ability. Paul

Hersey, Kenneth H. Blanchard and E. Johanson (Management Organizational Behaviour:

Leading Human Resources) have defined four stages of the competence development toward

which it should be good to adopt a specific style of management with regard to the situation.

This approach is called :"situational leadership ".

57

Stages of competence development

D3 : When motivation and competence increase

= D2 becomes D3 when able to utter suggestions.

Indicators: new dynamism, nascent interest.

Needs:

- Ability to speak up one's worries and to be

understood.

- Ability to listen and to carry out one's ideas.

- Congratulations and acknowledgement of

one's high level of competence.

- Encouragement and help to develop one's

abilities.

- Opportunity to work with others and share

common objectives.

D2 : High motivation, weak competence

= new post, new activity, new tool, new organization.

Indicators: Smile, goodwill, voluntary wish,

availability.

Needs:

- Precise objectives

- Instructions and orders of action

- Delays, duration and priorities.

- Frequent feed-back on hit results

- Precise definition of the limits of

responsibility

- Acknowledgement of one's enthusiasm.

D4 : High motivations and competences.

= Senior executive or responsibility job.

Indicators: is able to train new ones without state of

soul, to convey his knowledges, to be well

established in his responsibilities.

Needs:

- Diversity and challenges.

- Acknowledgement of his contributions.

- Autonomy and responsibilities.

- Training of people.

D1 : Weak motivation, medium competences

= doubts, uncertainty, questioning, "breathlessness"

Indicators: negative expression, rattle, overloaded

breath

Needs:

- Clear reminder of the objectives and stakes.

- Explanations of the meaning of tasks to

realize.

- Reinsurance when mistake.

- Encouragement and congratulations when

improvements.

- Participation to the process of decision and

the solving of problem.

Figure 16 - Stage of Competence development - Hersey & Blanchard

D1: High motivation and low confidence.

This stage sticks to the period of an arrival in a new enterprise or a new service. No matter the

level of qualification, we here deal with a phase of discovery which demands a close

management in order to inculcate its own enterprise culture, its objectives, its priorities...

58

D2: Weak Motivation and medium competences.

It's a complex stage to manage. The associate begins to understand the enterprise functioning,

improves his autonomy, but has not got yet the competences to allow him to impose himself.

He begins to doubt, develops a critical attitude and shows an anti- establishment inclination.

He attempts to be "proactive" but quickly reaches his limits.

D3: Motivation and competence increase.

The associate shows more independence and autonomy. He begins to integrate the

organization expectations and the objectives of his function. He is competitive and does not

require any longer to be strongly managed.

D4: High motivation and competence.

The collaborator has become a senior manager within the activity or the post, he is

autonomous, experienced and efficient. He no longer needs to be motivated, he does it

himself.

According to Hersey and Blanchard the style of management must adapt itself to the level of

motivation and competence of the collaborator.

4.5.2. Identify the styles of management.

“Management is the art of getting things done through and with people in formally organized

groups, the art of creating an environment in such an organized group where people can

perform as individuals and yet cooperate toward attainment of group goals, the art of

removing blocks to such performance, the art of optimizing efficiency in effectively reaching

goals”. (Koontz – Cited in Contextual Management, a global perspective – R. S. BASI)

This definition shows that management is an art, an art to create an environment

adapted to each person in order to guarantee their personal success and make them adhere to

and reach common objectives. In other words, the leader manager must make sure of

everyone's blossoming so that they may stand as driving forces within the organization.

59

Besides the analysis of the stage of development of the competence previously studied,

Hersey P and Blanchard K.H. have defined four kinds of management.

STYLES OF MANAGEMENT

Figure 17 - Styles of Management - Hersey & Blanchard

S1: To Manage

Directive Management is meant to structure the tasks in a precise way, and to assure a regular

control of the accomplished work. The manager is little encouraging, he adopts a very

directive behaviour and precisely defines each task to reach a given objective.

S2: To Train

The training management is always very directive, because the collaborator is still

inexperienced. After a while, the manager becomes more and more encouraging. The manager

keeps much nearer relationships with his associate; he takes time to communicate with him

and explain his decisions. He never hesitates as to consult him and takes his advice into

account. This type of management requires some kind of vigilance: it may be too explanatory

or asking for a high personal investment. The manager may sometime adopt a paternalistic

attitude in this kind of circumstance.

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S3: To Support

The management of supporting type is characterized by a very encouraging and little directive

behaviour. The collaborator has the abilities, proves to be autonomous and generates

propositions. In partnership with the manager the collaborator takes full participation in the

process of decision. Concerning this kind of management one must be attentive and vigilant in

order to avoid mixing conviviality and familiarity. Furthermore, in this kind of situation, the

manager may be inclined to adopt an attitude of manipulation.

S4: To Delegate

This kind of management is characterized by a weak encouragement and a weak support. The

collaborator is entirely autonomous. He is little assisted and needs no longer to be supervised.

The collaborator has the required abilities to achieve the missions he has been entrusted with.

When this kind of management is practiced, "to delegate "does not mean laxity, and it is

therefore convenient to be vigilant to remain available and to reaffirm one's support so that

the associate will not feel abandoned .

4.5.3. What kind of management, and for what kind of associate?

The final touch to the theory of Hersey & Al's situational leadership has therefore been

to associate a kind of specific management with regard to the stage of the ability development

of the fellow workers of the organization .It was done in the aim of creating a favourable

environment for each person in order to guarantee their personal and collective blossoming

within the organization.

Please refer to the next page

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Management Style & Stage of competences development

Figure 18 - Hersey & Blanchard - Situational leadership

As the stage of ability development is not fixed, this chart synthesizes the kind of

management to adopt by the manager in relation with his associates abilities. An appropriate

management based on the needs and the expectations of the collaborators is one of the ways

to counter ill-being at work. It is primordial to counter this ill-being because any person who

does not feel at ease constitutes a potential brake as the changes intervene within the

organization. The leader manager must bring his support and an appropriate follow-up and

also be sure that nobody should feel either too isolated, mothered or controlled, that nobody

should feel ignored compared to the competences of his associates. This represents a daily

attention which will allow the leader manager to establish a climate of confidence between

him and his fellow-workers. Therefore, through this confidence he will favour the flexibility

of his associates within a period of change.

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Chapter 5 : Empirical study

The objective of this empirical part is to contrast the theoretical approach of change

management with the field work of change implementation. To enable a better understanding

of the field approach, four case studies will be detailed in this chapter, and the study of each

case will take place following the same method, the same plan, for each case. I have chosen

this method with the objective to provide equal criterias in order to permit comparisons

between each case. The usefulness of this choice is reinforced by the fact that, some of these

case study are revealed to be successful whereas others failures. Moreover, it allows the lector

to analyse section by section, and identify clearly the sources of success and the reasons of

failures for each case study.

5.1. Case Study one: Yacht Brokerage Insurance Agency

5.1.2. Presentation of the case study

The building trade of insurance brokerage agency is to find the best insurance at the

lower price for their clients. To reach this objective, the insurance brokerage company

develops agreements with national or international insurance companies to allow him to sell

insurance products. In facts, an insurance brokerage agency is an intermediary between his

clients and insurance companies and represents his clients.

Within a desire of confidentiality, the insurance yacht brokerage agency will be called

“Alpha”.

Customers

Alpha

Insurance

Companies

Figure 19 - Insurance brokerage agency work process

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Process to create and insurance contract:

1- A prospect sends to Alpha an insurance quotation request by our website or by phone

2- Alpha, turns to insurance companies to realise quotations and suggest the cheapest one

to his prospect.

3- If the prospect agrees with the proposition, he sends back the quotation duly signed

and dated with the payment of the insurance.

4- Alpha receives the document and sends it to the right insurance company, who will

establish the final contract before sending to Alpha who will send it to the client.

5- In case of sinister, the client declares the sinister to Alpha who will inform the

insurance company. The insurance company manages all the sinister resolving

process.

Alpha has been bought out by the actual owners (a couple of insurers) in 2008. At this

time, because all the management of the firm was made without management software and

with a poor marketing investment, the actual owner reorganized the major part of the

management and developed the major marketing tools of the firm.

The implement of a management software package was necessary for two reasons. The first

one was to facilitate the operational operations (new contract creation, contract renewal,

accountancy, sinister management…) and the second one, to ensure the credibility of the firm

regarding insurance companies.

The particularity of this firm is to have a mandate with one insurance company. Only

three companies in France enjoy this type of special agreement with this insurance company.

This mandate allows the firm to manage by itself all the process of contract creation, contract

renewal, sinister management, and sinister payment without the help of the insurance

company. Comparing with the usual work process previously described, this represents a

major competitive advantage for our firm. All is managed in our office, and all the

information‟s are kept by us. It allows us a major reactivity, the customer‟s satisfaction and

the reduction of intermediates.

Of course, to benefit from this special agreement, Alpha has to complete special rules,

transmit reporting and funds every month. In this context, implement a software package was

fundamental to facilitate the complex insurance company‟s requirements. Alpha has to be

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completely transparent vis a vis the insurance company which can send, at any time, an

auditor to control the management of our firm.

The software package intervened as a tool to answer the necessity of simplifying the

operational processes and guaranteeing a perfect following of the company functioning.

In July 2009 I integrated this firm as an apprentice. When I arrived, the owner of the firm

asked me to evaluate and facilitate the using of the software package. Like an internal junior

consultant, I started my investigations by asking and working with users of the software

package. This led me to understand the using and the complex functioning of the software.

The results of this investigation revealed several trouble spots.

- The first observation was that the software is complex to understand and requires

preliminary skills to be used. Most of the actions on the software depend on the human

capacity to use it and the software presents a lack of barriers to prevent errors.

- The second observation was that nobody in our firm had a complete knowledge and

good use of the software. Every week, users of this software have to call the helpline

of the software supplier to solve problems they have create by the lack of required

skills to use this software properly. These types of problems occurred in production

department as in accountancy department.

- The third observation. In this management software, like in others, users have the

possibility to generate request to have access to information kept in the software data

base. This type of request allow users to exploit accountancy information, make

production reporting, clients or prospect segmentation, emailing… and even more.

The huge number of existing requests, with similar titles have created confusion:

which one should they use ? Additionally, similar requests were giving different

results, this creates a major interrogation, are they reliable ? But the major problem of

some of these requests was their reliability. A list of requests was used to create the

insurance company‟s reporting. We discovered two years after the software package

implementation that, reporting‟s figures were false, and consequently, the funds sent

to the insurance company were also false.

- The fourth observation shows that the software helpline people and the Alpha‟s

employees were not speaking the same language. Alpha‟s employees had strong

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difficulties to make helpline people understand their requests, and vice versa when

helpline people wanted to explain solutions of our problems.

- The last observation shows that, because of the previous identified problems, tensions

were palpable between Alpha‟s employees. In general, when problems are identified

in the production department, the production manager attempts to solve problems

directly with the software helpline. When problems are identified by accountancy

department, the accountancy manager, who owns the firm with her husband, instead of

trying to find solutions together to solve problems, or make a clear request to the

software supplier, starts to create conflict before searching to solve them.

If I had to describe the personalities of my colleagues, I should have to speak about the

owners of the firm and the production manager.

Denis, one of the owners, is the main motor of the firm. He is a real developer and is

always going ahead, but without regarding if people are following him and have a good

understanding of what he is expecting. Likewise, because of frequently directive changes,

employees don‟t have a clear vision and mission. In addition, some internal troubles make

that people don‟t trust him. He is not working on full time in Alpha, most of this work time is

dedicated to another own company.

The accountant manager, the second owner, shows paranoid rigidity. She disapproves

changes because of ancient experiences. She doesn‟t reappraise the reasons of her

dissatisfaction vis à vis of previous change. If she comes across a problem, she concentrates

on it rather than attempt to find a solution. Furthermore, she is a conflict generator in the firm.

The production manager has some doubts, incertitude, questioning and show some

breathlessness. She needs a clear objectives reminder and definition of the stakes. It‟s

important to explain to her the meaning of the tasks she has to realize. She needs to be

reassured. Regarding change, she is neither a break, nor a motor for change. She accepts the

change if she understands the goal of change. In France, based on experience, most of

changes are perceived as unfavourable by employees.

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Afterward, my role in this company has therefore been to improve the use of the

software package, to develop its capacities and to manage the correction of errors existing

since the integration of the software package. According to that, I learnt to use the software

with the help of the helpline. As my fellow workers and my managers did not understand the

language of the developer, I decided to act as a translator between my company and the

software provider.

Concerning the use of the software package, I did my utmost to create a great number

of tutorial programs with the help of the hotline, by meticulously listing each stage to apply

for the various actions. Once they were realized, I put them at everyone's disposal through a

shared server .With the feedback of each one, these tutorials have improved up to be

understood by everybody .We can still make mistakes but the risk of errors has been lowered.

These tutorial programs have consequently showed much interest not only for today users but

also for the training of newcomers.

As to the developments to bring up to the software program, I had to understand and

evaluate the needs of each part. To reach that target, I had to concentrate on the way to

approach each personality of the company.

DENIS, the manager of the company, knowing that he was little available, I compelled

him to spare some time with me to understand his expectations in order to define the

specifications for each subject he would like to be realize . I have drawn up these

specifications myself so that they could be understood by the developers of the software

package.

With the accountant manager who owns the company at equal parts with DENIS, I

have examined the problems she was confronted to and I made her duly understand that

several days of work were not a loss of time as far as we would find appropriate solutions.

These few days or intense work for each problem might then allow an improvement and

simplification of daily tasks.

With the production manager I developed a confident relationship in order to show her

that I was not there to control her but to help her. Therefore this gave me the opportunity to

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implement changes of functional level. The realization of my tutorial programs has allowed

her to reduce the amount of errors of daily input. Furthermore, as we were entertaining a

relationship of confidence, it allowed me to set up tools of follow-up, asked or not by the

management, and at the same time showing her that it could be done not only for the company

interest but also for her own interest.

We have developed, together, tools which up to now were non-existent, and which is

more, of which they cannot do without nowadays. Little by little, after having solved

important subjects with each one and achieve precise specifications, I turned to software

package developers in order that they should create or correct the applications we were in

need of.

Experience teaches! As I had noticed before, that the requests and the developments

needed when the software package was integrated, did not correspond to the initial requires

for each solutions brought by the furnisher of the software package, I forced myself to check

each result. To control each solution was for me not only a requirement but also a token of

reliability.

Nowadays it is still necessary to carry out some small adjustments but we work on

a sound basis! Most of the difficulties we came across were due to a lack of control of the

tools created when the software package was set up, and also at a lack of knowledge of the

first users.

5.1.2. Type and origin of change

In this company, the aim of the change was reengineering software. It appears as an

organizational revolution in the management process for the firm. For the employees, the

impact of this change was nil because Alpha was just bought out and there were only new

employees that came to the firm.

The firm was working without management software; consequently it was an easy task

for managers to complete the first step of reengineering Hammer‟s theory: “recognise and

breaking away from the outdated rules and fundamental assumption”. Regarding the second

and the third steps “The reengineering team must ask Why ? and What ?” and “Reengineering

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efforts strives for dramatic levels of improvement”, because employees was new, managers

don‟t had to face to revolve employees behaviour.

This change have been decided by the initiative of the managers in order to facilitate

the days to days management and ensure their firm credibility regarding insurance companies,

and with the objective of developing new agreements. This motivation for change is

considered as Endogenous change force, this is a response, or anticipation, related with the

life cycle of the firm.

According to the Larry E. Greiner‟s theory (1972), Alpha was characterized as a firm

in the creativity phase, while Alpha set up for more than 20 years… In this context, the Robert

E. Quinn & Kim Cameron Cameron approach (Organisation Life Cycles and Shifting Criteria

of Effectiveness: Somme Preliminary Evidence – 1983) is more appropriated and Alpha is

considered in an entrepreneurial stage.

5.1.3. Strategy and process of change

5.1.3.1 Strategy

The strategy adopted by this manager was a Top-down strategy. Because of none hold

employees, the managers could not integrate employees in the process of defines the software

requirements. So, they have chosen a software package provider, and then implement the

software in their enterprise.

5.1.3.2. Process

The ordered software was composed of a common base to which it is possible to add a

large number of applications based on the requirements and needs of buyers. To ensure that

the application requests correspond to the requirements of the Agency, the business owners

have been created a list of their requirement with all of their needs.

Thinking that the use of the software was easy to learn, just one people of the firm had the

opportunity to have a trainee about the software, the accountant manager, which is one of the

owners of the firm. These trainees have been during two days.

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The owners of the firm decided that the production manager will learn about the use of the

software by using it and calling the helpline centre in case of doubt, or problem solving.

5.1.4. Rigidities management strategy

Because of the specifically context (New company for the owners and new

employees), the implement of change was really simply. The software was installed, and

people started to work with.

At the choice of the change and the implement of the change, the owners of this business

therefore did not have to manage potential resistant to change. Which either allows a

considerable time gain and turns out be a real asset.

5.1.5. Conclusion

In this case study, the conduct of change took place without difficulty. However, the

emergence of complication occurred within months, years that followed.

Indeed, from the outset, in everyday use, it was necessary to consult very frequently (several

times a week) the helpline to support the lack of skills of users to ensure a normal use of the

software. Moreover, it was also necessary to call the helpline to correct some application.

The consequences of this change:

- Loss of time

- Frequent problems

- Tension in the enterprise

- Tensions between Alpha and the software provider

- Incorrect information

- Questioning the competence of the supplier of software

- Reliability of the company affected by insurance companies

It is difficult more than three years after this change to say what could have been the

solutions to be applied at that time in order to don‟t have to suffer the complications

encountered since then. However, it is possible to determine the factors that will have to allow

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for the downgraded. Indeed, the application of certain key success factors presented in section

4.4.2. “Keys success factors in change implementation of my research could allow to

anticipate these problems, notably the key number 10, "Train and Coach" from b. Grouard &

f. Meston (1995). If users of the software had all received full training to learn how to use it,

the daily work of users would surely not been so penalized.

Furthermore, once a new application is created or integrated in the business, it seems

necessary and indispensable to control all the details of this application. This control could

then have allow to avoid the mistakes of reporting and therefore funds errors.

My intervention in this enterprise as apprentices and my ability to communicate with my

business managers, and developers of the software allowed me to manager these problem

resolutions. We're now not protected from human error and fear the emergence of new

problems.

One of the solutions envisaged by the motor of the development of this company, Denis (non-

user of the software), will be to change the software. Its strategy, do it lonely…

5.2. Case Study two: French Company


Meeting with Mr A. R. , Operational Manager in a French Company.

This firm is specialized in the manufacture of effervescent granulated powders sold as

such in bags or under the shape of tablets.

If the work instrument of production of this enterprise is rather complex, the different

circuits of information‟s flows is on the whole rather simple. The main need concerning the

follow-up of information and the total traceability are imperative in what concerns this sector

of activity, and of course this applies for each batch of manufacture.

When the shareholder of this company has offered to improve the information system

management of the firm, Mr R. has right away understood the possibility to change of IT. The

objective being to move from archaic systems, to a modern one allowing then a simplification

of the tasks and productivity improvements.

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The role of Mr R. when leading this project has then been to build and manage it

entirely. Right from the beginning, A. R. has included the key elements of the team by giving

them the sense of their responsibility and appropriates the project for themselves. Three

persons were concerned: the production manager, the quality manager and the commercial

assistant. Mr R. asked them to organize altogether a meeting where they should think over

what they would like to change and what they might wish to be settled. "Their reaction was

instantaneous! A true envy, a real sense of responsibilities, and a genuine desire to be part

and parcel in this project and make it their own."

As and when the first report of this meeting was established, the team possessed a

tangible basis for working. As the team was working on its own, Mr R. played the role of

decision-maker; he would then choose according to the suggestions formulated by the team in

charge of the project. To realize this project, an informatics team joined the initial project

team and perfectly integrate itself in its frame of mind.

The project was built together with the achievement of synthesis documents which were each

time more sophisticated in order to determine exactly the needs of the enterprise and build an

optimum solution. The settlement of this new system of information was quickly established,

without any revolution nor nerve crisis, and the wished results were reached.

"I think that the success of our project rests above all on the spirit of mind that motivates us,

that is to say: a real team. Everybody must play his role, feels at ease at his post and much

concerned by the change."

The delegation and the sense of responsibility of each one have proved to be essential

in the implementing change process and of course they are due to the capabilities of the

manager leader. In all organization, all project management you need a leader who will be

able to induce his team with him and take the decisions which will involve the organization.


For this firm, the change of IT was a real organizational revolution. The goal of this

change was to make possible the replacement of different IT with a single solution systems.

The requirements for this new IT was to consolidate all features necessary for the proper

functioning of the business and ensuring the traceability from orders to the end product. This

type of change is characterized of discontinuous change.

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The characteristics of the discontinuous renewal perspective are revolution over

evolution, disruptive innovation, creative destruction, radical pace of change, sudden break of

the status quo, a stable and unstable possible of states and a punctuated equilibrium (De Wit

and Meyer, 2004, p.182). According to P. Daudi (2011), revolutionary change makes a clear

break, has clear fracture with the past and its usual ways of thinking and doing.

The motivation for change emerges from the shareholder. The old informational technologies

were working well, but were complex. So this change emerged from inside the firm, it was an

endogenous change force who wanted to improve the IT.


5.2.3.1. Strategy

The strategy adopted by the firm‟s shareholder was to mix top-down management and

down-up management. The shareholder perceived the need to improve the business

information systems to simplify and facilitate the process of management of the firm. In this

context, employees were directly impacted. To that aim, the shareholder has therefore decided

the change (top-down management) and directly integrated the employees of the firm (Down-

up management).

5.2.3.2. Process

According to the Lewin‟s theories, the shareholder in the first step of change unfreeze the

current situation by increasing the driving forces, offering development possibilities and

adopting a participative management.

For the second step, the Moving phase, employees understood quickly their interest in

changing IT systems. They had the opportunity to make the most of this situation. From the

beginning of the project, the shareholder used one of the levers presented by Lewin: “Work

all together to find new perspectives”.

Once the change has been implemented successfully by the employees and the help of an

informatics team, the Lewin‟s third step was simple to implement. “Refreezing the new

situation” was in fact, refreeze employees‟ job.

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To prevent rigidities to change, the shareholder of the firm used some of the keys

success factors presented in this research (4.4.2. Keys success in change implementation):

Key 2: Creating the guiding coalition

- Putting together a group with enough power to lead the change

- Getting the group to work together like team

Key 3: Canalize

- Define the structure of the project

Key 6: Mobilize

- Create a dynamics of change near the employees

- Ratify the stakes defined in the vision (project)

- Define the main axes of improvement.

Key 7: Organize the participation

- Make sure of all concerned employees‟ participation, not only to enrich their

vision but also to make its "concretisation" easier.

Key 13: Manage the stakes of power

- Redirect the relations of power to guarantee their coherence with the vision

- Make it participate efficiently to the process of change.

Furthermore, we can establish a relation with the shareholder‟s behaviour and Hersey

&Al. theory of situational leadership. Indeed, the shareholder adopted a delegating

management with A. R. He doesn‟t really encourage and support him, giving him the

opportunity to show he had the ability to lead a project by himself and prove he could be

considered a senior executive. This demonstrates the confidence of the shareholder to A. R. ,

and it surely played an important role in this project. A. R. felt that a mission whose outcome

depend directly from his leadership abilities.

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5.2.5. Conclusion

The success of this change was made possible by an appropriate management. The

shareholder first decided change, convinced of the merits of this approach. The goal of this

change of IT had three main implications:

- A single database for the company, and therefore increase the visibility and

transparency of company managers and shareholder of this company.

- Simplify the daily tasks of employees. This allowed, once the change has been

completed, to free up some time for employees and enable them to focus on other

tasks.

- Free time, why? What goal? Think about new developments.

Implicitly, the shareholder has made what is called a change of culture of the

organization. Thus, the shareholder has activated the eighth lever described by John Kotter in

"The Eight - State Process of Creating Major Change":

Anchoring new approaches in the culture:

- Creating better performance through customer - and productivity – oriented behaviour,

more and better leadership, and more effective management

- Articulating the connections between new behaviours and organizational success

Developing means to ensure leadership development and succession

Conclusion: This is an example of leadership !

5.3. Case Study three: Spanish subsidiary


Conversation with Mr G.L.J General Manager within a French Multinational.

This subsidiary is a firm which produces and commercializes two kinds of magnesia:

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- Caustic magnesia for animal feeding, fertilizers and varied industrial uses such as

pulps or flames retarding panels.

- Fireproof Magnesia for iron and steel industry.

This firm extracts its raw materials from its own mine then transforms them according

to complex industrial processes before the commercialization of fully or semi-finished

products. Therefore this firm is depending on the natural resources of this mine.

In 2007, a study of the soils meant to evaluate the capacity in raw material of the mine

revealed that at the rhythm of the actual working, the lifespan of the enterprise would be of 9

years.

Within a few weeks an enormous organization was set up under the direction of MR

G.L.J.

“The first thought was a strategic one.” What must we do? Close the site at end

term? Envisage a strategic alliance? Sell our "know-how"? Could we find some more ores

near at hand? All hypotheses were then studied, analyzed and fully examined in total

impartiality.”

Considering the different strategic aspects (place of the leaders on the European

market, cutting in the Chinese exportations, etc...) and the project of research meant on the

possibility to open other mines having been well conducted and proved to be possible, it

was finally the strategy adopted by the company. A team was then formed to have the project

stepped forward.

“On the whole, open-mindedness demands a considerable human energy.” The group

of study was composed for the greatest part, of engineers and members of the financial and

legal direction had to be organized in a very rigorous way in order to respect the time allowed,

the procedures, as well as other regulations and environmental constraints. To realize this

project, the role of G.L.J. has consisted in making the members of the team face their own

responsibility, control the smooth running of the process on its whole, bring his support to the

team and most obviously take the decisions based on the formulated suggestions.

The analyze of the ores of the new work site proved a superior quality when

compared to the one from the first mine .The very important prospects of need of magnesia in

Europe as well as the industrial incapability in answering to this increasing demand (the

reasons being : the limited capability of production, the age of the active equipment and other

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manufacture networks),all that made the managers conscious that their thought had not to be

only limited to the supplying of raw material. The productive equipment had to be optimized.

Therefore, the direction had to answer that question:" What must we do

to ensure the permanence of our enterprise but above all its global development? "

“From that moment, my role was to launch various strategic thoughts by summoning up all

the resources of the firm and make them responsible masters of their destiny ". These

different reflections have been meant to determine what the products will be, for which

markets and in which quantities.

"Concerning my teams, these two last years have been absolutely exceptional .We made up a

true enterprise project that proved to be as federative as exiting ".

The first project team which had been organized for mining subjects, was followed by

two others: one to study the commercial side and the possible axes of development and the

second having to concentrate on industrial sets of problems: think out the tomorrow plant...

"It was inconceivable that these three teams should work independently". Starting from that,

Mr G.L.J. has aimed to make these three teams work together .To make these

teams understand that they had a common objective has proved to be the key factor in this

implementing change process.

From Mr G.L.J 's point of view ,the key factors which have allowed the success of this project

are as follows :

- The ability to make teams face their responsibility by appropriating the subjects.

- To have known to give time, to compel to respect the time allowed together with

results, respecting of course the constraints of each one.

- To have succeeding in letting skills and ideas be expressed, by pushing the teams to

have confidence in themselves, be imaginative and rich in propositions.

- To have known to reassure the teams not only as to the future and the potential of their

enterprise but also as to the role they were now playing and that they will be playing in

the future.

Coming back to this last key factor, the objective to make each team to be confident in

itself was to make them project onto future and to allow these persons to feel their works were

in danger and thus fearless recruit the real necessary skills that the enterprise needed. As to

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the recruitment, three very heavy potential key jobs were created: one mines engineer, an

industrial project manager and a purchase manager.

Two new commercial directions of zone were created to accelerate the commercial

development: South America and Pacific Asia .Besides, it was also the opportunity to set a

new organization for the commercialization of caustic magnesias on a worldly scale.

It, was quite something to find solutions for their enterprise, but it was something harder to

convince and "succeed in selling the project" to their shareholders. Although the shareholders

of this enterprise have the soul of enterprising developers, they nevertheless

remain financiers. All the same, to invest 40 million euros in two years require some

explanations, guarantees of profitabilities and returns on investment.


In this enterprise, change has emerged as a necessity. This type of change is regarded

as a discontinuous change but do not generate the different characteristics developed by De

Wit & Meyer (2004): evolution over revolution, disruptive innovation, creative destruction,

radical pace of change, sudden break of the status quo has stable and unstable alternation of

states and a punctuated equilibrium. And appears more like an evolution than a revolution.

Indeed, the search for new mines in order first is a discontinuous change, the company

worked on a mine which began to be exploited in 1945. However, despite the fact that the

change is discontinuous, it is characterized by evolution over revolution. Indeed, such changes

occur as continuity in the life cycle of the firm.

This change occurs in a context where the company suffers from an alteration of those

resources in raw materials. It must therefore respond to its environment. The origin of this

change is due to an exogenous force of the company.


5.3.3.1. Strategy

The strategy adopted by the shareholders was to mix top-down management and

down-up management.

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In the present case, the role of top-down management was evaluating "life expectancy

of the mine" to anticipate the future. The results of this study have allowed the shareholder to

realize their future.

The down-up management. G.L.J. , General Manager in the French Multinational

decided to integrate the managers of the Spanish subsidiary in the project of change. Their

mission: build the project, find new sites of exploitation, build an action plan, an investment

plan and create a business plan in order to propose and convince the shareholders.

5.3.3.2. Process

According to the Lewin‟s theories, the shareholders in the first step of change unfreeze

the current situation by increasing the driving forces. To increase the driving forces, G.L.J.

decided to play it straight: At the actual rhythm, in 9 years, in there is no solution, the

enterprise should have to close.

For the second step, the Moving phase, employees understood quickly their interest to find

solution. If there are no new mines, they should have to dismiss the 200 employees of the firm

and find another job. They were master of their future and had the opportunity to make the

most of this situation. From the beginning of the project, G.L.J. used one of the levers

presented by Lewin: “Work all together to find new perspectives”.

The project has been build and all the requirements were complete (find new sites of

exploitation, action plan, investment plan, business plan). An investment plan of 40 million

euros in two was presented, and compare with the business plan perspectives, the shareholders

accepted to finance the change. Once the change has been implemented successfully by the

participation of managers of the firm and the new employees (Mines engineer, industrial

project manager and a Purchase manager), the Lewin‟s third step has not been problematic,

“Refreezing the new situation” was refreeze the project made by the employees of the firm.


To manage and anticipate rigidities, G.L.J. expressed his strategy and the keys success

factors he used to decrease the resistant forces of the Lewin‟s theory, but unconsciously he

used another key success factor previously presented in the theoretical framework:

79

Key 1: Establishing a sense of urgency (Kotter – 1996)

By playing it straight, establish the sense of urgency, and this factor acted as a driving

force.

5.3.5. Conclusion

The difference between failure and success in implementing change in an organization

depends highly on the people themselves (Ph DAUDI).

The success of this change was made possible by an appropriate management and strategy.

G.L.J. empowered the manager of the firm by giving them the opportunity to save their

enterprise. The keys success factor previously presented in the case study by G.L.J. and the

last one describe above had played a major role in the project of change and during the change

implementation.

This case study highlights the role of the leadership in change management and the

importance of the people within the firm.

80

5.4. Case study four: French Multinational


Conversation with C. Ramon, Information System Manager in the Groupe Roullier.

This French multinational has a turnover of 2 milliards euros, employs more than 6000

persons among which more than 50% work abroad in more than 60 countries.

C. Ramon been working in this firm for roughly 20 years and started as a data

processing manager.

During this interview, C. Ramon explained me one of his worst experience in change

process during his career in this firm. Few years ago, CEOs of the multinational had decided

to change its French IT, and therefore to shift from systems often mostly developed at home

to an ERP system. The stake was a thumping great one.

To deal with this situation the firm recruited a project director specially well-trained

for this kind of change, and made sure to be assisted by a consultant agency, as well for the

analyze their needs as for helping the company to manage the change for the chosen ERP.

Several software programs have then been studied; together with a great number of

days of consultancy entirely aimed to what should be the best choice.

The software program was selected...

And the project was launched ... and totally stopped after two long years during which

the company went from failures to failures and also after having spent nearly 2 million

euros...

“What were the reasons ? They were at the same time simple and complex, human and

technical”.

After a few years the company has to admit that it all appears more obvious...

At first, concerning the technical side ,the home software packages had been

developed and freely adapted by each line of work, sometimes leading to enormous deviations

in the systems of informations between the two companies.

Each one wanted to keep its own specificities, refusing then to focus on the same

standard even when it was imposed by the ERP and not the other way round...even being

aware that some likely adaptations were unavoidable...

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But the main reason of this failure was a human reason. To have willed to impose choices by

people from outside the firm has been an important mistake.

The home teams have never appropriated the project. They basically lived through it as an

imposed event and their resistance to change has been almost automatic.

The management felt itself rejected, even for instance in what concerned the financial

management .The administrative and financial managers who had almost not been integrated

in the primary brainstorming sessions, have right away alerted and informed of the risk ...

“Today it is obvious that we ought to have integrated them to the project of change.

They could have acted as levers but instead, bit by bit, they changed into brakes.”

People entirely disagreed with the project manager who found himself gradually isolated, then

withdrew into himself and his convictions rather than playing his role of leader.

“To draw a conclusion: in change management, one should never underestimate the role of

the leader who should be carefully selected and make sure that he will know how to give

others the deep desire to participate , to totally handle things in order to make the project

become a success.”


For this French multinational, the change of IT was an organizational revolution. The

goal of this change was to make possible the replacement of different IT with a single solution

systems. The principal difficulty of this change was to develop an IT able to manage various

enterprise having different business trade. This type of change is characterized of

discontinuous change.

As it was describe in the previous case study, he characteristics of the discontinuous

renewal perspective are revolution over evolution, disruptive innovation, creative destruction,

radical pace of change, sudden break of the status quo, a stable and unstable possible of states

and a punctuated equilibrium (De Wit and Meyer, 2004, p.182). According to P. Daudi

(2011), revolutionary change makes a clear break, has clear fracture with the past and its usual

ways of thinking and doing.

The motivation for change emerges from CEOs of the multinational. The old

informational technologies were working well, but this structure enables the holding to have

easily access to the whole information. So because this change emerged from inside the firm,

it was an endogenous change force who wanted to improve the IT.

82


5.4.3.1. Strategy

In this case, it clearly appear that the strategy adopt by the CEO was a top-down

management. The CEO decided to employ a project manager and a consultant agency in order

to develop the future IT. This change was impacting all the French enterprises of the

multinational group, and consequently all the employees.

5.4.3.2. Process

According to the Lewin‟s theories, this firm never over pass the first step of change:

unfreezing the current situation. At no time the project manager of the firm attempt to

increase the driving forces to find the equilibrium between driving and resistant forces, on the

contrary, his change strategy has the result of increase the resistant forces.


As I said previously, the project manager has to face to strong rigidities. And most

surprising was the instance in which he tried to force change. As a result, rigidities increased

and employees have refused to make any concessions.

5.4.5. Conclusion

As I did not take part by myself in this change project, I would like only to make

comments according to the information which had been transmitted to me.

From my point of view, to impose change in all of the French firms of the multinational,

without considering or engaging nor manager, no users of the using IT at this time, has

directly had a negative impact on the realization of the project.

In this context, person not wished to consider the interest of change. And therefore, nobody

made the effort to try to consider the possibility of making concessions to reach a solution.

The persons concerned by the change is only seen that they imposed their a revolution of the

IT and their uses.

83

The impact for the multinational has been an investment of EUR 2 million who finally proved

to be a deadweight loss for the multinational, since the project was abandoned.

I will end this case study with a citation of Albert Einstein: "A person who has never

committed error has never, innovated”.

84

Chapter 6 : Conclusion

In this final section, I will present emerging findings of my case study and the

concepts discussed in my research and that seem to me crucial in the conduct of change. My

case study focusing on to SMEs or national implementations, these recommendations will

find more interesting in the context of management of proximity than in an international

context.

The change management is not an easy task. The research that I've developed thanks

to both a theoretical and empirical framework showed that the great difficulty of change

management was due to human behaviour. "Human behaviour" is a relatively broad term, in

this approach the goal is to demonstrate the importance of behaviour, both at the level of the

managers and of leading people through change.

Of course, the four case study analysed in this Master Thesis will not allow me to

make any conclusions or theories that can be generalized. However, I hope that my comments

will find a useful in any way.

Manage the change requires special skills, and is today one of the most complicated

tasks for leaders.

My theoretical research as well as the different case study examined allowed me to

highlight the role of the leader in the conduct of change. Two case study showed that top-

down management found its limits as a mix between top-down and down-up management

boosters on evidence-based optimizations. The success of implement change is thus directly

dependent of the leaders of the company, or persons having the capacity to decide the change

and its application. Whether the change is one thing, have the ability to implement it is

another.

According to my approach, one of the main strengths of the leader is its ability to

create a favourable environment for the personal development of employees of the company

(ref: Situational leadership - 4.5. Human factor Management, a leader‟s key success factor in

the process of change). The aim being to create a climate of trust mutual between the leader

and staff of the firm. Confidence is an "invisible social lubricant". This means that the trust is

a real asset. The simplest example that illustrated this idea is friendship. With a close friend, a

trust is created. We are listening to his advice, and giving him our support in case of need.

Create a climate of confidence is a daily work and often takes time. Once this objective is

achieved, it is necessary to cultivate it because confidence is fragile. In an environment or

85

employees do not trust to the manager, he will face to important brakes when he decides the

change. In this context, the trust is a factor promoting the flexibility of a business, and

therefore its ability to change.

Another factor highlighted in the case study presented in this Master Thesis is the

importance of participative management. Empowering employees, and make them master of

their destiny is a technique proven in the cases presented. For any strategic changes, it is

essential that the manager leader framework the change and define objectives. However, in

order to make the employees following the change, it is important to integrate them in the

solutions research. In this approach, the quality of leadership depends implicitly to his ability

to lead employees to make by themselves the solutions expected by the leader.

The last point that seems to me essential is a phase of control. The bad experience

encountered during my apprentice will have taught me one main thing in the implementation

of change, especially when working with external suppliers: control the functioning of the

desired application delivery. This observation may seem to be evident, however the presented

case shows that this was not always the case.

86

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