_Organization Effectiveness and Change

Organisational Development & Change 12MBAHR447

These aspects are also referred to and supported in John Kotter's leading change model
such as in "John Kotter Error 5, not removing obstacles to the new vision". This is very
important point because it reinforces that to sustain change, to freeze, something has to be
in place to maintain it. This may mean removing existing business systems and
structures, etc that are now clearly inconsistent with the new 'as is'.

Mental Models: One key to change success is in surfacing deep-seated mental models -
beliefs, values, mind-sets and assumptions that determine the way people think and act.
Getting in touch with the thinking going on about change in your workplace, challenging
or clarifying assumptions and encouraging people to reframe is essential. Leaders learn
to use tools like the 'Ladder of Inference' and 'Reflective Inquiry' to practise making their
mental models clearer for each other and challenging each others' assumptions in order to
build shared understanding.

Change Need Analysis:

-field analysis to identify and eliminate barriers to the change sticking, whilst
maintaining a forward looking focus on the new installations.

consistency.

and agenda's to support the improved status and processes.

Content of change:
Force Field Analysis

One of the great instruments of implementation success, the Kurt Lewin Change Management
Tool that helps bring it all together. Force field analysis (Kurt Lewin force field analysis) is used
in project implementations for positioning. To help determine what aspects of the business are
supporting the project, and what are the issues and forces working against it. It's also great for
using is actions-output focused meetings.

TYPES OF ORGANISATIONAL CHANGE:

To change is to move, from the present future, from a known state to a
relatively unknown state. Types of changes are as follows:

Ø Happened Change. Page 51
Ø Reactive Change.
Ø Anticipatory Change.
Ø Incremental change.
Ø Operational Change
Ø Strategic Change.

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Ø Directional Change.
Ø Fundamental Change.
Ø Total Change.

Ø Transformational Change

1.Happened Change
Ø This is change that is rather unpredictable.
Ø It takes place naturally due to external factors.
Ø It is out of direct control and produces a future state that is largelyunknown. Ex: Currency
devaluation, over whichit has no control adversely affects the business of a company that has
toimport its basic raw material

2.Reactive Change
Definition: Changes that are in response to an event or a series of events are
termed reactive.
Ø Generally most f the companies are engaged in reactive often incrementalchange. These
changes are attempted when the demand for a company’sproduct service registers an increase or
decrease ,or a problem of crisisoccurs.
Ø Eg:1.Technological changes forces organisations to invest in moderntechnologies. The
incorporation of the latest technology may be due to theincreased demand for the product.
Ø Recreation is also a reactive change ,but it involves the org in its entirety &occurs when the
org under severe crisis

3.Anticipatory change
Ø Change carried out in expectation of an event or series of events is calledanticipatory change.
Ø Reorienting themselves to future demand would involve making incrementalchanges
Ø Re-orientation is moving from ‘here' to there in anticipation of a changingenvironment.
Ø It involves changing the org fro the existing state towards a designed futurestate & managing
the transition process.

4.Planned Change

Ø Planned Change is also called as Developmental change because it is
undertaken to improve upon the current ways of operating.
Ø It is calculated change-initiated to achieve a certain desirable
output/performance 7 to make the organisation more responsive to internal
& external demands.
Ø Examples of Planned change are:
1.Enhancing communication skills & technical expertise.
2.Building teams.
3.Restructuring the organisation.
4.Introducing new technology.
5.Introducing new products and services.

6.Changing the incentive system.

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5.Incremental Change

Def: Changes directed at the micro level & focused on units/subunits/componentswithin an org
are termedincremental changes.
Ø Changes are brought in gradually & are adaptive in nature.
Ø It also provides the organisation an opportunity to learn from its ownexperiences.

6.Operational Change
Ø Operational change is required when an org needs to improve the quality ofits products or
services due to external competition, customers, changingrequirements & demands, or internal
organisational dynamics.
Ø The organization's goals remaining the same .the focus of change is how toimprove the
existing operations to perform better.
Ø Operational changes include:
1.Bringing in new technology.
2.Re-engineering the work processes.
3.Quality Management.
4.Betterdist& delivery of products.
5.Enhancing the interdepartmental co-ordination. .
7.Strategic Change
Ø Change that is addressed to the organisation as a whole or to most of theorg’s components,
including strategy ,may be called as strategic change.
Ø Ex: Change in the org management style
Ø It can attempt to create an org which is less hierarchical, linear, flexible,decentralised&which
allows itself a considerable degree of autonomy

Ø This may affect the entire org & will influence its performance.

8.Directional Change

Ø A change in direction may become imperative for an organisational due tosevere competition
or regulatory shifts in government policy & control.
Ø Eg: Pricing, Import/export restrictions.
Ø Directional Change is also critical when the org is developing a new strategyor incapable of
executing effectively its current strategy.

9.Fundamental Change.
Ø This includes the redefinition of the current purpose or mission of the org.
Ø It may be necessitated by the drastic change in the business environment,failure of current
corporate leadership, problems with employee morale, or alow turnover.
10.Total Change
Ø The org is constrained to develop a new vision,& strong link b/w its strategy
,employees& business performance.

11.Transformational Change
Ø Transformational Change is, A change in what drives the org

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Ø Eg: The org could shift from product driven to being technology or customer
driven.
Ø A fundamental change in the relationship among organisational subsystems
Ø Eg: Changing to a greater degree of decentralization or moving to a strategic
from a bureaucratic management.
Ø A major departure in the manufacturing process or the way of working.
Ø Eg. Introducing automation, robotics & other advanced technologies.
Ø A change in organizational norms & culture.
Ø Eg: The cultural revolution at siemens AG of Germany.
Ø Such a change involves the entire or greater part of the org.
Ø It could be a change in the shape(size & complexity),structure(systems,ownership),or
nature(basic assumptions, culture, technology) of the org.

Providing leadership to change: Good leadership matters the most in the change
process. Ex: Infosys: during it’s recent leadership change , the company effectively
handled change as it has very unique & strong leadership skills & very qualified
resources.

ACTION RESEARCH

 • Definition: Action Research refers to a change process based on the systematic

 collection of data & then selection of a change action based on what the
 analyzed data indicate.

 • It provides scientific methodology for managing the planned change.

PROCESS OF ACTION RESEARCH
The Process consists of 5 steps:
 1.Diagnosis.

 2.Analysis.

 3.Feedback.

 4 Action.

 5.Evaluation.

Organisational Vision: is the binding force which reveals the direction in which the
organisation is proceeding ahead. It gives the clear direction to the organizational components
about their goal & objectives.

Strategic Planning:

Most organisations have vision and or mission statements. Many also have values which
underpin these. However, few organisations:

1. base their values on customer feedback

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2. involve their employees in the development of values
3. link these values to their brand
4. encourage their employees to align their behaviours to the values

reward their employees for ‘living the brand’

Process oriented Strategies:

Customer oriented strategies:

To gain a competitive edge in the market, a company can rely on things like pricing,
innovation or image. But one of of the most effective ways of standing out from the rest
is to offer quality service that meets customer expectations. This will also contribute to
boosting the image of the company. Being customer-oriented requires a long term
strategy that should involve the whole company, from top management to grassroots
staff. It also means a change of mentality and an internal organisation that trains its sights
on a new target: satisfying customer expectations.

 What is Quality Client Service?
 Providing a service that meets the customer’s expectations
 Managing client dissatisfaction
 Management that encourages staff to be client-oriented
 Improving your staff's skills through mentoring
 Treating your staff like your clients
 Evaluating the quality of customer service
 Identifying customer expectations and satisfaction
 Managing customer complaints
 Planning training for your staff

Business Review/ Competitor oriented Strategies:
 Customer Input: Incorporating Perceived Value into Marketing Strategy
 Promoting Ownership: Bringing Customers and Employees into the Value Creation
Process
 How to win customer trust
 Managing CVA to Optimize Your Marketing Activities
 Tailoring Marketing Strategies to New Consumers
 How to build a mobile marketing strategy
 How Cisco went from a sales model to a listening model
 Putting the Ownership Quotient to Practice at TBWA\Helsinki
 Ownership Quotient at Cisco
 Hindustan Unilever Ltd.: Applying a CVA Perspective to Marketing Decisions
 Zappos

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5.

As a consequence organisational values such as ‘honesty’, ‘teamwork, ‘partnering’, ‘creativity’
although espoused by businesses, become no more than empty words: meaningless to both the
customer and the employee. If this is the case, how can a company build culture change around
customers?

Heskitt et al have researched and developed the service-profit chain which shows the inter-
connectivity between internal and external service and profitability. Research is not new but
many organisations still do not recognise that employees need to live the brand promise in order
to both attract and retain profitable customers and create a customer culture.

Organisations such as Virgin, Nike and US retailer Nordstorm, have succeeded in creating strong
brands with powerful brand promises. Through listening to customer needs and via consultation
with employees they have been able to identify brand values which form the backbone of how
they do business with the customer and how employees are managed – in short they create a
customer focus culture that realises the customer vision.

Top team clarity

The ‘inside out’ and believing that the customer is king concept starts at the top of the

organisation. Employees look to the top team to model the desired behaviours in all areas and in

creating a customer focus culture no less. The authors have worked with many Boards who have
encouraged employees to ‘live the brand’. Yet their own behaviour has been far from consistent

with the desired brand values. Little wonder that the values are not adopted on a wide spread
basis and converting customer strategy to customer culture remains a pipe dream.

Organisations such as Barclays and AT&T have developed leadership behaviours and employee
competencies which directly reflect brand values. These in turn are linked to customer needs and
are surely the only way to ensure that culture change around customers is successful.

Members of top teams need to regularly assess to what extent their behaviours in relation to
customer culture are aligned to the brand and the commitment to the customer vision. They need
to also encourage this process across the organisation if a truly customer oriented culture is to
emerge.

Feedback instruments such as 360 can help in identifying how well an individual’s behaviours
match the desired organisational customer focus culture. 360 provides a fully rounded picture of
the perceptions of a person’s behaviour based on manager, colleagues, customers and team
members feedback. Experience shows that in order to set a positive role model, leaders in the
business need to receive, act on and communicate the findings of their own 360. Round tables of
senior managers and staff as well as ‘town hall meetings’ and open forums also encourage a
climate of openness and listening and genuinely converting customer strategy to a customer
focus culture.

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Listen to customers – both internal and external

Many companies today particularly in the service sector carry out some form of customer
satisfaction measurement. When it comes to budget setting, the vast majority of organisations
approve the budget for asking their customers for feedback on how they perceive the
organisation’s performance. However, very few companies develop budgets around what should
be done as a result of the survey findings. It is this “lack of resources” that prevents the vast
majority of companies successfully implementing countermeasures based around the customer
feedback and is the major reason for lack of service improvements and building culture change
around customers.

This problem is not caused by a lack of desire by companies to improve things for customers, but
a lack of alignment between a desire to listen to customers and their organisation’s customer
oriented culture. Although many companies do have a strategic vision of being “customer
focused”, or “customer led” they struggle to implement this through functional strategies such as
the Marketing and Customer Care strategies leading to a failure to implement a genuine customer
culture.

One of the trends over recent years has been to believe that the implementation of a Customer
Relationship Management (CRM) system will deliver the corporate vision in relation to building
a customer culture. Yet many CRM systems have failed to deliver – why?

Findings on the progress of CRM programmes include:

 CRM is a fantasy in most organisations …. Over 60% of CRM projects end in some form of failure
– Gartner Group

 80% of all CRM initiatives fail, and provide no reasonable ROI – vSente Consultancy
 More than 90% of Meta clients are examining the financial justifications for CRM … many are

taking a step back – Meta Group

Fundamentally CRM is a software package that will manipulate data to provide one view of the
customer and further guidance on how to:

 segment their customers
 how to target their customers
 how to package their products to the customer
 how to sell their customer base
 how to bill their customer

CRM does have some success with this, but the crucial element that gets overlooked with CRM,
is that on its own it does not help you understand your customer needs or build a customer
culture. It is always about what you as a supplier can do to your customers, and not what you can
do with or for your customers.. To be “customer focused” and to develop culture change around
customers you need to work in partnership with your customer and allow them to opt into the
relationship. Once customers have opted in, trust and co-operation can be developed which in
return brings mutual benefits. In addition for CRM to be successful employees need to ‘buy-in’

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to the process and to want to make it work. Again, a high degree of trust and co-operation are
required here too if you want to be truly customer oriented.

Building trust

So how do you gain customers’ and employees’ trust and build a customer oriented culture? You
have to start with looking at what are the key elements of any relationship, and these are true for
both the customer / supplier and employee / employer relationship:

 accessibility
 responsiveness
 kept informed
 knowledgeable people
 promptness
 promises kept
 follow up
 no surprises
 do it right first time

This list essentially provides a checklist for any customer or employee satisfaction measurement,
as only when you are performing well against these will your customer / employee start to trust
the relationship. The actual words of the questionnaire would be developed around talking to
both employees and customers to ensure that the questions are phrased in a way that is
meaningful to the customer, and actionable by the company.

Maximise the value of customer feedback

So what are companies doing today? Research by Customer Champions into companies across
Europe indicates that the vast majority are gaining customer feedback, but as the diagram below
illustrates, it is what happens after that data has been collected where the real challenges start.

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MODULE 7:

 Appreciating change: External environment as drivers of change, business
cycles, industry cycles, technology and strategic change, industry evolution and

concentration, developing a change agenda. Cognition and organizational

change, mental models, organizational learning,
 Senge’s five disciplines, business models and value propositions, refining the

o change agenda

****************************************************************************

Managers must recognize and respond to all factors that affect their organizations. This lesson
describes how the internal and external environments of an organization drive change within the
company.

Navigating Change in Organizations

Navigating in today's chaotic business environments is much like trying to steer a tiny boat back
to shore while caught in the center of a hurricane. There are many forces at work that a person
will need to respond to in order to make it safely back to port. Just like this tiny ship, today's
organizations and their managers are faced with a significant amount of factors that require an
immediate response, often in the form of organizational change. The forces that drive this change
in business are known as the internal and external environments. This lesson will discuss how
both the internal and external environments of an organization induce change.

The Internal Environment

The internal environment of an organization refers to events, factors, people, systems,
structures and conditions inside the organization that are generally under the control of the
company. The company's mission statement, organizational culture and style of leadership are
factors typically associated with the internal environment of an organization. As such, it is the
internal environment that will influence organizational activities, decisions and employee
behavior and attitudes. Changes in the leadership style, the organization's mission or culture can
have a considerable impact on the organization.

The External Environment as drivers of change:

The external environment are those factors that occur outside of the company that cause change
inside organizations and are, for the most part, beyond the control of the company. Customers,
competition, the economy, technology, political and social conditions and resources are common
external factors that influence the organization. Even though the external environment occurs
outside of an organization, it can have a significant influence on its current operations, growth
and long-term sustainability. Ignoring external forces can be a detrimental mistake for managers
to make. As such, it is imperative that managers continually monitor and adapt to the external
environment, working to make proactive changes earlier on rather than having to take a reactive
approach, which can lead to a vastly different outcome.

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Changing for the Internal Environment

To better understand changes in the internal environment, let's look at the following example.
After graduating from college, Cassandra decided to buy an existing tanning salon in her
community. Before Cassandra purchased the salon, it was in terrible financial trouble. Many of
the employees complained about the general manager's leadership style, and the staff were often
confused about what products and services they offered at the salon because the manager
continuously implemented his next 'bright idea' with little warning, most of which were complete
failures.

Cassandra knew that if she was ever going to be able to bring any level of success to the salon,
she needed to make several changes to the internal environment of the tanning salon. The first
thing Cassandra did was to fire the existing manager because of his ineffective leadership style.
She replaced the manager with someone who practiced a leadership style that was better aligned
with the company and its employees. Next, Cassandra spent time developing a clear mission of
the company and communicated the new mission to all employees. Over the next several months,
Cassandra spent time getting to know her employees and worked hard to foster a culture that was
positive and rewarding. All of these changes made by Cassandra were necessary due to the
internal forces that were pushing for change, and with the help of her employees, Cassandra was
able to bring the much needed changes to the internal environment of the company.

Changing for the External Environment

If we return to the example of Cassandra's tanning salon, we can also find some external forces
that required additional change at the tanning salon. If you remember, one of the major issues the
staff was having with the previous general manager was his continuous changing of products and
services at the salon. What his staff did not know was that he was trying to respond to external
factors relating to changing customer demands. As a result, Cassandra spent time talking to her
customers to find out what they really want in a tanning salon and was sure to make any changes
necessary to accommodate those demands. Additionally, because of the struggling economy,
Cassandra needed to ensure her pricing was affordable to her clients and comparable to what her
competition was offering for similar tanning services and products at their salons.

Thinking strategically about a company's external situation involves probing for answers to the
following seven questions:

1. What are the industry's dominant economic features? Industries differ significantly on
such factors as market size and growth rate, the number and relative sizes of both buyers
and sellers, the geographic scope of competitive rivalry, the degree of product
differentiation, the speed of product innovation, demand–supply conditions, the extent of
vertical integration, and the extent of scale economies and experience/learning curve
effects. In addition to setting the stage for the analysis to come, identifying an industry's
economic features also promotes understanding of the kinds of strategic moves that
industry members are likely to employ.

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2. What kinds of competitive forces are industry members facing, and how strong is each
force? The strength of competition is a composite of five forces:

 (1) competitive pressures stemming from the competitive maneuvering among industry
rivals,

 (2) competitive pressures associated with the market inroads being made by the sellers of
substitutes,

 (3) competitive pressures associated with the threat of new entrants into the market,
 (4) competitive pressures stemming from supplier bargaining power and supplier–seller

collaboration, and
 (5) competitive pressures stemming from buyer bargaining power and seller–buyer

collaboration. The nature and strength of the competitive pressures associated with these
five forces have to be examined force by force to identify the specific competitive
pressures they each comprise and to decide whether these pressures constitute a strong or
weak competitive force. What forces are driving changes in the industry, and what impact
will these changes have on competitive intensity and industry profitability? Industry and
competitive conditions change because forces are in motion that create incentives or
pressures for change. The first phase is to identify the forces that are driving change in
the industry; the most common driving forces include changes in the long-term industry
growth rate, globalization of competition in the industry, emerging Internet capabilities
and applications, changes in buyer composition, product innovation, technological
change and manufacturing process innovation, marketing innovation, entry or exit of
major firms, diffusion of technical know-how, changes in cost and efficiency, growing
buyer preferences for differentiated versus standardized products (or vice versa),
reductions in uncertainty and business risk, regulatory influences and government policy
changes, and changing societal and lifestyle factors. The second phase of driving-forces
analysis is to determine whether the driving forces, taken together, are acting to make the
industry environment more or less attractive.

3. What market positions do industry rivals occupy—who is strongly positioned and who is
not? Strategic group mapping is a valuable tool for understanding the similarities,
differences, strengths, and weaknesses inherent in the market positions of rival
companies. Rivals in the same or nearby strategic groups are close competitors, whereas
companies in distant strategic groups usually pose little or no immediate threat.

4. What strategic moves are rivals likely to make next? This analytical step involves
identifying competitors' strategies, deciding which rivals are likely to be strong
contenders and which are likely to be weak, evaluating rivals' competitive options, and
predicting their next moves.

5. What are the key factors for competitive success? An industry's key success factors
(KSFs) are the particular strategy elements, product attributes, competitive capabilities,
and business outcomes that spell the difference between being a strong competitor and a
weak competitor—and sometimes between profit and loss. KSFs by their very nature are
so important to competitive success that all firms in the industry must pay close attention
to them or risk becoming an industry also-ran.

6. Does the outlook for the industry present the company with sufficiently attractive
prospects for profitability? If an industry's overall profit prospects are above average, the

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industry environment is basically attractive; if industry profit prospects are below
average, conditions are unattractive. Five Learning Disciplines...

Business cycles: The term business cycle (or economic cycle or boom-bust cycle) refers to
economy-wide fluctuations in production, trade and economic activity in general over several
months or years in an economy organized on free-enterprise principles.

The business cycle is the upward and downward movements of levels of GDP (gross domestic
product) and refers to the period of expansions and contractions in the level of economic
activities (business fluctuations) around its long-term growth trend. These fluctuations occur
around a long-term growth trend, and typically involve shifts over time between periods of
relatively rapid economic growth (an expansion or boom), and periods of relative stagnation or
decline (a contraction or recession). Business cycles are usually measured by considering the
growth rate of real gross domestic product.

Industrial cycle is the study of the means and processes through which industries change over time,
through their own processes of evolution – as first analyzed by Joseph Schumpeter. It is the
complementary study to that of an industry’s comparative statics, which still dominates economic
analysis. Industrial dynamics, as studied by scholars.

Industry life cycle:

Definition of 'Industry Lifecycle'

A concept relating to the different stages an industry will go through, from the first product entry
to its eventual decline. There are typically five stages in the industry lifecycle. They are defined
as:

i. Early Stages Phase - alternative product design and positioning, establishing the range and
boundaries of the industry itself.

ii. Innovation Phase - Product innovation declines, process innovation begins and a "dominant
design" will arrive.

iii. Cost or Shakeout Phase - Companies settle on the "dominant design"; economies of scale are
achieved, forcing smaller players to be acquired or exit altogether. Barriers to entry become very
high, as large-scale consolidation occurs.

iv. Maturity - Growth is no longer the main focus, market share and cash flow become the
primary goals of the companies left in the space.

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v. Decline - Revenues declining; the industry as a whole may be supplanted by a new one.

• Industry evolution started with industrial revolution in the british collonnial period.

In 1990, Peter Senge published "The Fifth Discipline" (later followed by "The Fifth Discipline
Fieldbook: Strategies and Tools for Building a Learning Organization" in 1994). His books
pulled together his extensive research into what different organisations do to build learning
capacity – and why some organisations use learning better than others.

Senge codified these practices into what he called 'The 5 Learning Disciplines' as well as
coming up with the concept-label of 'learning organisations'.

Developing an Agenda for Change

Drive change within your organization, adapting it to a dynamic environment and controlling
how it evolves.

The many economic, competitive, and global factors that influence how organizations conduct
business are constantly changing and evolving. The ability of organizations to understand these
influences on their organizations and to respond to and adapt to these changes is critical for long-
term growth and survival.
It explains that population, consumption and technology are the primary driving forces of
environmental change. It lays out what needs to be done to reduce wasteful and inefficient
consumption patterns in some parts of the world while encouraging increased but sustainable
development in others. It offers policies and programmes to achieve a sustainable balance
between consumption, population and the Earth’s life-supporting capacity. It describes some of
technologies and techniques that need to be developed to provide for human needs while
carefully managing natural resources.

Developing or Agenda-setting theory

Agenda-setting theory describes the "ability [of the news media] to influence the salience of
topics on the public agenda."That is, if a news item is covered frequently and prominently the
audience will regard the issue as more important. Agenda-setting theory was formally developed
by Dr. Max McCombs and Dr. Donald Shaw in a study on the 1968 presidential election. In the
1968 "Chapel Hill study," McCombs and Shaw demonstrated a strong correlation (r > .9)
between what 100 residents of Chapel Hill, North Carolina thought was the most important
election issue and what the local and national news media reported was the most important issue.
By comparing the salience of issues in news content with the public's perceptions of the most
important election issue, McCombs and Shaw were able to determine the degree to which the
media determines public opinion. Since the 1968 study, published in a 1972 edition of Public

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Opinion Quarterly, more than 400 studies have been published on the agenda-setting function of
the mass media, and the theory continues to be regarded as relevant

Agenda-setting vs. agenda-building

As more scholars published articles on agenda-setting theories it became evident that the process
involves not only active role of media organizations, but also participation of the public as well
as policymakers.Rogers and Dearing described the difference between agenda-setting and
agenda-building based on the dominant role of media or public. Thus “setting” an agenda refers
to the effect of the media agenda on society, transfer of the media agenda to the public agenda,
while “building” an agenda includes “some degree of reciprocity” between the mass media and
society where both media and public agendas influence public policy.

Berkowitz has implemented a more nuanced analysis of agenda-setting and agenda-building
theories by introducing the terms policy agenda-setting and policy agenda-building. He argues
that when scholars investigate only the linkage between media and policymakers, it is still
appropriate to use the notion of policy agenda-setting.However, when the focus is placed not
only on policymakers’ personal agendas, but also on the broader salient issues where media
represent only one indicator of public sentiment, Berkowitz suggests talking about policy
agenda-building.

Three types of agenda-setting

Rogers and Dearingidentify three types of agenda setting:

1. public agenda setting, in which the public's agenda is the dependent variable (the
traditional hypothesis)

2. media agenda setting, in which the media's agenda is treated as the dependent variable
(aka agenda building)

3. policy agenda setting, in which elite policy makers' agendas are treated as the dependent
variable (aka political agenda setting)

Mass communication research, Rogers and Dearing argue, has focused a great deal on public
agenda setting - e.g., McCombs and Shaw, 1972 - and media agenda setting, but has largely
ignored policy agenda setting, which is studied primarily by political scientists. As such, the
authors suggest mass communication scholars pay more attention to how the media and public
agendas might influence elite policy maker's agendas (i.e., scholars should ask where the
President or members of the U.S. Congress get their news from and how this affects their
policies). Writing in 2006, Walgrave and Van Aelst took up Rogers and Dearing's suggestions,
creating a preliminary theory of political agenda setting, which examines factors that might
influence elite policy makers' agendas.

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Cognition & organisational change:

cognitive processes are likely to be evoked in a group or organization when a new schema is
introduced andthat conflicts are likely to arise because of these cognitive processes.

The cognitive effects of agenda-setting

Agenda setting occurs through a cognitive process known as "accessibility." [8][9] Accessibility
implies that the more frequently and prominently the news media cover an issue, the more
instances of that issue become accessible in audience's memories. When respondents are asked
what the most important problem facing the country is, they answer with the most accessible
news issue in memory, which is typically the issue the news media focused on the most. The
agenda-setting effect is not the result of receiving one or a few messages but is due to the
aggregate impact of a very large number of messages, each of which has a different content but
all of which deal with the same general issue. Mass-media coverage in general and agenda-
setting in particular also has a powerful impact on what individuals think that other people are
thinking, and hence they tend to allocate more importance to issues that have been extensively
covered by mass media. This is also called schemata theory.

Business Models & Value propositions:

Organisational Learning – we need to practice the disciplines of personal mastery, mental
models, and shared vision together in the context of effective, healthy, and unified teams.

The 5 Learning Disciplines – Shared Vision, Mental Models, Personal Mastery, Team
LearningandSystems Thinking – are each made up of a set of tools and practices for building
and sustaining learning leadership capability in organisations. Each Discipline consists of:

Principles, propositions or concepts (Senge calls these ‘guiding
ideas’)

Dept of MBA, SJBIT Tools or techniques that, once learned and practised, assist in
making the Disciplines come to life

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Organisational Development & Change 12MBAHR447

Practices or precepts to follow in your own leadership
behaviour and approaches

According to Senge, leaders in learning organisations learn to thrive on change and constantly
innovate by methodically cultivating these 5 Disciplines. They may never be fully mastered,
but learning-centred leaders, teams and organisationspractise them continuously.

Our approach to workplace improvement and learning-centred leadership is based firmly in the
values, concepts, principles and language of learning organisations.

The 5 Leadership Learning Disciplines in brief are:

Shared Vision: The key vision question is ‘What do we want to create together?’. Taking time
early in the change process to have the conversations needed to shape a truly shared vision is
crucial to build common understandings and commitments, unleash people’s aspirations and
hopes and unearth reservations and resistances. Leaders learn to use tools such as ‘Positive
Visioning’, 'Concept-shifting’ and ‘Values Alignment’ to create a shared vision, forge common
meaning/focus and mutually agree what the learning targets, improvement strategies and
challenge-goals should be to get there.

Mental Models: One key to change success is in surfacing deep-seated mental models -
beliefs, values, mind-sets and assumptions that determine the way people think and act. Getting
in touch with the thinking going on about change in your workplace, challenging or clarifying
assumptions and encouraging people to reframe is essential. Leaders learn to use tools like the
'Ladder of Inference' and 'Reflective Inquiry' to practise making their mental models clearer for
each other and challenging each others' assumptions in order to build shared understanding.

Personal Mastery is centrally to do with ‘self-awareness’ – how much we know about
ourselves and the impact our behaviour has on others. Personal mastery is the human face of
change – to manage change relationships sensitively, to be willing to have our own beliefs and
values challenged and to ensure our change interactions and behaviours are authentic,
congruent and principled. Leaders learn to use tools like 'Perceptual Positions' and 'Reframing'
to enhance the quality of interaction and relationship in and outside their teams.

Team Learning happens when teams start ‘thinking together’ – sharing their experience,
insights, knowledge and skills with each other about how to do things better. Teams develop
reflection, inquiry and discussion skills to conduct more skillful change conversations with
each other which form the basis for creating a shared vision of change and deciding on
common commitments to action. It’s also about teams developing the discipline to use the
action learning cycle rigorously in change-work. Leaders learn to use tools like the 'Action-
Learning Cycle' and 'Dialogue' to develop critical reflection skills and conduct more robust,
skillful discussions with their teams and each other.

Systems Thinking is a framework for seeing inter-relationships that underlie complex
situations and interactions rather than simplistic (and mostly inaccurate) linear cause-effect
chains. It enables teams to unravel the often hidden subtleties, influences, leverage points and
intended/unintended consequences of change plans and programs and leads to deeper, more
complete awareness of the interconnections behind changing any system. Leaders learn to use

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'Systems Thinking Maps' and 'Archetypes' to map and analyse situations, events, problems and
possible causes/courses of action to find better (and often not obvious) change
options/solutions.

Why are the five disciplines of systems thinking so important when engaging living
systems?

Systems thinking is a way of understanding and operating in the world as it truly is – highly
interrelated and interconnected! It is a body of knowledge and tools developed over the past fifty
years that can help us see and engage living systems more effectively. With systems thinking, we
no longer see the world as a collection of separate and unrelated forces and elements, but as a
tapestry of complex and interrelated systems. In this way, we can better identify patterns and see
how change can and does occur. Then, we can begin to discern how to influence change and
minister unto others in ways that are life-giving and beneficial.

o Living Systems Ministry is about caring for God’s people and communities
knowing that the Works Method cannot meet the needs or address the problems of
living systems.

o Senge’s Five Disciplines are:
 Personal Mastery – we must set aside the time and energy necessary for
our own on-going learning and personal growth
 Mental Models – they are important to consider and bring to surface
because they shape how we understand ourselves, other people, and the
situations we face. Right or wrong, they inform our decisions and actions.
 Shared Vision – in order to meet the needs and address problems of living
systems, we need to share the same values and goals with those we
minister to and with.
 Organisational Learning – we need to practice the disciplines of
personal mastery, mental models, and shared vision together in the context
of effective, healthy, and unified teams.
 Systems Thinking - a way of understanding and operating in the world as
it truly is – highly interrelated and interconnected – by practicing and
combining the disciplines of personal mastery, mental models, shared
vision, and team learning.

o Systems Thinking is the foundation to Living Systems Ministry:
 It is more important to understand and engage relationships than
individual parts or components alone.
 It can enable us to see patterns and begin to understand how to influence
positive change in the living systems to and within which we minister.

Business Models & Value propositions:

A business model describes the rationale of how an organization creates, delivers, and captures
value (economic, social, cultural, or other forms of value). The process of business model
construction is part of business strategy.the term business model is used for a broad range of
informal and formal descriptions to represent core aspects of a business, including purpose,

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target customers, offerings, strategies, infrastructure, organizational structures, trading practices,
and operational processes and policies. The literature has provided very diverse interpretations
and definitions of a business model. A systematic review and analysis of manager responses to a
survey defines business models as the design of organizational structures to enact a commercial
opportunity. Further extensions to this design logic emphasize the use of narrative or coherence
in business model descriptions as mechanisms by which entrepreneurs create extraordinarily
successful growth firms.

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MODULE 8:

 Mobilizing support and executing change:
 Four approaches to change, parallel organization, ownership and involvement in

change, dealing with political aspects of change,
 the psychology of persuasion, communicating to influence, targeting influence

efforts,
 framing change, making difficult choices, negotiating change.
 Executing change: challenges of execution, execution framework, developing

cross functional linkages, aligning policies, and removing structural impediments,
developing new routines for innovation and improvement, considering human
element.

******************************************************************************

Mobilizing support and executing change

Implementing Change Powerfully and Successfully

There are many theories about how to "do" change. Many originate with leadership and change
management guru, John Kotter. A professor at Harvard Business School and world-renowned
change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading
Change." We look at his eight steps for leading change below.

Step 1: Create Urgency

For change to happen, it helps if the whole company really wants it. Develop a sense of urgency
around the need for change. This may help you spark the initial motivation to get things moving.

This isn't simply a matter of showing people poor sales statistics or talking about increased
competition. Open an honest and convincing dialogue about what's happening in the marketplace
and with your competition. If many people start talking about the change you propose, the
urgency can build and feed on itself.

What you can do:

 Identify potential threats , and develop scenarios showing what could happen in the
future.

 Examine opportunities that should be, or could be, exploited.
 Start honest discussions, and give dynamic and convincing reasons to get people talking

and thinking.
 Request support from customers, outside stakeholders and industry people to strengthen

your argument.

Note:

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Kotter suggests that for change to be successful, 75 percent of a company's management needs to
"buy into" the change. In other words, you have to work really hard on Step 1, and spend
significant time and energy building urgency, before moving onto the next steps. Don't panic and
jump in too fast because you don't want to risk further short-term losses – if you act without
proper preparation, you could be in for a very bumpy ride.

Step 2: Form a Powerful Coalition

Convince people that change is necessary. This often takes strong leadership and visible support
from key people within your organization. Managing change isn't enough – you have to lead it.

You can find effective change leaders throughout your organization – they don't necessarily
follow the traditional company hierarchy. To lead change, you need to bring together a coalition,
or team, of influential people whose power comes from a variety of sources, including job title,
status, expertise, and political importance.

Once formed, your "change coalition" needs to work as a team, continuing to build urgency and
momentum around the need for change.

What you can do:

 Identify the true leaders in your organization, as well as your key stakeholders .
 Ask for an emotional commitment from these key people.
 Work on team building within your change coalition.
 Check your team for weak areas, and ensure that you have a good mix of people from

different departments and different levels within your company.

Step 3: Create a Vision for Change

When you first start thinking about change, there will probably be many great ideas and solutions
floating around. Link these concepts to an overall vision that people can grasp easily and
remember.

A clear vision can help everyone understand why you're asking them to do something. When
people see for themselves what you're trying to achieve, then the directives they're given tend to
make more sense.

What you can do:

 Determine the values that are central to the change.
 Develop a short summary (one or two sentences) that captures what you "see" as the

future of your organization.
 Create a strategy to execute that vision.
 Ensure that your change coalition can describe the vision in five minutes or less.
 Practice your "vision speech" often.

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Tip:

For more on creating visions, see our article on Mission Statements and Vision Statements .

Step 4: Communicate the Vision

What you do with your vision after you create it will determine your success. Your message will
probably have strong competition from other day-to-day communications within the company, so
you need to communicate it frequently and powerfully, and embed it within everything that you
do.

Don't just call special meetings to communicate your vision. Instead, talk about it every chance
you get. Use the vision daily to make decisions and solve problems. When you keep it fresh on
everyone's minds, they'll remember it and respond to it.

It's also important to "walk the talk." What you do is far more important – and believable – than
what you say. Demonstrate the kind of behavior that you want from others.

What you can do:

 Talk often about your change vision.

 Address peoples' concerns and anxieties, openly and honestly.
 Apply your vision to all aspects of operations – from training to performance reviews.

Tie everything back to the vision.

 Lead by example .

Step 5: Remove Obstacles

If you follow these steps and reach this point in the change process, you've been talking about
your vision and building buy-in from all levels of the organization. Hopefully, your staff wants
to get busy and achieve the benefits that you've been promoting.

But is anyone resisting the change? And are there processes or structures that are getting in its
way?

Put in place the structure for change, and continually check for barriers to it. Removing obstacles
can empower the people you need to execute your vision, and it can help the change move
forward.

What you can do:

 Identify, or hire, change leaders whose main roles are to deliver the change.
 Look at your organizational structure, job descriptions, and performance and

compensation systems to ensure they're in line with your vision.
 Recognize and reward people for making change happen.
 Identify people who are resisting the change, and help them see what's needed.

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 Take action to quickly remove barriers (human or otherwise).

Step 6: Create Short-Term Wins

Nothing motivates more than success. Give your company a taste of victory early in the change
process. Within a short time frame (this could be a month or a year, depending on the type of
change), you'll want to have some "quick wins " that your staff can see. Without this, critics and
negative thinkers might hurt your progress.

Create short-term targets – not just one long-term goal. You want each smaller target to be
achievable, with little room for failure. Your change team may have to work very hard to come
up with these targets, but each "win" that you produce can further motivate the entire staff.

What you can do:

 Look for sure-fire projects that you can implement without help from any strong critics of
the change.

 Don't choose early targets that are expensive. You want to be able to justify the
investment in each project.

 Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with
an early goal, it can hurt your entire change initiative.

 Reward the people who help you meet the targets.

Step 7: Build on the Change

Kotter argues that many change projects fail because victory is declared too early. Real change
runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term
change.

Launching one new product using a new system is great. But if you can launch 10 products, that
means the new system is working. To reach that 10th success, you need to keep looking for
improvements.

Each success provides an opportunity to build on what went right and identify what you can
improve.

What you can do:

 After every win, analyze what went right, and what needs improving.
 Set goals to continue building on the momentum you've achieved.
 Learn about kaizen , the idea of continuous improvement.
 Keep ideas fresh by bringing in new change agents and leaders for your change coalition.

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Step 8: Anchor the Changes in Corporate Culture

Finally, to make any change stick, it should become part of the core of your organization. Your
corporate culture often determines what gets done, so the values behind your vision must show in
day-to-day work.

Make continuous efforts to ensure that the change is seen in every aspect of your organization.
This will help give that change a solid place in your organization's culture.

It's also important that your company's leaders continue to support the change. This includes
existing staff and new leaders who are brought in. If you lose the support of these people, you
might end up back where you started.

What you can do:

 Talk about progress every chance you get. Tell success stories about the change process,
and repeat other stories that you hear.

 Include the change ideals and values when hiring and training new staff.
 Publicly recognize key members of your original change coalition, and make sure the rest

of the staff – new and old – remembers their contributions.
 Create plans to replace key leaders of change as they move on. This will help ensure that

their legacy is not lost or forgotten.

4 Approaches to Organizational Change

There are at least four ways or approaches for doing organizational change. Each
approach is valid in its own right and all are needed for effective and lasting change.
However, we may find ourselves more drawn to one or two of these approaches based
on our unique skills or personality, but each approach should be honored and
validated.

 Page 73
 Working “on the System”
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 Cultivating Consciousness

 Creating Alternatives
 Working “in the system”

Working “On” The Organization

We are working “on” an organization when we by our perspective or by our actual location are

on the outside of the organization working from a place of relative objectivity. From this

perspective we are and can be more objective since we are not integrally bound or emotionally

entangled in the life of the system which we are seeking to change. We have the organization, it
does not have us. A common and often effective approach to working “on” a system is the
approach of a “consultant.” One who can objectively see the organization and help the system
see itself. The consultant can then work “with” the system to shift and change as needed. The

consultant is invited to be an objective partner in helping the organization, even though the
consultant will never essentially be “in” the system.

An more challenging, but also needed, posture to working “on” a system is the “activist.” An
activist is often by location on the outside of a system, yet seeks to make the system and its
outcomes more just, humane and healthy. The activist from an outside perspective can help the
organization see itself and provide needed motivation for change, especially when the
organization does not internally see the need for change or choices to be unaware of their
practices. The activist can speak truth to power. An activist will probably never be invited into
the organization, so must seek to work from the outside or “on” the system to effect change.
This “outsider” posture, however makes the activist position more difficult and challenging at
making lasting change within an organization. The activist may have an objective perspective
and be morally right, but will not have the emotional and social capital with the organization as a
tool for change.

The advantages of working “on” a system is the objective perspective that can come from not
being entangled within the emotional, mental and psychological complexity of the organization.
Working “on” a system allows one to bring fresh perspectives, resources and energy into systems
encouraging and inviting them into needed change.

Successful change management is more likely to occur if the following are included:

1. Benefits management and realization to define measurable stakeholder aims, create a
business case for their achievement (which should be continuously updated), and monitor
assumptions, risks, dependencies, costs, return on investment, dis-benefits and cultural
issues affecting the progress of the associated work

2. Effective communication that informs various stakeholders of the reasons for the change
(why?), the benefits of successful implementation (what is in it for us, and you) as well as
the details of the change (when? where? who is involved? how much will it cost? etc.)

3. Devise an effective education, training and/or skills upgrading scheme for the
organization

4. Counter resistance from the employees of companies and align them to overall strategic
direction of the organization

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5. Provide personal counseling (if required) to alleviate any change-related fears
6. Monitoring of the implementation and fine-tuning as required.

Ownership & Involvement in change:

It might appear to be more complicated if more people are asked to help manage change in the
short term, but in the long term, it is not. Even if you are able to develop a brilliant
transformation strategy, you will still have to develop organisational ownership and
commitment, and the key to that is to widen the circle of involvement.1

When people are excluded from the change process from the very beginning, they rarely exhibit
the necessary levels of ownership and commitment to see the change process through to a
successful conclusion.

Even if the change committee interviews employees to gather data for the change process, it
doesn't create the same level of ownership as actual involvement does.

And predictably, the reverse side of ownership is resistance.

 BRING PEOPLE TOGETHER FOR ACTION

To increase change ownership, individuals need to become a community of people who are
willing to act on a common goal, that is, the transformation.

Some ways that you can help them to do so is to create a compelling purpose for the change or
encourage dialogue among employees.

For example, to help your colleagues feel pride over their involvement in the change effort, you
can consider creating opportunities for them to understand each other's jobs and how these roles
contribute to the organisation as a whole. Create more joint projects or inter-divisional sharing
that would allow employees to feel like they have worked together to transform the organisation.

 BUILD RELATIONSHIPS

Today's organisations are complex systems that require intricate coordination to be effective.3
And organisations are made of people, meaning that change cannot happen in isolation.
Communities of committed people produce organisational change.

But for a collection of individuals to create the co-ordinated sets of actions necessary to produce
change, they must feel connected to each other.4 Trust, connection, and knowledge of the
personal resources available within the community can transform a collection of individuals into
a community of people capable of producing exceptional results.

In addition to creating formal platforms that allow people to understand each other's roles,
consider having informal ones as well. For example, celebrating successes together or ensuring

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that staff well-being is properly met. Informal celebrations, expressed through laughter and
singing, helps to forge bonds and are symbolic of a strong community.

Ownership & involvement in change: reduces the resistance with the implementation of change.
It also induces the feeling of bondness among the employees & leverages commitment &
productivity.

Dealing with Political level aspects of change:

For the political level, measures of innovation are more focused on a country or region
competitive advantage through innovation. In this context, organizational capabilities can be
evaluated through various evaluation frameworks, such as those of the European Foundation for
Quality Management. The OECD Oslo Manual (1995) suggests standard guidelines on
measuring technological product and process innovation. Some people consider the Oslo Manual
complementary to the Frascati Manual from 1963. The new Oslo manual from 2005 takes a
wider perspective to innovation, and includes marketing and organizational innovation. These
standards are used for example in the European Community Innovation Surveys.[24]

Other ways of measuring innovation have traditionally been expenditure, for example,
investment in R&D (Research and Development) as percentage of GNP (Gross National
Product). Whether this is a good measurement of innovation has been widely discussed and the
Oslo Manual has incorporated some of the critique against earlier methods of measuring. The
traditional methods of measuring still inform many policy decisions. The EU Lisbon Strategy has
set as a goal that their average expenditure on R&D should be 3% of GDP.

The psychology of Persuasion:
key principles of influence by Robert Cialdini to persuade customers:

1. Reciprocity – People tend to return a favor, thus the pervasiveness of free samples in
marketing. In his conferences, he often uses the example of Ethiopia providing thousands
of dollars in humanitarian aid to Mexico just after the 1985 earthquake, despite Ethiopia
suffering from a crippling famine and civil war at the time. Ethiopia had been
reciprocating for the diplomatic support Mexico provided when Italy invaded Ethiopia in
1935. The good cop/bad cop strategy is also based on this principle.

2. Commitment and Consistency – If people commit, orally or in writing, to an idea or goal,
they are more likely to honor that commitment because of establishing that idea or goal
as being congruent with their self-image. Even if the original incentive or motivation is
removed after they have already agreed, they will continue to honor the agreement.
Cialdini notes Chinese brainwashing on American prisoners of war to rewrite their self-
image and gain automatic unenforced compliance. See cognitive dissonance.

3. Social Proof – People will do things that they see other people are doing. For example, in
one experiment, one or more confederates would look up into the sky; bystanders would
then look up into the sky to see what they were seeing. At one point this experiment
aborted, as so many people were looking up that they stopped traffic. See conformity, and
the Asch conformity experiments.

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4. Authority – People will tend to obey authority figures, even if they are asked to perform

objectionable acts. Cialdini cites incidents such as the Milgram experiments in the early

1960s and the My Lai massacre.
5. Liking – People are easily persuaded by other people that they like. Cialdini cites the

marketing of Tupperware in what might now be called viral marketing. People were more

likely to buy if they liked the person selling it to them. Some of the many biases favoring

more attractive people are discussed. See physical attractiveness stereotype.
6. Scarcity – Perceived scarcity will generate demand. For example, saying offers are

available for a "limited time only" encourages sales.

communicating to influence: is the process wherein the main objective would be to
influence with effective communicating skills.

targeting influence efforts: is the process where th factors responsible to influence are
stressed in order to attain the organisation’s objective.

framing change: is nothing but applying the so designed change effectively in the
organisation.

making difficult choices: refers to making those decisions that the competitor cannot
imitate

negotiating change : refers to those processes which bargain towards effective &
efficient implementation of change in the organisation.

Executing Change:

Effective execution of business strategy, change management and a high performance
organizational culture are the ingredients for achieving business results and indispensable value
for your customers. Success depends on lean and “outcome-driven” project management,
collective decisiveness, proactive recovery plans and dedicated actions in alignment with desired
with business results. Sustaining success depends on a high performance culture that adapts to
changing business conditions.

Challenges of execution:

1. Implementing Change Powerfully and Successfully

There are many theories about how to "do" change. Many originate with leadership and change
management guru, John Kotter. A professor at Harvard Business School and world-renowned
change expert, Kotter introduced his eight-step change process in his 1995 book, "Leading
Change." His eight steps for leading change below.

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2. Urgency in implementation

For change to happen, it helps if the whole company really wants it. Develop a sense of urgency
around the need for change. This may help you spark the initial motivation to get things moving.

This isn't simply a matter of showing people poor sales statistics or talking about increased
competition. Open an honest and convincing dialogue about what's happening in the marketplace
and with your competition. If many people start talking about the change you propose, the
urgency can build and feed on itself.

Kotter suggests that for change to be successful, 75 percent of a company's management needs to
"buy into" the change. In other words, you have to work really hard on Step 1, and spend
significant time and energy building urgency, before moving onto the next steps. Don't panic and
jump in too fast because you don't want to risk further short-term losses – if you act without
proper preparation, you could be in for a very bumpy ride.

3. Lack of Coalition

Convincing people that change is necessary is challenging. This often takes strong leadership and
visible support from key people within your organization. Managing change isn't enough – you
have to lead it.

You can find effective change leaders throughout your organization – they don't necessarily
follow the traditional company hierarchy. To lead change, you need to bring together a coalition,
or team, of influential people whose power comes from a variety of sources, including job title,
status, expertise, and political importance.

4. Obstacles

If you follow these steps and reach this point in the change process, you've been talking about
your vision and building buy-in from all levels of the organization. Hopefully, your staff wants
to get busy and achieve the benefits that you've been promoting.

Put in place the structure for change, and continually check for barriers to it. Removing obstacles
can empower the people you need to execute your vision, and it can help the change move
forward.

 Identify, or hire, change leaders whose main roles are to deliver the change.
 Look at your organizational structure, job descriptions, and performance and

compensation systems to ensure they're in line with your vision.
 Recognize and reward people for making change happen.
 Identify people who are resisting the change, and help them see what's needed.
 Take action to quickly remove barriers (human or otherwise).

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5. Alligning policies

Nothing motivates more than success. Let the company policies be clear & free from ambiguity.
Give your company a taste of victory early in the change process. Within a short time frame (this
could be a month or a year, depending on the type of change), you'll want to have some "quick
wins " that your staff can see. Without this, critics and negative thinkers might hurt your
progress.

Create short-term targets – not just one long-term goal. You want each smaller target to be
achievable, with little room for failure. Your change team may have to work very hard to come
up with these targets, but each "win" that you produce can further motivate the entire staff.

 Look for sure-fire projects that you can implement without help from any strong critics of
the change.

 Don't choose early targets that are expensive. You want to be able to justify the
investment in each project.

 Thoroughly analyze the potential pros and cons of your targets. If you don't succeed with
an early goal, it can hurt your entire change initiative.

 Reward the people who help you meet the targets.

6. Removal of structural Impediments: Obstacles with regard to structure should be
removed while forming organization structure. Flow of communication should be well
designed. Kotter argues that many change projects fail because victory is declared too early.
Real change runs deep. Quick wins are only the beginning of what needs to be done to
achieve long-term change.

Launching one new product using a new system is great. But if you can launch 10 products, that
means the new system is working. To reach that 10th success, you need to keep looking for
improvements.

Each success provides an opportunity to build on what went right and identify what you can
improve.

 After every win, analyze what went right, and what needs improving.
 Set goals to continue building on the momentum you've achieved.
 Learn about kaizen , the idea of continuous improvement.
 Keep ideas fresh by bringing in new change agents and leaders for your change coalition.

Anchor the Changes in Corporate Culture

Finally, to make any change stick, it should become part of the core of your organization. Your
corporate culture often determines what gets done, so the values behind your vision must show in
day-to-day work.

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Make continuous efforts to ensure that the change is seen in every aspect of your organization.
This will help give that change a solid place in your organization's culture.

It's also important that your company's leaders continue to support the change. This includes
existing staff and new leaders who are brought in. If you lose the support of these people, you
might end up back where you started.

 Talk about progress every chance you get. Tell success stories about the change process,
and repeat other stories that you hear.

 Include the change ideals and values when hiring and training new staff.
 Publicly recognize key members of your original change coalition, and make sure the rest

of the staff – new and old – remembers their contributions.
 Create plans to replace key leaders of change as they move on. This will help ensure that

their legacy is not lost or forgotten.

Execution framework:

The Structure of a Parallel Organization

Parallel organizations are different from hierarchical organizations

A parallel organization differs from a traditional, hierarchical organization in that it actively
solicits employee input. It's possible -- and sometimes advantageous -- to blend a bureaucratic
structure with a parallel structure. For example, a subset of employees can act as a parallel
structure to develop solutions to specific problems without changing the overall organizational
structure.

1. Business
2. Business Management
3. Managing Employees
4. The Structure of a Parallel Organization

1. Culture

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o A parallel organization encourages employee involvement and fosters the idea
that everyone is a stakeholder in the business. Managers share information with
employees and employees share their intimate knowledge of the business at the
detail level to demystify processes and suggest efficiencies. Managers promise to
listen and implement suggestions where feasible.

Processes

o Teams in a parallel organization consist of members from different job functions.
Each member provides a unique contribution and represents the interests and
input from their departments. The result can be greater than the sum of its parts.

At a higher level, a steering committee, composed of high-level managers,
develops a vision for the organization and the implementation of attainable goals.
It can also act as the link between a parallel organization and the formal
organization.

o

Activities

o The actual work of a parallel organization happens in forums where the teams
address specific problems. A formal training process can help the team understand
its role and provide the group with problem solving tools to help brainstorm ideas
and build consensus.

Developing cross-functional linkage through Employee Ownership Via Involvement:
People become invested in their traditional ways of doing things. Consequently, any effort to
change or reorganize the method used to accomplish work can be threatening and disturbing to
employees. People are especially resentful if they perceive that a change was "done unto them."
In fact, this is one of the most effective ways to generate serious resistance to change.

Forming a powerful engagement process is central to successful change because it a
affects all other areas of your change management plan.there are four components of a powerful
engagement process:

 Involvement
 Learning
 Rewards
 Communication

Developing cross functional linkage Indicators:

Many scholars claim that there is a great bias towards the "science and technology mode" (S&T-
mode or STI-mode), while the "learning by doing, using and interacting mode" (DUI-mode) is

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widely ignored. For an example, that means you can have the better high tech or software, but
there are also crucial learning tasks important for innovation. But these measurements and
research are rarely done.

Aligning policies & removing structural impediments:

 ALWAYS INVOLVE MORE PEOPLE IN THE CHANGE PROCESS THAN
LESS

It might appear to be more complicated if more people are asked to help manage change in the
short term, but in the long term, it is not. Even if you are able to develop a brilliant
transformation strategy, you will still have to develop organisational ownership and
commitment, and the key to that is to widen the circle of involvement.1

When people are excluded from the change process from the very beginning, they rarely exhibit
the necessary levels of ownership and commitment to see the change process through to a
successful conclusion.

Even if the change committee interviews employees to gather data for the change process, it
doesn't create the same level of ownership as actual involvement does.

And predictably, the reverse side of ownership is resistance.

 BRING PEOPLE TOGETHER FOR ACTION

To increase change ownership, individuals need to become a community of people who are
willing to act on a common goal, that is, the transformation.

Some ways that you can help them to do so is to create a compelling purpose for the change or
encourage dialogue among employees.

For example, to help your colleagues feel pride over their involvement in the change effort, you
can consider creating opportunities for them to understand each other's jobs and how these roles
contribute to the organisation as a whole. Create more joint projects or inter-divisional sharing
that would allow employees to feel like they have worked together to transform the organisation.

 BUILD RELATIONSHIPS

Today's organisations are complex systems that require intricate coordination to be effective.3
Andorganisations are made of people, meaning that change cannot happen in isolation.
Communities of committed people produce organisational change.

But for a collection of individuals to create the co-ordinated sets of actions necessary to produce
change, they must feel connected to each other.4 Trust, connection, and knowledge of the

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personal resources available within the community can transform a collection of individuals into
a community of people capable of producing exceptional results.

 Negotiating Workplace Change

Every day brings new opportunities to negotiate your needs, whether it is with customers,
partners, vendors, management, or colleagues. More often than not, these conversations center
on some aspect of change.

Effective negotiating skills determine how well you influence, persuade, and collaborate with
others. Negotiating change is a fluid process that includes situations where you have little or no
direct control to working with people who have little or no desire to change.

1: Change does not mean perfection.

Change, itself, is an evolutionary process. Don't expect to get it right from the start or get it right
all the time. Recognize that mistakes happen; however, it's your ability to adapt and handle
setbacks that separates leaders and agents of innovation from those who play it safe and choose
to remain stagnant.

2: Acknowledge your comfort zones in different situations.

Credibility begins with the self. Sometimes this means stepping up to the challenge of unfamiliar
territory and other times it means acknowledging your frailties. We all have situations where we
feel more comfortable than at other times. It's important to recognize your discomfort in various
situations so that 1) you don't sabotage your best efforts and 2) they don't go underground and
become emotional "hot buttons" for you.

3: Introduce change when it's needed.

It’s difficult to not introduce change just because you can, whether you're in the position to do so
by influence or power. Far too often, new managers come in and begin "tossing the salad" as a
way to make a name for h/her. Years ago as I was poised to accept my first supervisory position,
my manager at the time, Rick Griggs, gave me some sound advice “Don’t lead change with your
ego”. Avoid making major changes within the first three months, he suggested, as this would
give me time to learn about the organization and the business, and lay the foundation for smarter
decisions about what needed changing.

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Execution and Change Management

Effective execution of business strategy, change management and a high performance
organizational culture are the ingredients for achieving business results and indispensable value
for your customers. Success depends on lean and “outcome-driven” project management,
collective decisiveness, proactive recovery plans and dedicated actions in alignment with desired
with business results. Sustaining success depends on a high performance culture that adapts to
changing business conditions. The unique approach impacts culture by increasing trust, breaking
down silos, developing new habits of execution and establishing meaningful monitoring systems
producing measurable business results within three to six months.

While each engagement is customized, it uses a systematic methodology for executing business
strategy and change delivered in five phases:

Phase 1: Accountability Assessment

Identify patterns of breakdown in execution between organizational levels and functional areas.

Not only will the organization become clear on where accountability is breaking down, key

habits of execution will be identified for development to insure even greater organizational

success. The result: a clear strategy for executing business strategy that leverages change efforts
and the organization’s culture to achieve business results.

Phase 2: Executive Alignment and Focus

Working session to build demonstrated alignment for the organization’s “Picture of Success” and
prepare executive’s to lead and monitor organizational change and guide middle management.
Executives will learn about the key strategies for increasing organizational performance, leading
change and developing middle managers to be more effective change agents.

Phase 3: Middle Managers as Leaders of Change

Develop middle managers into a unified team of change agents responsible for achieving the
organization’s priorities and deliverables as established by executives. Using IMPAQ‘s

Agreements for Excellence System, middle managers will develop cross-functional collaboration

and teamwork that breaks down silos and builds ownership for achieving business results.

Middle managers develop specific strategies and actions to improve execution, relationships and
deliverables – all linked to produce the organization’s priorities and business outcomes.

Phase 4: Increase Supervisor and Employee Accountability and Engagement

Implement a custom version of Accountability Based Leadership with middle management while

Implementing the Power of Personal Accountability with all employees so all individuals

develop a new standard of performance, communication and engagement linked to the
organization’s goals.

Phase 5: Measure, Monitor and Transfer for Sustainability

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Establish measurements that are monitored throughout phases 2 through 4. Also, develop internal
change agents to continue the organizations “Accountability movement” to support improved

and sustained results.

Developing new routines for Innovation

Innovation is the application of better solutions that meet new requirements, inarticulated needs,
or existing market needs. This is accomplished through more effective products, processes,
services, technologies, or ideas that are readily available to markets, governments and society.
The term innovation can be defined as something original and, as consequence, new that "breaks
in to" the market or into society. One usually associates to new phenomena that are important in
some way. A definition of the term, in line with these aspects, would be the following: "An
innovation is something original, new, and important - in whatever field - that breaks in to (or
obtains a foothold in) a market or society."

While something novel is often described as an innovation, in economics, management science
and other fields of practice and analysis it is generally considered a process that brings together
various novel ideas in a way that they have an impact on society.

Innovation differs from invention in that innovation refers to the use of a better and, as a result,
novel idea or method, whereas invention refers more directly to the creation of the idea or
method itself.

Innovation differs from improvement in that innovation refers to the notion of doing something
different rather than doing the same thing better.

In business and economics, innovation is the catalyst to growth. With rapid advancements in
transportation and communications over the past few decades, the old world concepts of factor
endowments and comparative advantage which focused on an area’s unique inputs are outmoded
for today’s global economy. Economist Joseph Schumpeter, who contributed greatly to the study
of innovation, argued that industries must incessantly revolutionize the economic structure from
within, that is innovate with better or more effective processes and products, such as the shift
from the craft shop to factory. He famously asserted that “creative destruction is the essential fact
about capitalism.” In addition, entrepreneurs continuously look for better ways to satisfy their
consumer base with improved quality, durability, service, and price which come to fruition in
innovation with advanced technologies and organizational strategies.[5]

One prime example is the explosive boom of Silicon Valley startups out of the Stanford
Industrial Park. In 1957, dissatisfied employees of Shockley Semiconductor, the company of
Nobel laureate and co-inventor of the transistorWilliam Shockley, left to form an independent
firm, Fairchild Semiconductor. After several years, Fairchild developed into a formidable
presence in the sector. Eventually, these founders left to start their own companies based on their
own, unique, latest ideas, and then leading employees started their own firms. Over the next 20
years, this snowball process launched the momentous startup company explosion of information

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technology firms. Essentially, Silicon Valley began as 65 new enterprises born out of Shockley’s
eight former employees.

Diffusion of innovation

Diffusion of innovation research was first started in 1903 by seminal researcher Gabriel Tarde,
who first plotted the S-shaped diffusion curve. Tarde (1903) defined the innovation-decision
process as a series of steps that includes:

First knowledge

1. Forming an attitude
2. A decision to adopt or reject
3. Implementation and use
4. Confirmation of the decision

Once innovation occurs, innovations may be spread from the innovator to other individuals and
groups. This process has been proposed that the life cycle of innovations can be described using
the 's-curve' or diffusion curve. The s-curve maps growth of revenue or productivity against time.
In the early stage of a particular innovation, growth is relatively slow as the new product
establishes itself. At some point customers begin to demand and the product growth increases
more rapidly. New incremental innovations or changes to the product allow growth to continue.
Towards the end of its life cycle growth slows and may even begin to decline. In the later stages,
no amount of new investment in that product will yield a normal rate of return

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The s-curve derives from an assumption that new products are likely to have "product life". i.e. a
start-up phase, a rapid increase in revenue and eventual decline. In fact the great majority of
innovations never get off the bottom of the curve, and never produce normal returns.

Innovative companies will typically be working on new innovations that will eventually replace
older ones. Successive s-curves will come along to replace older ones and continue to drive
growth upwards. In the figure above the first curve shows a current technology. The second
shows an emerging technology that currently yields lower growth but will eventually overtake
current technology and lead to even greater levels of growth. The length of life will depend on
many factors.

Negotiating Change:

Quality is everybody’s business

Leadership needs to champion and support institutional change initiatives. They need to invest
time and resources and use their bully pulpit to reinforce the message. Efforts that lack support
from the top and depend upon the good will of front line employees to do the right thing because
it is the right thing, don’t stand the test of time. Those who are closest to the processes being
addressed should be given
the education, training, and tools to facilitate change. These are individuals who know what’s
working and where there are opportunities for improvement. Customers and stakeholders also
have knowledge about where there are opportunities for improvement and should have an input.
The organization is there to efficiently use fiscal, physical, and human resources to provide
consumers with a service or
product.

Innovation & Human element:

Improvement is not the same thing as innovation. Unfortunately, the media and even many
business leaders tend to use the terms almost interchangeably. Patrick Lefler explains the
significant differences between the two concepts.

Improvement and innovation. In today’s business world these two terms are used almost
interchangeably. It’s a trend that’s been promoted the business press; by companies large and
small who profess to be in the innovation business; and even by the myriad “innovation
consultants” out there. But the problem with equating improvement with innovation is that does
a disservice to innovation and the truly successful innovative strategies used by some of the
leading firms.

First, an improvement that only meets the market standard or reacts to innovation that your
competitors have already introduced into the market is NOT innovation. It’s playing catch-up.

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Second, introducing an improvement that does not significantly differentiate you from your
competitors is NOT innovation. It’s simply just an improvement—evolutionary, not
revolutionary.

And finally, introducing improvement that may give you a competitive advantage but also can be
easily copied by your competitors is NOT innovation. It’s just a temporary advantage.

When Toyota introduced the Toyota Production System (TPS) and radically changed the way
manufacturing and supply logistics were previously organized by automobile manufacturers, the
company demonstrated innovation. More than any other aspect of the company, TPS allowed
Toyota to ascend from its humble beginnings in Japan to become recognized as a leader in the
automotive manufacturing and production industry. All attempts today by other automobile
manufacturers to emulate the Toyota Production System are simply a strategy of playing catch
up.

When Southwest Airlines changed the existing airline model in the 1970s by focusing on point-
to-point round-trip flights to avoid the capacity inefficiencies of the hub-and-spoke model used
by the rest of the industry, and then monetized that new model into becoming the industry profit
leader, that was innovation. When JetBlue tried to emulate that same model years later, it was a
good business strategy—but it wasn’t innovation.

When Sony introduced the first Walkman in the late 1970s, they changed the music-listening
habits of millions of people worldwide and became the industry leader making hundreds of
millions of dollars in the process. That was innovation. When competitors raced to match their
offering—albeit without the resulting outcome of huge profits—it was improvement and a good
product strategy. But it was not innovation.

Geoffrey Moore says it best in his highly influential book Dealing with Darwin by explaining
innovation this way:

“Focusing on our chosen innovation…[so that] we will so outperform our competitors that
prospective customers and partners will cease to entertain them as legitimate alternatives.”

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