Chapter 1: ChangingOrganizations in Our Complex
World
Chapter Overview• The goal of the book: develop your ability to initiate and
manage change
• Environmental factors affecting change are outlined: social/demographic, technological, political, and economic forces
• Four types of organizational change are discussed: tuning,adapting, reorienting, and recreating
• Four change roles are described: initiators, implementers,facilitators, and recipients. The terms “change leader” and“change agent” are used interchangeably and could meanany of the four roles.
• The difficulties in creating successful change are highlightedand characteristics of successful change leader aredescribed.
2Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Pub.
Your Experiences with ChangeManagement
Talk with one another (in small groups)about your experiences with change
management.
What does this suggest organizationalchange management is about?
3Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Organizational Change: Defined
• The intentional and planned alteration oforganizational components to improveorganizational effectiveness.
4Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Organization Components
• Organization components include the organization’s:• Mission and vision• Strategy• Goals• Structure• Processes or systems• Technology• People
• When organizations enhance their effectiveness, theyincrease their ability to generate value for those theyserve
5Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
The “Knowing−Doing” Gap
• Change capability has become a coremanagerial competency• But managers’ abilities to deliver on change
are modest at best
• There is a major “knowing−doing” gap• Knowing concepts and theories is not
enough• Managers need to become effective agents
of change, possessing the will and skills tomake positive change happen
6Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Orientation of the Book
There is a story of two stone cutters:
The first, when asked what he was doing,
responded: “I am shaping this stone to fit into
that wall.”
The second, however, said: “I am helping to
build a cathedral.”
This book is orientated towards those who want to bebuilders.
7Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Why is change a Hot Topic?• Environmental Forces Driving Changes (PESTEL
factors):• Political Changes• Economic Changes• Social, Cultural and Demographic• New Technologies• Legal Changes• Ecological/Environmental Factors
• Turbulence and ambiguity define the landscape forboth the public and private sectors
8Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Toolkit Exercise 1.2Analyzing Your Environment
Select an organization you are familiar with. What are the keyenvironmental issues affecting it? List these and their implicationsfor the organization.
Political Factors …………… Implications?
Economic Factors …………… Implications?
Social Factors …………… Implications?
Ecological/Environmental Factors ……… Implications?
Legal Factors …………… Implications?
9Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
New Organizational Forms & ManagementChallenges Due to Environmental Change
Macro Changes and Impact
• Digitization leading to:
• Faster information transmission
• Lower cost information storage and transmission
• Integration of states and opening of markets
• Geographic dispersion of the value chain
• All leading to globalization of markets
10Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
New Organizational Forms & ManagementChallenges (cont.)
New Organizational Forms and Competitive Dynamics• Global small and medium-sized enterprises• Global constellations of organizations (i.e., networks)• Large, focused global firms• All leading to:
• Spread of autonomous, dislocated teams• Digitally enabled structures• Intense global rivalry and running faster while
seeming to stand still
11Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
New Organizational Forms & ManagementChallenges (cont.)
New Management Challenges• Greater diversity• Greater synchronization requirements• Greater time-pacing requirements• Faster decision making, learning and innovation• More frequent environmental discontinuities• Faster industry life-cycles• Faster newness and obsolescence of knowledge• Risk of competency traps where old competencies no
longer produce desired effects• Greater newness and obsolescence of organizations
12Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
The Causal Model Driving Change
Macro Changesand Impacts in
the Environment
NewOrganizational
Forms &CompetitiveDynamics
ManagementChallenges in“A New Time”
13Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Macro Changes and Impact
Digitization
Integration of Statesand Opening of
Markets
Faster InformationTransfer
Lower-costinformation storageand transmission
Geographicdispersion of the
value chain
Globalization ofMarkets
New OrgDynamics
14Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
New Organizational Forms andCompetitive Dynamics
15
Rise of globalSME’s
Rise of globalconstellations
Rise of large,focused global
firms
More intense“Red Queen”
More intensecompetitive rivalry
Spread of digitallyenabled structures
Spread of autonomous,dislocated teams
ManagementChallenges
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Management Challenges in“A New Time”
16
Faster decisionmaking, learningand innovation
Greater Time PacingRequirements
GreaterSynchronizationRequirements
Greater Diversity
Faster newnessand obsolescence
of knowledge
More frequentenvironmentaldiscontinuities
Faster industrylifecycles
Greater Risk ofcompetency traps
Faster newness &obsolescence of
organizations
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Common Management Responses toCompetitive Pressures
• Running hard, but for all purposes standing still
• Called the Red Queen phenomenon (AliceThrough the Looking Glass, by Lewis Carroll)
• In global competition, what matters is not thefirm’s absolute rate of learning and innovation,but the relative pace of its developmentcompared to its rivals.
17Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Toolkit ExerciseWhat Change Challenges do You See?
18
Pick an Organization
What are the change challenges yousee it facing?
How well are they doing?
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Four Types of Organizational Change
19
Tuning Re-orientation
Adaptation Re-creation
Incremental Strategic
Anticipatory
Reactive
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Types of Organizational Change
20
Incremental/Continuous Discontinuous/RadicalANTICIPATORY
Tuning• Incremental and anticipatory• Need is for internal alignment• Focuses on individual
components or sub-systems• Middle management role• Implementation is the major task
Redirecting or Reorienting• Strategic proactive changes based on
predicted major changes in theenvironment
• Need is for positioning the wholeorganization to a new reality
• Focuses on all organizationalcomponents
• Senior management create sense ofurgency and motivate the change
REACTIVE
Adapting• Incremental changes made in
response to environmentalchanges
• Need is for internal alignment• Focuses on individual
components or sub-systems• Middle management role• Implementation is the major task
Overhauling or Recreating• Response to a significant
performance crisis• Need to reevaluate the whole
organization, including its core values• Focuses on all org. components to
achieve rapid, system-wide change• Senior management create vision
and motivate optimism
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Nature of the Impact of Change
• Short-term impact/consequences• Direct and indirect effects• Moderating factors
• Intermediate impact/consequences
• Long-term impact/consequences
THE LESSON: Planned changes don’t alwaysproduce the intended results
21Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Common Causes of Difficulty withOrganizational Change
• Managers don’t do their analytic homework• Managers are action oriented and assume others will
see the inherent wisdom in the proposed change• Managers under or overestimate their own power
and influence (and that of others)• Managers see transition periods as a cost, not an
investment• They underestimate the resources & commitment
needed to integrate the human dimensions with otheraspects of the change
22Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Common Causes of Difficulty withChange (cont.)
• Managers are unaware their actions (and those of other keymanagers) may be sending conflicting messages
• Managers find human processes unsettling or threatening
• Managers lack capacity (attitudes, skills, and abilities) tomanage complex changes that involve people
• Managers’ critical judgment is impaired due tooverconfidence, under confidence, and/or group think
• Unanticipated external factors can play a huge role
23Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Four Organization Change Roles1. Change Initiators
• Identify need and vision• Act as a champion
2. Change Implementers• Chart the detailed path forward & make it happen• Nurture support and alleviate resistance
3. Change Facilitators• Aids in analysis and issue management along the way• Provides advice and council• Sometimes helps smooth the way through helping
resolve issues, alleviate resistance and nurture support
4. Change Recipients• Those affected by the change who have little input to the
process or content of the organizational change• Have to alter behaviors to ensure change success
24Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Toolkit Exercise 1.3Change Roles in Organizations
25
Think of a time when you have been involved in change.What roles did you play? How comfortable were you witheach of those roles?
1. Change Initiator
2. Change Implementer
3. Change Facilitator
4. Change Recipient
How did each of these roles feel? What did youaccomplish in each role?
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Characteristics and Skills of theChange Leader
• Formal change leaders (or agents)spearhead the change, and may play any orall of the change roles.
• Informal change leaders can emergeanytime throughout the change process
• What are the key characteristics and skills ofthe change leader?
26Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
What’s Required to be a SuccessfulChange Leader?
• Keen insight into the external environment and skilledanticipator of what is evolving
• Rich understanding of organizational systems andprocesses, power structures and stakeholder networks
• Excellent analytic, interpersonal and communicationskills
• Driving passion for action, yet patient and persistent• Well-developed sense of timing and tactics• Ability to assess and manage risk
• An ability to focus on outcomes while also paying veryclose attention to process
27Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
What’s Required to be a SuccessfulChange Leader? (cont.)
• Tolerance for ambiguity and risk taking
• Emotional maturity and courage
• Self-confidence and optimism
• Honest and trustworthy
• Capacity to engage others and inspire confidence
• Deep understanding of themselves and their impact
• Curiosity and strong desire to learn
28Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Change Leaders Embrace ChangeParadoxes
• Recognize that change leaders sometimes drive change from thefront, while at other times they empower others and stay out of theway
• Recognize resistance to change is both a problem and anopportunity
• Focus on the outcomes of change, but are very careful about themanagement of the process
• Recognize the tension between “getting on with it” and reassessingand changing direction
• Capacity to balance patience and impatience
• Recognize the absolute rate of learning is less important than therelative rate of learning in comparison to competitors
29Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Critical Questions when Considering Change
1. What is the environment telling you prior to, at thebeginning, during and following the implementationof the change? In particular:a.What is the broader environment telling you about
future economic, social and technological conditionsand trends?
b.What are your customers or clients (both inside andoutside the organization) telling you?
c. What are your competitors doing and how are theyresponding to you?
d.What are the partners within your network doing andhow are they responding to you?
e.What do the people who will potentially be the leaders,managers and recipients of change want and need?
30Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Critical Questions when Considering Change (cont.)
2. Why is change needed? Who sees this need?
3. What is your purpose and agenda?• How does that purpose project to a
worthwhile vision that goes to the heart of thematter?
31Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Critical Questions when Considering Change (cont.)
4. How will you implement and manage thechange?a.How will you resource the change initiative?b.How will you select and work with your change
team?c.How will you work with the broader
organization?d.How will you monitor progress so that you can
steer, alter speed and course, if necessary?
32Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Critical Questions when Considering Change (con’t.)
5. How will you ensure that you act (and areseen to act) ethically and with integrity? Whathave I learned about change and how can Iremember it for the future? How can I pass onwhat I learned?
6. Once the change is completed, what comesnext? The completion of one change simplyserves as the starting point for the next.
33Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Summary
• Need for change often originates in theexternal environment.
• Change upsets the internal equilibrium in anorganization and thus may be resisted.
• People can play many different change roles.
• How they play these roles makes a significantdifference!
34Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Appendix 1: Roots of OrganizationalDevelopment
• Small group training:• Focused on creating change by improving self-awareness
and the group’s dynamics• Survey research and feedback:
• Intervened with sophisticated surveys and analysis to createthe need for change
• Action research:• Encouraged the use of action, based on research, in
continuous cycles (in essence, learning by doing, followed byobservation, doing and more learning)
• Socio-technical systems:• Focused on the interaction between the sociological and
technical subsystems of the organization and describedchange in more holistic terms
35Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Organizational Development vs. Organizational Change
36
OrganizationalDevelopment Change Management
UnderlyingTheory &Analyticalframework
Based primarily onpsychology
Individual/group functioning
Includes principles and tools fromsociology, information technology andstrategic change theories
Individual/group functioning ANDsystems, structures, work processes(congruence model)
Role ofChangeAgent
Facilitator or processconsultant
Content expert (organization designand human performance) AND processconsultant
Member of cross-functional team,which includes strategists andtechnologists
Part of project organization, whichincludes client managers/employees
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Organizational Development vs.Organizational Change
37
OrganizationalDevelopment Change Management
InterventionStrategies
Not directly linked to strategy
Focus on one component ata time
Normative-re-educative(change attitudes to changebehavior)
Driven by strategy
Simultaneous focus on severalcomponents (strategy, humanresources, organization design,technology)
Action-oriented (change behaviorbefore attitudes)
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
Positioning the Course
38
ManagementFocused Change
OD / HR FocusedChange
• Re-Structuring• Re-Engineering• Re-Design
• Surveys• QWL Programs• Hi-Perf Systems
• Visioning• Stakeholder• Analysis• Action Planning
• Process Skills• Team Building• Third Party• Intervention
ThisCourse
Deszca, Ingols & Cawsey, Organizational Change: An Action-Oriented Toolkit, 4th ed.. © 2020 SAGE Publishing.
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