Choosing a path of change:Choosing a path of change:Envisioning a strategy for successful Envisioning a strategy for successful organizational changeorganizational change

MPA 8002

The Structure and Theory of Human Organization

Richard M. Jacobs, OSA, Ph.D.

As most managers/leaders know As most managers/leaders know from first-hand experience...from first-hand experience...

The primary maladaptation involves peoplepeople...…who enact differing views of reality

into what they define as the organizational reality (Weick,1979, 1995)

…and, thus, maladaptive behavior manifests itself in organizational dysfunction

Creating Paths of ChangeCreating Paths of Change(McWhinney, Webber, Smith, & Novokowsky, 1997)(McWhinney, Webber, Smith, & Novokowsky, 1997)

Asserts that organization change begins first with self-change...…that is, if manager/leaders are to

initiate organizational change, they first must understand how they view the world

…because how individuals view reality is a critical element in how they formulate a decision (p. 3)

Organizational change involves a Organizational change involves a five-step process...five-step process...

11 - to identify and understand one’s view of reality and attitudes toward change…requires managers/leaders to

grapple with all that is “antecedent” to a practice episode (Sergiovanni, 1986)

22 - to search for resources, people, money, and situations that match one’s image of what it will take to “work the larger issue”

…necessitates differentiating between organizational “problems” and the “issue” implicit in the problems

33 - to engage team members in examining one another’s views of reality as well as each member’s assets and deficits…provides the experiential base of

self-reflection and understanding of alternative views that enables team members to assess the current organizational situation (“reality”)

44 - to identify the organizational problem(s) and to organize resources into a coherent force…engages team members to identify

the maladaptation between people, process, and technology

…as these are attributed not to people but to the strengths and limitations of their differing views of reality

55 - to formulate a path of change…a path that allows managers/leaders

to solve the organizational issue by inculturating shared values (Schein, 1990, 1992)

…as followers solve problems as they emerge because the changing patterns of the followers’ interactions require new solutions

Creating Paths of ChangeCreating Paths of Change(McWhinney, Webber, Smith, & Novokowsky, 1997)(McWhinney, Webber, Smith, & Novokowsky, 1997)

Organizational change can consist of one of two grand paths of change...

…the grand path of renaissance…or the grand path of revitalization.

Each of these two grand paths utilize Each of these two grand paths utilize multiple modes of change.multiple modes of change.

Organizational change can also consist of a single, minor path...…socio-technical systems design…business process re-engineering

These minor paths These minor paths utilize one mode of utilize one mode of change.change.

…interactive planning…mediation…organizational design

Initiating either of the two grand Initiating either of the two grand paths of change...paths of change...

begins in the sensory reality…where there is evidence of a need

for organizational change…and managers/leaders start

“working an issue”…by choosing a direction to resolve

the conflicts between competing values

the goal of each grand path of organizational change...…is for the followers to begin

“working the problems” to successful solution

Initiating the minor paths of change...Initiating the minor paths of change...

begins in the sensory reality…where there is evidence of a need

for organizational change…and managers/leaders believe that

making a simple and well-identified intervention

the goal of the minor path of organizational change...…to deal effectively with immediate

problems that do not necessitate an “issue defined” change effort

The sensory view of reality in The sensory view of reality in action...action...

induce value

testFormulating Formulating

policies along policies along a revitalizing a revitalizing

pathwaypathway

Generating new Generating new ideas through a co-ideas through a co-

creative pathwaycreative pathway

Inquiring into Inquiring into values along a values along a

pathway of pathway of renaissancerenaissance

The origin and direction of the two The origin and direction of the two grand paths of organizational change...grand paths of organizational change...

value

test

The grand path of The grand path of revitalization revitalization begins in the begins in the analytic mode analytic mode

and uses the tool and uses the tool of testing to of testing to define the define the

direction of the direction of the path of changepath of change

The grand path The grand path of renaissance of renaissance begins in the begins in the

evaluative mode, evaluative mode, using the tool of using the tool of valuing to define valuing to define the direction of the direction of

the path of the path of changechange

Grand Path #1: Organizational Grand Path #1: Organizational renaissance...renaissance...

Grand Path #2: Organizational Grand Path #2: Organizational revitalization...revitalization...

Initiating the grand pathInitiating the grand pathof organizational renaissance...of organizational renaissance...

The grand path of organizational renaissance can begin with a desperate situation...

…where organizational action and outcomes are obsolete (e.g., “teddy bears” per Winnicott, 1958).

Or, organizational renaissance can begin in an entrepreneurial situation where an opportunity presents itself...

…and organizational action can pave the way for new possibilities...

with the outcome...

…of a dramatic organizational turnaround

…or of an organizational rebirth in a new form.

The grand path of organizational The grand path of organizational renaissance begins with action...renaissance begins with action...

Step 1: A measured loss of meaning...Step 1: A measured loss of meaning...Data indicateData indicatesome form ofsome form oforganizationalorganizational

failurefailure

action where problems arise

“game playing” on the first board...

structural problems

human resources problems

political problems

…to identify what isn’t working and won’t work any longer

cultural/symbolic problems (Bolman & Deal, 1997)

Step 2: Evaluative mode...Step 2: Evaluative mode...

To elicit what matters:To elicit what matters:why do we dowhy do we dowhat we do?what we do?

values1 how problems are defined

“game playing” on the third board...

antecedents

theories of practice

organizational culture

organizational environment

…to elicit what really matters

with the outcomes...

…communicating…bargaining…allocating

Step 3: Emergent mode...Step 3: Emergent mode...

To co-createTo co-createimages that reflectimages that reflect

shared valuesshared values

truth a substantive vision

“game playing” on the sixth board...

provides meaning and purpose

rooted in culture and perdures beyond individuals

abstract, needs to be made concrete in human experience

…to co-create a new truth based upon shared values

Step 4: Assertive mode...Step 4: Assertive mode...

To formulateTo formulatepoliciespolicies

that expressthat expressthe visionthe vision

power1 how problems are dealt with

“game playing” on the second board...

coercive

remunerative

normative (Simon, 1947)

…to formulate new policies reflecting new truth

Step 5: Analytic mode...Step 5: Analytic mode...

To put new policiesTo put new policiesinto actioninto action

power2 how problems are dealt with

“game playing” on the second board...

coercive

remunerative

normative (Simon, 1947)

…to put new policies into practice

power

values

truthThe desired managerial/leadership outcome being that...

action

…while followers “work the problems” toward solutions

…the manager/leader “works the issue” toward resolution

Initiating the grand pathInitiating the grand pathof organizational revitalization...of organizational revitalization...

The grand path of organizational revitalization is used most frequently by managers/leaders in response to moderate organizational crises...

…features organizational adaptation (e.g., contingency theory per Lawrence & Lorsch, 1967).

The purpose of organizational revitalization is to strengthen the extant organization...

…though various technical processes (e.g., Total Quality Management [TQM], Continuous Quality Improvement [CQI]), Organizational Development [OD], Organizational Re-engineering).

The grand path of organizational The grand path of organizational revitalization begins with action...revitalization begins with action...

Step 1: Awareness of a problem...Step 1: Awareness of a problem...Data indicateData indicatesome form ofsome form oforganizationalorganizational

failurefailure

action where problems arise

“game playing” on the first board...

structural problems

human resources problems

political problems

…to test the “one best way” (Taylor, 1911)

cultural/symbolic problems

Step 2: Analytic mode...Step 2: Analytic mode...

To renew organizationalTo renew organizationalpurpose, policies, and goalspurpose, policies, and goals

power how problems are dealt with

“game playing” on the second board...

coercive

remunerative

normative (Simon, 1947)

…to make the organization responsive to its reality

Step 3: Assertive mode...Step 3: Assertive mode...

To mobilize people aroundTo mobilize people aroundthe renewed organizationalthe renewed organizationalpurpose, policies, and goalspurpose, policies, and goals

truth a substantive vision

“game playing” on the sixth board...

provides meaning and purpose

rooted in culture that perdures beyond individuals

abstract, needing to be made concrete in human experience

…to facilitate the adoption of shared values among all stakeholders

Step 4: Emergent mode...Step 4: Emergent mode...

To motivate workers to valueTo motivate workers to valuethe renewed organizationalthe renewed organizationalpurpose, policies, and goalspurpose, policies, and goals

values how problems are defined

“game playing” on the third board...

antecedents

theories of practice

organizational culture

organizational environment

…to identify and divide up job roles and responsibilities

Step 5: Evaluative mode...Step 5: Evaluative mode...To allocate To allocate

responsibilities andresponsibilities andengage in actionengage in action

action where problems arise

“game playing” on the first board...

structural problems

human resources problems

political problems

…to develop “team” accountability for renewed purpose, policies, and goals

cultural/symbolic problems

power

values

truthThe desired managerial/leadership outcome being that...

action

…while followers “work the problems” toward solutions

…the manager/leader “works the issue” toward resolution

Either of the two grand pathways Either of the two grand pathways of organizational change...of organizational change...

ultimately leads back to the sensory reality...

…which is the logical end point of action intended to solve problems.

Initiating the minor pathsInitiating the minor pathsof organizational change...of organizational change...

Minor Path #1: Socio-technical Minor Path #1: Socio-technical systems design (STS)...systems design (STS)...

a minor path where resolutions to organizational problems...

…can emerge from the natural adaptive behaviors of those who do the work (e.g., “holographic organization” [Nonaka & Takenchi, 1995]; “organizational learning” [Argyris & Schön, 1978]).

begins as managers/leaders recognize the need to change policies to reflect the workers’ values...

STS...STS...

STS...STS...

STS...STS...

To change policiesTo change policiesto reflect theto reflect the

workers’ valuesworkers’ values

mode:mode:tool:tool:

evaluativevalue

STS...STS...

To build aTo build avalue consensusvalue consensusamong involvedamong involved

managers and workersmanagers and workers

mode:mode:tool:tool:

influentialpersuade

STS...STS...

A contract (“charter”)A contract (“charter”)sets thesets the

limits for worklimits for workdesigndesign

mode:mode:tool:tool:

influentialconvert

STS...STS...

Cross-functionalCross-functionalwork teams designwork teams design

more efficientmore efficientoperationsoperations

mode:mode:tool:tool:

analyticdesign

Minor Path #2: Organizational Minor Path #2: Organizational process re-engineering (OR)...process re-engineering (OR)...

a minor path where resolutions to organizational problems...

…can emerge by integrating the internal operations with the forces present in the environment (e.g., “autopoeisis” [Maturana & Varela, 1980]; “contingency theory” [Burns & Stalker, 1961]; “population ecology” [Aldrich, 1979]).

begins as managers/leaders recognize dissatisfaction expressed by external stakeholders...

OR...OR...

OR...OR...

OR...OR...mode:mode:tool:tool:

analytictest

Managers/leadersManagers/leadersrecognize therecognize theorganization’sorganization’s

failure in dealingfailure in dealingwith environmentalwith environmental

turbulenceturbulence

OR...OR...mode:mode:tool:tool:

assertiveinspire

A management teamA management teamorganizes findingsorganizes findings

and identifies aand identifies anew designnew design

OR...OR...mode:mode:tool:tool:

assertiveestablish

Managers/leadersManagers/leaderscodifycodify

policy changespolicy changes

OR...OR...mode:mode:tool:tool:

analyticdesign

Managers/leadersManagers/leadersimplement new policiesimplement new policies

Minor Path #3: Interactive Minor Path #3: Interactive planning (IP)...planning (IP)...

a minor path where resolutions to organizational problems...

…can emerge as intra-organizational experts are combined to discover the most rational plan for more effective operations (e.g., “adhocracy” [Bennis, 1966]; “matrix organization” [Mintzberg, 1979]).

begins as managers/leaders recognize that the organization’s internal operations are ineffective...

IP...IP...

IP...IP...

IP...IP...

Teams produce designsTeams produce designsto eliminate the messesto eliminate the messes

identified in analytic studiesidentified in analytic studies

mode:mode:tool:tool:

inventiveinduce

Leaders/managersLeaders/managersselect the mostselect the most

promising scenariopromising scenario

IP...IP...mode:mode:tool:tool:

assertiveestablish

Leaders/managersLeaders/managerscodify new policiescodify new policies

IP...IP...mode:mode:tool:tool:

analyticdesign

Minor Path #4: Mediation and Minor Path #4: Mediation and Arbitration (MA)...Arbitration (MA)...

a minor path where resolutions to organizational problems...

…can emerge as contracted disputants establish new rules governing a more “level playing field” (e.g., “labor-management teams” [Wainwright & Elliott, 1982]; “radicalized organization” [Burrell & Morgan, 1979]).

begins as managers/leaders recognize management-labor conflict...

MA...MA...

MA...MA...

ManagementManagementidentifies conflictidentifies conflict

and disputantsand disputants

mode:mode:tool:tool:

influentialconvert

MA...MA...

Management-labor teamManagement-labor teamengages in fact findingengages in fact finding

mode:mode:tool:tool:

influentialpersuade

MA...MA...

Management-labor teamManagement-labor teamidentifies procedureidentifies procedure

for resolutionfor resolution

mode:mode:tool:tool:

influentialconvert

MA...MA...

Labor acceptsLabor acceptsprocedure forprocedure for

solutionsolution

mode:mode:tool:tool:

influentialpersuade

Minor Path #5: Organizational Minor Path #5: Organizational Development (OD)...Development (OD)...

a minor path where resolutions to organizational problems...

…can emerge by utilizing a value base to formulate a shared set of paths (Bennis, 1966; Levinson, 1972)

begins as managers/leaders establish lists for an acceptable change effort...

OD...OD...

OD...OD...

OD...OD...mode:mode:tool:tool:

evaluativevalue

The needThe needto enhance theto enhance themeaning andmeaning and

quality of workquality of workand efficiencyand efficiency

OD...OD...mode:mode:tool:tool:

emergentevoke

Building aBuilding avalue consensusvalue consensus

OD...OD...mode:mode:tool:tool:

emergentfacilitate

SharingSharingvaluesvalues

OD...OD...mode:mode:tool:tool:

evaluativeallocate

Shared valuesShared valuesused to assessused to assess

performanceperformance

This module has focused on...This module has focused on...

Choosing a pathway of changeChoosing a pathway of change. It has featured the primary choices confronting organizational managers/leaders as problems emerge. The choice of pathway requires courage, which enables managers/leaders to “work the organizational issue” by enabling followers to “work the organizational problems.”

ReferencesReferences

Aldrich, H. (1979). Organizations and environments. Englewood Cliffs, NJ: Prentice Hall.

Argyris, C., & Schön, D. (1978). Organizational learning: A theory of action perspective. Reading, MA: Addison-Wesley.

Bennis, W. G. (1966). Changing organizations. New York: McGraw-Hill.

Bolman, L., & Deal, T. (1997). Reframing organizations (2nd ed.). San Francisco, CA: Jossey-Bass

Burns, T., & Stalker, G. (1961). The management of innovation. London, UK: Tavistock.

Burrell, G., & Morgan, G. (1979). Sociological paradigms and organizational analysis. London, UK: Heinemann Educational Books.

Lawrence, P. R., & Lorsch, J. W. (1967). Organization and environment. Cambridge, MA: Harvard Graduate School of Business Administration.

Levinson, H. (1972). Organizational diagnosis. Cambridge, MA: Harvard University Press.

Maturana, H., & Varela, F. (1980). Autopoeisis and cognition: The realization of the living. London, UK: Reidel.

McWhinney, W., Webber, J. B., Smith, D. M. , & Novokowsky, B. J. (1997). Creating paths of change: Managing issues and resolving problems in organizations. Thousand Oaks, CA: Sage Publications.

Mintzberg, H. (1979). The structuring of organizations. Englewood Cliffs, NJ: Prentice Hall.

Nonaka, I., & Takuchi, H. (1995). The knowledge-creating company. New York: Oxford University Press.

Simon, H. A. (1945/1997). Administrative behavior: A study of decision-making processes in administrative organizations. New York: The Free Press.

Taylor, F. W. (1911). The principles of scientific management. New York: Harper & Row.

Wainwright, H, & Elliott, D. (1982). The Lucas plan: A new trade-unionism in the making. London, UK: Allison & Busby.

Winnicott, D. W. (1958). Transitional objects and transitional phenomena. In D. W. Winnicott, Collected papers. London: UK: Tavistock.