OC 6440Organizational Change and Development

NATURE OF PLANNED

CHANGE; THE OCD

PRACTITIONER; ENTERING/CONTR

ACTING

Week 3

Nature of Planned Change

Nature of Planned Change:What we will look at

• The three major perspectives on changing organizations.

• A General Model of Planned Change that will be used to organize the material presented in the book.

• How planned change can be adopted to fit different kinds of conditions.

Lewin’s Change Model

Unfreezing

Movement

Refreezing

Action Research Model

Feedback to ClientData gathering after

action

Problem Identification

Joint action planningConsultation with a behavioral scientist

Data gathering & preliminary diagnosis

Joint diagnosis

Action

Initiate the Inquiry

Inquire into Best Practices

Discover Themes

Envision a Preferred Future

Design and Deliver Ways to Create the Future

Positive Model

Comparison of Planned Change Models

• Similarities– Change preceded by diagnosis or preparation– Apply behavioral science knowledge– Stress involvement of organization members– Recognize the role of a consultant

• Differences– General vs. specific activities– Centrality of consultant role– Problem-solving vs. social constructionism

General Model of Planned Change

Evaluatingand

InstitutionalizingChange

Planningand

ImplementingChange

DiagnosingEntering

andContracting

Entering and Contracting

• Entering Phase involves gathering information from the organization to understand the problems or to determine the positive areas for inquiry.

• Contracting Phase spells out the changes that will proceed for the future, the resources that will be used and how everyone will be involved.

DiagnosingCentral change Activities

• Gathering• Analyzing• Feedback

Planning and Implementing Change

• Human process interventions at the individual, group, and total system levels;

• Interventions that modify an organization’s structure and technology;

• Human resources interventions that seek to improve member performance and wellness;

• Strategic interventions that involve managing the organization's relationship to its external environment and the internal structure and process necessary to support a business strategy.

Evaluating and Institutionalizing Change

• Evaluating Change requires feedback about whether changes should be continued, modified, or suspended.

• Institutionalizing Change requires reinforcement through feedback, rewards and training.

Different Types of Planned Change

• Magnitude of Change– Incremental– Quantum

• Degree of Organization– Over organized– Under organized

• Domestic vs. International Settings

Planned Change

• What is planned change?

• Planned change can vary enormously from one situation to another. Why?

• Can be contrasted across situations along three dimensions.

Key Dimensions of Planned Change

• Magnitude of Change

• The degree to which the client system is organized

• The setting-domestic or international

Magnitude of Change

• Planned change efforts range from incremental to fundamental.

• OCD practitioners are usually contacted by managers for specific problems.

• Diagnostic and change activities are limited to defined issues.

Incremental Changes

• Involves limited dimensions and levels of the organization

• Occur within the context of the organization’s existing business areas.

• Aimed at improving the status quo

Fundamental Change• Directed at significantly altering how the

organization operates.

• Involve several organizational dimensions.

• Involve changing multiple levels of the organization.

Critique of Planned Change

• Conceptualization of Planned Change– Change in not linear– Change is not rational– The relationship between change and

performance is unclear

• Practice of Planned Change– Limited consulting skills and focus– Quick fixes vs. development approaches

Domestic vs. International Settings

Domestic vs. InternationalDomestic (NA & EU)• Equality• Involvement• Short time horizons

International (APA)• Hierarchical• Status• Avoid personal• Save face• Long time horizons

Domestic vs. International (Continued)

Action Research Process (ARP) recommended• Cyclical• Joint activities between organization members• Multiple steps that overlap

– Problem identification– Consult with behavioral science/OCD expert– Data gathering and diagnosis– Feedback

Domestic vs. International (Continued)

ARP adapted to fit cultural context• Many organizational members• Execs only• Top-down• Inside vs. outside consultants• Face-to-face interviews

Domestic vs. International (Continued)

OCD Practitioner must:• Be aware of own cultural biases• See issues from another perspective• Fluent in values and assumptions of country• Understand economic and political context

– Vacations– Time zones– Cultural Guide recommended

Domestic vs. International (Continued)

Virtual Organizations – Time and Distance• A business model that supports

– Online collaboration applications (audio and video conferencing)

– Employees are able to use mobile technology and home offices to overcome the barriers that time difference presents.

Domestic vs. International(Continued)

• Synergies of Domestic Companies with MNCs• Advantages

– Scale– Existing resources

• Disadvantages– “Foreignness”– China / Japan island dispute– Culture– Required (Joint Ventures)

Conceptualization of Planned Change

Critique• Must identify organizational features that can

be changed• Intended outcomes from changes• Mechanisms by which change is achieved• Contingencies on which change depends

Conceptualization of Planned Change Critique (cont).

Contingencies– Stages differ across situations– Magnitude– Client system organization– Domestic or international– Intuitive?

Conceptualization of Planned Change Critique (cont).

Not rational or orderly, but chaotic– Shifting goals– Discontinuous activities– Surprising events– Unexpected combinations– Overzealous testimonials– Change never ends

Practice of Planned Change

Critique• Specialized OCD practitioners (TQM,

Appreciative Inquiry, Group)– results in inappropriate method usage (diversity,

reengineering, self-managing teams)• “Cart-before-the-horse”

– Self-diagnosis and action plans• Quick-fix instead of required long-term plan• Sub-optimization

Ready,Fire,Aim!

An OCD Process Model

AE P

I

Assess

Plan

Implement

Evaluate

A-P-I-E Model

Entering and Contracting

The Entering Process• Clarifying the Organizational Issue

– Presenting Problem– Symptoms

• Determining the Relevant Client– Working power and authority– Multiple clients -- multiple contracts

• Selecting a Consultant

Elements of an Effective Contract

• Mutual expectations are clear– Outcomes and deliverables– Publishing cases and results– Involvement of stakeholders

• Time and Resources– Access to client, managers, members– Access to information

• Ground Rules– Confidentiality

Emotional Demands of Entry

• Client Issues– Exposed and Vulnerable– Inadequate– Fear of losing control

• OCD Practitioner Issues– Empathy– Worthiness and Competency– Dependency– Over identification

CURRENT CONDITION• Decreasing Revenue • Structure : Divisional, limited to expand• Style : Conservative• Culture : nice• Staff never fired

INTENDED CONDITION• Increasing Revenue • Costumer focus• Center Of Excellent

Entering Contracting

OCD process

Clarifying Issue Organization

Determining Relevant Client

Selection OD Practitioners

Entering

Professor

Clarifying Issue Organizes Contract

COO

Ground RulesTime & Resources

Mutual Expectation

COO + Senior VP HRD + Dir of

Training & OCD

Proposal

Design Team Selection

Owner + rep. key area + key Infl + Impl

Learning, Visioning & Diagnosing

$xx,xxxDirect expenses

3-5 year action plan

Action Plan

Initial Implementation Step

Monitoring, Correction & Evaluation

• free access• time flexibility• Access sensitive data

Elements of an Effective Proposal

Content DescriptionGoals of Proposed Effort

Descriptive, clear, and concise goals to be achieved

Recommended Action Plan

Description of 1) diagnosis, 2) data analysis process, 3) feedback process, and 4) action-planning process

Specification of Responsibilities

What will various leaders, including the OCD practitioner, be held accountable for?

Strategy for Achieving the Desired State

Provide change strategies, including education/training, political influence, structural interventions, and confrontation of resistance.

Fees, terms, and conditions

Outline fees and expenses associated with the project