Managing organizational change a multiple perspectives approach ppt

Managing Organizational Change A Multiple Perspectives Approach Third Edition Ian Palmer Richard Dunford David A. Buchanan MANAGING ORGANIZATIONAL CHANGE: A MULTIPLE PERSPECTIVES APPROACH, THIRD EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2017 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2009 and 2006. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. 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Library of Congress Cataloging-in-Publication Data Palmer, Ian, 1957Managing organizational change : a multiple perspectives approach / Ian Palmer, Richard Dunford, David A. Buchanan. -- Third Edition. p. cm. Revised edition of Managing organizational change, 2009. Includes bibliographical references and index. ISBN 978-0-07-353053-6 (alk. paper) 1. Organizational change. 2. Organizational change--Management. I. Dunford, Richard. II. Buchanan, David A. III. Title. HD58.8.P347 2016 658.4’06--dc23 2015033668 The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites. mheducation.com/highered DEDICATIONS From Ian To Dianne, Matthew, and Michelle From Richard To Jill, Nick, and Ally From David To Lesley with love—and thanks This book is also dedicated to the memory of Gib Akin, our co-author from 2005 to 2014. Acknowledgements A number of people have contributed to this edition, and we owe them all a debt of gratitude, including Jonathan Bamber, Lesley Buchanan, Daloni Carlile, Mimi Clarke, and Alastair McLellan. In addition, we would like to thank our McGraw-Hill Education team, including Michael Ablassmeir, Director, Laura Hurst Spell, Senior Product Developer; Jeni McAtee, Evan Roberts, Karen Jozefowicz, Content Project Managers; Gunjan Chandola (Lumina), Full-Service Content Project Manager; and DeAnna Dausener, Content Licensing Specialist. We would also like to thank the second edition reviewers for their helpful feedback: Diane Bandow, Troy University; Cynthia Bean, University of South Florida– St. Petersburg; Bradford R. Frazier, Pfeiffer University; Dominie Garcia, San Jose State University; Selina Griswold, University of Toledo; Mark Hannan, George Washington University; Christopher S. Howard, Pfeiffer University; Jim Kerner, Athens State University; Catherine Marsh, North Park University; Patricia A. Matuszek, Troy University; Ranjna Patel, Bethune Cookman University; Mary Sass, Western Washington University; Dennis Self, Troy University; Patricia Scescke, National Louis University. iv Brief contents Preface PART 1 PART 2 Groundwork: Understanding and Diagnosing Change 1 Managing Change: Stories and Paradoxes 3 2 Images of Change Management 31 3 Why Change? Contemporary Pressures and Drivers 61 4 What to Change? A Diagnostic Approach 101 Implementation: The Substance and Process of Change 1 137 5 What Changes—and What Doesn’t? 139 6 Vision and the Direction of Change 171 7 Change Communication Strategies 205 8 Resistance to Change 249 9 Organization Development and Sense-Making Approaches 279 10 PART 3 ix Change Management, Processual, and Contingency Approaches 315 Running Threads: Sustainability, and the Effective Change Manager 353 11 Sustaining Change versus Initiative Decay 355 12 The Effective Change Manager: What Does It Take? 385 Name Index Subject Index 423 433 v Contents Preface ix Part 1 Groundwork: Understanding and Diagnosing Change 1 1 Managing Change: Stories and Paradoxes 3 Learning objectives 3 Stories About Change: What Can We Learn? 4 The Story of Beth Israel Deaconess Medical Center 5 The Story of Sears Holdings 8 The Story of J. C. Penney 10 Tension and Paradox: The State of the Art 14 Assessing Depth of Change 18 What’s Coming Up: A Road Map 19 Change Diagnostic: The Beth Israel Story 21 Change Diagnostic: The Sears Holdings Story 23 Change Diagnostic: The J. C. Penney Story 24 Exercise 1.1: Writing Your Own Story of Change 26 Additional Reading 27 Roundup 27 References 28 2 Images of Change Management 31 Learning objectives 31 What’s in a Name: Change Agents, Managers, or Leaders? 32 Images, Mental Models, Frames, Perspectives 33 The Six-Images Framework 34 Six Images of Change Management 37 Using the Six-Images Framework 46 vi Self-Assessment: What Is Your Image of Managing Change? 49 Self-Assessment: Scoring 51 Exercise 2.1: Assessing Change Managers’ Images 52 Exercise 2.2: The Turnaround Story at Leonard Cheshire 53 Additional Reading 55 Roundup 56 References 57 3 Why Change? Contemporary Pressures and Drivers 61 Learning objectives 61 Environmental Pressures for Change 62 Why Do Organizations Not Change in Response to Environmental Pressures? 79 Why Do Organizations Not Change after Crises? 82 Internal Organizational Change Drivers 85 Exercise 3.1: Top Team Role Play 91 Exercise 3.2: Case Analysis: The Sunderland City Story 91 Exercise 3.3: The Reputation Trap: Can You Escape? 92 Additional Reading 93 Roundup 94 References 96 4 What to Change? A Diagnostic Approach 101 Learning objectives 101 Organizational Models 102 Organization Strategy and Change 108 Diagnosing Readiness for Change 117 Built-to-Change 124 Exercise 4.1: The Capital One Financial Story 125 Contents vii Exercise 4.2: Scenario Planning 127 Exercise 4.3: Readiness for Change Analysis 128 Additional Reading 130 Roundup 131 References 134 Exercise 6.3: The Role of Vision at Mentor Graphics 197 Additional Reading 198 Roundup 199 References 201 Part 2 Implementation: The Substance and Process of Change 137 5 What Changes—and What Doesn’t? 139 Learning objectives 139 What Changes? 140 Innovation 146 Organizational Culture 150 Technology 155 Exercise 5.1: The Nampak Story 161 Exercise 5.2: Organizational Culture Assessment 162 Exercise 5.3: How Will the Digital Revolution Affect Your Organization? 163 Additional Reading 163 Roundup 164 References 166 6 Vision and the Direction of Change 171 Learning objectives 171 Vision: Fundamental or Fad? 172 The Characteristics of Effective Visions How Context Affects Vision 180 How Visions Are Developed 181 Why Visions Fail 187 Linking Vision to Change: Three Debates 189 Exercise 6.1: Interviewing Change Recipients 197 Exercise 6.2: Analyze Your Own Organization’s Vision 197 174 7 Change Communication Strategies 205 Learning objectives 205 The Change Communication Process 206 Gender, Power, and Emotion 211 Language Matters: The Power of Conversation 215 Change Communication Strategies 222 Contingency Approaches to Change Communication 228 Communication Channels and the Role of Social Media 232 Exercise 7.1: Listen to Who’s Talking 238 Exercise 7.2: How Defensive Are You? 239 Exercise 7.3: Social Media at the Museum 240 Additional Reading 241 Roundup 242 References 244 8 Resistance to Change 249 Learning objectives 249 WIIFM, WAMI, and the Dimensions of Resistance 250 Benefits 251 Causes 253 Symptoms 260 Managers as Resisters 261 Managing Resistance 263 Exercise 8.1: Diagnosing and Acting 270 Exercise 8.2: Jack’s Dilemma 270 Exercise 8.3: Moneyball 271 Additional Reading 272 Roundup 272 References 274 viii Contents 9 Organization Development and Sense-Making Approaches 279 Learning objectives 279 Alternative Approaches to Managing Change 280 Organization Development (OD) 280 Appreciative Inquiry (AI) 291 Positive Organizational Scholarship (POS) 293 Dialogic Organizational Development 295 Sense-Making 298 Exercise 9.1: Reports from the Front Line 304 Exercise 9.2: Designing a Large-Scale Change Intervention 304 Exercise 9.3: Making Sense of Sense-Making 304 Exercise 9.4: Interpreting the Interpreter: Change at Target 305 Exercise 9.5: Change at DuPont 306 Additional Reading 308 Roundup 308 References 310 10 Change Management, Processual, and Contingency Approaches 315 Learning objectives 315 Alternative Approaches to Managing Change 316 Why Change Fails 317 Change by Checklist 319 Stage Models of Change Management 325 Process Perspectives on Change 331 Contingency Approaches to Change Management 335 Exercise 10.1: Develop Your Own Change Model 341 Exercise 10.2: The British Airways Swipe Card Debacle 342 Exercise 10.3: The Italian Job 344 Additional Reading 346 Roundup 346 References 349 Part 3 Running Threads: Sustainability, and the Effective Change Manager 353 11 Sustaining Change versus Initiative Decay 355 Learning objectives 355 Initiative Decay and Improvement Evaporation 356 Praiseworthy and Blameworthy Failures 359 Actions to Sustain Change 362 Words of Warning 369 Exercise 11.1: A Balanced Set of Measures 373 Exercise 11.2: Treating Initiative Decay 373 Exercise 11.3: The Challenger and Columbia Shuttle Disasters 374 Additional Reading 379 Roundup 380 References 382 12 The Effective Change Manager: What Does It Take? 385 Learning objectives 385 Change Managers: Who Are They? 386 Change Managers: What Kind of Role Is This? 394 Change Management Competencies 397 Political Skill and the Change Manager 403 Developing Change Management Expertise 410 Exercise 12.1: Networking—How Good Are You? 412 Exercise 12.2: How Resilient Are You? 413 Exercise 12.3: How Political Is Your Organization? 415 Additional Reading 416 Roundup 417 References 419 Name Index 423 Subject Index 433 Preface Since the previous edition of this book published in 2009, the organizational world has changed dramatically—the global financial crisis, fresh geopolitical tensions, environmental concerns, greater focus on corporate social responsibility, economic uncertainties, emerging new markets, dramatic technological developments, demographic shifts, changing consumer tastes and expectations. Add to that mix the growing significance of social media, where positive and critical views of organizations and their products and services can be shared instantly and globally with large numbers of people. From a management perspective, it feels as though the drivers for organizational change are now more numerous, and that the pace of change has also increased; more pressure, more change, faster change. While the pace of change may only appear to have quickened, failure to respond to those pressures, and in some cases failure to respond quickly enough, can have significant individual and corporate consequences. The personal and organizational stakes appear to have increased. The management of organizational change thus remains a topic of strategic importance for most sectors, public and private. Current conditions have, if anything, increased the importance of this area of management responsibility. This new edition, therefore, is timely with regard to updating previous content, while introducing new and emerging trends, developments, themes, debates, and practices. In the light of this assessment, we believe that the multiple perspectives approach is particularly valuable, recognizing the variety of ways in which change can be progressed, and reinforcing the need for a tailored and creative approach to fit different contexts. Our images of how organizational change should be managed affect the approaches that we take to understanding and managing change. Adopting different images and perspectives helps to open up new and more innovative ways of approaching the change management process. We hope that this approach will help to guide and to inspire others in pursuit of their own responsibilities for managing organizational change. This text is aimed at two main readers. The first is an experienced practicing manager enrolled in an MBA or a similar master’s degree program, or taking part in a management development course that includes a module on organizational change management. The second is a senior undergraduate, who may have less practical experience, but who will probably have encountered organizational change through temporary work assignments, or indirectly through family and friends. Our senior undergraduate is also likely to be planning a management career, or to be heading for a professional role that will inevitably involve management—and change management—responsibilities. Given the needs and interests of both types of readers, we have sought to present an appropriate blend of research and theory on the one hand, and practical management application on the other. Instructors who have used our previous edition will find many familiar features in this update. The chapter structure and sequence of the book remain much the same, with some minor adjustments to accommodate new material. The overall argument is again underpinned by the observation that the management of organizational change is in part a rational or technical task, and is also a creative activity, with the need to design novel strategies and processes ix x Preface that are consistent with the needs of unique local conditions. We hope that readers will find the writing style and presentation clear and engaging. We have also maintained the breadth of coverage of the different traditions and perspectives that contribute to the theory and practice of managing organizational change, with international examples where appropriate. The development of this new edition has introduced new content and new pedagogical features. The new content for this edition includes the following: Depth of change: Change can be categorized and understood with regard to how deeply it penetrates an organization. A “depth of change” model is explained, using a “shallow to transformational” scale, forming the basis for discussion and analysis at various points in the text (chapters 1, 4, and 12). New tensions and debates: A new section explores contemporary dilemmas in organizational change management. One of these concerns striking the balance between large-scale transformational change (which can be disruptive) and “sweating the small stuff” (which can create a platform for further changes). A second concerns pace, with some commentators advising how to speed up change, while others warn of the dangers of “the acceleration trap” (chapter 1). Change managers or change leaders: