Organizational change cawsey pdf

Organizational Change 3e

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This book is dedicated to our partners: Heather, Bertha, and Steve.

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Organizational Change

An Action-Oriented Toolkit

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Tupper F. Cawsey Wilfrid Laurier University

Gene Deszca Wilfrid Laurier University

Cynthia Ingols Simmons College

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Library of Congress Cataloging-in-Publication Data

Cawsey, T. F.

Organizational change: an action-oriented toolkit / Tupper F. Cawsey, Gene Deszca, Cynthia Ingols. — Third edition.

pages cm

Includes index.

ISBN 978-1-4833-5930-4 (pbk.: alk. paper)

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1. Organizational change. I. Deszca, Gene. II. Ingols, Cynthia. III. Title.

HD58.8.C39 2016

658.4′06—dc23 2015006458

This book is printed on acid-free paper.

Acquisitions Editor: Maggie Stanley

Associate Editor: Abbie Rickard

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Detailed Contents

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Detailed Contents Preface Acknowledgments Chapter 1: Changing Organizations in Our Complex World

Defining Organizational Change The Orientation of This Book

Environmental Forces Driving Change Today The Implications of Worldwide Trends for Change Management

Four Types of Organizational Change Planned Changes Don’t Always Produce the Intended Results

Organizational Change Roles Change Initiators Change Implementers Change Facilitators Common Challenges for Managerial Roles Change Recipients

The Requirements for Becoming a Successful Change Leader Summary Key Terms End-of-Chapter Exercises

Chapter 2: Frameworks for Leading the Process of Organizational Change: “How” to Lead Organizational Change

Differentiating How to Change From What to Change The Processes of Organizational Change (1) Stage Theory of Change: Lewin

Unfreeze Change Refreeze

(2) Stage Model of Organizational Change: Kotter Kotter’s Eight-Stage Process

(3) Giving Voice to Values: Gentile GVV and Organizational Change

(4) Emotional Transitions Through Change: Duck Duck’s Five-Stage Change Curve

(5) Managing the Change Process: Beckhard and Harris (6) The Change Path Model: Cawsey–Deszca–Ingols Application of the Change Path Model

Awakening: Why Change? Mobilization: Gap Analysis of Hotel Operations Acceleration: Getting From Here to There Institutionalization: Measuring Progress Along the Way and Using Measures to Help Make the Change Stick

Summary

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Key Terms End-of-Chapter Exercises

Chapter 3: Frameworks for Diagnosing Organizations: “What” to Change in an Organization Open Systems Approach to Organizational Analysis (1) Nadler and Tushman’s Congruence Model

History and Environment Strategy The Transformation Process Work The Formal Organization The Informal Organization People Outputs An Example Using Nadler and Tushman’s Congruence Model Evaluating Nadler and Tushman’s Congruence Model

(2) Sterman’s Systems Dynamics Model (3) Quinn’s Competing Values Model (4) Greiner’s Model of Organizational Growth (5) Stacey’s Complexity Theory Summary Key Terms End-of-Chapter Exercises

Chapter 4: Building and Energizing the Need for Change Understanding the Need for Change

Seek Out and Make Sense of External Data Seek Out and Make Sense of the Perspectives of Stakeholders Seek Out and Make Sense of Internal Data Seek Out and Assess Your Personal Concerns and Perspectives

Assessing the Readiness for Change Heightening Awareness of the Need for Change Factors That Block People From Recognizing the Need for Change

Developing a Powerful Vision for Change The Difference Between an Organizational Vision and a Change Vision Examples of Organizational Change Visions

Google’s Implied Vision for Change in Telecommunications Xerox’s Vision for Creating Agile Business Processes IBM—Diversity 3.0 Ronald McDonald House Charities (RMHC) Vision Tata’s Vision for the Nano World Wildlife Fund: Vision for Its Community Action Initiative—Finding Sustainable Ways of Living Vision for the “Survive to 5” Program Change Vision for “Reading Rainbow”

Summary Key Terms A Checklist for Change: Creating the Readiness for Change

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End-of-Chapter Exercises Chapter 5: Navigating Change Through Formal Structures and Systems

Making Sense of Formal Structures and Systems Impact of Uncertainty and Complexity on Formal Structures and Systems Formal Structures and Systems From an Information Perspective

Aligning Systems and Structures With the Environment Structural Changes to Handle Increased Uncertainty Making Formal Structure and System Choices

Using Structures and Systems to Influence the Approval and Implementation of Change Using Formal Structures and Systems to Advance Change Using Systems and Structures to Obtain Formal Approval of a Change Project Using Systems to Enhance the Prospects for Approval Ways to Approach the Approval Process

Aligning Strategically, Starting Small, and “Morphing” Tactics The Interaction of Structures and Systems With Change During Implementation Using Structures and Systems to Facilitate the Acceptance of Change Developing Adaptive Systems and Structures Summary Key Terms Checklist: Change Initiative Approval End-of-Chapter Exercises

Chapter 6: Navigating Organizational Politics and Culture Power Dynamics in Organizations Departmental Power Organizational Culture and Change

How to Analyze a Culture Tips for Change Agents to Assess a Culture

Understanding the Perceptions of Change Identifying the Organizational Dynamics at Play

Summary Key Terms Checklist: Stakeholder Analysis End-of-Chapter Exercises

Chapter 7: Managing Recipients of Change and Influencing Internal Stakeholders Stakeholders Respond Variably to Change Initiatives

Not Everyone Sees Change as Negative Responding to Various Feelings in Stakeholders

Positive Feelings in Stakeholders: Channeling Their Energy Ambivalent Feelings in Stakeholders: They Can Be Useful Negative Reactions to Change by Stakeholders: These Too Can Be Useful

Make the Change of the Psychological Contract Explicit and Transparent Predictable Stages in the Reaction to Change Stakeholders’ Personalities Influence Their Reactions to Change Prior Experience Impacts a Person’s and Organization’s Perspective on Change Coworkers Influence Stakeholders’ Views Feelings About Change Leaders Make a Difference

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Integrity Is One Antidote to Skepticism and Cynicism Avoiding Coercion But Pushing Hard: The Sweet Spot? Creating Consistent Signals From Systems and Processes Steps to Minimize the Negative Effects of Change

Engagement Timeliness Two-Way Communication

Make Continuous Improvement the Norm Encourage People to Be Change Agents and Avoid the Recipient Trap Summary Key Terms Checklist: How to Manage and Minimize Cynicism About Change End-of-Chapter Exercises

Chapter 8: Becoming a Master Change Agent Factors That Influence Change Agent Success

The Interplay of Personal Attributes, Situation, and Vision Change Leaders and Their Essential Characteristics

Developing Into a Change Leader Intention, Education, Self-Discipline, and Experience What Does Reflection Mean?

Developmental Stages of Change Leaders Four Types of Change Leaders Internal Consultants: Specialists in Change External Consultants: Specialized, Paid Change Agents

Provide Subject-Matter Expertise Bring Fresh Perspectives From Ideas That Have Worked Elsewhere Provide Independent, Trustworthy Support Limitations of External Consultants

Change Teams Change From the Middle: Everyone Needs to Be a Change Agent Rules of Thumb for Change Agents Summary Key Terms Checklist: Structuring Work in a Change Team End-of-Chapter Exercises

Chapter 9: Action Planning and Implementation Without a “Do It” Orientation, Things Won’t Happen Prelude to Action: Selecting the Correct Path Plan the Work

Engage Others in Action Planning Ensure Alignment in Your Action Planning

Action Planning Tools 1. To-Do Lists 2. Responsibility Charting 3. Contingency Planning 4. Surveys and Survey Feedback

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5. Project Planning and Critical Path Methods 6. Tools to Assess Forces That Influence Outcomes and Stakeholders 7. Leverage Analysis 8. Operation Management Tools

Working the Plan Ethically and Adaptively Developing a Communication Plan Timing and Focus of Communications Key Principles in Communicating for Change Influence Strategies

Transition Management Summary Key Terms Checklist: Developing an Action Plan End-of-Chapter Exercises

Chapter 10: Measuring Change: Designing Effective Control Systems Selecting and Deploying Measures

Focus on Key Factors Use Measures That Lead to Challenging but Achievable Goals Use Measures and Controls That Are Perceived as Fair and Appropriate Avoid Sending Mixed Signals Ensure Accurate Data Match the Precision of the Measure With the Ability to Measure

Control Systems and Change Management Controls During Design and Early Stages of the Change Project Controls in the Middle of the Change Project Controls Toward the End of the Change Project

Other Measurement Tools Strategy Maps The Balanced Scorecard Risk Exposure Calculator The DICE Model

Summary Key Terms Checklist: Creating a Balanced Scorecard End-of-Chapter Exercises

Chapter 11: Summary Thoughts on Organizational Change Putting the Change Path Model Into Practice Future Organizations and Their Impact Becoming an Organizational Change Agent: Specialists and Generalists Paradoxes in Organizational Change Orienting Yourself to Organizational Change Summary End-of-Chapter Exercises

Case Studies Case Study 1: Building Community at Terra Nova Consulting Case Study 2: Food Banks Canada: Revisiting Strategy 2012

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Case Study 3: “Not an Option to Even Consider:” Contending With the Pressures to Compromise Case Study 4: Diego Curtiz at Highland State University Case Study 5: Ellen Zane—Leading Change at Tufts/NEMC Case Study 6: Ellen Zane at Tufts Medical Center: Spring 2011

Notes Index About the Authors

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Preface

Since the publishing of the second edition of this text, the world has continued to churn in very challenging ways. Uneven and shifting global patterns of growth, sluggish Western economies, continuing fallout from the financial crisis, stubbornly high unemployment levels in much of the world, and heightened global uncertainty in matters related to health, safety, and security define the terrain. Their consequences continue to unfold. The massive credit crisis was followed by unprecedented worldwide government stimulus spending, followed by sovereign debt crises, followed by . . . ??? Wars and insurrections in parts of Africa, the Ukraine, and much of the Middle East; deteriorating international relationships involving major powers; fears of global pandemics (Ebola and MERS); and the rise of ISIS and Boko Haram and their unprecedented inhumanity have shaken all organizations, big or small, public or private. They have also made us, your authors, much more aware of the extreme influence of the external environment on the internal workings of an organization. As we point out in our book, even the smallest of firms have to adapt when banks refuse them normal credit, and even the largest and most successful of firms have to learn how to adapt when disruptive technologies or rapid social and political changes alter their realities.

Our models have always included and often started with events external to the organization. We have always argued that change leaders need to scan their environments and be aware of trends and crises in those environments. The events of the past two years have reinforced our sense of this even more. Managers must be sensitive to what happens around them, know how to make sense of this, and then have the skills and abilities that will allow them to both react effectively to the internal and external challenges and remain constant in their visions and dreams of how to make their organizations and the world a better place to live.

A corollary of this is that organizations need a response capability that is unprecedented, because we’re playing on a global stage of increasing complexity and uncertainty. If you are a bank, you need a capital ratio that would have been unprecedented a few years ago. If you are a major organization, you need to build in flexibility into your structures, policies, and plans. If you are a public sector organization, you need to be sensitive to how capricious granting agencies or funders will be when revenues dry up. In today’s world, organizational resilience and adaptability gain new prominence.

Further, we are faced with a continuing reality that change is endemic. All managers are change managers. All good managers are change leaders. The management job involves creating, anticipating, encouraging, engaging others, and responding positively to change. This has been a theme of this book which continues. Change management is for everyone. Change management emerges from the bottom and middle of the organization as much as from the top. It will be those key leaders who are embedded in the organization who will enable the needed adaptation of the organization to its environment. M iddle managers need to be key change leaders.

In addition to the above, we have used feedback on the second edition to strengthen the pragmatic orientation that we had developed. The major themes of action orientation, analysis tied with doing, the management of a nonlinear world, and the bridging of the “Knowing–Doing” gap continue to be central. At the same time, we have tried to shift to a more user-friendly, action perspective. To make the material more accessible to a diversity of readers, some theoretical material has been altered, some of our models have been clarified and simplified, and some of our language and formatting has been modified.