Organizational Behavior
managing change
Tomáš Ondráček
ondracek.t@mail.muni.cz
Faculty of Economics and Administration, Masaryk University
2022
Introduction
Introduction
·ORBE ·2022 2 / 84
Introduction
questions
How changes occur?
How to analyze change?
a process perspective
·ORBE ·2022 3 / 84
Process models
Process models
·ORBE ·2022 4 / 84
Process models
Sources
open system theories
thinking about organizations (and parts of organizations) as
a system of interrelated components that are embedded in,
and strongly influenced by, a larger system
·ORBE ·2022 5 / 84
Types of Process Theories
Types of Process Theories
·ORBE ·2022 6 / 84
Types of Process Theories
Sources
Life cycle theories
Teleological theories
Dialectical theories
Evolutionary theories
Van de Ven and Poole (1995)
·ORBE ·2022 7 / 84
Types of Process Theories
Process Theories of Organizational Development
and Change
(Van de Ven & Poole, 1995: 520)
·ORBE ·2022 8 / 84
Types of Process Theories
A life-cycle model
A life-cycle model depicts the process of change in an entity
as progressing through a necessary sequence of stages.
An institutional, natural, or logical program prescribes
the specific contents of these stages.
motor:
A singular, discrete entity exists that undergoes change,
yet maintains its identity throughout the process.
The entity passes through stages distinguishable in form
or function.
A program, routine, rule, or code exists in nature, social
institutions, or logic that determines the stages of development
and governs progression through the stages.
(Van de Ven & Poole, 1995: 520–521, 525)
·ORBE ·2022 9 / 84
Types of Process Theories
A teleological model
A teleological model views development as a cycle of goal
formulation, implementation, evaluation, and modification
of goals based on what was learned by the entity. This sequence
emerges through the purposeful social construction among
individuals within the entity.
motor:
An individual or group exists that acts as a singular, discrete
entity, which engages in reflexively monitored action to socially
construct and cognitively share a common end state or goal.
The entity may envision its end state of development before or
after actions it may take, and the goal may be set explicitly or
implicitly. However, the process of social construction or sense
making, decision making, and goal setting must be identifiable.
A set of requirements and constraints exists to attain the goal,
and the activities and developmental transitions undertaken by
the entity contribute to meeting these requirements and
constraints.
(Van de Ven & Poole, 1995: 520–521, 525)
·ORBE ·2022 10 / 84
Types of Process Theories
A dialectical model
In dialectical models of development, conflicts emerge between
entities espousing opposing thesis and antithesis that collide to
produce a synthesis, which in time becomes the thesis
for the next cycle of a dialectical progression. Confrontation and
conflict between opposing entities generate this dialectical
cycle.
motor:
At least two entities exist (each with its own discrete identity)
that oppose or contradict one another.
The opposing entities must confront each other and engage
in a conflict or struggle through some physical or social venue,
in which the opposition plays itself out.
The outcome of the conflict must consist either of a new entity
that is different from the previous two, or (in degenerate cases)
the defeat of one entity by the other, or a stalemate among
the entities.
(Van de Ven & Poole, 1995: 520–521, 525)
·ORBE ·2022 11 / 84
Types of Process Theories
An evolutionary model
An evolutionary model of development consists of a repetitive
sequence of variation, selection, and retention events among
entities in a designated population. Competition for scarce
environmental resources between entities inhabiting
a population generates this evolutionary cycle.
motor:
A population of entities exists in a commensalistic relationship
(i.e., in a physical or social venue with limited resources each
entity needs for its survival).
Identifiable mechanisms exist for variation, selection,
and retention of entities in the population.
Macropopulation characteristics set the parameters for microlevel
variation, selection, and retention mechanisms.
(Van de Ven & Poole, 1995: 520–521, 525)
·ORBE ·2022 12 / 84
Types of Process Theories
Reactive sequences
subsequent events challenge rather than reinforce earlier events
the importance of working on support
(Hayes, 2014: 8–9)
·ORBE ·2022 13 / 84
Self-reinforcing sequences
Self-reinforcing sequences
·ORBE ·2022 14 / 84
Self-reinforcing sequences
Self-reinforcing sequences
Increasing returns
Psychological commitment to past decisions
Cognitive biases and interpretive frames
(Hayes, 2014: 8–9)
·ORBE ·2022 15 / 84
Self-reinforcing sequences
Increasing returns
Set-up costs
Learning
Coordination
Betting on the right horse
(Arthur et al., 1994)
·ORBE ·2022 16 / 84
Self-reinforcing sequences
Psychological commitment to past decisions
escalation of commitment
Gambler’s Fallacy
protection of self
conistency
naïve theory of chance
·ORBE ·2022 17 / 84
Self-reinforcing sequences
Cognitive biases and interpretive frames
Confirmation bias
Framing effect
Default effect
...
·ORBE ·2022 18 / 84
Path Dependence
Path Dependence
·ORBE ·2022 19 / 84
Path Dependence
Path dependence
preformation phase
path formation phase
lock-in phase
(Sydow, Schreyögg, & Koch, 2009)
·ORBE ·2022 20 / 84
Models
Models
·ORBE ·2022 21 / 84
Models
characterization
(key) elements
(causal) relationships
outputs
(Hayes, 2014: 124–125)
·ORBE ·2022 22 / 84
Models
use
description
interpretation
guidence
decision making
(Hayes, 2014: 125)
·ORBE ·2022 23 / 84
Models
component and holistic models
part, element, person
the whole, complex
(Hayes, 2014: 125)
·ORBE ·2022 24 / 84
Models
good models
relevance
recognition
usefulness
(Hayes, 2014: 142)
·ORBE ·2022 25 / 84
Open Systems Theories
Open Systems Theories
·ORBE ·2022 26 / 84
Open Systems Theories
characterization
embedded within a larger system
able to avoid entropy
regulated by feedback
subject to equifinality
cyclical in their mode of functioning
equilibrium seeking
bounded
(Hayes, 2014: 132)
·ORBE ·2022 27 / 84
Kotter’s Integrative Model of Organizational Dynamics
Kotter’s Integrative Model
of Organizational Dynamics
·ORBE ·2022 28 / 84
Kotter’s Integrative Model of Organizational Dynamics
Kotter’s integrative model of organizational
dynamics
((Hayes, 2014: 133) adapted from (Kotter, 1980: 282))
·ORBE ·2022 29 / 84
Kotter’s Integrative Model of Organizational Dynamics
Kotter’s integrative model of organizational
dynamics
short term
imediate
medium term
months
long term
years
((Hayes, 2014: 133) adapted from (Kotter, 1980: 282))
·ORBE ·2022 30 / 84
The McKinsey 7S Model
The McKinsey 7S Model
·ORBE ·2022 31 / 84
The McKinsey 7S Model
The McKinsey 7S model
(Waterman Jr, Peters, & Phillips, 1980: 18)
·ORBE ·2022 32 / 84
Weisbord’s Six-Box Model
Weisbord’s Six-Box Model
·ORBE ·2022 33 / 84
Weisbord’s Six-Box Model
Weisbord’s six-box model
(Weisbord, 1976: 432)
·ORBE ·2022 34 / 84
The Burke-Litwin causal model
The Burke-Litwin causal model
·ORBE ·2022 35 / 84
The Burke-Litwin causal model
The Burke-Litwin causal model
of organizational performance and change
(Burke & Litwin, 1992: 528)
·ORBE ·2022 36 / 84
Selecting a diagnostic model
Selecting a diagnostic model
·ORBE ·2022 37 / 84
Selecting a diagnostic model
component and holistic models
???
(Hayes, 2014: 133)
·ORBE ·2022 38 / 84
Patching
Patching
·ORBE ·2022 39 / 84
Patching
patching
patching
Patching is the strategic process by which corporate executives
routinely remap businesses to changing market opportunities. It can
take the form of adding, splitting, transferring, exiting, or combining
chunks of businesses.
(Eisenhardt & Brown, 1999)
·ORBE ·2022 40 / 84
Patching
patching and reorganizing
structure
stable vs. temporary
strategy
first vs. emerging
(Eisenhardt & Brown, 1999)
·ORBE ·2022 41 / 84
Patching
patching: further characteristics
changes
small
frequent
size
agil
efficient
infrastructure
modular
fine grained metrics and complete
consistent compensation
quick
(Eisenhardt & Brown, 1999)
·ORBE ·2022 42 / 84
Patching
patching: further characteristics
reorganization and patching
reorganization patching
role of change defensive reaction proactive weapon
scale of change sweeping small, some moderate, a few large
frequency rare ongoing
formalization every change is unique
change process is routine
and follows standards patching moves
driver of change get business focus right get business focus and size right
precision
optimal restructuring
at specific point in time
roughly right realingments over time
metrics
collect fine-grained metrics
only for infrequent reorganizations
reguĺarly trasck extensive,
fine-grained metrics on modular business
compensation not relevant companywide parity
(Eisenhardt & Brown, 1999)
·ORBE ·2022 43 / 84
Patching
patching: examples
Hewlett-Packard
small
frequent
3M
agil
efficient
Johnson & Johnson
modular
fine grained metrics and complete
consistent compensation
quick
(Eisenhardt & Brown, 1999)
·ORBE ·2022 44 / 84
Patching
patching: principles
Do it fast.
Develop multiple options, then make a roughly right choice.
Take an organizational test-drive.
Get the general manager right.
Script the details.
(Eisenhardt & Brown, 1999)
·ORBE ·2022 45 / 84
Patching
patching: blocks
"missing the hill"
"Snow White and the Seven Dwarfs"
(Eisenhardt & Brown, 1999)
·ORBE ·2022 46 / 84
Gartner Hype Cycle
Gartner Hype Cycle
·ORBE ·2022 47 / 84
Gartner Hype Cycle
Gartner Hype Cycle
(Gartner, 2020)
·ORBE ·2022 48 / 84
Gartner Hype Cycle
core activities
recognizing and starting
diagnosing and formulating
planning
implementing and reviewing
sustaining
leading and managing
learning
(Hayes, 2014: 436)
·ORBE ·2022 49 / 84
Due Diligence
Due Diligence
·ORBE ·2022 50 / 84
Due Diligence
range and complexity of issues
an industry and competitor analysis
a product and market analysis
an assessment of the target’s management talent
an analysis of management fit
an assessment of potential synergies and technical issues
a review of the terms and conditions of employment
an assessment of the compatibility of pension funds and so on
(Hayes, 2014: 438)
·ORBE ·2022 51 / 84
Due Diligence
fragmentation of the data collection
external help
strategic fit
practical implementation
(Hayes, 2014: 438)
·ORBE ·2022 52 / 84
Due Diligence
access to information and resources
obstacles
insufficiency
ignorance
time
(Hayes, 2014: 438)
·ORBE ·2022 53 / 84
Psychological Issues
Psychological Issues
·ORBE ·2022 54 / 84
Psychological Issues
mindset
leader
team
shareholders
stakeholders
·ORBE ·2022 55 / 84
Psychological Issues
communication planning
to maximize the likelihood of successful communication
to coordinate the communication of ‘secrets’
to coordinate internal and external messages
to provide a contingency plan
(Hayes, 2014: 443)
·ORBE ·2022 56 / 84
Psychological Issues
managing stakeholders
Aligning and coordinating
Promoting trust and procedural justice
Responding to pressure to deliver quick wins
socioemotional support
(Hayes, 2014: 446–448)
·ORBE ·2022 57 / 84
Problems and Obstacles
Problems and Obstacles
·ORBE ·2022 58 / 84
Problems and Obstacles
types of problems I/II
practical
theoretical
procedural
evaluation
moral
personal
non-personal ...
·ORBE ·2022 59 / 84
Problems and Obstacles
types of problems II/II
well-defined vs. unknown or insufficiently defined
routine vs. unexpected
real generic
generic for an institution
real unique
first of many
konvergent
divergent ...
·ORBE ·2022 60 / 84
Change Management Indicator Model
Change Management Indicator
Model
·ORBE ·2022 61 / 84
Change Management Indicator Model
Change Management Indicator Model
(SARA32, 2020)
·ORBE ·2022 62 / 84
Change Management Indicator Model
COVID
What about routines?
·ORBE ·2022 63 / 84
Change Management Indicator Model
COVID: Routines
(Young, 2020)
·ORBE ·2022 64 / 84
Change Management Indicator Model
questions
How to implement change?
How to review change?
How to make change stick?
·ORBE ·2022 65 / 84
Two Main Approaches
Two Main Approaches
·ORBE ·2022 66 / 84
Two Main Approaches blueprint changes
blueprint changes
·ORBE ·2022 67 / 84
Two Main Approaches blueprint changes
blueprint changes
a clear action plan
↓
a vision
implementation
rolling plan
monitoring the effect of interventions
taking corrective action (learning)
the validity: a matter of course
·ORBE ·2022 68 / 84
Two Main Approaches emergent changes
emergent changes
·ORBE ·2022 69 / 84
Two Main Approaches emergent changes
emergent changes
generally defined goals
a general direction of change
↓
a vision
implementation
an open approach
adaptations and revisions
double-loop learning
challenging assumptions to support the change plan
·ORBE ·2022 70 / 84
Monitoring
Monitoring
·ORBE ·2022 71 / 84
Monitoring
Hypotheses
cause and effect
(Kaplan, Kaplan, Norton, Norton, & Davenport, 2004)
·ORBE ·2022 72 / 84
Monitoring
Hypotheses
undestandable
clear
measurable
(Kaplan et al., 2004)
·ORBE ·2022 73 / 84
Monitoring
Monitoring: Questions
Are interventions being implemented as intended?
Are interventions producing the desired effect?
Is the change plan still valid?
(Hayes, 2014: 452–453)
·ORBE ·2022 74 / 84
Monitoring
Problems
the braking factors
founding
deviations and deflections
external factors
(Van de Ven & Poole, 1995: 520)
·ORBE ·2022 75 / 84
Measuring
Measuring
·ORBE ·2022 76 / 84
Measuring
performance
balance scorecards
Financial measures
Customer-related measures
Internal business process measures:
Innovation and learning
(Kaplan, Kaplan, Norton, & Norton, 1996)
·ORBE ·2022 77 / 84
Responses
Responses
·ORBE ·2022 78 / 84
Responses
Change Management Indicator Model
(Hayes & Hyde, 2016: 2)
·ORBE ·2022 79 / 84
Sustainability
Sustainability
·ORBE ·2022 80 / 84
Sustainability
Definitions
static
dynamic
(Van de Ven & Poole, 1995: 520–521, 525)
·ORBE ·2022 81 / 84
Sustainability
Issues
perception
implementation
timing, sequencing, and pacing
·ORBE ·2022 82 / 84
Sustainability
Problems
Those who initiated the change move on
Accountability for development becomes diffused
Knowledge and experience of new practices is lost through turnover
Old habits are imported with recruits from less dynamic
organizations
The issues and pressures that triggered the change initiative are no
longer visible
New managers want to drive their own agenda
Powerful stakeholders are using counter-implementation tactics to
block progress
Pump-priming funds run out
Other priorities come on stream, diverting attention and resources
Staff at all levels suffer initiative fatigue and enthusiasm for change
falters.
((Buchanan, Fitzgerald, & Ketley, 2007) via (Hayes, 2014: 474))
·ORBE ·2022 83 / 84
Sources
Arthur, W. B., et al. (1994). Increasing returns and path dependence in the economy. University of michigan
Press.
Buchanan, D. A., Fitzgerald, L., & Ketley, D. (2007). Sustaining change and avoiding containment: practice and
policy. The Sustainability and Spread of Organizational Change, 249–271.
Burke, W. W., & Litwin, G. H. (1992). A causal model of organizational performance and change. Journal of
management, 18(3). doi: 10.1177/014920639201800306
Eisenhardt, K. M., & Brown, S. L. (1999). Patching. Restitching business portfolios in dynamic markets. Harvard
business review, 77(3).
Gartner. (2020). Hype cycle research methodology. Retrieved from
https://www.gartner.com/en/research/methodologies/gartner-hype-cycle
Hayes, J. (2014). The theory and practice of change management. Palgrave MacMillan.
Hayes, J., & Hyde, P. (2016). The Change Management Indicator. Retrieved from http://peterhyde.co.uk/
wp-content/uploads/2013/09/The-Change-Management-Indicator.pdf
Kaplan, R. S., Kaplan, R. E., Norton, D. P., Norton, D. P., & Davenport, T. H. (2004). Strategy maps: Converting
intangible assets into tangible outcomes. Harvard Business Press.
Kaplan, R. S., Kaplan, R. S., Norton, D. P., & Norton, D. P. (1996). The balanced scorecard: translating strategy
into action. Harvard Business Press.
Kotter, J. P. (1980). An integrative model of organizational dynamics. In E. e. Lawler, D. A Nadler and C.
Cammann (eds) Organizational Assessment. New York: Wiley.
SARA32. (2020). Animals funny - stick with me... change is happen... Retrieved from
https://memegenerator.net/instance/82038386/
animals-funny-stick-with-me-change-is-happening
Sydow, J., Schreyögg, G., & Koch, J. (2009). Organizational path dependence: Opening the black box. Academy
of management review, 34(4). doi: 10.5465/amr.34.4.zok689
Van de Ven, A. H., & Poole, M. S. (1995). Explaining development and change in organizations. Academy of
management review, 20(3). doi: 10.5465/amr.1995.9508080329
Waterman Jr, R. H., Peters, T. J., & Phillips, J. R. (1980). Structure is not organization. Business horizons, 23(3).
doi: 10.1016/b978-0-12-054752-4.50024-5
Weisbord, M. R. (1976). Organizational diagnosis: Six places to look for trouble with or without a theory.
Group & Organization Studies, 1(4). doi: 10.1177/105960117600100405
Young, A. (2020, Mar). People are sharing their ’quarantine routines’ i’ve gotta ask, is everyone doing okay?
Retrieved from https://awol.junkee.com/quarantine-routine-memes/83539