Framework 178              Diagnostic Framework for Planning and Analysing Organisational Change

Introduction
Change can vary from micro changes, like cost-cutting, etc to macro changes, like major technology impacts, cultural shifts, mergers, etc. However, they all represent a systematic effort to change certain behaviours, is roles, is and/or practices.
To plan or evaluate the change program, 3 components you need to consider; context, content and process

i) the context within which change occurs (this includes
    - external environment like political, economic, sociological, technological, legal,  environment and competition (PESTLEC) context in which the organisation operates)
(for more details, see elsewhere in the Knowledge Base)
     - internal environment (refers to what happens within the organisation like intra-organisational politics, culture, structure, financial positions, etc)
"...contextual analysis will often suggest why change is necessary or imminent..."
Cyrus Rebello, 2011
It is vital to consider the question 'why change', ie what are the reasons and evidence for the necessary change?
The rationale needs to be more than just analytical analysis results. It needs to be abundantly obvious why the changes are needed. Sometimes a fresh perspective and/or new information is helpful in increasing the awareness of the need for change.)
 ii) the content of change (refers to the specific area of attention that needs changing like reporting relationships, decision-making, IT system, communications system, etc.
Consider the question 'what needs to change', ie generally there are 3 areas of concern:
- technical (does the organisation deliver what it is supposed to deliver? Is there a better way of doing it?
- political (are the influential stakeholders champions of the change? If not, how can they become champions of the change
- cultural (do you have the right culture - strategies, mindsets, values, beliefs, behaviours, etc - to handle the change.)
Another way of looking at this is via 2 intersecting axes, ie hardware and software
        a) hardware axis (formal organisational set-up including systems, structures, processes and the work (tasks to be carried out, workflow, interdependencies, etc)
        b) software axis (this comprises of people (their expertise, mindsets, etc) and the informal organisation (culture, values, behaviours, beliefs, relationships, etc) )
iii) the process of change (this is about how the change program will be determined and implemented, ie
"...Who will be involved, what the strategy for introducing it will be, how change will become permanent......what is the right time to change, how people will be convinced not only that change is necessary but that this particular change program is the right one, and how reactions will be dealt with..."
Cyrus Rebello, 2011
NB Every organisation is a political identity with power being asymmetrically distributed across individuals and groups.
"...During periods of change, there is a tectonic shift in the distribution of power. The result is an upsurge in political activity. Those who have power worry about losing it and work to tighten their control; those who have less power seek new opening and begin manoeuvring for a bigger share of the pie..."
D. Nalder as quoted by Cyrus Rebello, 2011
For change initiative to be successful you need to:
            a) enlist the support of key power groups via their leadership
            b) use leadership behaviour to generate support
            c) make deliberate use of symbolic management (language and symbols)
            d) preserve relevant continuity with the past that is useful for the present and future.
NB With its uncertainty, change often generates anxiety and stress, even fear; this can make the status quo preferable. consider this by identifying the benefits of successful and reiterate the potential losses that will result from sticking with the status quo.
Furthermore, be aware that people naturally personalise the change, ie what's in it for me (WIIFM).
(for more details, see elsewhere in the Knowledge Base)
To overcome the preference for the status quo, you need to:
-  create dissatisfaction with the current state, ie create a sense of urgency
- co-create and co-design the planning and implementation of the change program with the relevant stakeholders most impacted by the change
- reward behaviour that is supportive of the change
- provide people with the time and opportunity to disengage from the status quo.
(for more details, see elsewhere in the Knowledge Base)
Sometimes preparing a change plan is akin to 'rebuilding a ship while it is at sea'; for the transition to be managed effectively, you need to
- develop and communicate a clear image of the future state, ie vision
- use multiple leverage points, especially informal leaders
- develop transitional management structures that support the change
- seek and analyse feedback so that modifications can be made if required.
(for more details, see elsewhere in the Knowledge Base)
NB change will not occur unless there is sufficient psychological safety to out weigh the discomfort of moving away from the status quo.
Some strategies for reintroducing and sustaining organisational change:
    - implementation by edict or decree (senior management announces the plan to the rest of the organisation, specifying the processes, etc through which the change will be implemented)
    - selling the change process (management emphasises why the change is necessary by demonstrating what needs to be done and explaining why the status quo is unable to handle it; articulating a vision and what needs to be done to achieve the vision)
    - participation (by delegation or laissez-faire:
        a) delegation (stressing the need to change by identifying better functioning organisations and/or outlining the opportunities that will arise
"...specifying a set of expectations provide an outline of the overall direction change to take, and then tasks to work out the content of change details of its implementation..."
Cyrus Rebello, 2011
(for more details, see elsewhere in the Knowledge Base)
        b) laissez-faire (top management uses change performance measures with the help of others to diagnose what needs changing and works out implementation details)
NB The difference between the 2 is laisser-faire has less management inputs.
    - institutionalisation (need to make change 'stick', ie new behaviours, attitudes, roles, practices, etc are adopted and embedded in the organisation; there are degrees of embedding (in ascending order of importance)
        a) knowledge of behaviour (do people know what is expected of them?)
        b) performance (do people perform the new behaviours?)
        c) personal disposition (do people like the new behaviours?)
        d) normative consensus (is there a consensus about the appropriateness of the behaviours?; there is an awareness of others performing new behaviours)
        e) value consensus (is there a consensus that the values and underlying new behaviours are desirable?)
"...for example, in the case of introducing semi-autonomous work groups, assuming new behaviours show positive results, participants will move from 'semi-autonomous groups work' (individual knowledge) to 'I like working in such a group' (personal disposition) to 'autonomy and cooperation for good; people ought to work in semi-autonomous groups' (value consensus)..."
Cyrus Rebello, 2011
There are 5 processes that influence the degree of institutionalisation:
        a) socialisation (the way in which information about new behaviours is transmitted to the organisation)
        b) commitment (the way in which individuals follow the new behaviours)
        c) reward allocation (the way in which individuals can observe rewards attached to their adoption of new behaviours)
        d) diffusion (the way in which the institutionalised behaviours spread throughout the organisation)
        e) sensing and recalibration (away which feedback about the actual impact of the change is collected, analysed and implemented)
"...the degree of institutionalisation increases the more people are socialised and committed, the more they find the rewards associated with a new behaviours attractive, the more change is legitimised through its diffusion to the rest of the organisation, and the more sensitive to feedback..."
Cyrus Rebello, 2011
The features of a change program that can influence the process of institutionalisation; increased institutionalisation by having:
        a) goal specificity ( the more specific the goals are)
        b) programmability (the more operationalised the new behaviours and roles become)
        c) sponsorship (support of a higher level sponsor)
Some other factors that can influence the change process:
        a) cultural congruency (the higher the degree of alignment between the change with the existing organisational culture, the greater the degree of institutionalisation)
         b) environmental stability ( the more the environment keeps changing during an implementation of a change program, the less institutionalised the change will be)
Summary
Three questions to be answered:
"...- why change? (context)
     - what needs to change? (content)
     - how will change be managed? (process)..."
Cyrus Rebello, 2011
Most change starts with dissatisfaction or frustration with the status quo. However, sufficient psychological safety needs to be created to encourage the challenge to the status quo. Otherwise change will not occur.