JWI 555 Organizational Change & Culture, Week1 Notes, 4/13/13
It is the leader's job to look into the future with industry leading thoughts, see around corners and steer the direction of the firm to seize opportunities and avoid train wrecks.
I. Why organizations change ?
(a) Forces driving change
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- Orgs evolve over time
- companies react to competitive pressures
- leaders pursue new agendas
- products progress thru life cycles
- Technology that transforms manufacturing, finance, medical, science
eg. Computing devices, Internet, Globalization, Social media, Mobile, Wireless
(i) Technology
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- multiplies speed & quantity of work that can be done
- distributes work across traditional boundaries of function, organization, geography
- restructures traditional industries (telecon, music) and gives rise to new ones
- facilitates tracking and analysis of big data, transforming managerial decision making, behavior of capital markets
- reshapes consumer behavior eg. how people shop, choose among competing products, entertain themselves
(ii) Globalization
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- removes barriers to flow of goods, money, information, expertise across national/regional boundaries
- intensifies competition
- widens access to global talent pool and low-cost options
- expands market size & economies of scale
- increases political/financial risk
- drives product innovation to serve needs of middle class
(iii) Environment
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- scare resources eg oil and wter
- social sanctions
- increased regulation
(iv) Financial crisis
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Magnified govt's size and spending
(b). Forces resisting change
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- companies resist change
- managers block the inevitable
- leaders make big investments in yesterday's products/services
- org cultures value/reward/perpetuate complacency
(i) Culture
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unconscious assumptions and beliefs that members of an org take for granted
"we are the best"
"we have the right way"
resistance is often unconscious and expressed as
- behavior pattern
- reward and promotion
- org structures
culture based on flexibility and innovation can help with org's ability to change
(ii) Calcification
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hardened in ways that limit flexibility over time
processes, procedures, rules, meetings, forms, decisions
20th century org success based on size, role clarity, specialization, control
High performance rewuires clear boundaries between levels, roles, functions, geographical locations
New success factors - Speed, flexibility, innovation, integration
Requires free flow of resources, information, expertise
(iii) Complexity
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globalization
technological advances
requlatory requirements
self-inflicted: org structures with too many levels, redundant functions, unlcear jobs
simplify org structures, reduce product proliferation, streamline processes, manage complexity causing behaviors within self
(c) Intentional Change vs Organic change
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Organic change - result of complex interaction between forces driving change and people resisting it
Intentional change - instigated and led forward by a leader to position an org for greater effectiveness, relevance, success
(d) Role of a Leader
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The leader must look into the future and stay several steps ahead of everyone else in the industry.
Leader's job is to see when an org needs to change, determine the direction, and make it happen.
Ability to drive intentional change is key to be a successful leader
Change leaders build an org culture that is based on flexibility and innovation.
The leader needs to be comfortable in a state of constant change.
(e) Signals that call for change
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- competition & external forces create conditions that make it difficult for the organization to be successful if it stays the same
- growing feeling of discontent about the org's strategy, purpose, way of doing things
- new leader who takes over and wants to take the org in a different direction
- key people who see future opportunities or theats
II. How to Drive Change as a Change Agent
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There are four practices that matter to bring about change (Welch, 2005, p 145):
(1) Communicate a sound rationale for every change
(2) Have the right people at your side
(3) Remove resisters (change killers) from the critical path
(4) Seize every single opportunity
Great training. Another amazing week at JWMI.
Dr DP
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