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business
managing organizational change
Managing Organizational Change A Multiple Perspectives Approach 3rd Edition Ian Palmer, Richard Dunford, David Buchanan - Solutions
Who is our customer? What kinds of things are important to that customer? How does he or she perceive us? What kind of relationships do we have?
Who is the ultimate end user? What kinds of things are important to this end user?How does he or she perceive us? What kind of relationship do we have?
Who are our competitors? What are their strengths and weaknesses? How do they perceive us? What can we learn from them?
Who are the potential competitors? New entrants? What changes in the environment or their behavior would make them competitors?
What is the industry’s value chain? Where is value added? What is the cost structure?
How does our firm compare? How about our competitors?
What are the key factors of production? Who are the suppliers? Are we dependent on a limited number of sources? How critical are these relationships? How solid?
What are the bases for competition in our industry? What are the key success factors?
How do we measure up? How about our competitors?
What trends and factors in the external environment are important to our industry?
How are they likely to change? Over what time horizon?
Are we able, in assessing our knowledge and assumptions, to separate fact from assumption?
Is our assumption set internally consistent????????? For each pair of assumptions, can we answer “yes” to the question: “If assumption A is true, does assumption B logically follow?”
Do we understand the relative importance of each of our assumptions????????? In terms of its potential impact on performance????????? In terms of our level of confidence in its validity????????? In terms of the likelihood and expectation of near-term change????????? In terms of its strategic impact?
Are our key assumptions broadly understood????????? Have we documented and communicated our key assumptions? To our key managers?To the boundary-spanners? To other key employees?
Do we have a process for reviewing and validating our key assumptions and premises?
Is there a process in place? Are responsibilities assigned? Are periodic reviews planned and scheduled?
Is there pressure for change?
Is there a shared vision of the goals, benefits, and direction?
Do we have effective liaison and trust between those concerned?
Is there the will and power to act?
Do we have enough capable people with sufficient resources?
Do we have suitable rewards and defined accountability for actions?
Have we identified actionable first steps?
Does the organization have a capacity to learn and to adapt?
Is this an organization that stimulates or smothers creativity and innovation?
How do you know? Identify the clues, visual and spoken, that support your assessment of the Red Star organization culture.
What general characteristics of innovative organizations are illustrated here?
Identify the stakeholders for the change initiative under consideration. Stakeholders may have a formal connection to the organization: owners, managers, suppliers, customers, employees. However, other individuals and groups are often able to exert influence:regulatory bodies, financial
Establish what each of those stakeholders expects to gain or lose if the changes go ahead, and their respective power to support or block the initiative.
Check each stakeholder’s “track record” with regard to comparable issues. Were they supportive, or not? If possible, identify what position your stakeholders are taking with regard to the current change. Behaviors are more significant than attitudes. Those who say that they are supporters may
Use the planned benefits of the change to strengthen support for the proposals. It is often possible to find ways to address the concerns of those who feel they will lose out, by altering the nature of the changes proposed, perhaps, or by offering to reduce their losses in other ways.
The “built-to-change” model has been promoted as desirable for most if not all organizations.However, from a corporate management perspective, what are potential disadvantages of developing a built-to-change organization?
From the perspective of an individual employee, what are the benefits of working in a built-to-change organization?
For the individual employee, what are the potential disadvantages of working in a built-to-change organization?
Capital One Financial operates in a fast-moving sector. To what extent will built-tochange design principles apply to organizations in other industries, with different environments?
“Brainstorm” the range of environmental factors that have the potential to impact on the performance of your organization. In the spirit of brainstorming, accept all suggestions at this point, and suspend judgement as to the significance of any suggested factor.
Ask individuals to identify which factors from this list they believe to be the “key drivers”of the organization’s performance over a specified time period—say, five years.
Aggregating these individual responses, identify the five most commonly cited key drivers;these could be, for example, exchange rates, new technologies, entry by new competitors, mergers, competition for key staff, costs and/or shortages of raw materials.
Using these key drivers as the core elements, construct three future scenarios for the organization: the most likely, an optimistic scenario, and a pessimistic one. The “most likely” scenario is constructed on the basis of the “best guess” as to what will happen to each of the five key
Finally, outline the different organizational change agendas that will be required to deal with each of those three possible futures.
Identify five factors that explain the success of this corporate turnaround.
How would you describe Paul Levy’s role and contributions to this turnaround?
What insights does this story have to offer concerning the role of the change leader?
What lessons about managing organizational change can we take from this experience and apply to other organizations, in healthcare and in other sectors? Or, are the lessons unique to Beth Israel Deaconess Medical Center?
How would you describe Eddie Lampert’s leadership style?
How would you assess his approach to implementing major organizational change—in this case, restructuring the whole company with a new organizational model?
On balance, would you assess his organizational model as having been a success, or not?
What lessons about managing organizational change can we take from this experience and apply to other organizations, in this or other sectors?
What aspects of Ron Johnson’s turnaround strategy were appropriate, praiseworthy?
What mistakes did Ron Johnson make?
What would you suggest he could have done differently?
What made this experience a “story”?
What lessons for managing change can you take from your story?
Compare these with the lessons from the Beth Israel, Sears, and J. C. Penney stories.Which are the same?
From your experience, what new lessons have you added, particularly for future changes in which you might be involved?
In small groups, share your lessons with colleagues. Which lessons are similar, and what are the differences among you?
What three main conclusions can you take from these stories about managing change?
What are the common themes and issues across these stories?
What are the differences between these stories?
Of the change lessons from Beth Israel, Sears, and J. C. Penney, which are revealed in the groups’ stories, and which are absent? What are the implications of this?
Are there any further lessons embedded in these stories that could apply to future changes in which group members may be involved?
What are the strengths and limitations of the images that you have identified as most relevent to you?
Wait: Do not rush to adopt, but do not dismiss the approach either. Give the new idea time to succeed or fail.
Identify the essence of the idea: What is the underlying logic, what are the underpinning assumptions, what fresh insights led to this development?
Look for results: Did the new approach make the improvements that were expected?Were there any side effects? Would this work in your organization, or would your culture, systems, and structures be barriers?
Experiment: Set up a trial, gather the evidence, review, and continue if successful.
In groups of three, choose an organizational change with which you are familiar, perhaps in your current employment, or in an organization about which you have recently been reading. If neither of those options works, then, for the purposes of this exercise, invent an organization and a change
Now revisit table 3. 1, “Images of Change and Understanding the Pressures.” Each person in your group must choose one of those images of managing change and will play that role.
Your group is now in a senior management board meeting. You are discussing an agenda item at the request of the chairman of your board, who wants to know why the organization is going through the change that you have identified.
Debate how you will respond to the chairman’s request, with each member of your group (board) playing their role based on the change management image that they have selected.
When you have decided how you are going to respond to the chair’s request, consider the following questions:
Did one of your images better explain the rationale for change than the others, and why?
On reflection, what criteria did you use for making this judgement with regard to the comparative advantage of a particular image?
Is there an image with which you personally have a particular affinity or preference?Why? What would it take for you to change that preference?
What features of a downturn can make managing organizational change more difficult?
What features of a downturn can make managing organizational change more straightforward?
Sunderland City Council introduced several changes to deal with the twin goals of maintaining services and reducing spending. What factors explain the success of their program?
What does this case reveal about the challenges faced by successful businesses? Is it possible to be too successful?
How does a successful organization determine whether an environmental change is a brief fad or fashion to be ignored, or a development that requires a fundamental rethinking of the way in which it does business?
What change issues does this case raise with regard to the significance of reputation?
What actions would you recommend be taken by Big Food and the fast-food companies that have been caught in the reputation trap?
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