CHAPTER 4 Flashcards
Emergent Change
change does not follow a pre-made plan and is more spontaneous. It assumes an ongoing adaptation process due to the dynamic nature of the environment. It stresses the need for agility due to the unpredictability of the environment. Leaders communicate a long-term vision and provide conditions for experimenting.
Example: A company that adapts its business model in response to unexpected market trends or competitive pressures is demonstrating emergent change.
Planned change
the process of preparing the entire organization or a significant part of it for new goals or a new direction. It can be split into directed change and facilitated change. In planned change, it is usually the task of a management level, often middle or upper management, to come up with the planned change.
Example: A company that develops a detailed plan to implement a new customer relationship management (CRM) system is demonstrating planned change.
Directed change
planned change led from the senior management team. It usually considers modular or corporate transformation and focuses on a strategic way of change. It cascades down as a top-down change.
Example: A company-wide restructuring initiative led by the CEO and senior executives is an example of directed change.
Facilitated change
involves facilitating the conditions and environment for change to occur rather than directing it. Employees are able to participate in leading the change, which means that the whole system will be involved in leading the change. This can be done through interviewing employees, surveys, etc. Facilitated change usually has more to do with behavior changes.
Example: A company wanting to improve its corporate culture might use a facilitated change approach. It could conduct employee surveys to understand the current culture and desired changes, then involve employees in initiatives to drive the desired cultural shifts.
Example: A company that encourages innovation by providing resources and time for employees to experiment and come up with new ideas is facilitating change.
Organisational learning initatives
Employee Feedback Program
Workplace Wellness Programs
Google’s “20% Time” Policy
Kotter framework which shows the steps on how to implement directed change
Establish a Sense of Urgency: A software company realizes that its main product is becoming outdated and losing market share to competitors. The CEO communicates this to the entire organization, emphasizing the need for innovation and improvement to regain market share.
Form a Powerful Guiding Coalition: The software company forms a cross-functional team of leaders from product development, marketing, sales, and customer service to lead the innovation initiative. This team is empowered to make decisions and has the full support of the CEO.
Create a Vision: The guiding coalition creates a vision for a new software product that will meet customer needs better than any competitor product, leveraging the latest technologies and design principles.
Communicate the Vision: The vision is communicated to all employees through town hall meetings, emails, and the company intranet. The vision is also incorporated into job descriptions and performance metrics.
Empower Others to Act on the Vision: The company provides resources and training to help employees contribute to the new product development. Barriers to innovation, such as bureaucratic approval processes, are removed or streamlined.
Plan for and Create Short-Term Wins: The company sets milestones for the product development, such as completing a prototype or securing a beta testing client. Achieving these milestones is celebrated as a win, boosting morale and maintaining momentum.
Consolidate Changes and Instigate More Change: After the new product is launched and starts gaining market share, the company uses this success to drive more changes, such as developing additional features or expanding into new markets.
Institutionalize New Approaches: The successful innovation process is incorporated into the company’s standard operating procedures and culture. Employees are rewarded and recognized for innovation, and new hires are selected and onboarded with the expectation of contributing to ongoing innovation
An effective change vision (according to Kotter)
-Is easy to understand by a broad range of people
- Is quickly communicated
- Is stimulating and intellectually solid with an
emotional appeal - Should provide an idea of how the future should
look like : State of the organization after the implemented change
Organisational aspects of change: The Triangle of Organizational Change
Definition: The Triangle of Organizational Change is a model that describes the organizational aspects of change. It consists of three main components: Context, Content, and Transition.
Context (outer inner): This refers to the environment or circumstances surrounding the change. It includes both the external factors (outer context) such as market trends, competition, and regulatory environment, and internal factors (inner context) such as organizational culture, structure, and resources.
Content (the change): This refers to the actual change that is being implemented. It could be a new strategy, a new product, a new process, or any other change that the organization is planning to make.
Transition: This refers to the process of moving from the current state to the desired future state. It involves managing the human aspects of change, including emotions, behaviors, and attitudes, to ensure that the change is accepted and implemented effectively.
In the context of planned change, the content is well-defined and there is a specific strategy to be achieved in the future. In emergent change, the focus is on improving the current status quo without a prescription, allowing for flexibility and adaptation as the change unfolds.
Example: A company wants to implement a new digital transformation strategy (Content). The external market trends show a shift towards digital platforms and the internal resources are available for the change (Context). The company then manages the process of moving from their traditional operations to the new digital platform, addressing employee concerns and training needs (Transition).
The Triangle of Organizational Change in the Context of Emergent Change
Context (outer inner): In emergent change, the context is constantly evolving. The external factors (outer context) such as market trends and regulatory environment, and internal factors (inner context) such as organizational culture and resources, are not static but continuously changing. The organization needs to be responsive and adaptive to these changes.
Content (the change): In emergent change, the content is not well-defined or planned out. Instead, it evolves naturally as the organization responds to the changing context. The change could be a new strategy, a new product, a new process, or any other change that emerges from the organization’s response to the changing context.
Transition: In emergent change, the transition is not a linear process of moving from the current state to a desired future state. Instead, it is a continuous process of adaptation and adjustment. The organization needs to manage the human aspects of change, including emotions, behaviors, and attitudes, in a way that is responsive and adaptive to the changing context and content.
Example: A tech company is facing rapid changes in technology and customer preferences (Context). In response, the company decides to adopt a more agile approach to product development, allowing for continuous innovation and adaptation (Content). The company then manages the process of transitioning from their traditional product development process to the new agile approach, addressing employee concerns and training needs, and continuously adapting as the context and content evolve (Transition)
The Triangle of Organizational Change in the Context of Planned Change
In the context of planned change, the three components of the model are more structured and deliberate.
Context (outer inner): In planned change, the context is typically well-understood and stable. The external factors (outer context) such as market trends and regulatory environment, and internal factors (inner context) such as organizational culture and resources, are taken into account when planning the change.
Content (the change): In planned change, the content is well-defined and planned out. The change could be a new strategy, a new product, a new process, or any other change that the organization has decided to implement. The change is typically designed to move the organization from its current state to a desired future state.
Transition: In planned change, the transition is a structured process of moving from the current state to the desired future state. The organization needs to manage the human aspects of change, including emotions, behaviors, and attitudes, in a way that supports the planned change.
Example: A manufacturing company is facing increased competition (Context). In response, the company decides to implement a new production process that will increase efficiency and reduce costs (Content). The company then manages the process of transitioning from the old production process to the new one, providing training to employees and addressing any resistance to change (Transition
Incremental change
Incremental change refers to step-by-step improvements that are made on a limited scale. This type of change is often continuous and gradual, focusing on refining existing processes, methods, or products rather than creating new ones.
Key Points:
Incremental change is typically driven by internal factors such as feedback from employees, performance metrics, or process efficiencies.
Incremental and discontinuous change are completely different, as the former gives room for a lot more feedback from employees and engaged parties, but the outcome of the change might be quite similar.
Incremental change takes the perspective of people into account, so in that way it takes interpretations into account.
-> small scale changes, typically conducted step-by-step
Discontinuous Change
Discontinuous change refers to new visions or strategies which are fundamental. This type of change often involves a radical departure from existing practices and may require a complete overhaul of processes, systems, and relationships. It is typically associated with the modernist stream of organizational change, focusing on large-scale transformations.
Discontinuous change is often driven by external factors such as technological advancements, regulatory changes, or shifts in market conditions.
Discontinuous change is the modernist stream but incremental change is based on the symbolic stream.
-> large scale changes- major shifts
Why emergent change cannot be Discontinuous
The reason emergent change cannot be discontinuous lies in their inherent characteristics. Discontinuous change, by its nature, requires a level of planning, foresight, and organization that is not present in emergent change. Discontinuous change often involves a clear end goal or state, while emergent change is more of a continuous process without a defined end state.
Emergent change is more about adapting and responding to the immediate environment, making small adjustments and improvements over time. In contrast, discontinuous change is about making a significant leap to a fundamentally different state, which requires a level of planning and coordination that goes beyond the scope of emergent change
Span of Change
Refers to the extent of change within an organization. Changes can affect the whole organization (e.g., Lehman’s corporate collapse) or be more localized to a specific section or department. Can me modular or corporate.
Example: A company-wide policy change that affects all employees would be an example of a wide span of change. On the other hand, a change in the workflow within a specific department would be an example of a narrow span of change.
Modular Transformation
A type of discontinuous change that is limited to one section or department within an organization
Example: A manufacturing company deciding to automate a specific production line
Corporate Transformation
A type of discontinuous change that involves the entire organization. It often requires a complete overhaul of existing processes, systems, and relationships.
Example: Walmart’s transformation from a primarily brick-and-mortar retail business to an integrated online and in-store shopping platform in response to the rise of online shopping and competition
