Management exit | leadership-types of change

Chapter 4 Types of change


A.  Planned vs. unplanned change

 

1.      Planned change is initiated by the organization itself with the purpose of improving its functioning.

Ø  It is a proactive approach to respond to new external demands. This type of change often affects various segments of the organization and requires a deliberate decision to alter the organization.

Ø  For example, a company transitioning from a traditional hierarchical structure to self-managed teams would require planned change.

Ø  It requires a strategic plan or a well-defined change plan.

Ø  It often affects multiple segments of the organization.

Ø  It can result from recognizing the need for change or responding to external demands.


2.      Unplanned change originates outside of the organizational system and requires the organization to respond.

Ø  It is often a response to unexpected events or circumstances, such as changes in government regulations or shifts in the economy.

Ø  Unplanned change is imposed on the organization and requires flexibility and adaptability to effectively respond.

Ø  Unplanned change typically focuses on specific segments of the organization and may occur in a spontaneous, accidental, or evolutionary manner.


Steps in planned change

1.      Recognize the need for change: Identify the internal or external forces that necessitate change.

2.      Develop the goals of the change: Determine the specific changes needed in terms of products, technology, structure, and culture. Evaluate both problems and opportunities.

3.      Select a change agent: Appoint a person responsible for leading the change process and implementing it effectively.

4.      Diagnose the current climate: Gather data about the organization's current climate to prepare employees for change. Provide feedback about the present situation and create awareness of the forces driving change.

5.      Select an implementation method: Decide on the best approach to bring about the desired change. Seek input from diverse perspectives, visit other organizations for new ideas, and consider external standards of performance.

6.      Develop a plan: Create a detailed plan that includes specific events, activities, timelines, and responsibilities. The plan serves as a roadmap for implementing the change.

7.      Implement the plan: ensure sustained progress by allocating resources, fostering skill development, reinforcing newly acquired behaviors, and establishing a supportive system..

8.      Follow the plan and evaluate it: This involves comparing the actual results achieved to the goals that were initially established.

 

B.  Revolutionary Vs. Evolutionary Change

 

1.     Revolutionary/ Transformational Change

Revolutionary or transformational change is profound and involves a complete overhaul, renovation, and reconstruction.

Ø  It is fundamental, dramatic, often irreversible, and leads to radical breakthroughs in beliefs or behaviors.

Ø  Organizations pursuing revolutionary change reshape strategic goals and may undergo radical transformations in products or services.

Ø  Examples include shifting from a traditional hierarchical structure to self-directed teams or implementing Business Process Reengineering.

    

Advantages:

·        Lower risk of the change failing to take effect.

·        Quick implementation of the change.

·        Availability of necessary resources.

·        Provides political cover for the change initiator.

·        Enhances the appearance of the organization on resumes and annual reports.

·        Gives a sense of planned change, with subsequent mandates fitting together.

   

Disadvantages:

·         The change may not become ingrained in the organization's culture before focus shifts, leading to a rollback.

·         Loss of political capital due to less inclusivity in the change process.

·         Job security concerns for the change initiator if the change does not deliver expected benefits.

·         Opportunity cost of focusing solely on the mandated change, potentially neglecting other improvements.

·         The solution applied may not be a good fit for the organization, leaving pain points or gaps.

·         People may feel treated like robots due to the top-down nature of the change.


2.     Evolutionary/ Incremental Change

Evolutionary change is incremental and occurs gradually over time. It is often driven by the need for the organization's survival, external pressures, or competitive factors.

Ø  This change is convincing and involves change agents gradually building proposals or prototypes that are iteratively presented.

Ø  Examples of incremental change include continuous improvement in quality management or the implementation of new computer systems.

    

Advantages of Evolutionary Change:

·        High likelihood that the change, once implemented, will become part of the organization's culture.

·        Involves more people in the design process, leading to greater identification and acceptance of the change.

·        The change is likely to fit the organization's understanding of the current situation.

·        Involves multiple perspectives, resulting in more thoughtful solutions.

    

Disadvantages of Evolutionary Change:

·         High initial risk, as people may not understand or buy into the change, making it challenging to build momentum.

·         The change process may be haphazard, with changes introduced that do not align with the organization's goals.

·         May suffer from a lack of central direction if there is no clear owner or change agent.

·         It can be difficult to find individuals skilled in making evolutionary change, as it requires specific expertise.

·         The people driving evolutionary change often do not seek credit for their work, making it challenging to identify them.


Business Process Reengineering (BPR) Top of Form

 

Business Process Reengineering (BPR) is a concept that focuses on fundamentally redesigning and improving business processes to achieve significant improvements in performance measures such as cost, quality, service, and speed.

Ø  It involves rethinking and reorganizing tasks, people, and IT systems to support an organization in realizing its goals.

Ø  BPR aims to eliminate wasted or redundant effort and improve efficiency by examining how processes currently operate and redesigning them from scratch.

Ø  It is an innovative approach that leverages best practices and enablers, and it requires a multidimensional, integrated solution.

Ø  BPR involves cross-functional and inter-departmental changes rather than simply overlaying new software or making incremental improvements.

Ø  BPR is not about incremental changes, downsizing, or reorganizing and restructuring existing processes.

Ø  A comprehensive and radical approach requires a migration from activity management to process management. BPR involves a shift in mindset and a departure from the status quo.


Why we need BPR?

1.      Improving efficiency: by reducing time to market and providing quicker responses to customers.

2.      Increasing effectiveness; by delivering higher quality and achieving long-term cost savings.

3.      Providing more work that is meaningful for employees and aligning the company's vision at all levels of the organization.

4.      Increasing flexibility and adaptability to change: in order to strategize against the ever-changing economy and technology, enabling new business growth.


Steps in Business process reengineering

1.      Introduction into Business Reengineering:

·        Developing and effectively conveying the "case for action" and the "vision statement" are essential tasks. The "case for action" serves to provide a rationale for change by explaining why it is necessary, while the "vision statement" outlines the desired operational framework of the organization..

·        The CEO takes responsibility for articulating and communicating these statements to the senior management team and the rest of the organization.

2.      Identification of Business Processes:

·         Identify and describe the most critical business processes using process maps.

·         Process maps provide a global perspective on work flows within the company.

·         High-level processes are depicted, which can be further broken down into subprocesses on separate maps.

·         Process maps serve as a communication tool for discussing reengineering

3.      Selection of Business Processes:

·         Decide which high-level processes will be redesigned, considering factors like impact on customers, likelihood of success, and alignment with strategic objectives.

·         Criteria for selecting processes may include their contribution to strategic direction and impact on customer satisfaction.

4.      Understanding of Selected Business Processes:

·         Gain a better understanding of the selected processes, focusing on what they do, their performance, and critical issues affecting performance.

·         Detailed analysis and documentation are not the primary goals; instead, provide a high-level view to guide the creation of a new and superior design.

5.      Redesign of the Selected Business Processes:

·         The most creative phase involving the invention of new rules and ways of working.

·         Requires imagination and inductive thinking to develop a radically new and improved design.

6.      Implementation of Redesigned Business Processes:

·         Encompasses the implementation phase of the Business Process Reengineering (BPR) project,

·         Success contingent on the effective execution of preceding phases.

·         Hammer and Champy underscore the significance of  project planning for a successful implementation.


Critical Success and Failure Factors in BPR


Success Factors for BPR:

1.      Clear Vision: Develop a clear vision of the goals and objectives of the organization and its success.

2.      Senior Management Commitment: Gain strong commitment from senior management throughout the entire process, including identifying an executive sponsor.

3.      Project Planning: Conduct sufficient project planning and preparation with a defined scope, roles, and tools for each phase.

4.      Change Management: Utilize an effective and structured change management process, including developing a strong communication plan.

5.      Staff Support: Build staff support and buy-in for the proposed solution.

6.      Team Commitment: Secure the commitment of team members to the project and assemble a team with the right mix blend of skills.

7.      Understand Business Issues: Develop a clear understanding of business issues, including client needs, performance, and standardization, and align them with the BPR solution.

8.      "Quickly" Review As-Is: Document and review high-level "as-is" business processes, focusing on progress rather than exceptions to the rule and specific cases.

9.      Always Have a Goal: Show progress and demonstrate results by having short, medium, and long-term targets.

10.  Follow-up, Follow-up, Follow-up: Ensure that things get done by consistently following up on the progress.


Fail Factors for BPR:

1.      Lack of Alignment: BPR effort not tied to organizational goals, objectives, and/or client expectations.

2.      Lack of Commitment: Teams cannot ensure success if they lose senior management support or if team members perform BPR "on the side" while handling day-to-day tasks.

3.      Lack of Communication: Not everyone is informed early, and staff concerned by changes are not engaged throughout the process, leading to misalignment.

4.      Improper/Insufficient Planning: Changing scope or focus damages integrity and commitment.

5.      Lack of Understanding of Business Challenges: Business case is unclear or weak, and changes do not address the real needs of the business.

6.      Ignore the End Users: If the solution designed does not consider the needs of end users, change will face resistance and may not be implemented.

7.      Ignore the Clients: If processes are not designed to produce the value clients seek, results will be unsatisfactory, and clients may seek alternatives.

8.      Team Member Selection: Without dedicated, strategic thinkers that can champion change, the improvement process may not succeed.

9.      Lack Enabling Technology: Decisions based on existing technologies may hinder designing optimal processes.

10.  Easily Overcome by Challenges: If the team gets stuck on specific steps without considering the bigger picture, motivation may be lost, and the team may get stuck in a particular phase.

Top of Form


Other types of change


Remedial Versus Developmental Change:

Remedial Change: is intended to address and resolve current problems or issues within an organization.

Ø  It aims to improve poor performance, reduce burnout, address budget deficits, or solve other pressing problems.

Ø  Remedial projects are often focused and urgent, as they aim to fix immediate issues.

Ø  The success of remedial change is usually more tangible and measurable, as it can be determined by whether the problem is solved or not.

Developmental Change: aims to enhance and build upon existing success.

Ø  It seeks to make a successful situation even more successful by expanding customer base, duplicating successful products or services, or achieving further growth.

Ø  Developmental projects may appear more general and vague compared to remedial projects, as they focus on further improvement rather than addressing specific problems.

Ø  The goals of developmental change may vary in specificity and importance to different members of the organization.

 

Organization-wide Versus Subsystem Change:

Organization-wide Change: refers to changes that affect the entire organization.

Ø  Examples include major restructuring initiatives, collaborations with other organizations, or "rightsizing" efforts (e.g., downsizing or expanding the workforce).

Ø  Organization-wide change is often necessary when an organization needs to evolve to a different level in its life cycle or when cultural change is required.

Ø  Successful organizational change often involves a shift in the organization's culture and affects multiple aspects of its operations.

Subsystem Change: focuses on specific parts or subsystems within an organization.

Ø  It may involve adding or removing a product or service, reorganizing a department, or implementing a new process for delivering products or services.

Ø  Subsystem changes are more localized and targeted, aiming to improve efficiency or effectiveness within specific areas of the organization.


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