organisational-change

Definitions found for change management as found in the literature:

  • “Change management is the [application of] the set of tools, processes, skills and principles for managing the people side of change to achieve the required outcomes of a change project or initiative” (Prosci, 2012)
  • “The Process responsible for controlling the Lifecycle of all Changes. The primary objective of Change Management is to enable beneficial Changes to be made, with minimum disruption to IT Services.” (Rance, 2011)

Forces of change

The need for change comes about as a result of many internal and external factors.

Need for change:

  • External factors
  • Demographic characteristics
  • Technological advancements
  • Shareholder, customer and market changes
  • Social and political pressure
  • Internal factors
  • Human resource problem/prospects
  • Managerial behaviour
  • Management decisions

Types of change
When we know that a change is needed, we need to determine what kind of change is needed.

A generic list of the types of change:

  • Adaptive change – Reintroducing a familiar practice
  • Innovative change – Introducing a practice new to the organization
  • Radical innovative change – Introducing a practice new to the industry

By defining the type of change it helps to define:

  • The degree of complexity, cost, and uncertainty
  • The potential for resistance to the change

Input for change
To define what you need to change, you need to define the gaps between the current situation (IST) and the wanted situation (SOLL) based on the (strategic) direction of the organization.

The new (SOLL) situation can be found by applying techniques like the SWOT analysis, the Porter 5 forces analysis or the INK management model.

SWOT analysis
The SWOT originates from the so called “Design-School”(Mintzberg, 1990), which seeks to establish a fit between a companies or person’s strengths and weaknesses with the opportunities and threats in its external environment.

The SWOT analysis contains two parts, the internal analysis and the external analysis.

These two assessments are known as the situation analysis.

The internal analysis shows the Strengths and Weaknesses of the company orperson. These can be influenced by the company or person. The Opportunities and Threats come from the external analysis. These factors are outside the company or persons influence and therefore the company or person cannot or only partially affect these factors.


Porters 5 forces analysis
The Porter 5 forces analysis (Porter, 1998) is made by the identification of five fundamental competitive forces:

  • Rivalry among existing competitors (suppliers)
  • Threat of new market entrants
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of substitute products or services (incl. technology change)

 

A range of creative problem solving techniques to address change challenges

Pareto diagram
A Pareto diagram a chart that indicates how frequently each type of problem occurs, ordered from the most frequent to the least frequent.

How to use:

  • Collect random data
  • Regroup data categories based on frequency
  • Create a bar graph based on results

Flowchart
Describe the current and new process in a flowchart, a graphical representation of the process. By defining both processes you get a good overview off your start situation and the wanted situation.

How to use:

  • Define the current process
  • Define the new process
  • Identify the changes needed

Fishbone diagram
The fishbone diagram, developed by Dr. Ishikawa, is also known as a cause-and-effect diagram and identifies potential causes of problems.

It is a methodical way of determining the causes that contribute to an identified effect.

Problems identified by the Pareto diagram or flowchart can be analysed using cause-and-effect diagrams.

How to use:

  • Draw the fishbone diagram
  • List the problem at the head of the fish
  • Label each bone with one of the following
  • o   4 P’s (place, procedure, policies, people)
    o   4 M’s (manpower, materials, methods, machines)
    o   4 S’s (suppliers, skills, surroundings, systems)
    o   PEMPEM (plant, equipment, materials, people, environment, methods)
  • Identify factors in each category that are causes of the problem (brainstorming)
  • Identify sub-factors for each factor (brainstorming)
  • Identify main causes

Force field analyse
The force field of Lewin analyse is based on the concept of helping (driving) and hindering (restraining) forces.

How to use:

  • Identify a problem
  • Identify a better situation
  • Identify driving and retraining forces
  • List driving forces on opposite of restraining forces
  • Scale the forces in terms of how hard to change

Affinity diagram
An affinity diagram is a special kind of brainstorming tool developed by Jiro. It is used to gather a large number of ideas, issues and opinions of a naturally related group and identify a single concept that ties the group together.

How to use:

  • Generate ideas
  • Display ideas
  • Sort ideas
  • Create header cards
  • Draw finished diagram

Critical incidence analysis
In this method the problem analysis is done through identification of the total activities of a problem by engaging all the people in the value chain.

How to use:

  • Identify complete activity of a problem
  • Appoint participant from the value chain
  • Place them in 3 or 4 groups
  • Each group determines the key point of each process step (good and bad occurrences)
  • Transfer the statement of each group to another for identification of the problem
  • Collect the remarks of each group and compile the overall report
  • Identified problems can be analysed further by fishbone analysis or five whys

Five whys
This technique was developed by Toyoda for probing further and further into an identified problem.

How to use:

  • Identify problem
  • Tender the first why
  • Tender the second why, probing into the first why
  • Tender the third why, probing into the second why
  • Tender the fourth why, probing into the third why
  • Tender the fifth why, probing into the fourth why
  • Ascertain the key cause

Interrelationship digraph
This is used for tracing the interrelated factors in complex problems, with the aim of proving the relationships between those factors.

How to use:

  • Identify problem
  • Place the problem at the centre
  • Identify and list the causes of that problem around it
  • Use an arrow-line from cause to its effect
  • Count the number of arrows into and out of each factor
  • Score each factor based on number of arrows in/out
  • The factor with the highest number of arrow heading out is the root cause factor
How do you apply Solutions to Organizational Change?
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Author: Rieco de Jong (All Rights Reserved by the author).
Source: Original text, based upon first hand knowledge and the following bibliography:
· Atkinson, S., Martin, E., & Hinksman, S. (2010). CHAMPS2 – Realising Transformational Change. London: The Stationery Office (TSO).
· Mintzberg, H. (1990). The Design School: Reconsidering the Basic Premises of Strategic Management. Strategic Management Journal, Vol. 11 , 171-195.
· Prosci. (2012, June 24). Change Management Learning Center. Retrieved June 24, 2012, from Change Management Learning Center: http://www.change-management.com/
· Rance, S. (2011). ITIL Service Transition (2011 Edition ed.). London: The Stationary Office (TSO).
· Slack, N., Chambers, S., & Johnson, R. (2001). Operations Management (3rd edition ed.). London: FT Prentice-Hall.
· Software Engineering Institute, Carnegie Mellon. (2012). Software Engineering Instittue, Carnegie Mellon. Retrieved February 2012, from http://www.sei.cmu.edu/
· Stassen, R. (2006). Handleiding positiebepaling op basis van het INK-managementmodel ‘Ondernemingen’.Zaltbommel: INK.

Image: © stvanhorn – photodune.net

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Rieco de Jong MBA BICT BPLA FCMI FIC is an executive advisor with more than 15 years of experience in project, servicemanagement, business and IT consulting. He works as a freelance interim manager and consultant and is also an internal auditor and expert for Exin. With his approach of "Turning knowledge into action", he likes to help the people to achieve their goals. Feel free to send him an email () or to connect with him on LinkedIn or Xing.