TOP-Change A framework for management of change in the fifth

technology revolution

Leon Dohmen

January 2010

Translation by William Martin

Theories and concepts concerning the best approach for organisational changes are in abundance.

However, changes in organisations are still difficult and lead frequently to insufficient results. The

reason for this is that almost all of the existing theories and conceptions concerning management of

change have a very limited view.

TOP-Change

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Introduction

The term, management of change, has no unambiguous definition. For a good understanding,

this article uses the definition: to give optimal steering to change. Steering means: to guide in

a certain direction.

In the article ’The irrational side of change management’ McKinsey writes that in spite of

Kotter, still only 30% of the changes succeed. McKinsey concludes therefore that the rational

approach of Kotter does not work. According to McKinsey, changes must be carried out in a

more irrational manner. Apart from the fact many organisations now actually change

according to the approach of Kotter, it is interesting to look further into the comments of

McKinsey. Because, also with McKinsey’s approach, only a maximum of 30% of the changes

will succeed. If changes are rational or irrationally approached, in both cases it only concerns

the domain people as a component of the change. This view is much too limited. There are

still two other domains – technology and organisation – which have a considerable influence

on the success rate of changes.

The fifth technology revolution

According to Carlota Perez, we are presently in the fifth technology revolution. Changes in

this period are especially driven by Information Technology (IT). The five minute long video

‘Did you know’ on YouTube - http://www.youtube.com/watch?v=jpEnFwiqdx8 - sums up

pieces of information that typify this period. The conclusion of this video is: ‘We are living in

exponential times’. In the fifth technology revolution, technology, organisation and people

are the most important domains which are involved in changes.

Technology

This is the supply of available technology and the possibilities, limitations and the

impossibilities that this technology has. Where IT is concerned, the available technology is

limited to the IT domain. Even with this limitation, the supply of available technology is

enormous. Characteristically, the life cycle of new technology is (still) becoming shorter.

Organisation

Here it concerns processes and structure (including location) of the organisation.

Organisations commit IT for the realisation of their organisational goals. The application of

technology is tuned on this. In some branches, the application of new technology has an

enormous influence on the existing processes, structures and relationships. Internet

technology has made it possible to create a virtual world (V-world) next to a physical world in

which the meaning of the terms place, time and presence has drastically changed.

People

A new IT solution often means new work content and changing cooperation with colleagues

or people outside its own organisation. Often, because of this, interests of people change. The

main question is: How fast are people able to make new IT solutions their own and apply

them within their work situation? Other behaviour, new knowledge and skills must be

developed. This will be nearly always coupled with a learning process. However, this learning

process can be different for each person. It is popular to distinguish between people who have

grown up with IT (digital natives) and the elderly (digital immigrants). Besides this, people

have different learning styles which also affect the learning process.

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Incomplete views

The view from the practice of the fifth technology revolution shows that there is a permanent

interaction between technology, organisation and people. For each issue where IT plays an

important role, the composition and interaction is different between the domains Technology,

Organisation and People. Each TOP-mix is unique and knows its own dynamics and

unpredictability. Results are never absolute and univocal. Here is where the most views that

the various professional fields and studies have developed go wrong. Many of these views

about how change can best be carried out limit itself to one or at most two domains of the

TOP-mix. Psychologists and behaviour scientists point to the importance of the people factor

and the developing of correct behaviour. IT project managers approach their issues from the

domain technology and restrict their IT project to this domain only. Most IT project managers

have no idea what takes place outside of their technical domain. Organisation scientists

especially evaluate processes and structures and explain which organisation form is most

appropriate for an

organisation. Each view

from a separate field of

study or profession is

incomplete and without

insight in the required

contribution of and

interaction between other

domains, only a partial

solution can be offered.

Only thinking and acting

over all domains, will

considerably increase the

success rate of

organisational changes

where IT plays an

important role. (Figure 1).

Figure 1: Relation between

domains of change and steering

Manager, leader, director

It has already been indicated in this article that each TOP-mix is unique, that the change

results are unpredictable and not univocal. Therefore, it is a big mistake to think that each

organisational change, where IT plays an important role, always take place in the same way.

There is not a sanctifying, always fitting form of steering. The steering of the change must be

tuned on the TOP-mix. Most organisations subconsciously choose a form of steering for an

organisational change where IT plays an important role. Mostly, without considering a

standard project management method, such as PRINCE2, is used.

There is a distinction between two basic steering profiles and a hybrid one. The two basic

forms involve the ‘hard’ side and ‘soft’ side of change (Figure 2). The ‘soft’ side helps to

provide steering within the people domain and is called leadership. The ‘hard’ side which is

called management, helps with the steering within the domains technique and organisation.

The third steering profile, a hybrid of ‘hard’ and ‘soft’, is called directing. A director knows

the composition and interaction of the TOP-mix in order to choose appropriate steering for an

organisational change where IT plays an important role. Often a change can be subdivided in

smaller segments. Each part can have its own separate necessary steering. The director knows

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how to play with the different steering profiles. Where necessary he directs his time and

attention to the ‘hard’

side, but he is also able

to overcome resistance,

influence and persuade

people. Not just anyone

can direct. It is no

gimmick or trick.

Directing demands a

set of competences

which supports the

director to understand

what happens in the

TOP-mix and how to

coordinate the steering

of this.

Figure 2: ‘Hard’ and ‘soft’ side

of an organisational change

(http://www.enleadership.com)

Competences and change instruments

There exist only a few directors, who from a deep and broad understanding of the TOP-mix,

are capable to steer properly organisational change where IT plays an important role. It is not

an easy job to do, considering the scope and depth of the various professional fields and

studies that are hereby concerned. Here, training is necessary that develops a sustainable

insight in the interaction and working of the TOP-mix and which form of steering the TOP-

mix needs. Many managers do not look for their salvation in these sustained trainings. For

‘competence development’, one or two day trainings and seminars are eagerly used. People

are lured with slogans such as, ‘you will be on the edge of your seat’, ‘extraordinary full

programme’ and the promise ‘learned today and apply tomorrow’. In these one or two days,

they can never get a good insight in the working of the TOP-mix and how to provide here

optimal steering. These compact trainings lead to a superficial and over simplified ‘reality’ of

the fifth technology revolution. A good director must have the right mix of competences that

makes it possible sometimes to steer on the ‘hard’ side and sometimes on the ‘soft’ side when

it is necessary. The transformational competency model contains 18 competences and

supports to develop directing competences where understanding of the context (TOP-mix)

forms the basis. In the book, ‘Changing IT in six’, (published April 2010) it is explained

which competences contribute to the use of five change instruments to determine the correct

direction and approach for better steering and execution of organisational change where IT

plays an important role (table 1). These five instruments are part of the IBAFrame (IT

Benefits Accelerator Framework). The instruments provide for permanent alignment and

connection at different levels: organisation, group and individual. They help to determine a

common goal for all concerned parties and to choose an appropriate change approach. In

addition, these instruments help with stimulating involvement and cooperation and providing

the correct impulses to the learning process and personal contribution. The change

instruments offer support during all phases of the change process. Table 1 contains an

overview of the instruments, their objectives, focus and which competences are appropriate

with which instrument. The transformational competence model can be seen as the sixth

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IBAFrame instrument. The section input contains competences that describe the supporting

knowledge and the understanding required to perform a task successfully. The competences of

the process section are made up from competences that transform individuals and contribute

to group activities and support the decision-making process. The third and last section output

aims at the competences that develop the capacity to carry out a task to satisfaction. These

competences are result oriented.

Change

instrument

'Hard' IBAFrame objectives

Management

'Soft' IBAFrame objectives

Leadership

Objective and

work forms

focused on

Phase change

process

Relation with transformational competences

Input Process Output

Roadmap • Point of departure, destination

(corporate objective) and determine

change route

• Make a connection between the

change in the IT solution and changes in the work domains of the users and

IT support

• Gain insight into the complexity of

the change by means of IT

• Creating a collective

view and sense of direction

Organisation/

Group

Start/Centre •Strategic

orientation (SH)

•Conceptual

thinking (TC)

• Innovative

thinking (CA)

Change

approach

• Tune the change approach to the

complexity level

• Translate the change approach into

fitting work forms

• Ensure the proper atmosphere with

the organisational change by means

of IT; increase speed of change if

required and/or possible; offer

exploration and learning space if necessary

Organisation/

Group

Start/Centre • Interpersonal

understanding

(KI)

• Organisational

awareness (SH)

• Flexibility (CA)

• Holding people

accountable (MQ)

Programme

and

Project

management

• Translate the corporate objective into

derived objectives and make them

SMART

• Provide change routes and route

characteristics (specifications) and a time path

• Set the proper priorities (which

programmes and projects have to be

executed first)

• Ensuring a controlled (fitting) execution

• Encourage commitment and

cooperation

• Organising a dialogue

Group/Individual Centre/End • Teamwork and

cooperation (SA)

• Team leadership

(TC)

• Planning and

initiative (KI)

• Achievement

orientation (SA)

Knowledge

management

• Accelerate the adoption of the new

IT solutions

• Creating an optimal learning

environment

• Encouraging the (collective)

learning process

Group/Individual All phases • Information

seeking (MQ)

• Relationship

building (MQ)

• Analytical

thinking

(KI)

• Concern for

quality and order

(TC)

Personal

effectiveness

• Tune the personal objective to the

corporate objective (via programme

and project objective)

• Improve the personal (individual)

productivity

• Provide meaningfulness and space

within the collective frames which

have been positioned by means of

the other change instruments

Individual All phases • Self confidence

(SA)

• Organisational

commitment

(CA)

• Customer

service

orientation (SH)

Table 1: Relation between IBAFrame change instruments and transformational competences (Source: ‘Changing IT in six’)

SH=Social and Human Skills, TC=Technical Competence, CA=Conceptual Ability, KI=Basic Knowledge and Information,

SA=Specific Skills and Attributes, MQ=Meta Qualities

Alpha and beta

In the current fifth technology revolution, the need for people with knowledge and skills from

all 3 domains, technology, organisation and people, is growing. A mixture of alpha and beta

knowledge forms here the basis. You can wonder if secondary education (in the Netherlands)

is taking this into account sufficiently. Still the classic two-part alpha and beta profiles is

applied. Students are forced to choose for one of the two profiles, while a mixed profile is

needed from the perspective of the fifth technology revolution.

Summary

‘Narrow streets breed narrow minds’. The limited and one-sided thinking concerning change

management insufficiently contributes to the success rate of organisational changes where IT

plays an important role. Only when these changes are approached from the total content of

technology, organisation and people - TOP-mix - a proper analysis of the issue is possible and

the correct steering can be chosen. For this, people are needed who have competences from

several fields of expertise or know how bring them together.

----------------------------------------------------------------------------------------------------------------- Leon Dohmen is working at Logica as Principal Management Consultant.

Furthermore, he teaches Management of Technology at the Rotterdam Business

School for Master and MBA-programmes. He is co-author of the book ‘Changing

IT in six’ (published in April 2010).

- http://www.linkedin.com/pub/leon-dohmen/0/b24/92 -