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    1Organisational Change Chapter 8

    Soft Systems Model forChange

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    Overview

    This chapter challenges the notion of rationality as applied to organisational change in thecontext of soft complexity .Lewins three -phase model of change isdescribed as a simplified representation of amore detailed description of organisationaldevelopment as an approach to change.

    Some limitations of organisational developmentas a change philosophy and as a changeapproach are discussed.

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    Objectives To:

    recognise that some change situations

    (problems/opportunities), by nature of theircomplexity and particular characteristics, requiresoft rather than hard systems approaches tochange;

    consider the philosophy, value orientation andtheoretical underpinnings of OrganisationDevelopment (OD) as a generalised example of softsystems models for change;outline and describe the processes and practiceswhich comprise most OD approaches to designingand implementing organisational change;discuss the limitations of OD approaches tomanaging change.

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    Why Mess Management Is Needed - 1

    Various factors such as power

    bases, organisational culture ,leadership styles, and changes inthe organisations environment , can

    in many cases make organisationalchange a lot more technicallycomplex and emotionally charged

    (therefore messy) than the HardSystems Model of Change canadequately deal with.

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    People act in accordance with theirown view of what is rational forthem.

    They are not puppets, dummies,cogs, cattle.

    Why Mess Management Is Needed - 2

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    Why Mess Management Is Needed - 3 The Hard Systems model of change

    is not likely to be effective:where the nature of the presentingproblems is defined differently bydifferent people (stakeholders) in thesituation.and where quantitative criteria cannot readily be agreed upon.

    and where systems are complex .and where a pluralist ideology ofrelationships prevails.

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    7So how can managers deal with messes?

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    The Art and Science of Mess Management - 1

    Ackoff (1993:47) suggests there are 3 kinds of things which can be done about messes. The firsttwo are:

    Resolve them

    Select a hunch that yields a good enoughoutcome - one that satisfi c es (satisfies and suffices). Patch and mend, survival-oriented .

    Solve them

    Select quantitative approaches based on researchand rational-logical methods of analysis. Focuses on the trees rather than on the wood; atomistic .

    Ackoff, R.L. (1993). The art and science of mess management, in Mabey, C. and Mayon-White, B. (eds) Managing Change . London, P.C.P.

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    The Art and Science of Mess Management - 2 The third of Ackoffs (1993: 47) ways of tackling messes is:

    Dissolve them - idealising Change the nature of the problem context

    (or system involved) so as to remove theproblem.

    Development oriented eager to improvequality of life for self and others.

    Resigning systems at various levels of the

    organisation to dissolve the problem This is what the soft systems approachtries to do.

    Ackoff, R.L. (1993). The art and science of mess management, in Mabey, C. and Mayon-White, B. (eds) Managing Change . London, P.C.P.

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    Change is only effective when

    peoples feelings, needs,perceptions, ways of doing things &hopes are addressed. AND

    messy situations require managersto dissolve existing problems, bychallenging underlying purposesand assumptions.

    The Art and Science of Mess Management - 3

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    The Art and Science of Mess Management - 4

    For the manager who wishes to dissolve

    problems, Buchanan and Boddy (1992)suggest:

    backstaging, not just public

    performance political skills behind the scenes intervening in political and cultural

    systems managing meaning selling the

    change

    Ackoff, R.L. (1993). The art and science of mess management, in Mabey, C. and Mayon-White, B. (eds) Managing Change . London, P.C.P.

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    Differences Between Hard & Soft Change Approaches

    HARDClear goals and objectivesQuantifiable dataControl mechanisms areclearPower is clear, known to

    workUnitary view oforganisationEvolved first to meetneeds of modern

    engineering and industrialsystemsAims to solve problemsAnalyst detached fromsituation

    SOFT Organisations as socialentitiesGoals need negotiationDifferent perspectivesPower diffuse and

    frequently unknownConsensus view/conflictview of organisationEvolved later (1960s) inresponse to difficulties in

    using hard approachesAims to appreciate andimprove problemsAnalyst part of the situation

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    Organisation Development - 1

    Organization development (OD) is a long term

    effort, led and supported by top management, toimprove an organizations visioning,empowerment, learning, and problem-solvingprocesses , through an ongoing, collaborativemanagement of the organization culture - withspecial emphasis on the culture of intact workteams and other team configurations - utilizing theconsultant- facilitator role and the theory andtechnology of applied behavioural science,

    including action research .

    (French, W.L. and Bell, C.H, (1995). Organization Development: Behavioural Science Interventions for Organization Improvement , Fifth edition, Prentice-Hall, p.28.).

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    Organisation Development - 2

    Organization development is an ongoing

    process of change aimed at resolving issueswithin an organization through the effectivediagnosis and management of the organizationsculture . This development process usesbehavioral and social science techniques andmethodologies through a consultant facilitatorand employs action-research as one of the mainmechanism for instigating change inorganizational groups. (McCalman, J & Paton, R (1992). Change Management Guide to Effective Implementation , London, P.C.P. p 131).

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    Basic Assumptions of OD as a Model for Change - 1

    It emphasises goals and processes withemphasis on processesIt deals with change over medium andlong-termIt is about people and recognises theirworthIt involves the organisation as a whole

    as well as its partsIt emphasises the concept of a changeagent/facilitator

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    Basic Assumptions of OD as a Model for Change - 2

    It uses action research as a means ofinterventionIt is participative , drawing on theory andpractices of the behavioural sciencesIt subscribes to a humanistic philosophyof opennessIt is a process of facilitation at the

    individual, group and organisational levelIt has top-management support andinvolvement

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    Learning Organisation - 1More recently, the concept of a learning

    organisation has been blended in withOD.Central ideas of the LO: A process approach to change in which

    everything, including existing goals and thegoal setting processes, is subject tochallenge.

    Double-loop learning. Change is continuous . Development of the organisation is treated

    as being central to its well-being.

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    Learning Organisation - 2

    More central ideas of the LO: Shared visioning Proactive learning

    Continuous experimentation & risktaking

    Leaders as facilitators and learning

    leaders Team learning

    Wh O i i D l I

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    Source: Mintzberg, H. (1973), The Nature of Managerial Work, Harper & Row.

    Why Organisation Development Is So Important - 1

    The volume of change in many organisations ismassive

    The economic scene places demands on managerswhile they are reluctant to change from tried and

    tested methodsThe role of management is changing and new modelsare needed

    Change management takes timeSome changes challenge basic assumptions, forexample, the role of supervisory staff

    Wh O i i D l I

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    Source: Mintzberg, H. (1973), The Nature of Managerial Work, Harper & Row.

    Why Organisation Development Is So Important - 2

    The need for control remains - the skill is remainingin control when so much change is going on.

    More comprehensive strategic pictures are neededwhich integrate different changes in the

    organisation and alleviate confusion.Organisation design and re-design are as importantand necessary as product, process or system

    design and are the responsibility of managementand people in organisations, not just specialists.

    L i Th St P t Ch i

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    Lewins Three Step Process to Changing Behaviour

    UNFREEZING

    Resistance to change lessened,need for change created(Equilibrium disturbed)

    MOVING From old behaviour

    to the new(Changes )

    REFREEZING

    Change madepermanent

    f i

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    Unfreezing

    Shaking up

    Disconfirmation of old ways of doingthingsQuestioning & challenging ofestablished wisdom

    M i

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    Moving

    Making the actual changes to move tothe new state of existence.Includes the development of newstrategies, structures, systems &

    responsibilities and the shedding of oldones.

    R f i

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    Refreezing

    Stabilizing, institutionalising thechanges.Making sure the organisation doesn't gobackwards to the old state.

    Reinforcement of the changes throughsymbols, such as changed logos, dress,building design, structures.

    R f i ???

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    Refreezing???

    Re-freezing may not be appropriate inan era of continuous change, so maybethis stage involves something more likestabilising.

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    Th OD M d l f Ch 1

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    The OD Model for Change - 1

    A number of elements distinguish this

    approach from the hard systems modelof change discussed in Chapter 7.Change is not a one -off event, but is

    rather an iterative, cyclical process whichis continuous as part of everydayorganisational life.

    Components of the model are diagnosis ,data gathering , feedback to the clientgroup, data discussion and work by theclient group, action planning and action .

    Th OD M d l f Ch 2

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    The OD Model for Change - 2

    These components may form cycles of activitywithin each stage of the OD process.The OD approach to change is firmly embedded inthe assumption that all who are or who might beinvolved in any change should be part of the

    decision-making process to decide what thatchange might be and to bring it about.It is not a project planned and implemented bysenior managers with the assumption that otherworkers in the organisation will automatically goalong with it.

    A ti R h 1

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    Action Research - 1Action research is central to EACH

    STAGE of the OD process.It is a collaborative effort between theleaders and facilitators of any changeand those who have to enact it.It involves data gathering , feedback ofdata to the client group, datadiscussion , action planning , and action .

    Therefore, action research is, as itsname suggests, a combination ofresearch and action.

    A ti R h 2

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    Action Research - 2 Action research involves collecting data

    relevant to the situation of interest,feeding back the results to those whomust take action, collaborativelydiscussing the data to formulate anaction plan, and finally, taking thenecessary action.

    Th OD d l f h g

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    The OD model for change PRESENT STATE

    (1a)Diagnose current

    situation

    (5)Assess and

    reinforcechange

    (2)Gain

    commitmentto the vision (3)

    Develop anaction plan

    (4) Implement

    change

    JOURNEY TO THE FUTURE

    St 1 U d t di P t &

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    Stage 1 - Understanding Present &Future States

    At stages 1a and 1b the issues, problemsand opportunities are to be fully exploredand the (generally) multiple perspectives of

    people in the change situation should beunderstood.Diagnosing the current situation should notbe rushed through without sufficientconsideration of the underlying issues aswell as the presenting ones.

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    Stage 2 - Gaining Commitment to the Vision

    Once the vision for change has taken shape(stage 1b), commitment to it has to be gained.

    Consequently, sharing the vision with allconcerned is important, which might mean areview, again, of the vision for change.It is vital to listen to the organisation - people'sresponses in words and deeds to the visionproposal.

    l

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    Stage 3: Develop an Action Plan (1)

    Stage 3 is complex and requiresmuch consultation and gaining the

    participation of those who mustenact the change .Possible resistance to change mustbe addressed.

    Pughs Principles of Change 1

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    Pugh s Principles of Change -1

    Principle 1: Organisations are organisms

    adequacy of planning adequacy of persuasion

    adequacy of digestion

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    Pughs Principles of Change - 2 Principle 2: Organisations are

    occupational and political systems

    account taken of occupational

    impact account taken of political

    impact

    P h P i i l f Ch 3

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    Pughs Principles of Change - 3 Principle 3: All members of anorganisation operate simultaneously in allthree systems - the rational, theoccupational, the political

    appropriateness of starting site appropriateness of methods used

    Stage 3: Develop an Action Plan (2)

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    Stage 3: Develop an Action Plan (2) The role of the change agent is important in thewhole of stage 3. Debates occur as to whether the

    use of an internal or external change agent ispreferable.Buchanan and Boddy (1992) have written aboutCHANGE AGENTS competencies.

    Sensitive, clear, flexible goal setting. Team building, networking , handling ambiguity. Communicating , dealing with people and

    meetings,enthusing, motivating. Selling, negotiating. Dealing with the politics , influencing, the broader

    view.

    Stage 3: Develop an Action Plan (3)

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    Stage 3: Develop an Action Plan (3)

    CHANGE AGENTS help the

    organisation to:Define the problem.Examine and diagnose the problem.Come up with alternative solutions .Direct implementation of solutions.

    Crystallise the learning .

    l l ( )

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    Stage 3: Develop an Action Plan (4)

    Responsibility charting helps in theassessment of the alternative behaviours forthose involved in the series of actions forchange.

    It involves identifying and assigning thespecific people involved in each action ordecision. who is responsible (one person). who are the approval givers (not too many). who are the supporters, resource providers (vital). who should be be informed.

    A R ibili Ch

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    ActorsActions

    A B C D E F G1 R A A I I S

    2 S R A I I I

    3 S R A S

    4 S I A R I

    5 S A R A

    6 I A R S

    R= responsible

    A = approval giver, can veto S = must support; provide resources I = to be informed

    A Responsibility Chart

    S 3 D l A i Pl (5)

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    Stage 3: Develop an Action Plan (5)

    Possible stakeholders who are startingpoints for change:Top management.Groups who are management -ready, i.e.ready for change. Includes h urting systems. Those in pain.New teams or systems.

    Change agents . Staff members who willfacilitate subsequent change . Temporary change implementation projectteams.

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    Stage 3: Develop an Action Plan (6)

    Pughs (1986) OD matrix on p. 323 isvery useful in deciding where, in anorganisation, change efforts should startand be planned.

    start with desired behaviour that needs tochange.

    move to organising the system , structure,

    info. flows, etc. that may need to change. move to organise the contextual setting

    that may also need to change.

    The Pugh OD Matrix

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    The Pugh OD Matrix Problems

    Behaviour Structureetc.

    Context

    Org level Poor orgclimate

    Wrongstructure

    Wrongstrategy

    Inter-groupLack ofcooperation

    Poor co-ordination

    Distance

    Grouplevel

    Poor teamspirit

    Uncleargroup task

    Poorresources

    Individuallevel

    Dissatisfiedperson

    Poorlydefined job

    Poorapplicationof HRM

    The Pugh OD Matrix

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    The Pugh OD Matrix Remedies

    Behaviour Structureetc.

    Context

    Org level Surveyfeedback

    Changestructure

    Changestrategy

    Inter-groupRolenegotiation

    Improveliaison

    Bringgroupscloser

    Group

    level

    Teambuilding

    Redesignworksystem

    Changetechnologyor staffing

    Individuallevel

    Counselling Jobenrichment

    ImproveHRM

    St 3 D l A ti Pl (7)

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    Stage 3: Develop an Action Plan (7) Decide what needs to change:

    behaviour systems/structure, or contexts

    Action plan must be:relevantspecificintegratedin the right time frameadaptable

    Stage 4 Implement the Change

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    Stage 4 Implement the Change

    Stages 4 (and 5) of the OD processImplementing and assessing andreinforcing the change can make use of a range of techniques, some of them

    identified on the Pugh OD matrix.

    Implement the Change (2) - Facilitated

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    Implement the Change (2) Facilitated Activities 1

    Survey feedback . Employee opinionsurvey.Organisational mirroring. Focal group getsfeedback from other groups about how itis perceived and regarded. Reciprocal.Fishbowl technique. Inter-group confrontation. Each group lists

    its complaints about the other as well aswhat it thinks the other group has as acomplaint against itself.

    Implement the Change (2) - Facilitated

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    Implement the Change (2) Facilitated Activities 2

    Role negotiation . Focus on eachothers behaviours and negotiate anincrease, decrease or status quo.Process consultation . The consultantengages in feedback,coaching,counselling, and helps individuals and

    groups finds their own solutions.

    Implement the Change (3) - Facilitated

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    Implement the Change (3) Facilitated Activities 3

    Team Building - focus on the teamprocesses, culture and responsibilities. Life and career planning - Life linedrawing, connecting past, present &future. Write your own obituary.Plus various other methods for designing

    structures and contexts.

    Implement the Change (4)

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    Implement the Change (4)

    Go for a series of SHORT-TERM WINS , visible

    outcomes (short term goals) that: show that sacrifices are worthwhile reward change agents

    help fine tune the visions and strategies counterbalance the cynics keep bosses happy build momentum

    Stage 5: Assessing and Reinforcing

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    Stage 5: Assessing and Reinforcing Change

    Hard change is relatively easy toassess Set hard objectives and quantifiable

    performance measures

    Soft change is more difficult toassess

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    Assessing the Soft Elements of Change

    Survey or cultural audit.

    Interviews with individuals or focusgroups.

    Examination of turnover and absenteeismrates.

    Analysis (through observation orquestionnaire) of group performance.

    Picturing the organisation - ask staff toportray the org in pictures, not words.

    Reinforcing and Consolidating Change

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    g g g

    Design appraisal, career and reward systems

    which help reinforce desired behaviours.

    Orientate staff training and development to

    the new vision and the new situation.Hold people accountable for maintaining the

    vision and continuing to implement the

    change.

    Iteration

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    Iteration At all these stages, as Figure 8.2 on p.

    312 shows, the requirement of iteration back to previous stages and thenforwards again with modified plans and

    actions is crucial to the way the ODprocess operates.

    An Assessment of the OD Model for

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    An Assessment of the OD Model forChange (1)

    Three of the criticisms that have beenaimed at this model for change are:1. OD does not always face up to the harsh realities of

    change. (Rather than unfreezing, people need to beshaken up.)

    2. OD is limited when change situations areconstrained. (Diagnosis and vision already set).

    3.OD does not always fit with the policies and practicesof bureaucracy, political systems

    An Assessment of the OD Model for

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    An Assessment of the OD Model forChange (2)

    A fourth criticism of the soft systems modelfor change is 4. The claim that OD cannot be applied in the same way

    across all cultures.Supposedly it is not suited to high Power Distance, high

    Uncertainty Avoidance, and high Masculinity cultures.

    An Assessment of the OD Model for

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    An Assessment of the OD Model forChange (3)

    Given these criticisms, care has to be takenthat the OD process is modified to suit differentcircumstances.It must also be recognised that, in times ofcrisis , managers may have to act very fastand... it may not be possible to put into practice the full

    consultation and participation that is built into theOD process.