MBH1683 Leading Organisational Change

Transcription

1 MBH1683 Leading Organisational Change Prepared by Dr Khairul Anuar L7 Hard systems models of change 1

2 Learning Objectives Recognize change situations (problems/opportunities) characterized mainly by hard complexity, where the use of hard systems methodologies are appropriate; Describe the main features of hard systems methodologies for defining, planning and implementing change; Explain the hard systems model of change (HSMC) as representative of hard systems methodologies of change; Discuss the limitations of hard systems methodologies of change and, therefore, the need for other change methodologies more suited to situations of soft complexity. 2

3 Content 1. The hard systems model of change 2. Using the hard systems model of change 3. Comment and conclusions 3

4 1. The hard systems model of change The HSMC is a method that has been developed for designing and managing change. Its roots lie in methods of analysis and change associated with systems engineering, operational research and project management, that is, where there is an emphasis on means and ends in other words, on the means with which particular set goals are to be achieved. The HSMC is especially useful when dealing with situations that lie towards the hard end of the hard soft continuum of change situations. 4

5 1. The hard systems model of change It provides a rigorous and systematic way of determining objectives (or goals) for change; this is followed by the generation of a range of options for action; the last step is testing those options against a set of explicit criteria. The method is also useful where quantitative criteria can be used to test options for change. However, it is also possible to use qualitative criteria a possibility that is discussed later in the lecture. 5

6 1. The hard systems model of change The process can be thought of as falling into three overlapping phases: 1. the description phase (describing and diagnosing the situation, understanding what is involved, setting the objectives for the change); 2. the options phase (generating options for change, selecting the most appropriate option, thinking about what might be done); 3. the implementation phase (putting feasible plans into practice and monitoring the results). Within these three phases a number of stages can also be identified. Handout: Illustration 7.3, page 313, Senior 6

7 The stages 1. The hard systems model of change Illustration 7.3 shows how the stages relate to the phases and provides an indication of likely actions at each stage. Although Illustration 7.3 presents the phases and stages as a series of sequential steps that follow logically on, this rarely happens so neatly in reality; nor is it desirable, Iterations will be required at any point, within or between phases, owing to developing environmental factors. (Paton and McCalman, 2000) There will be times when there is a need for iteration or backtracking, from one stage/phase to earlier stages/phases, as insights generated at later stages reveal the requirement for modifications to previous ones. 7

8 1. The hard systems model of change 8

9 1. The hard systems model of change 9

10 1. The hard systems model of change 10

11 1. The hard systems model of change Phase 1: Description Stage 1: Situation summary The basic idea in Stage 1 is to start by describing the system within which change is going to be made. This is an important stage in the change process and should not be rushed. People who are centrally concerned with the change (those sponsoring it and those who will carry it out) should be consulted. Unless the specification of the problem and description of the situation are done carefully, the subsequent change objectives and process will be flawed. 11

12 1. The hard systems model of change Phase 1: Description Stage 2: Identification of objectives and constraints An objective can be defined as something that is desired; A constraint is something which inhibits or prevents achievement of an objective. In reality, objectives are likely to be things over which members of organizations may have some control. Constraints are frequently things in an organization s environment (internal or external to the organization) over which it has little control. This stage addresses both objectives and constraints. It involves being clear about where the decision makers want to go and which ways might be impassable or perhaps temporarily blocked. 12

13 1. The hard systems model of change Phase 1: Description Stage 3: Identification of performance measures The question to be answered in identifying performance measures is: How will I know whether or not I have achieved my objective? If at all possible, use quantifiable measures, e.g. costs (in monetary terms), savings (in monetary terms), time (years, days, hours), amount of labour, volume etc. 13

14 1. The hard systems model of change Phase 2: Options Stage 4: Generation of options (routes to objectives) The setting up of objectives to be achieved is based on the concept of what needs to be done to bring about change. By contrast, the generation of options stage is the stage of finding out how to achieve the objectives. If the objectives tree is well developed, as Figure 7.1 shows, some of the lower-level objectives may actually be options. There will, however, almost certainly be more. In addition, therefore, to any options that creep into the objectives tree 14

15 1. The hard systems model of change 15

16 1. The hard systems model of change Phase 2: Options Stage 5: Editing and detailing selected options At the stage of editing and detailing some options, it may be necessary to sort the options, in terms of those that are likely to be feasible given the particular situation described in Stage 1 and the constraints identified in Stage 2. The selected options should then be described in more detail or modelled in terms of what is involved, who is involved and how it will work. It may be that some options cluster together and are better considered as a group. Other options will stand independently and must, therefore, be considered in their own right. There are many ways of testing how an option might work. (How????) 16

17 (a) Physical models (architectural models, wind-tunnel test pieces, etc.). (b) Mock-ups (make mock-ups of new products sewing machines, aircraft, clothes dryers, etc.). (c) Computer simulation models (for complex production systems, financial systems, etc.). (d) Cashflow models (either manually produced or computer driven). (e) Experimental production lines, or laboratory-scale plant. (f) Scale plans and drawings (alternative office layouts, organizational structures, etc.). (g) Cost/benefit analyses (as models of the likely trade-offs that would take place if a particular option were exercised; can be qualitative as well as quantitative). (h) Corporate plans or strategies (any one plan or proposal represents a model of how the corporation or organization could develop its activities in the future). (i) Organization structure plans and proposals (for example, a chart of a new organization structure would show how the formal communication links or reporting channels would work if the structure were adopted). (j) Organizational culture analyses (methods of describing organizational 17 17

18 1. The hard systems model of change Phase 2: Options Stage 6: Evaluating options against measures The evaluation stage of the change process is a decision area. It allows choices of options to be made against the criteria identified in Stage 3. Figure 7.4 shows a generalized evaluation matrix that compares one option against another on the basis of the measures set during Stage 3. 18

19 1. The hard systems model of change Phase 3: The implementation phase Stage 7: Implementation In problems of a definite hard nature, implementation will rarely be a problem. With problems tending towards softness, implementation will be a test of how much people involved in the change have participated in its design. There are 3 strategies for implementation: 1 pilot studies leading to eventual change 2 parallel running 3 big bang. 19

20 1. The hard systems model of change Phase 3: The implementation phase Stage 7: Implementation Pilot studies help sort out any problems before more extensive change is instituted, but they can cause delay a factor that is particularly important in a fast-moving, dynamic situation. Parallel running applies most frequently to the implementation of new computer systems, but can be applied to other kinds of change. The new system is run, for a time, alongside the old system, until confidence is gained that the new system is reliable and effective. Big bang implementation maximizes the speed of change, but can generate the greatest resistance. Big bang implementations carry a high risk of failure unless planned very carefully. 20

21 1. The hard systems model of change Phase 3: The implementation phase Stage 8: Consolidation carry through It takes time for new systems to bed in. It is at this stage that there tends to be a decline in concentration on the need to support the change, and nurture both it and the people involved. Yet this is one of the most crucial stages if the change is to be accepted and successful. Even after the implementation process further changes can be forced on the situation at any time if the imbalance between the system and the environment becomes too great. There is no justification for sitting back. 21

22 2. Using the hard systems model of change Illustration 7.4 describes concerns about the way large plant and machinery is acquired and maintained for use on the building sites of the Beautiful Buildings Company. What follows is a description of the process Gerry Howcroft went through to identify a number of options for improving this situation to put before the senior managers meeting. The description takes the form of notes made by Gerry, interspersed with comments on the method he used. Refer Handout pages , Senior 22

23 3. Comment and conclusions The HSMC provides a practical approach to change that has been designed to be applied to situations such as the Beautiful Buildings Company example of low to medium complexity (difficulties). It is particularly useful when an area of the organization may need to be changed but may not infringe on other areas and when choices based on rational decision making can be made The HSMC can also be effective to begin to diagnose a change situation before categorizing it into more simple or more complex change. For instance, using the HSMC in the case of Shire County* was useful for setting out the commitment to change, carrying out (with the help of diagrams) a situational analysis of the forces for and against the change and formulating some objectives and measures of performance in preparation for planning and implementing the change. What this methodology was less good at doing was identifying the political and moral issues surrounding the implementation of radical change of this kind. In addition, current organizational, professional and institutional cultures were clearly going to work to make changes of this kind difficult to achieve. This was a case where the changes desired were going to take some time to come to fruition and these would involve changes not only to the buildings and teaching areas (i.e. physical changes) but also in people s attitudes and behaviours changes that would include both staff and students (present and potential students). The changes being proposed here were more in line with what has been described as organizational development, that is, change that is ongoing, which involves most parts of the organization and most of its members and that will not succeed without the involvement of all concerned at all stages in the change process. The next lecture describes in more detail a change process more relevant to situations of soft complexity in other terms, situations known as messes. * Covered in Lecture 11 23

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