Change Management

A Guide to Effective Implementation

James McCalman, Professor Robert A Paton, Sabina Siebert

• Publisher: SAGE Publications Ltd
• Year: 2015
• Print ISBN: 9781446274101
• eBook ISBN: 9781473943377
• Edition: 4
• Topic: Business
• Subtopic: Management
• Index: Business

Now a classic in its field, the fourth edition of Change Management: A Guide to Effective Implementation continues to offer readers highly practical strategies and step-by-step guidance for applying different models of change in different organizational scenarios.

New to the Fourth Edition:

• A third expert author, Sabina Siebert, bringing a background in sociology and cultural studies
• An improved structure that consolidates all the existing strengths of the previous editions and separates the book into three parts, beginning with chapters assessing 'The Impact and Definition of Change', 'Implementation and Evaluation of Change' and ending with a critical outlook in 'Change Management – A Critical Perspective'
• A wealth of new and richly detailed case studies with an international and cross-cultural scope that draw upon different organization types, environments and perspectives for a diverse and global understanding of the current field of change management
• Two additional chapters on leading change and organisational culture, offering unparalleled coverage of managing systems and processes, combined with increased emphasis on managing human issues.

For students taking Change Management courses on Business and Management degrees, MBA?s, specialist masters and healthcare subjects.

Part 1 The Impact and Definition of Change

• 1 Introducing Change Management 3
• 2 The Manager and the Objective Outsider 16
• 3 Cultural Attributes of Change 46
• 4 Leading Change 66

1 Introducing Change Management

Change may be regarded as one of the few constants of recorded history. Often society’s ‘winners’, both historically and contemporary, can be characterized by their common ability to effectively manage and exploit change situations. Individuals, societies, nations and enterprises who have at some time been at the forefront of commercial, and/or technological expansion, have achieved domination, or at least competitive advantage, by being innovative in thought and/or action. They have been both enterprising and entrepreneurial.

Management and change are synonymous; it is impossible to undertake a purposeful journey without first addressing the purpose of the trip, the route you wish to travel and with whom. Managing change is about handling the complexities of travel. It is about evaluating, planning and implementing operational, tactical and strategic ‘journeys’.

Today, organizations throughout the world face unprecedented economic drivers for change. These change drivers are forceful beyond any recent historical precedent. The emphasis advanced through the media is for economic change. The underlying theme that is pressing upon organizations is one of economic determinism. However, what has not yet reached the media is the change in leadership, management and organization necessary to support a re-invented model of organizations that can gain acceptance to trade with in the future. The cultural paradigm that was sufficient to support the delivery of services provided by the banking system and the public sectors as well as many competitive private sector organizations over the past 30 years needs to be deconstructed and a new cultural paradigm that is a hybrid of the best practices from both the private and the public sector needs to be built in place of the old one. The need to embrace a strong sense of corporate social responsibility and to operate to an ideology akin to that of social capitalism is acute. The strategic priority facing senior executives and political leaders throughout is one of significant cultural change in their operating ideologies and cultural paradigms (Bones, 2011).

Change has been studied and researched for many years. Philosophies, theories, models and techniques abound; all aim, with various degrees of credibility and success, to deliver sustainable organizational change (Todnem By, 2005). Whittington and Mayer (2002) argue in favour of the notion of ‘adaptive reorganization’ where frequent redesign is part of organizational performance. And to feed the beast of change Armenakas and Bedeian (1999), in a review of both theoretical and practitioner research models related to change, concluded that organizational change literature and the underpinning research continue to be highly responsive to the demands of management and also the workplace and market. Demand for change literature remains high as managers continue to strive for that ‘perfect’ change as many continue to consider reported failure rates, as high as 70%, rather excessive (Balogun and Hope Hailey, 2004). However, these figures are very much disputed (Hughes, 2011).

Our purpose in writing this book is to try to begin to resolve some of the questions that you might ask when faced with the concept and reality of change. How do I cope better with the journey? We have deliberately set this book out in a framework, which offers models for tackling the different change scenarios facing individuals and organizations. However, we have also set out to provide examples of how and where the models are used. What we wanted from this book, for ourselves and for the reader, were four things:

1. valid and defined models for the effective management of change;
2. proactive approaches to change that relate to internal and external business performance;
3. practical, step-by-step means of handling change;
4. illustrations of the use and validity of the models through current, real-life case studies.

If we are successful, you will leave this book with the sense that the management of change is a complex, dynamic and challenging process rather than a set of recipes. In most examples of successful change those responsible have developed clear and shared visions of where they are going and have linked these to implementation strategies designed to produce the desired results. We believe that change management is never a choice between technological, organizational or people-oriented solutions, but involves combinations for best fit; integrated strategies designed to produce results. In this sense, the management of change adopts the contingency approach to organizations – it all depends. However, recognition of what it depends on is the subject of this book.

Successful exploitation of a change situation requires:

• knowledge of the circumstances surrounding a situation;
• understanding of the interactions; and
• the potential impact of associated variables.

One can try to predict and prepare for the future. Indeed history teaches that failure to do so will undoubtedly result in the same mistakes being made. However, it is best to remember that such predictions produce at best a blurred picture of what might be and not a blueprint of future events or circumstances. Future scenarios are dynamic as are one’s abilities to manage them! Only the effective and progressive management of change can assist in shaping a future which may better serve the enterprise’s survival prospects.

The Importance of Change

Change will not disappear nor dissipate. Technology, civilizations and creative thought maintain their ever-accelerating drive onwards. It could be argued that a state of continuous change has almost become routine (Luecke, 2003). Managers, and the enterprises they serve, be they public or private, service or manufacturing, continue to be judged on their ability to effectively and efficiently manage change. Unfortunately, for the manager of today the ability to handle complex change situations will be judged by ever-decreasing time scales.

The pace of change has increased dramatically. Since the publication of the last edition of this book there have been a number of global change events that have had and are continuing to have an impact on the way we all live, work and play. In particular how will we, at all levels and dimensions of our societies, manage the future scenarios associated with:

• The global economic recession;
• Social networking;
• Climate change and the impact on an increasingly fragile earth – governmental, social and organizational responses to the associated challenges;
• China’s changing global role; and
• An increasing movement towards moral and social responsibility in Leadership and Change.

The web is enabling globalization to march on apace, shaping the way we work and trade, while environmental pressures threaten the reliability of the physical supply chains that underpin globalization and the growth of China, India and the Pacific Rim economies. Global change can seem remote from the individual or enterprise. But how might the software engineer, working for a global organization (reliant on both the stability of world markets and supply chains), logged onto the company portal in Dublin, solving a problem networked with colleagues in Delhi, Budapest and New York (whom they will never physically meet nor travel with to the office), all, for a client based in Sichuan (who has sourced the solution via the web), view this new exciting world? How would you manage such an individual, their network or indeed the client interface?

Businesses and managers are faced with highly dynamic and ever more complex operating environments. Technologies and products, along with the industries they support and serve, are converging. Is the media company in broadcasting, or telecommunications, or data processing, or indeed all of them? Is the supermarket chain in general retail, or is it a provider of financial services? The iPhone isn’t merely a device for texting (honest!) but part of an integrated multimedia communications package.

As industries and products converge, along with the markets they serve, there is a growing realization that a holistic approach to the marketing of goods and services is required, thus simplifying the purchasing decision. Strategic alliances, designed to maximize the ‘added value’ throughout a supply chain, while seeking to minimize costs of supply, are fast becoming the competitive weapon of the future. Control and exploitation of the supply chain makes good commercial sense in fiercely competitive global markets. The packaging of what were once discrete products (or services) into what are effectively ‘consumer solutions’ will continue for the foreseeable future (Paton and McLaughlin, 2008). Combined with the general ability to replicate both ‘hard’ and ‘soft’ innovations within ever diminishing time scales, the creative and effective management of change is placed well towards the top of the core competencies required by any public or private enterprise. The networked age supported by integrated supply chains, distributed manufacturing and integrated product offerings is here to stay.

This new world is a fragile one. Old traditions, conventions and belief systems are being challenged. Regulatory pressures, as one would expect, are increasing as those deemed to be in control (governments, civil services, politicians, managers and social leaders) attempt to both direct and manage in an increasingly dramatic and dynamic environment. In this new age staying marginally ahead of the game could be considered not only an achievement but also a prerequisite for survival.

How can you manage change in such a fast moving environment, without losing control of the organization and existing core competencies? There are, as one would expect, no easy answers and certainly no blueprints detailing best practice. Designing, evaluating and implementing successful change strategies largely depends upon the quality of the management team, in particular the team’s ability to design organizations in such a way as to facilitate the change process in a responsive and progressive manner.

Reader Activity 1.1

Identify two or three colleagues, friends or relations who are, or have been, in management or business positions. Ask them, without prompting, what they find challenging about their job? What do they find most frustrating? Attempt to find out what strategies and/or skills they employ to manage challenging and frustrating situations.

The Imperative of Change

Any organization that ignores change does so at its own peril. One might suggest that for many the peril would come sooner rather than later. To survive and prosper, organizations must adopt strategies that realistically reflect their ability to manage multiple future scenarios.

Drucker (1997: 20–4), for example, argues that:

Increasingly, a winning strategy will require information about events and conditions outside the institution … Only with this information can a business … prepare for new changes and challenges arising from sudden shifts in the world economy and in the nature and content of knowledge itself.

Bamford and Forrester (2003) agree, stating that a ‘realistic approach to change must take into account multiple and varied forces’. They note the importance, in relation to a realistic take on change, of the history of the organization, customers, suppliers and the economic environment, while stressing the need to also take into account both national and international legislation. Balogun (2007) recognizes the inevitability of organizational restructuring in the face of ever changing competitive, economic and social factors: she stresses the need to consider the actual practice of change, the internal environment, and the need to align strategic aspirations with practical realities. In short, restructuring must take into account those at the ‘sharp end’: the middle management.

If we take an external perspective for a moment, the average modern organization has to come to terms with a number of issues, which will create a need for internal change. At the point of writing we can identify six major external changes that organizations are currently addressing or will have to come to terms with in the new millennium:

1. A larger global market place made smaller by enhanced technologies and competition from abroad. What three things would you see as realistic change opportunities for you?
2. A worldwide recognition of the environment as an influencing variable and government attempts to draw back from environmental calamity. The legal, cultural and socio-economic implications of realizing that resource use and allocation is a finite issue and that global solutions to ozone depletion, toxic waste dumping, raw material depletion and other environmental concerns will force change on organizations, sooner rather than later. What three things would you recommend that your local community do?
3. Health consciousness as a permanent trend amongst all age groups throughout the world. The growing awareness and concern with the content of food and beverage products has created a movement away from synthetic towards natural products. Concerns have been expressed about the spread of ‘bird flu’, genetically engineered foodstuffs and the cloning of animals. What opportunities does this afford the individual organization in dealing with the demands of a more health conscious population?
4. Changes in lifestyle trends are affecting the way in which people view work, purchases, leisure time and society. A more morally questioning, affluent, educated and involved population is challenging the way in which we will do business and socialize. How do you think this will mean you live your life?
5. The changing workplace creates a need for non-traditional employees. Organizations are currently resorting to a core/periphery workforce, zero hour contracts, multi-skilled workers and outsourcing. A greater proportion of the population who have not been traditional employees will be attracted into the labour force. Equal opportunity in pay and non-pecuniary rewards will be issues in the future. Growth in the retirement age, pension gaps and shortfalls will create pressures on people to remain in work. What does that mean for you if you’re about to graduate?
6. The knowledge asset of the company, its people, is becoming increasingly crucial to its competitive well being. Technological and communication advances are leading to reduced entry costs across world markets. This enables organizations to become mul...

Table of contents

• Cover
• Half Title
• Publisher Note
• Title Page
• Copyright Page
• Acknowledgements
• Contents
• Sidebar List
• Acknowledgements
• Foreword
• About the Authors
• Acknowledgments
• Part 1 The Impact and Definition of Change
• 1 Introducing Change Management
• 2 The Manager and the Objective Outsider
• 3 Cultural Attributes of Change
• 4 Leading Change
• Part 2 Implementation and Evaluation of Change
• 5 The Nature of Change
• 6 Mapping Change
• 7 Intervention Strategies
• 8 Total Project Management
• 9 People Management
• 10 Organization Development
• Part 3 Change Management – A Critical Perspective
• 11 Competing Narratives
• 12 Organizational Politics and Change
• 13 The Future of Change
• References
• Index