The change process itself, like the choice and trajectory processes, comprises three
interlinked elements:
■
■
■
Objectives and outcomes
Planning the change
People
Objectives and outcomes
There is now much evidence and a general acceptance, at least amongst those studying
it, that a high proportion of change efforts end in failure (Beer and Nohria, 2000;
Burnes, 2003; Huczynski and Buchanan, 2001). Though there are numerous reasons
for this, Burnes and Weekes (1989) found that, in many cases, change projects failed
because their original objectives or desired outcomes were ill-thought-out and inconsis-
tent. In addition, as noted in Chapter 5, organisational change, because it often affects
the distribution of power and resources in an organisation, is an inherently political
process which can be driven by sectional interests rather than organisational needs.
Though it is difficult to envisage a situation where political interests are not pres-
ent, Burnes (1988) suggested an approach to assessing the need for and type of
change that attempts to make the process of establishing objectives and outcomes
more rigorous and open. Openness and rigour not only make it harder to disguise
political considerations, they also allow assumptions regarding the merits (or lack of
them) of particular options to be tested. Burnes’ approach has four elements – the
trigger, the remit, the assessment team and the assessment.
The trigger
Organisations should only investigate change (other than relatively minor projects
that can be easily accommodated) for one of the following reasons:
■
■
■
The company’s vision/strategy highlights the need for change or improved performance.
Current performance or operation indicates that severe problems or concerns exist.
Suggestions or opportunities arise (either from the area concerned or elsewhere)
that potentially offer significant benefits to the organisation.
If one or more of the above arises, then this should trigger the organisation to assess
the case for change, which leads to the next phase.
The remit
This should state clearly the reasons for the assessment, its objectives and timescale,
and who should be involved and consulted. The remit should stress the need to focus
as much on the people aspects as the technical considerations involved. In addition, it
must make clear that those who will carry out the assessment must look at all options
rather than merely considering one or two alternatives. Organisations need to be clear
who draws up such remits and who has the final say on the assessment team’s recom-
The Choice Management–Change Management model
469
mendations. As was shown by Burnes and Weekes (1989), this responsibility is often
unclear. In traditional organisations, this responsibility would lie with senior man-
agers. In many of today’s organisations, the responsibility for such activities is
devolved. There is usually a requirement to inform senior managers of change, how-
ever, and certain types of major change remain the responsibility of senior managers.
Also, where change affects more than one area or activity, coordination between areas
will be essential. The important point is that there must be clarity and agreement
about who has the responsibility and authority to initiate change before an assess-
ment begins.
The assessment team
This is the body who will assess the need for change. In most cases, this should be a
multi-disciplinary team consisting of representatives from the area affected (both
managers and staff), specialist staff (e.g. finance, technical and personnel), and, where
appropriate, a change specialist, either an internal facilitator or external consultant
who is a specialist in organisational change. It may also require the involvement of
senior managers.
The assessment
The first task of the assessment team is to review and if necessary clarify or amend its
remit. Only then can it begin the assessment, which should comprise the following
four steps:
1 Clarification of the problem or opportunity. This is achieved by gathering informa-
tion, especially from those involved. In some situations it might be found that the
problem or opportunity is redefined, or does not exist, or can be dealt with easily
by those most closely concerned. If so, this is reported back and probably no fur-
ther action needs to be taken. If the clarification reveals that a significant problem
or opportunity does exist, however, then the remaining steps need to be completed.
2 Investigate alternative solutions. A wide-ranging examination should take place to
establish the range of possible solutions. These should be tested against an agreed
list of criteria covering costs and benefits, in order to eliminate those solutions that
are clearly inapplicable and to highlight those that appear to offer the greatest bene-
fit. Companies will usually seek to define benefits in monetary terms. It should be
recognised, however, that not all changes, particularly those of a behavioural or
strategic nature, can be assessed on purely financial criteria, e.g. Oticon’s restructur-
ing and XYZ’s move to teamworking. In any case, changes rarely have single
benefits. For example, a change in technology that brings financial benefits may also
offer opportunities to increase teamworking and to develop the skill and knowledge
base of the organisation. Therefore, organisations need to develop ways of defining
and assessing non-monetary benefits. Also, where there are benefits there are usually
disbenefits. Where new skills are gained, old ones are discarded. For example, a
partnership approach to customer–supplier relations can lead to a loss of negotiat-
ing and bargaining skills; greater teamworking can undermine the authority of line
managers and middle managers. If such disbenefits are to result from change, it is
better to recognise this in advance and prepare for them rather than finding out
later when the damage is done. This then leads on to the next step.
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Chapter 15 • Organisational change and managerial choice
3 Feedback. The definition of the problem or opportunity and the range of possible
solutions should be discussed with interested or affected parties, particularly those
from whom information was collected in the first place. This helps to counter the
tendency to fit solutions to problems, i.e. it makes it more difficult for people to
promote their favoured solution regardless of its suitability. It also helps to prepare
people for any changes that do take place. In addition, the response to feedback
can provide an important source of information on the advantages and disadvan-
tages of the possible solutions on offer and, thus, it helps to establish the criteria
for selecting the preferred solution or solutions.
4 Recommendations and decision. The team should present their recommendations
in a form that clearly defines the problem/opportunity, identifies the range of solu-
tions, establishes the criteria for selection and makes recommendations. These
recommendations should include not only the type of change, but also the mechan-
ics and timescale for making such changes and the resource implications, as well as
performance targets for the new operation.
This then leaves those responsible for making the final decision in a position to
assess, modify, defer or reject the assessment team’s recommendations in the light of
the vision and strategic objectives of the organisation. Indeed, some change pro-
grammes and projects are so complex that it is only possible to judge their worth in
relation to an organisation’s long-term intent. For example, in the 1990s, one of the
UK’s largest biscuit makers established an assessment team to determine whether the
company should build a new factory solely dedicated to the production of chocolate
biscuits (the biggest growth area for the company). The team recommended that one
should be built next door to an existing factory in the north of England. The Board
accepted the recommendation for the new factory but decided, because of its long-
term ambitions to develop in Europe, to locate the new factory in France. Though
this decision could be justified as being in the long-term interests of the company,
such decisions are more an act of faith than a racing certainty, though managers may
choose to present them as closer to the latter in order to garner support. Nevertheless,
if the decision is to proceed with the proposed changes, then it becomes necessary to
begin planning the implementation process.
Planning the change
Whether the need for change arises from an organisation’s strategy or emerges in
some other way, once it has been established that it should take place and what form
it should take, it is then necessary to plan how this will be achieved and then to
implement the plan. As argued in Chapter 10, there are many different approaches to
change, and their appropriateness depends on what is to be changed. As the case
studies in Part 3 showed, small-scale and relatively technical or structural changes can
usually be planned and executed relatively quickly, and may not require extensive
consultation with or the involvement of all the staff affected. Similarly, changes which
are isolated to one part of the organisation and seen as ‘inevitable’, may also be rela-
tively straightforward, as was the case at PoliceCo. However, unless the need for
radical change is already accepted, as it was at Oticon, it can be dangerous to adopt a
rapid-change/low-involvement approach to larger-scale changes, particularly where
people’s attitudes and behaviours are the prime object of the change process.
Therefore, as the XYZ case shows, planning and execution, and consequent develop-
ment, in such cases can be extensive, span hierarchical levels and horizontal processes
The Choice Management–Change Management model
471
and include a high degree of amb
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