© 1996-2004 Dr Gerald Grant 1 BUSI4400 Management of Information Systems Dr Gerald Grant Managing...

© 1996-2004 Dr Gerald Grant 1

BUSI4400 Management of Information BUSI4400 Management of Information SystemsSystems

Dr Gerald GrantDr Gerald Grant

Managing IT-enabled Managing IT-enabled organizational changeorganizational change


IntroductionIntroduction

The introduction of computer-based The introduction of computer-based information systems into an organization information systems into an organization should be viewed as a major technological should be viewed as a major technological innovation.innovation.

Managing IT-enabled change is becoming Managing IT-enabled change is becoming more complex with time.more complex with time.


Introduction Introduction (continued)(continued)

Benjamin and Blunt (1992 pp. 16-17) suggest thatBenjamin and Blunt (1992 pp. 16-17) suggest that

“the technology is allowing us to build ever larger and “the technology is allowing us to build ever larger and more complex systems, and supporting interdependent more complex systems, and supporting interdependent business processes will require those larger and more business processes will require those larger and more complex systems. Thus IT will continue to be involved in complex systems. Thus IT will continue to be involved in a change process that, at the same time, it makes more a change process that, at the same time, it makes more complex. IT complicates the change process in a number complex. IT complicates the change process in a number of ways: of ways: it moves the locus of knowledge and hence it moves the locus of knowledge and hence power in the organizationpower in the organization, it , it changes the time dimension changes the time dimension of processes and decisionsof processes and decisions, and it , and it enables new enables new organizational constructs to be implementedorganizational constructs to be implemented.”.”



““organizations must recognize that managing organizations must recognize that managing the change enabled by IT is at least as important the change enabled by IT is at least as important as bringing IT into the organization” (Benjamin as bringing IT into the organization” (Benjamin and Levinson, 1993, p.33). and Levinson, 1993, p.33).

The success of any change management exercise The success of any change management exercise is highly dependent on organizational members is highly dependent on organizational members executing their roles effectively. These roles executing their roles effectively. These roles include:include: The leadership provided by top management, The leadership provided by top management, the implementing skills of middle management the implementing skills of middle management and the involvement of user personneland the involvement of user personnel



However, according to However, according to Markus and Benjamin, (1997)Markus and Benjamin, (1997)

Failure can still occur even when all parties are Failure can still occur even when all parties are confident that they have done their jobsconfident that they have done their jobs

Both IT specialist and line managers frequently Both IT specialist and line managers frequently have and hold onto failure-promoting beliefs have and hold onto failure-promoting beliefs about their roles in changeabout their roles in change


Characteristics of IT-enabled Characteristics of IT-enabled changechange

IT-enabled change processes are different from IT-enabled change processes are different from general change processes in a number of general change processes in a number of significant ways (Bejamin and Levinson, 1993)significant ways (Bejamin and Levinson, 1993)

IT radically impacts skills, jobs and organizational IT radically impacts skills, jobs and organizational control processes.control processes.

Change reaches across functional and organizational Change reaches across functional and organizational boundariesboundaries

IT shifts the balance of organizational knowledge and IT shifts the balance of organizational knowledge and powerpower

Operational process cycles speed upOperational process cycles speed up IT changes work methodsIT changes work methods


Political nature of IT-enabled Political nature of IT-enabled changechange

Introducing IT-enabled change in Introducing IT-enabled change in organizations is more than just a technical organizations is more than just a technical issue. issue.

It is an intensely political issue as well It is an intensely political issue as well (Keen 1981). (Keen 1981).

Successful change interventions require Successful change interventions require the galvanizing of organizational commitment the galvanizing of organizational commitment the building of support among affected groups the building of support among affected groups the creation of a momentum for change the creation of a momentum for change

These are substantially political processes. These are substantially political processes.


Resistance to IT-enabled Resistance to IT-enabled organizational changeorganizational change

Resistance is defined as “behaviors Resistance is defined as “behaviors intended to prevent the implementation or intended to prevent the implementation or use of a system or to prevent systems use of a system or to prevent systems designers from achieving their objectives” designers from achieving their objectives” Markus (1983)Markus (1983)

Resistance can be viewed from different Resistance can be viewed from different perspectives.perspectives.


Resistance to IT-enabled Resistance to IT-enabled organizational changeorganizational change

Resistance is most often viewed as an undesirable Resistance is most often viewed as an undesirable behavior attributed to systems users.behavior attributed to systems users.

Alternatively, resistance may be desirable or Alternatively, resistance may be desirable or undesirable depending on the setting, users and undesirable depending on the setting, users and systems designers. systems designers.

Resistance may at times be beneficial to the Resistance may at times be beneficial to the organization. organization.

For example, if it prevents the implementation of For example, if it prevents the implementation of systems with long term dysfunctional systems with long term dysfunctional characteristics.characteristics.


Reasons People Resist Change Reasons People Resist Change Luftman, et al. (2004 p. 278)Luftman, et al. (2004 p. 278)

Loss of faceLoss of faceLoss of controlLoss of controlExcess uncertaintyExcess uncertaintySurpriseSurpriseThe “difference The “difference

effect”effect”Competence Competence

concernsconcerns

Change will affect Change will affect other issues/rolesother issues/roles

More workMore workPast resentmentsPast resentmentsReal ThreatsReal ThreatsCompeting Competing

commitmentscommitments


Who resists IT-enabled change Who resists IT-enabled change ideasideas (Markus and Benjamin, 1997) (Markus and Benjamin, 1997)

IT specialists IT specialists too fond of the latest technologytoo fond of the latest technology resistant to new technology ideas resistant to new technology ideas because of gaps in their own knowledge and because of gaps in their own knowledge and

expertise, inability to cope with support expertise, inability to cope with support demands, etcdemands, etc..


Who resist IT-enabled change Who resist IT-enabled change ideasideas (Markus and Benjamin, 1997) (Markus and Benjamin, 1997)

Line managers Line managers may insist on the exclusive right to make may insist on the exclusive right to make

technology decisions even if alternative technology decisions even if alternative solutions which fully meet business goals are solutions which fully meet business goals are suggested by others, particularly userssuggested by others, particularly users ..

UsersUsers Fear the impact of IT on their jobs and careers Fear the impact of IT on their jobs and careers May genuinely feel that proposed solutions will May genuinely feel that proposed solutions will

not work.not work.


Theories of resistance:Theories of resistance:

Resistance to IT-enabled change can be viewed Resistance to IT-enabled change can be viewed from a number of theoretical perspectives from a number of theoretical perspectives (Markus, 1983) (Markus, 1983)

good theories about resistance are essential in good theories about resistance are essential in dealing effectively with the phenomena.dealing effectively with the phenomena.

Three theoretical perspectives:Three theoretical perspectives: people-determinedpeople-determined System-determinedSystem-determined Interaction theoryInteraction theory


Theories of resistance and their Theories of resistance and their implications implications (adapted from Markus, 1983)(adapted from Markus, 1983)

Why Why ResistanceResistance

OccursOccurs

2. System determined2. System determined

People resist People resist change because of change because of poor technical poor technical systems design systems design and developmentand development

People resist IT-People resist IT-induced change induced change because they don’t like because they don’t like or want to change.or want to change.

1. People determined1. People determined

People resist change because of the impact of the change on the social People resist change because of the impact of the change on the social and political context: IT may alter relationships and power structuresand political context: IT may alter relationships and power structures

3. Interaction Theory3. Interaction Theory


Theories of resistance and their Theories of resistance and their implications implications (adapted from Markus, 1983)(adapted from Markus, 1983)

Analytical Analytical PerspectivePerspectivefrom whichfrom whichresistanceresistanceis viewedis viewed

2. System determined2. System determined

Technical:Technical:

Emphasis on Emphasis on technical design technical design

issuesissues

Cognitive:Cognitive:

Focus on individual Focus on individual traitstraits

1. People determined1. People determined

Socio-technical and political:Socio-technical and political:Focus on interaction between technical and socio-political factorsFocus on interaction between technical and socio-political factors

3. Interaction Theory3. Interaction Theory


Theories of resistance and their implicationsTheories of resistance and their implications

Dealing with resistance (adapted from Markus, 1983)(adapted from Markus, 1983)

People-determined ViewPeople-determined View

Select people open to changeSelect people open to change Educate users (training)Educate users (training) Coerce users (edicts and Coerce users (edicts and

policies)policies) Persaude usersPersaude users Involve users in design and Involve users in design and

development to obtain development to obtain commitmentcommitment




System-determined ViewSystem-determined View

Educate systems designers Educate systems designers (better technology)(better technology)

Improve human-computer Improve human-computer interfaceinterface

Modify systems to conform to Modify systems to conform to how people actually workhow people actually work

Involve users in the design Involve users in the design process to get better designsprocess to get better designs




Interaction Theory ViewInteraction Theory View

Introduce organizational changes before implementing systems

Restructure incentives for users Restructure relationships between

users and designers (eg. decentralizing responsibility for systems development)

Recognize that participation is not always appropriate


A framework for managing change A framework for managing change (Mento, Jones, Dirndorfer, 2002)(Mento, Jones, Dirndorfer, 2002)

Highlight the idea and context for changeHighlight the idea and context for change Define the change initiativeDefine the change initiative Evaluate the climate for changeEvaluate the climate for change Develop a change planDevelop a change plan Find and cultivate a sponsorFind and cultivate a sponsor Prepare your target audience, the recipients of changePrepare your target audience, the recipients of change Create the cultural fit – making the change lastCreate the cultural fit – making the change last Develop and choose the change leader teamDevelop and choose the change leader team Create small wins for motivationCreate small wins for motivation Constantly and strategically communicate the changeConstantly and strategically communicate the change Measure progress of the change effortMeasure progress of the change effort Integrate lessons learnedIntegrate lessons learned


IT-enabled change is difficultIT-enabled change is difficult

Markus and Benjamin (1997) suggests Markus and Benjamin (1997) suggests that there are no ‘magic bullets’ in IT-that there are no ‘magic bullets’ in IT-enabled organizational change. enabled organizational change.

Such change involves much hard work Such change involves much hard work and must deliberately involve people at all and must deliberately involve people at all levels, technologists, entrepreneurs, and levels, technologists, entrepreneurs, and users.users.


IT-enabled change is difficultIT-enabled change is difficult

““only users behaving mindfully can achieve only users behaving mindfully can achieve appropriate and effective use of IT. Users must appropriate and effective use of IT. Users must understand and accept the idea of and reasons understand and accept the idea of and reasons for change. They must also thoroughly for change. They must also thoroughly understand not only how to use IT but also how understand not only how to use IT but also how to use it to accomplish desired results”. to use it to accomplish desired results”. (Markus and Benjamin, 1997 p. 59)(Markus and Benjamin, 1997 p. 59)


Roles for IT-enabled change agents Roles for IT-enabled change agents (Markus and Benjamin, 1997)(Markus and Benjamin, 1997)

IT Change Facilitators:IT Change Facilitators:Focus on bringing together all the resources Focus on bringing together all the resources

necessary to effect change: good technologies, necessary to effect change: good technologies, supportive organizational conditions, and supportive organizational conditions, and knowledgeable, mindful usersknowledgeable, mindful users

Empower people about IT, expanding their Empower people about IT, expanding their opportunities to learn more about IT and opportunities to learn more about IT and organizational change and to participate more organizational change and to participate more effectively in decisions about IT.effectively in decisions about IT.

Help organizational members to accept their IT-Help organizational members to accept their IT-oriented behaviorsoriented behaviors


Roles for IT-enabled change Roles for IT-enabled change agents agents (Markus and Benjamin, 1997)(Markus and Benjamin, 1997)

IT Change Facilitators:IT Change Facilitators:Advantages:Advantages:

improves chances of implementation success by improves chances of implementation success by focusing attention on what works.focusing attention on what works.

builds mutual respect between organizational builds mutual respect between organizational members and groupsmembers and groups

Who can be IT change facilitators?Who can be IT change facilitators? neutral party - consultant or person from other neutral party - consultant or person from other

departmentdepartment IT specialists or business executiveIT specialists or business executive



IT change advocate role:IT change advocate role:Focuses on inspiring organizational members Focuses on inspiring organizational members

to embrace IT-enabled organizational change. to embrace IT-enabled organizational change. Uses any means including overt persuasion, Uses any means including overt persuasion,

covert manipulation, symbolic communication, covert manipulation, symbolic communication, and sometimes exercise of formal power to and sometimes exercise of formal power to effect desired change.effect desired change.

Focuses is on getting results.Focuses is on getting results.



IT change advocate role:IT change advocate role:Advantages of change advocates:Advantages of change advocates:They are especially useful when benefits They are especially useful when benefits

of IT implementation cannot be ascribed of IT implementation cannot be ascribed to one particular group, e.g. in large scale to one particular group, e.g. in large scale IT infrastructure projects.IT infrastructure projects.

Who can perform advocacy role?Who can perform advocacy role? business managers, IT specialists, usersbusiness managers, IT specialists, users


Successful change mangementSuccessful change mangement(Markus and Benjamin, 1997)(Markus and Benjamin, 1997)

Involves:Involves: listeninglistening understandingunderstanding giving people a chance to learngiving people a chance to learn designing learning experimentsdesigning learning experiments visualizing and dramatizing ideasvisualizing and dramatizing ideas

Takes good ideas, skill and hard work Takes good ideas, skill and hard work Is everyone’s jobIs everyone’s job


Introducing IT into organizations: Introducing IT into organizations: three generic strategies three generic strategies (Mckersie and Walton, 1991)(Mckersie and Walton, 1991)

Preemptive organizational change followed by IT Preemptive organizational change followed by IT implementation. implementation. This envisages a situation where organizational This envisages a situation where organizational

changes have already been effected in preparation for changes have already been effected in preparation for the implementation of IT. the implementation of IT.

IT is pulled into place by the users rather than pushed IT is pulled into place by the users rather than pushed by sponsors or superiors (Mckersie and Walton, 1991, by sponsors or superiors (Mckersie and Walton, 1991, p. 251)p. 251)



Simultaneous implementation of organizational Simultaneous implementation of organizational change and IT.change and IT. allows mutual adaptation of the technical and social allows mutual adaptation of the technical and social

subsystem of an IT installation (Mckersie and Walton, subsystem of an IT installation (Mckersie and Walton, 1991, p.253)..1991, p.253)..



Introduction of IT systems without adjusting the Introduction of IT systems without adjusting the prevailing organizational arrangements.prevailing organizational arrangements. deliberate choice to use technology to push the deliberate choice to use technology to push the

organization to change and adopt new ways of organization to change and adopt new ways of operating. operating.

IT is seen as a catalyst that will generate the need for IT is seen as a catalyst that will generate the need for change.change.


User participation and involvement in User participation and involvement in IT design and implementationIT design and implementation

The involvement of users and other stakeholders The involvement of users and other stakeholders in the design, development and introduction of IT in the design, development and introduction of IT systems is generally well accepted among IT systems is generally well accepted among IT practitioners and managers.practitioners and managers.

User participation is seen as a precursor to User participation is seen as a precursor to commitment and effective use of the systems.commitment and effective use of the systems.

Researchers and practitioners alike have Researchers and practitioners alike have demonstrated the practical benefits of user demonstrated the practical benefits of user participation in systems design and developmentparticipation in systems design and development


Benefits of user participation Benefits of user participation and involvementand involvement

Systems that more fully meet user needsSystems that more fully meet user needsMore user commitment to and ownership of IS More user commitment to and ownership of IS

projectprojectLess resistance to new systemsLess resistance to new systemsPotential for more effective use of the systemPotential for more effective use of the systemIncreased opportunities for learning to take Increased opportunities for learning to take

placeplaceGreater overall productivityGreater overall productivity


User participation - not a User participation - not a panaceapanacea

Some of the difficulties presented by extensive user Some of the difficulties presented by extensive user involvement include:involvement include:

users are likely to protect their own vested interests as users are likely to protect their own vested interests as opposed to supporting corporate objectives.opposed to supporting corporate objectives.

systems that are highly specified and require tight systems that are highly specified and require tight integration with other systems may limit the extent of user integration with other systems may limit the extent of user participation.participation.

users may demand too many features that cannot users may demand too many features that cannot realistically be incorporated into the design and realistically be incorporated into the design and implementation.implementation.

systems that span multiple sites and functions may present systems that span multiple sites and functions may present difficulties in involving all the relevant users.difficulties in involving all the relevant users.


Human resource policies supporting IT-Human resource policies supporting IT-

enabled change programsenabled change programs McKersie and Walton (1991)McKersie and Walton (1991)

Work organization and job designWork organization and job designIn order to benefit from new IT systems In order to benefit from new IT systems

managers must ensure that jobs are managers must ensure that jobs are designed to take best advantage of the designed to take best advantage of the properties of the new technologies while properties of the new technologies while increasing their motivating, competence increasing their motivating, competence building and communication properties.building and communication properties.


Human resource policies supporting IT-Human resource policies supporting IT-enabled change programs - enabled change programs - McKersie and Walton (1991)McKersie and Walton (1991)

Selection of potential usersSelection of potential usersIncumbent workers whose job are Incumbent workers whose job are

affected by the new systems affected by the new systems Training them to operate the new Training them to operate the new

technologies may bring greater synergy technologies may bring greater synergy and increased motivation. and increased motivation.

Sometimes entirely new workers may be Sometimes entirely new workers may be brought in to enhance the skills base and brought in to enhance the skills base and change the operational culture.change the operational culture.


Human resource policies supporting IT-Human resource policies supporting IT-enabled change programs -enabled change programs -McKersie and Walton (1991)McKersie and Walton (1991)

TrainingTrainingA significant number of systems A significant number of systems

implementations fail because employees received implementations fail because employees received inadequate training in using the new systems.inadequate training in using the new systems.

Training consumes substantial resources. Training consumes substantial resources. Training, whether formal or informal, on-the-job Training, whether formal or informal, on-the-job

or in classrooms, provide the base on which user or in classrooms, provide the base on which user competence is built.competence is built.

Highly competent employees provide the basis Highly competent employees provide the basis for successful systems use and exploitation.for successful systems use and exploitation.



Employment securityEmployment securityThe introduction of information technology The introduction of information technology

creates instability in affected parts of the creates instability in affected parts of the organization. organization.

People become more uncertain of their jobs, People become more uncertain of their jobs, particularly if they feel vulnerable.particularly if they feel vulnerable.

Consequently, employees may start looking for Consequently, employees may start looking for alternative employment even when they may not alternative employment even when they may not be affected by changebe affected by change



Employment securityEmployment securityCompanies which do not engage in effective Companies which do not engage in effective

human resources planning may find themselves human resources planning may find themselves without the very workers they need to improve without the very workers they need to improve productivity and derive business value from IT.productivity and derive business value from IT.

Successful organizations will engage in effective Successful organizations will engage in effective human resources planning, avoiding the human resources planning, avoiding the negative consequences of unplanned staff negative consequences of unplanned staff

departuredeparture..



Performance monitoring and employee appraisalPerformance monitoring and employee appraisal Monitoring performance and providing feedback to Monitoring performance and providing feedback to

employees is an important part of the systems employees is an important part of the systems implementation and change management processes. implementation and change management processes.

Employees benefit most from appraisal and feedback Employees benefit most from appraisal and feedback designed to support competence development and designed to support competence development and personal growth.personal growth.

Appraisal with strictly punitive goals will be less Appraisal with strictly punitive goals will be less successful.successful.


ReferencesReferences

Markus, M. L. (1983) Power, politics and MIS implementation, Markus, M. L. (1983) Power, politics and MIS implementation, Communications of Communications of the ACM, the ACM, 26(6), pp. 430-444.26(6), pp. 430-444.

Markus, M. L. and Benjamin, R. I. (1997). The magic bullet theory in IT-enabled Markus, M. L. and Benjamin, R. I. (1997). The magic bullet theory in IT-enabled transformation. transformation. Sloan Management Review, Sloan Management Review, (Winter) pp. 55-68.(Winter) pp. 55-68.

McKersie and Walton (1991)McKersie and Walton (1991) Mento, A. J., Jones, R. M., and Dirndorfer, W. (2002) A change management Mento, A. J., Jones, R. M., and Dirndorfer, W. (2002) A change management

process: grounded in both theory and practice, process: grounded in both theory and practice, Journal of Change ManagementJournal of Change Management, , 3(1), pp. 45-59.3(1), pp. 45-59.

© 1996-2004 Dr Gerald Grant 1 BUSI4400 Management of Information Systems Dr Gerald Grant Managing...

Documents

Transcript of © 1996-2004 Dr Gerald Grant 1 BUSI4400 Management of Information Systems Dr Gerald Grant Managing...