3-1 Implementing Organizational Change: Theory into Practice Bert Spector Chapter 3 Mutual...

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Implementing Organizational Change: Theory into Practice

Bert Spector

Chapter 3

Mutual Engagement and Shared Diagnosis

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Carly Fiorina At HP


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1. What was the case about?2. Why did HP replace their former

CEO?, Where did Fiorina come from?

3. What were the key changes Fiorina wanted to make at HP?

4. What was Fiorina approach to change?

5. Was the change accepted by her senior management team?

6. Was Fiorina ultimately successful at HP?

Diagnosing the Organization


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• Diagnosis is the process of learning about the dynamics of the organization in order to take action intended to improve performance.

• Diagnosis is about learning what needs to be changed and why.

• Diagnosis also needs to build consensus around how things need to be changed.

• The sequential implementation model starts with shared diagnosis to provide the basis for unfreezing.

• Only when the same diagnosis is shared by many people, can the change process move forward effectively.

• Diagnosis can occur on the individual, group and organizational levels and create a shared dialogue about how the organization can meet the demands of its renewed strategy.

Diagnostic framework: a roadmap to analyzing alignment that makes explicit both the key elements of an organization that need to be aligned and the interconnections and interdependencies among those elements.

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Diagnostic Framework

“The most effective change implementation starts with a diagnosis that is shared by many employees at

multiple organizational levels.”

“Use a common organizational framework to shape mutual engagement and shared diagnosis”

“Use diagnosis as the preliminary stage in implementing change.”


Diagnosis should be guided by a framework. This framework should help the organization understand what needs to be changed, why and how by offering a general model. The framework should lead people to systemic thinking and identifying disjunctions.

Framework should be complemented by open dialogue about what needs to happen. The framework should be:

1. explicit – all elements and connections should be clear 2. operationally defined – focus on measurable concepts and criteria 3. empirically validated – backed up by knowledge and data 4. acceptable through face validity – must make sense to organizational members 5. generalizable – applicable to different organizations and settings those elements.

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Starting with Mutual Engagement

Dialogue involves a structured, collective discussion among two or more parties without a predetermined outcome.

Organizational silence: the lack of truthful dialogue in organizations.

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“Don’t mistake passive acceptance with agreement. ”

“Leaders can ask themselves – has their organization bred a “climate of silence” that discourages subordinates from

speaking up and discourages bosses from seeking feedback? ”

“A large power distance between parties in a dialogue inhibits openness and risk taking while distorting

communications”Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Organizational Enablers of Dialogue

Dialogue is risky business. Example of Carleton Fiorina at HP: Fiorina set about creating a major change. Executives failed to speak up about her

reorganization plan even though they did not fully understand or necessarily agree with the plan. This is an example of organizational silence.

Organizational silence is the lack of truthful dialogue in organizations caused by the widespread assumption on the part of employees that candid feedback and the open exchange of ideas will have either no positive impact or negative consequences to the individual, or both.

Hierarchy creates power distance; this in turn encourages silence and compliance, and discourages dialogue. Power distance most often exists in vertical relationships but it can also exist horizontally, between functions and

departments. Because power distance and power inequities can hinder the open exchange of ideas and information in a dialogue,

managers can take these steps to equalize power……

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Power Equalization Steps

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Steps Leads to

Delayering Removing hierarchical barriers that create and distort communication

Decentralizing Pushing down decision making to close the gap between decision makers and doers

Egalitarianism Removing “artifacts” of status differentials

Third-partyFacilitation

Structuring effective “rules-of-engagement” around feedback and dialogue

Representation

Inserting voice from multiple levels, both vertical (managers, shop floor employees,

etc.) and horizontal (union and management,various functions, etc.) into dialogue

TeamworkBuilding shared purpose and mutual

responsibility to ensure equal participation and influence by all members in dialogue


Building a Vocabulary

Psychological safety: a belief on the part of employees that the organizational climate is conducive for taking personal risks, especially around dialogue.

“Instead of committing to solutions, leaders can commit to a process of mutual engagement and learning, thus inviting employees at all levels to

cross barriers of silence and participate in a dialogue”

3-10Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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Sometimes Help is Needed

Consultant: an individual possessing a broad range of diagnostic and developmental skills who contracts with the organization’s leaders to facilitate an intervention.

“Leaders can call on a consultant to introduce and teach skills required of mutual engagement and diagnosis”

“Consultants may arrive from outside the organization: professional consultants or academics with a specialization in

organizational change and development. They may also come from within the firm: specially trained employees, often within the company’s human resource or organization development staff. Whether internal or external, the task of the consultant is the same: to

facilitate diagnosis and dialogue and to do so in a way that allows employees to develop those skills themselves”


Principles for Organizational Diagnosis

Systemic Focus

Targets the entire organization and guided by aframework that focuses on interactions

ConsultantFacilitated

Specially trained individual(s) bring externalperspective and required skills

Client-oriented

Employees participate in all stages as full partners

in order to build commitment and competency

Data-basedParticipants agree on the validity and strategic

importance of data collected about performance

HonestConversation

Employees engage the requirements of shareddialogue: mutuality, reciprocity, advocacy, and

inquiry

PsychologicalSafety

Active steps taken to overcome climate oforganizational silence


Data Collection MethodsQuestionnaires: self-administered paper-and pencildata collection forms, often stressing areas ofbehavioral interaction such as communications, goals,and coordination.

Advantages:

Reach large numbers of employees Fast Anonymous Used for benchmarking

Disadvantages

Based on preconceived ideas Can over simplify complex issues Does not expose root causes Does not create commitment or motivation


“Be careful about the overuse of employee questionnaires in collecting data about organizational effectiveness. They can be

useful for measurement purpose but do not create mutual engagement.”

Data Collection MethodsDiagnostic interviews: a form of data collection in which a trained diagnostician meets with an employee,or small groups of employees, to solicit information pertaining to the performance of the organization.

Advantages:

Collect rich data Begins process of dialogue Teaches communication skills

Disadvantages:

Requires investment in training interviewers Data hard to summarize or quantify Lacks anonymity


“Use diagnostic interviews and behavioral observation to collect rich and valid data about how employees behave

and how the organization functions.”

Data Collection MethodsBehavioral observation: a form of data

collection in which a trained diagnostician can watch

actual behaviors of employees.

Advantages:

Work-based behavior as data Data rich and deep on interactions Reveals underlying emotions

Disadvantages:

Observation will impact behaviors Time consuming Requires highly skilled observers


Building a Vocabulary

Discovery the process of analyzing and making sense of data that has been collected as part of an organizational diagnosis.


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“Mutual engagement in the discovery stage will help both to assure the validity of the conclusions

and build commitment to corrective actions.”

Creating a Dialogue of Discovery

• The first requirement is determining who to engage.

• Involving a blend of people and functions will help ensure a systemic perspective.

• To ensure the systemic nature of the process, use a framework.

• The discovery phase of diagnosis involves a dialogue among employees concerning the validity and meaning of the data that has been collected.


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Closing the Loop Feedback is the process of receiving information focused

on the effectiveness of one’s actions and performance Feedback takes place during the discovery phase. It can

also occur later when results are communicated back and employees react to the reports. This allows the feedback loop to become continuous and ongoing.

Closing the loop here means making feedback an ongoing process.

Two mechanisms advance the feedback process: Feedback from top management can occur in face-to-face

groups to promote rich and open dialogue The learnings and the change plans should be presented as

tentative rather than final, inviting additional dialogue and discovery.


After Action Reviews After Action Review (AAR) is an organized, disciplined

approach to shared diagnosis and mutual dialogue in the immediate aftermath of a specific action or event.

AARs involve 8 components: Review takes place during or immediately after event under

study. Review starts with a shared understanding of the goal of the

event. Review focuses on overall performance of the group. Review is conducted by participants in the event. The review is governed by open-ended questions Review identifies strengths and weaknesses. Review leads to new actions. Lessons of the review become part of future training.


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