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Obstacles transforming service organisations
Abstract
In this research, we studied managers transforming their service organization and looked into the role
played by obstacles in the execution of their objectives. Using principal component analysis (PCA), we categorized
the obstacles on the basis of our review of the literature referring to our framework of obstacles faced by managers in
the context of a service change. Our research suggests four contributions to the domain of organizational change. Our
main finding, based on the conceptual framework of Kolb (1984), suggest the existence of 5 different categories of
obstacles in the strategy execution faced by managers in the context of a service change. Our hypothesis was
supported and suggests that the main obstacles faced by managers in a service context would be related to the
dimension of convergence with emotions with factors such as lack of commitment and resistance to change of
employees. The research highlights the critical role played by emotions in the context of a service change. However,
our observations suggest that four other categories of obstacles would also play a significant role.
INTRODUCTION
Among the topics for which research has developed an interest is the transformation in a service
management. The notion of transformation is defined in the Webster dictionary as a change of form and the word
transform is defined as a change of structure, appearance or character. A strategic transformation could be defined as
a transformation that is important for the organization. Some authors have mentioned that transformation and
restructuring in service organizations have become endemic such as public services (Pedersen and Hartley, 2008).
These transformations and restructuring cannot be fully implemented without a prior deep and comprehensive
knowledge of effective service delivery as it relates to customers. For a long time service had been perceived as a
category of market offering or as an intangible product offering (Ferguson, Paulin and Bergeron, 2009). In the
developed society for many years, during and immediately after the industrial revolution championed by scientists
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like Adam Smith, Henry Fayol and Frederick Taylor, many organizations had been product-centric. Increased
consumer preferences, and the dynamic and competitive business environment have enforced the relevance of
service offering and its subsequent management (Lay, Copani, and Biege, (2010), (Lofberg, Witell and Gustafsson,
2010). As opposed to these perspectives on the definition and importance of service, Ferguson, Paulin and Bergeron
(2009) relate the assessments of service beneficiaries with the understanding of service. They describe it as a
perspective of value proposed by the beneficiary of a service which in most occasions are customers. Thus the need
to manage service is preceded by a holistic understanding of what service represents and how firms can go a long
way in understanding the need of beneficiaries in their service development process by adopting a contingency
approach (Storey and Hull, 2010). The literature on strategic transformation in service organizations for delivering
value to service beneficiaries has relied on concepts such as controlling resistance, building support for changes,
communication and the need to provide backups in situations of service failures. For instance, Rainey and Thompson
(2006) in their study of leadership and transformation of a major institution relied on such concepts. In their
commentary that summarizes research and practice on the topic of organizational change through service
management over the past 30 years, the authors have identified the relationship between change recipient
characteristics and reactions to organizational transformation as a key topic (Armenakis and Harris, 2009).
In the context of a service transformation through effective service management, one of the main
challenges, regarding service transformation has to do with obstacles impeding the execution of managerial
obstacles. The Webster dictionary defined obstacles as something that stands in the way or opposes or as an
obstruction. Managerial obstacles should refer therefore to the factors that are impeding the execution of the
objectives of a manager. For its part, service transformation could be defined as a change of form in the services
delivered by the organization. It has been associated with a fundamental change in organizational practices
(Dreachslin and Saunders, 1999). Further, the transformation of service organization has been associated with a shift
of paradigm from change management to change leadership (Karp and Helgo, 2008). Lofberg, Withell and
Gustafsson (2010) identify five strategic approaches to sustained service performance among manufacturing firms.
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According to the authors these approaches are strategies that enable organizations to sustain the tempo of its
competitiveness through the commitment of its leadership. These strategies are customer service, after-sales service
provider, customer support service provider, development partner and outsourcing partner.
Why exactly is it important for the research in service managementto explore categories of
obstacles, as well as their relative importance, being faced by managers in a situation of service transformation
through effective service management? This topic is important since obstacles represent a key determinant of success
of a service organization facing a transformation. Several authors have highlighted the critical role of this topic to
better understand organizational change. For instance, Bruins and Bruns (2007) have mentioned the importance of
obstacles to better understand the various categories of underlying causes of resistance to change in organizations.
Kyong-Jee (2008) mentioned that organizations have found different set of obstacles in the implementation of their
organizational objectives and that they play an important role. Gebauer, Edvardsson and Jurko (2010) provide a
comprehensive explanation on the subject of service culture as a major source of resource advantages erosion and
internal resistance which may inhibit a companys exploitation of service benefits. Although these authors describe
the numerous advantages and opportunities that accrue to a firm when senior management and other categories of
employees execute business services with a service orientation, the authors still recommend a change management
perspective to the implementation of service culture across the length and breadth of a firm. Finally, Boyds (2009)
has indicated that success in large-scale change interventions is a function of overcoming several key obstacles that
lie in the path of change of different nature. These authors have mentioned that a better understanding of the role of
obstacle management could help us to better understand the dynamics of organizational change in implementing the
relevant strategies for service management and delivery among many firms. If literature has argued that obstacles
play a key role in service transformation, very few have studied empirically, the role of specific categories of
obstacles as impediments in the execution of managerial objectives in service organization.
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Obstacles encountered by managers when changing a service organization could be examined
with several perspectives. The work of (Kolb, 1984) and subsequent research as described in the methodology
section of this article has led us to gather various perspectives corresponding to what we call transformation
strategies for service organizations. Based on the framework of Kolb (1984) we propose to divide the existing
literature into five perspectives: the assimilation transformation with rules, the convergent transformation with
emotions: the divergent transformation with projects, the accommodation transformation with immediate actions and
lastly the service integrity transformation. Let us examine briefly the contributions of the literature according to these
perspectives.
THE ASSIMILATION TRANSFORMATION STRATEGY WITH SERVICE RULES
A first set of obstacles has to do with the assimilation transformation strategy with
rules. In most services organization rules are objectives, policies or principles that are guiding the organization. If the
objectives, policies or guidelines are not clear, they could represent an obstacle for managers in the accomplishment
of their task and functions. The assimilation transformation with rules could be defined as a strategy based on a
factual analysis of the situations to set up a more coherent and more rational system. According to Kolb (1984) this
strategy has to do with the abstract conceptualization. This strategy leads to the forming of concepts and formulation
of generalizations which integrate the observations and the reflections. For instance, it leads to a business model
resulting from analysis and rational reflection. Economic planning and analysis prevail and there is often a
preference for figures and protocols. Decisions are usually made on the basis of facts and abstract principles, and
rationality (reason instead of emotions) dominates the process of decision-making. With this transformation strategy,
rules and principles are formed, and accommodated into a system. In this context, Amenakis et. al. (1979) has argued
that the planning for organizational intervention in the context of an organizational change should include the
importance of existing socio-psychological situations within the scope of organizational diagnosis. This is what some
researchers have described as a service logic model. Within the context of this perspective, George and Bowen
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(1995) have demonstrated that rules are integrated within a system framework in service organizations. For example,
their study reveals that the real challenge of service management is the inter-functional coordination of operations,
marketing and finance to integrate into valuable service experience.
Several authors have mentioned the role of formal planning, and factors such as formal
objective, rules and guidelines and obstacles in organizational change. Nerina et al. (2007) argued that although
uncertainty has been identified as a major consequence of organizational change for employees, there still remains a
lack of understanding regarding the processes and guidelines through which employees address such perceptions.
The lack of rational understanding regarding the rules and system represents an obstacle in the context of an
organizational change in a service organization. For instance, it has been found that in healthcare organizations that
have used Enterprise Application Integration (EAI), the lack of structuring of rules represent an obstacle to strategic
transformation (Themistocleous,Mantzana and Morabito, 2009). These authors found that it was difficult to support
a transformation strategy and facilitate integration at different layers, such as connectivity, transportation,
transformation and process integration without clear structuring rules.
THE CONVERGENT TRANSFORMATION STRATEGY WITH EMOTIONS
A second set of obstacles has to do with the convergent transformation with emotions. This
strategy would include factors such as resistance to change, lack of convictions or lack of commitment of employees.
These factors are important, since they could represent an obstacle for managers in accomplishment of their task and
functions. The convergent transformation strategy has to do with commitment and the developing of convictions of
employees in the context of a service transformation. This is what Kolb (1984) has labeled as reflexive observation.
The objective of this strategy transformation is to get a commitment by reconciling the divergent points of view and
establishing consensus. In the context of this strategy, the divergent and conflicting points of view are comfortably
accepted. This strategy for service transformation places great importance on the meaning of the situations and the
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emotions of persons. Decisions are made on the basis of long-term, matured observation and then reflected with the
individuals concerned.
For the most part, studies on change management have attempted to determine the factors that influence employee
resistance to change. In regard to the convergent transformation strategy, Markam (2000) describes the key role of
champions as having organizational political astuteness. Amenakis (2002) mentioned the importance of crafting a
change message to create transformational readiness. Justice, cynicism, and commitment have been identified as key
obstacles in managing organizational change (Berneth et.al, 2007). According to Lines (2007), the hypotheses that
were tested using data drawn from the transformation of a large, divisionalizedtelecommunications company facing
deregulation and global competition, highlighted the role of an agent power for getting a commitment. Findings also
indicate that the relationship between power and implementation success is partly mediated by differential use of
influence tactics (Lines, 2007). Chaiporn et al.(2008) found that results suggest that the level of job motivation is
negatively associated with the level of support for change, and that the level of self-confidence for learning and
development is not associated with the level of support for change. For instance, Friedman and Sebenius (2009) have
found that coalitional leadership and convergence play a key role in organizational transformation. Amenakis et al.
(2009) have highlighted the role of key beliefs underlying change recipient motivations.
More specifically, the studies on service transformation and change management have attempted to determine the
factors that influence employee resistance to change (Vithessonthi and Schwaninger, 2008). They have shown how
coalitional leadership functions - from crafting a strategic vision to building a supportive coalition and
institutionalizing the vision by critically examining three deep changes at Goldman Sachs during the eighties and
early nineties. In similar contexts, Stebbings and Braganza (2009) found that continuous transformation can be
explained through the concept of network interdependence.
THE DIVERGENT TRANSFORMATION STRATEGY WITH INITIATIVES
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A third category of obstacles is the divergent transformation with initiatives. This set of obstacles has to do with the
lack of initiatives and the sense of responsibility of employees. When employees are not taking initiatives or do not
have a sufficient sense of responsibility, it might pose as an obstacle for managers in accomplishing their task and
functions. Further, the divergent transformation strategy relies on active experimentation of initiatives, realization of
projects and continuous improvement of the existing activities. This is what Kolb (1984) has called the process of
active experimentation. In this context, the hypotheses then generated in new situations are verified by making
projects. Results are obtained by an active experiment of new methods. This strategy involves creativity and ideas
supporting initiatives and its implementation. With such a strategy, decisions are made after feedback has been
obtained about the project. Amenakis et al. (2009) have mentioned that one of the important factors related to
organizational changes has been the active participation of the change recipient in the change effort.
This perspective on service transformation focuses on actively experimenting with new ways of doing things.
Pedersen and Hartley (2008) argued that there has been a weakening of the hierarchically organized state in favour of
more differentiated governance regimes and initiatives cutting across the public, private and voluntary sectors. They
found that managing the tensions and paradoxes of governance regimes has become a key responsibility for
managers in service organizations. This means that there are three sets of dynamics that need to be worked with.
Chrusciels (2008) viewpoint is how from a significant change champion perspective, it seeks to explore the
motivation behind an individuals willingness to take initiatives. In his research, he attempted to identify the key
motivational traits that inspire these early change adopters. By identifying and investigating the motivational factors
behind early acceptance, he has argued that an organization can begin to deal with change urgency and optimize the
benefits from change transformations.
THE ACCOMODATION TRANSFORMATION STRATEGY WITH IMMEDIATE ACTION
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A fourth category of obstacles has to do with the transformation strategy and immediate action. This category of
obstacles deals with the number of immediate urgent matter that impedes to take action with long term results. Too
many administrative emergencies or actions with low value could represent an obstacle for managers in
accomplishing their tasks and functions. This dimension of accommodation transformation strategy is carried out
through immediate action and allows immediate implementation at a small scale level to obtain results quickly and
adjust according to the feedback. According to Kolb (1984), this dimension has to do with concrete actions.
However, there is an opportunity for fast decision-making without adhering to an established plan. Interaction with
the others is favored only as far as it gives quick results. This strategy is pragmatic and acts on the basis of the first
results obtained. For instance, Amenakis et al. (2009) mentioned that a relevant topic is the assessment of reactions
to organizational change. Thus, in the context of crisis management, a study on following concrete and immediate
actions, Moran (1998) has indicated that the ability of fire department personnel to respond to urgent situations in
disasters hinges on a complex relationship, as the link is not linear between experience and the efforts made. As
Moran states: the type of trauma that firemen experience in previous crisis situations plays a significant role in their
ability to respond effectively to emergency situations. The capacity to take immediate actions has been associated
with leveraging organizational transformation (Mnner, 2007).
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THE INTEGRITY TRANSFORMATION STRATEGY WITH SERVICE VALUES
A fifth category of obstacles has to do with the integrity transformation strategy with service values. This strategy
and its set of obstacles have to do with lack of integrity in service values: such as lack of ethics or inappropriate
behaviour that are not consistent with the value of the service organization. This fifth transformation strategy of
service integrity is a process that relies on a fifth transformation strategy that could be labeled as service integrity.
This process is carried out through the socialization of service values leading to a transformation of service
experiences. This transformation strategy relies on the capacity to transform the values of the organization and the
companys service mission. Ultimately, this transformational strategy instils the idea of working for a cause that goes
beyond earnings and company recognition (Fairholm, 1996). For instance, Pendleton (2001) identified the champion
as being someone who is recognized as part of the culture, an accepted member. This perspective deals with strategic
transformation as a change in values and companys mission practices (Dreachslin and Saunders, 1999). For
instance, these authors have found that diversity in leadership represents a change of values leading to organizational
transformation. They have found that services organizations can follow a process to re-position themselves and
integrate values of diversity leadership.
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Table 1: Transformation strategies
Transformation strategies
transformation
Objectives Description
1. Assimilation
transformation with rules
Transformation of the system by
changing the rules (policies and
procedures) used within the
organization.
Investigations, inquiries, search for facts,
analyses and assessment of problems faced
in order to provide modifications and
adaptations throughout the system of the
organization.
2. Convergence
transformation with
Transformation through the
convergences implementation of
Questionings, identification of problems and
clarification of situations resulting in a
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emotions experiences and development of a
common commitment in service
experiences.
commitment to lead a convergence
transformation.
3. Divergence
transformation with
projects
Transformation through the
implementation of strong projects and
the promotion of active learning
patterns in order to facilitate
empowerment of employees.
Trials, investigations, best practices,
continuous improvement and creation of
new project platforms with the aim of
delivering a transformation through
deviation and improvement of traditional
working methods.
4. Accommodation
transformation with
immediate actions
Transformation within the
organization through the pragmatic
adaptation way of the particular
context.
Pragmatic modifications, compromises and
consensus on the ways of doing business
according to circumstances.
5. Integrity transformation
with service integrity
Transformation through the
integration of the four dimensions
leading to service integrity.
Implementation throughout the organization
focusing on the operations and
administrative functions in order to deliver
valuable service experience through the
successive integration of the four modes
described earlier.
Objectives
If the review of the literature and the conceptual framework of Kolb (1984) have led us to classify literature and then
formulate hypotheses, this article intends to study empirically the role of these categories of obstacles in the context
of a service transformation. Thus, with our review of literature along with the formulation of our three hypotheses,
we will attempt to answer three questions: these questions should help us to understand better the role of categories
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of obstacles and their relative importance in the context of a service transformation. More specifically, we intend to
pursue the three set of objectives:
1. What are the categories of obstacles faced by managers when transforming service organizations? This first
objective intends to better understand the various categories faced by a manager in the context of a service
transformation. Few researches have been completed on the topic of the role played by specific categories
of obstacles that encountered a manager in the context of a service transformation. This first objective
intends to better understand the role played by these factors.
2. What is the relative importance of these different categories of obstacles? The purpose of the second
objective is to rank the relative importance of these specific categories of obstacles. With the exception of
the category of obstacles dealing with emotions, a very limited of research has been completed to
understand better the relative importance of various categories of obstacles. A relevant question arises
however: do these obstacles have the same importance? Or does their different relative importance vary in
the context of a service transformation?
3. Does the convergence strategy with emotions, gather the most important set of obstacles faced by
managers? This third objective wishes to assess the importance of the specific dimension of emotions as a
category of obstacles faced by managers. The literature has put emphasis on the key role of the dimension
of emotion with factors such as resistance to change and lack of commitment as a key dimension to
understand the role played by obstacles encountered by a manager when implementing a change in the
context of a service transformation.
Methodology
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In this section we present our methodology and explain its context and the various steps that were undertaken to
analyze our findings. This study is a part of a broader research on managerial strategy execution and organizational
transformation and was conducted in four major steps. We present briefly each of the major steps before examining
them in details:
Firstly, in a previous research and before undertaking the study of this article, we surveyed a sample of 168 managers
in service organizations. This first step was completed to empirically support the four dimensions of Kolb (1984)
using its measurement instrument. These four dimensions had a significant degree of variance explained and a
positive Cronbach Alpha.
Secondly, before undertaking this study, we developed a specific instrument capable of measuring management
leadership with managers going through a transformation in their service organization. To do so we completed a set
of 12 focus groups with managers working in service organizations to survey from a qualitative perspective, the set
obstacles that they faced. They were gathered under the 4 categories of the conceptual framework of Kolb (1984).
However, following this qualitative survey of obstacles faced by managers, a fifth category of obstacle that did not
fit within the conceptual framework of Kolb (1984) was added: that is the one of service integrity.
Thirdly, we used the qualitative survey of these 25 obstacles to develop a measurement instrument under the form of
a questionnaire to survey empirically the relative importance of the various categories of obstacles. This
questionnaire was previously validated with a sequential set of 5 small samples of managers to improve the
formulation of the various questions and insure its statistical reliability.
Finally, for the specific purpose of this study, a survey of 149 managers going through a service transformation was
completed and analysed using the Principal Component Analysis (PCA) for which 5 categories were identified
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The following sections explain the details of each of these four methodological steps
Step 1: Empirical validation of the four dimensions of Kolb (1984)
The objective of this first step before undertaking our study was to validate empirically the four dimensions of the
conceptual framework of Kolb (1984). The validation was based on the Learning Style Inventory of Kolb (1984)
with some adjustments to the managerial context.
1. Data was collected by managers through structured training in the countries of the Organization for
Economic Co-operation and Development (OECD). Three regions of the world, namely, Europe, North
America and Australia, were randomly selected. 168 respondents completed the questionnaire.
2. The measuring instrument of (Kolb1984), which is the Learning Style Inventory, has been used since the
initial variables were related to the modes of learning. Our questionnaire was adapted to answer the
questions on the strategies of transformation, and we validated the questions during executive seminar with
the managers of the organization.
3. To make sure that each of the questions was understood, the validation was preceded by a pre-test
conducted on 15 referees of the Belgian Management Training Association. All questions were suitably
understood and adjustments were made with one to clarify its understanding from the respondents.
4. Descriptive analyses were completed to identify certain characteristics of the sample. Frequency analysis
and the test of Cronbach Alpha were completed. The results of R-square (degree of explained variance by
the model) and factorial analyses were used to verify the hypotheses. As shown in table 2, reference is made
to the Cronbach Alpha, an indicator of reliability with the measuring scale between 0 (not reliable of the
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whole) and 1 (reliable).
5. Four of the five dimensions of our conceptual framework have been validated in previous research. The first
four dimensions had a positive Cronbach alpha and the fifth dimension (integrity) was added afterwards
following the qualitative research focus groups. Table 2 below presents the concept definition along with
the variance and reliability obtained as shown in the next table. Each dimension (with the exception of the
fifth one) was supported by a significant variance explained and a significant Cronbach alpha.
Table 2: Concept definition and measurement
Step 2: Focus groups with managers to identify managerial obstacles
In the second step, and before undertaking this specific study, we completed focus groups with managers to
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Concept definition Variance and reliability
1Rules (abstract conceptualization): theoretical conceptualization by means of
rules postulates and models to systematize information.
Variance explained: 53.5 %
Alpha of Cronbach: 0.799.
2Emotions (reflexive observation): problem recognition and capacity to develop
convictions and to get a commitment.
Variance explained: 60 %
Alpha of Cronbach: 0.831.
3
Initiatives (active experimentation): select a model to test its possible
consequences. Learning by trying, finding new ways to put new ideas in
practice. Support initiative to responzabilize employees.
Variance explained: 53%
Alpha of Cronbach 0.8
4
Immediate actions: action oriented that is immediate and concrete. Oriented
towards direct contacts and apprehension rather than comprehension. Quickadjustments resulting from feedback.
Variance explained: 52.6%
Alpha of Cronbach: 0.740
5
Integrity: ability to meet organizational objectives respecting the integrity of its
mission. Active and deliberate construction of the organization values into the
structure of organizations everyday actions.
Not applicable
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list the various obstacles they face for each of the dimensions previously identified. Twelve focus groups
were conducted with an average of 15 managers per group to identify obstacles faced by managers. We
identified 5 obstacles for each of the 5 dimensions for a total of 25 obstacles. The obstacles were selected
based on the frequency among the participants for each of the focus groups. The obstacles identified were
used as input to elaborate the measurement instrument related to obstacles.
Step 3: Development of a measurement instrument
We further developed an instrument tool to measure the role of the 25 obstacles that were identified with
managers in focus groups. We used the verbatim of the focus group to elaborate a survey to validate these
obstacles. A pre-test of questionnaire was administered and the questions were sequentially adjusted with
five groups of approximately 25 managers per group before being rolled out to a larger sample of managers.
Several adjustments were made in these 5 pre-test to insure the statistical behaviour of each questions. The
table below presents each of the 25 questions that were completed by the participants.
Table 3: Description of variables measured
Obstacles Dimensions and variables Measurement-Questions
Dimension of Rules
O1 V1 Lack of clarity in expected results
The actual results I am expected to achieve
with my manager and my organization are not
clear.
O2 V2 Too much emphasis financial and compliance rules.
We have goals to meet financial expectations
and establish rules to be followed, but we
have not established goals for better customer
service.
O3 V3 Lack of understanding of the results to be achieved
by employees.
Even though they were informed, my
employees do not clearly understand the
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results to be achieved.
O4 V4 Lack of clear expectations of other departments.
The expectations of other departments are not
often clear.
O5V11 Lack of accountability from employees for their
actions.
My employees are not generally held
accountable for their actions.
Dimensions of Emotions
O6
V12 Lack of willingness and capability of employees
to take initiatives.
My employees are not entirely able and
willing to take initiatives.
O7 V13 Lack of autonomy from employees.
When I am absent, my team members are not
able to address problems on their own.
O8
V14 Lack of sense of initiative and improvements from
employees.
Initiatives are not often undertaken because
there is a tendency to leave things as they are.
O9V11 Lack of accountability from employees for their
actions.
My employees are not generally held
accountable for their actions.
Q10 V10 Lack of equity There are team members who complain that
we are not fair sometimes.
Dimension of Initiatives
Q11
O12
V12 Lack of willingness and capability of employees
to take initiatives.
My employees are not entirely able and
willing to take initiatives.
O13 V13 Lack of autonomy from employees.
When I am absent, my team members are not
able to address problems on their own.
O14
V14 Lack of sense of initiative and improvements from
employees.
Initiatives are not often undertaken because
there is a tendency to leave things as they are.
O15 v15 Lack of team work and common objectives We represent a group of individuals rather
than work as a team with clear, common
goals.
Dimension of Immediate action
O16
V16 Difficulty planning for and dealing with
emergencies.
We have difficulty planning for and dealing
with emergencies.
O17 V17 Too many emergencies and last-minute requests.We handle too many emergencies and last-
minute requests.
O18
V18 Urgent issues unresolved without finding durable
solutions.
Urgent issues go unresolved without ever
finding durable solutions.
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O19V19 Difficulty creating profitable action plans with
long-term results.
We have difficulty creating profitable action
plans with long-term results.
O20V20 Too many meetings and non-productive activities
with no concrete action taken.
We hold too many meetings and non-
productive activities with no concrete action
taken.
Dimension of Integrity
O21 V21 Lack of shared organizational values.
At times, I dont think we all share the same
values in my organization.
Q22
O23 V23 Gap between personal and organizational values.
Sometimes, I notice differences between my
values and the values of the organization.
O24V24 Lack of focus on building the organizations
reputation.
Sometimes, in my work, I dont feel I am
actively working towards building the
organizations reputation.
O25 V25 Sense of obligation
All employees do not seem to have a sense of
obligation.
Step 4: Surveys of managers going through a service transformation for the specific purpose of this study
The step 4 consisted of surveying a group of 149 managers in a governmental Department of a Canadian
province. The participants were all managers and project managers with an information technology
background and were in charge of supervising information technology projects. The group was selected to
insure the homogeneity of the respondents in terms of origins, task and functions.
In the specific context of this research, we surveyed this specific group of managers in public services going
through the context of a service transformation to better understand obstacles facing managers in service
organizations. These managers were undertaking a service transformation of their administrative systems
with information technology activities in governmental services.
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Regarding the homogeneity of this group, we insured that the respondents came from the same provincial
government and had similar tasks and responsibilities in the area of information technology in various
departments. More specifically, in our sample, an average of 36% of managers was responsible for 5 to 19
employees working under them. Median years of service at the current organization have been 5 to 10 years
of which a majority (76%) having spent less than 5 years at their current managerial position. Majority of the
respondents (80%) were 49 years old or younger. There were no significant differences between this sample
of 149 and the broader sample of managers (n=322) used in previous research.
The reliability of our findings was examined in details with a KMO and a Bartletts test. In the KMO and
Bartlett's sphericitys test results on the reliability of data set, the KMO value of 0.905 was close to 1.0 and
thus statistically very significant. This adds good confidence and weightage to our PCA analysis.
In the next section, we present our findings analysis for this sample of 149 managers.
Based on the conceptual framework of Kolb (1984) and the preceding review of the literature, three hypotheses
could be formulated:
Hypothesis 1: In the context of a service transformation, there would exist five categories of obstacles faced by
managers while executing their objectives. This first hypothesis refers to the 5 categories of obstacle that we surveyed
in the literature and is based on the conceptual framework of Kolb (1984). Therefore according to Kolb (1984) and
the literature, we should find the existence of 5 distinct categories of obstacles: the assimilation transformation with
rules, the convergence transformation with emotions, the divergence transformation with initiatives, the
accommodation transformation with immediate actions, and the integrity transformation strategy with service
integrity. The first four dimensions have been identified and supported empirically by Kolb (1984), whereas the fifth
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dimension of integral transformation with service integrity has been identified in our review of literature on services
(Fairholm, 1996; Dreachslin and Saunders, 1999; Pendleton (2001) as a relevant additional dimension of obstacles in
the case of service organization.
Hypothesis 2:In the context of a service transformation, the main category of obstacles faced by managers among the
five categories would be the convergence strategy with emotions and factors such as the lack of commitment and the
resistance to change from employees. According to several authors, the dimension of emotion is a critical dimension
and would represent a key obstacle in organizational transformation (Lines, 2007; Chaiporn et al., 2008, and
Sebenius, 2009), Amenakis et al. (2009). In the specific case of service organization, emotions with factors such as
resistance to change and lack of commitment have been identified in literature as a critical dimension and should
therefore represent one of the key dimension of obstacles faced by managers when undertaking an organizational
transformation (Vithessonthi and Schwaninger, 2008; Stebbings and Braganza, 2009).
Hypothesis 3: With the exception of the second category of obstacles dealing with the convergence strategy with
emotion, the other categories of obstacles would face equivalent importance in terms of obstacles faced by managers.
With the exception of the dimension of emotion, we found no specific indication in the literature or in previous
empirical work supporting differences in the relative importance of the various dimensions obstacles. We will
formulate the hypothesis that that the four other dimensions would have an equivalent empirical weight in terms of
obstacles faces by managers. This is a reasonable assumption since there is no significant contribution to rank the
categories of obstacles identified in order of relative importance.
We intend to test this hypothesis in our empirical research. The section on the methodology will present how we
intent to test these 3 hypotheses.
FINDINGS
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In this section, we present our findings on the basis of the principal component analysis. The principal component
analysis (PCA) involves a mathematical procedure that transforms a number of possibly correlated variables into a
smaller number of uncorrelated variables called principal components. The first principal component accounts for as
much of the variability in the data as possible, and each succeeding component accounts for as much of the
remaining variability as possible.
On completion of the principal component analysis, 25 parameters obtained from the survey questionnaire were used
as variable inputs for the principal component analysis using SPSS package. To use this package, the raw scores/data
was standardized to allow uniform unbiased distribution of all variables. Covariance/ correlation matrix was derived
from the data. Eigen values of these variables from the matrix were used for multivariate principal components
extraction and the Eigen values were plotted on screen plot graph. The first 5 significant principal components with a
cut-off of >0.5 number were selected. More than 62 % of total variance was attributed to these five principal
components. Varimax rotation with Kaiser Normalization was used to obtain a simple obstacle model. Table 5 shows
the rotated component matrix of how each dimension variable loads onto each factor/component. For our study,
component loading cut-off of >0.5 was used/ component loading of >0.x was used.
The principal component analysis had led us to rank the relative importance for the 5 categories of obstacles earlier
identified in our conceptual framework. The dimensions were in order of importance: the dimension of emotion
(getting a commitment from the employees to the objectives), the dimension of integrity (executing the objectives
within the integrity of values and principles), the dimension of initiatives (translating the objectives into
projects/empowerment), the dimension of immediate action (value added actions and dealing with urgent matters)
and finally the dimension of rules (clarifying and aligning the objectives) the one with least importance.
Component 1: Obstacles: the convergent transformation strategy with emotions
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The most important dimension in terms of categories of obstacles faced by managers found in our PCA was the
convergent transformation strategy with emotions. As mentioned in the review of the literature, the convergent
transformation strategy has to do with commitment and the developing of convictions of employees in the context of
a service transformation. This is what Kolb (1984) has labeled as reflexive observation. The variance explained
(Rotation Sums of Squared Loadings) by this first component was 16,164%. We found that 4 variables out of 5 from
our conceptual framework supported this dimension: variables 6, 7, 9, 10. The obstacles from the emotional
dimension that were supported in order of importance were the following:
V7. My employees are not fully aware of the importance of my objectives
V6. My employees do not contribute to my goals (do not buy-in)
V9. There is a lack of trust among my employees
V10. There are team members who complain that we are not fair sometimes.
However, variable 8 that was initially part of this first dimension was not supported.
Furthermore, two additional variables from other dimensions were found to be included in this dimension. The
variables v16 from dimension of immediate action, v15 from dimension of initiative and v2 from dimension of rules
are also supported in the first factor and were also part of this first component. The variable v16- we have difficulty in
planning for and dealing with emergencies, and v15 where we represent a group of individuals rather than work as a
team with clear, common goals was initially part of the initiatives dimension (translating objectives into concrete
projects.
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To a lesser extent, the variable v2 of having goals to meet financial expectations and establish the rules to be
followed, but have not established goals for better customer service was initially identified with the first dimension,
that of rules (clarifying and aligning objectives).
In conclusion, this implies that the first component which is the most critical set of obstacles faced by managers in
the context of a service transformation has to do with obstacles related to the emotions. This includes factors such as
lack of commitment to establish goals from employees (buy-in), lack of awareness of the importance of objectives by
employees, lack of trust among employees, lack of equity among team members would be key variables of this first
dimension in terms of managerial obstacles.
Component 2: Obstacles with the dimension of service integrity
Our data indicate that the second most important dimension in terms of obstacles faced by managers in the context of
a service transformation was the transformation strategy of service integrity. As mentioned before, the fifth
transformation strategy of service integrity is a process that relies on a fifth transformation strategy that could be
labeled as service integrity. This process is carried out through the socialization of service values leading to a
transformation of service experiences. This transformation strategy relies on the capacity to transform the values of
the organization and the companys service mission.
This dimension was defined for executing within the integrity of values and principles of the organization. The
variance explained (Rotation Sums of Squared Loadings) by this component was 13, 85%. The obstacles from this
component that were supported are variables from the obstacles (the variable from 21 to v25. The 5 variables from
our conceptual framework were supported. They were in order of importance the following ones:
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v23 Sometimes, I notice differences between my values and the values of the organization; v25 All employees
do not seem to have a sense of obligation;
v24 Sometimes, in my work, I dont feel I am actively working towards building the organizations reputation;
v22 When under pressure, we do not always follow the procedures and work methods;
v21 At times, I dont think we all share the same values in my organization.
All of the five variables were initially part of this first dimension were supported.
However another variable that was not initially included in this dimension is the variable v15 was found to be part of
this dimension: V15 We represent a group of individuals rather than work as a team with clear, common goals . This
statement was supposed to be in the dimension of the initiative dimension.
In total our PCA analysis indicates that the second most important categories of obstacles faced by managers in the
context of a service transformation would have to do with a component of factors that are related to service integrity
(values). This implies that obstacles for managers regarding the second dimension are the following: lack of
compliance in service delivery under pressure, gap between personal and organizational values, and lack of sense of
obligation from employees.
Component 3: Obstacles with divergent transformation strategy and initiatives
The third most important dimension in terms of category of obstacles faced by managers in the context of a service
transformation was the divergent transformation strategy and initiatives. As mentioned in the literature,the divergent
transformation strategy relies on the active experimentation of initiatives, realization of projects and continuous
improvement of the existing activities. This is what Kolb (1984) has called the process of active experimentation. In
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this context, the hypothesis then generated in new situations are verified by making projects. This dimension was
defined as translating your objectives into concrete projects and empowerment.
The variance explained (Rotation Sums of Squared Loadings) by this component was 12,397%. The variables that
were supported were 11, 12, 13, and 14. These variables in order of importance were as follows:
v12 My employees are not entirely able and willing to take the initiative;
v13 When I am absent, my team members are not able to address problems on their own ; v11 My employees
are not generally held accountable for their actions;
v14Initiatives are not often undertaken because there is a tendency to leave things as they are.
However we found that the variable v8 my employees are not very motivated to overcome themselves in achieving
my goals was part of the second dimension of emotions in our conceptual framework but was empirically found to be
part of this third factor.
Furthermore, as mentioned previously, the variable V15 we represent a group of individuals rather than work as a
team with clear, common goalswas not empirically found to be part of this dimension and did not support the factor.
In conclusion, the main categories of obstacles faced by managers regarding this third component dealing with the
dimension of initiatives gathered therefore the following variables: lack of accountability from employees for their
actions, lack of willingness and capability of employees to take initiatives, lack of sense of initiative and improvements
from employees.
Component 4: Obstacles related to the accommodation transformation strategy from immediate action
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The fourth component of obstacles faced by managers in the context of a service transformation was the
accommodation transformation strategy from the immediate action. The accommodation transformation strategy is
carried out through immediate action and allows immediate implementation at a small scale level to obtain results
quickly and adjust according to the feedback. According to Kolb (1984), results are obtained by means of concrete
actions. There is an opportunity for fast decision-making without adhering to an established plan. Lets examine the
variables for this dimension.
This is defined as taking immediate action to respond to urgent matters or to take value added actions. The variance
explained (Rotation Sums of Squared Loadings) by this component was 11,212%. Obstacles of the component of
immediate action that were supported were the variables 17 to 20. These variables in order of importance were as
follows:
v18. Urgent issues go unresolved without ever finding durable solutions;
v17. We handle too many emergencies and last-minute requests;
v19 We have difficulty creating profitable action plans with long-term results;
v20. We hold too many meetings and non-productive activities with no concrete action taken.
However we found that the variable v16 we have difficulty planning for and dealing with emergencies initially
planned to be part of the immediate action dimension was found to be in this dimension.
The variable v16- we have difficulty planning for and dealing with emergenciesthat were supposed to be part of this
dimension was not supported.
In conclusion, our findings suggest that the following variables are therefore obstacles of this fourth dimension of
immediate action were the following ones: too many emergencies and last-minute requests, urgent issues unresolved
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without finding durable solutions, difficulty creating profitable action plans with long-term results, too many meetings
and non-productive activities with no concrete action taken.
Component 5: Obstacles related to the assimilation transformation strategy with rules
This fifth component and the last one in order of importance was the dimension of rules. This fifth dimension of
assimilation transformation with service rules could be defined as a strategy, based on a factual analysis of the
situations to set up a more coherent and more rational system. According to Kolb (1984) this strategy has to do with
the abstract conceptualization. This strategy leads to the forming of concepts and formulation of generalizations
which integrate the observations and the reflections. Five variables were surveyed for this fifth dimension.
This component was defined as clarifying and aligning objectives. It was the least important among the various
factors. This component gathers 4 out of the 5 variables of our first dimension of variables 1, 3, 4, and 5. The
variables that were supported are the following ones in order of importance:
v2. We have goals to meet financial expectations and establish the rules to be followed, but we have not
established goals for better customer service;
v1. The actual results I am expected to achieve with my boss and my organization are not clear;
v3.Even though they were informed, my employees do not clearly understand the results to be achieved;
v5.I notice that many issues I deal with involve costs that the organization pays little attention to;
v4. The expectations of other departments are not often clear.
All the variable of our conceptual framework were supported empirically. For this component, no variables were part
of another dimension.
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In conclusion, the least important category of obstacles faced by managers when executing their objectives in a
service context was the assimilation transformation strategy with rules. The obstacles that relate to this component
were the following ones: we found that the lack of clarity in expected results from managers bosses, the lack of
understanding of results to be achieved by employees, the lack of clear expectation from other departments and the
lack of attention of problems faced by managers represented variables that were part of this component.
The following table 4 illustrate our findings and the table 5 summarizes the rotated component matrix.
Table 4: Total variance explained
Extraction Method: Principal Component Analysis.
Compon
ent
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulati
ve % Total
% of
Variance
Cumulativ
e %
1 8,408 33,630 33,630 8,408 33,630 33,630 4,041 16,164 16,164
2 2,498 9,992 43,622 2,498 9,992 43,622 3,463 13,852 30,016
3 1,849 7,395 51,017 1,849 7,395 51,017 3,099 12,397 42,413
4 1,709 6,835 57,853 1,709 6,835 57,853 2,803 11,212 53,625
5 1,232 4,928 62,780 1,232 4,928 62,780 2,289 9,155 62,780
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Table 5: Rotated Component Matrix
Component
1
2 3 4 5
v7 My employees are not fully aware of the
importance of my objectives.
,825
v6 My employees do not contribute to my goals
(do not buy-in).
,771
v9 There is a lack of trust among my employees. ,708
v10 There are team members who complain that
we are not fair sometimes.
,604
v16 We have difficulty planning for and dealing
with emergencies.
,553 ,469
v15 We represent a group of individuals rather
than work as a team with clear, common goals.
,549 ,481
v2 We have goals to meet financial expectations
and establish the rules to be followed, but we have
not established goals for better customer service.
,469 ,442
v23 Sometimes, I notice differences between my
values and the values of the organization.
,757
v25 All employees do not seem to have a sense of
obligation.
,733
v24 Sometimes, in my work, I dont feel I am
actively working towards building the
,695
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organizations reputation.
v22 When under pressure, we do not always
follow the procedures and work methods.
,688
v21 At times, I dont think we all share the same
values in my organization.
,651
v12 My employees are not entirely able and
willing to take the initiative.
,779
v13 When I am absent, my team members are not
able to address problems on their own.
,692
v11 My employees are not generally held
accountable for their actions.
,691
v14 Initiatives are not often undertaken because
there is a tendency to leave things as they are.
,659
v8 My employees are not very motivated to
overcome themselves in achieving my goals.
,547 ,613
v18 Urgent issues go unresolved without ever
finding durable solutions.
,855
v17 We handle too many emergencies and last-
minute requests.
,819
v19 We have difficulty creating profitable action
plans with long-term results.
,618
v20 We hold too many meetings and non-
productive activities with no concrete action taken.
,608
v1 The actual results I am expected to achieve with ,730
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my boss and my organization are not clear.
v3 Even though they were informed, my
employees do not clearly understand the results to
be achieved.
,451 ,588
v5 I notice that many issues I deal with involve
costs that the organization pays little attention to.
,518
v4 The expectations of other work units are not
often clear.
,469
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 8 iterations.
DISCUSSION
In this section, we wish to discuss our three hypotheses in regard to our findings on the subject of service
transformation by the application of appropriate service management strategies. We intend to examine to what extent
each of our hypothesis was supported. We also wish to highlight potential contributions of our research to existing
literature on service transformation
Hypothesis 1:In the context of a service transformation, there exist 5 categories of obstacles faced by managers.
This first hypothesis is referring to the 5 categories of obstacle surveyed in the literature and inspired by the
conceptual framework of Kolb (1984) and our review of the literature on service transformation through effective
service management practices as discussed by various academic journals on service management. Our empirical
analysis supported our hypothesis. Therefore it suggests five dimensions of obstacles encountered by managers in the
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context of a service transformation. Our PCA indicates that five dimensions would gather the various variables of
our conceptual framework. The total variance explained by these 5 factors was 62,78%.
According to our data analysis, the five dimensions, in order of importance would be: the convergent transformation
strategy with emotions, the strategy of service integrity with values, the divergent transformation strategy with
initiatives, the accommodation transformation strategy with the immediate action and finally the accommodation
strategy with service rules dimension.
This is consistent with our conceptual framework. However additional facts will be necessary to support the external
validity and generalize these categories in various sectors of services with larger samples. These would provide more
triangulated evidences in this research (Pettigrew, 1988)
Hypothesis 2:In the context of a service transformation for effective service management processes, the main category
of obstacles faced by managers among the fifth perspective found in the literature has to do with the convergence
strategy with emotions and factors such as the lack of commitment of employees and the resistance to change.
Our second hypothesis is that in the context of a service transformation, the main category of obstacles faced by
managers among the fifth perspective found in the literature has to do with the convergence strategy with emotions,
and factors such as the lack of commitment of employees and the resistance to change was supported. For instance,
we found that the emotional dimension in the literature with factors such as change resistance and the lack of
commitment from employees to the objectives was the most important component with 16.16% of the variance
explained. This is consistent with most studies on change management, identified in our review of the literature and
we haveattempted to put emphasis on resistance to change and the factors that influence employee resistance to
change (Chaiporn Vithessonthiand Markus Schwaninger, 2008). The main set of obstacles faced by managers in the
context of a service transformation would therefore be factors that are related with the convergence strategy and
emotions. These obstacles would therefore impede the process of creating and implementing appropriate service
management strategies.
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Our findings would suggest in accordance to the review of the literature that the resistance to change and the lack of
commitment would be the critical dimension that impedes organizational change in the context of a service
transformation. Factors such as v7. My employees are not fully aware of the importance of my objectives; v6. My
employees do not contribute to my goals (do not buy-in ;v9. There is a lack of trust among my employees; v10.
There are team members who complain that we are not fair sometimes would be variables that play a role in this
dimension representing a significant set of obstacles faced by managers regarding this first dimension.
Hypothesis 3: With the exception of the second category of obstacles dealing with the convergence strategy with
emotions, the other factors face equivalent importance in terms of obstacles faced by managers.
Our third hypothesis was not supported. In contrast to literature and our conceptual framework, we found that the
four other dimensions rather than the convergence with emotions did not have an equal weight in their relative
importance. For instance, we found that the relative importance of the various dimensions examined was much less
significant in the case of the assimilation transformation strategy with rules. Our findings suggest the relative
importance of these 4 other dimensions than the dimension of convergence and emotions. Our findings suggest the
followings.
Implication for Research
Our findings highlight the existence of various set of obstacles in terms of service transformation and its ranking of
importance for managers. They suggest that the topic of resistance to change and lack of commitment of employees
that are part of the convergence strategy with emotions faced by managers would be the most important categories of
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obstacles faced by managers. Because business unit managers are often faced with the responsibility of developing
and implementing service management strategies. These obstacles and resistance to change among employees
therefore create a hostile environment for managers and other categories of senior managementin their quest to
implementing value adding service delivery initiatives.
In terms of implication this research also suggests that, obstacles encountered by managers in the context of a service
transformation would have different facets that would require specific investigations not only to comprehendtheir
specific roles but also to understand their complementary nature. For instance the inter-relationships among these
categories of obstacles could be the subject of additional research.
Practical Implications for Management
Our findings have some practical implications for management. To facilitate change and to remove obstacles and
impediments to service transformation through the development and implementation of result oriented service
management strategies, organizational change facilitators and specialists would have to put attention not only on the
obstacles of factors related to emotions but also on dimensions such as integrity of service values, initiatives and
empowerment from employees and immediate action in the delivery of services. The lack of commitment from
employees would be the main category of obstacles in terms of importance for achieving a service transformation.
However the lack of service integrity with values, the lack of empowerment and initiatives from employees, factors
related with immediate action such as the number of last minute requests and shortly term actions with no long term
value in regard for service transformation would also represent impediments faced by managers in the context of a
service transformation.
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Another practical implication is to highlight the fact that obstacles faced by managers in the context of a service
transformation would gather different dimensions that are different in nature. It suggests that the set of obstacles
faced by manager would require different strategies to address a set of specific obstacles under the same dimension.
Therefore, the most important critical implication is to show that the resistance to change represent clearly a
significant dimension, but also put in perspective the role played by other dimensions.
Limitations
Further research will be necessary to support these findings with large samples, specifically in the context of service
transformation. Moreover, additional work will be necessary to generalize these findings to a larger number of
contexts related to service transformation. Additional work will have to be undertaken to determine if these five
categories of obstacles that were identified could generalize to other sectors of activity than services. Additional
research will have to be pursued to determine if the categories are exhaustive and overlapping. More specifically,
since the convergent transformation strategy with emotions turned out to be one of the main categories, a more
critical evaluation of this dimension and the ways in which it was measured in your study should be the focus of
supplementary work on this specific categories of obstacles.
A specific methodological limitation might also come from the definition of the dimension of emotion. Since the
topic of emotions has somewhat become a field of its own in the organizational change literature in the last decade
and there are probably some researchers in this field who will argue that emotions are not necessarily equivalent to
concepts such as commitment, resistance and motivation and that you therefore have not measured emotions as such.
CONCLUSION
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In this article, by referring to previous literature on service management and the perceptions on the values of service-
centricity we discussed the need to understand the role and the beneficiaries of service. A prior misconception on the
advantages of products over services was also discussed. By making reference to a manufacturing organization we
discussed some of the limitations of running an organization with a service orientation and some of the setbacks and
limitations that reduce the ability of managers and other categories of leaders in executing their corporate functions
as effectively as possible. By using the PCA analysis, we studied the role of obstacles that impede the organizational
change faced by managers in a service context when executing their objectives. Our study proves the existence of
five different obstacles to service transformation. Our main hypothesis in accordance with the review of the literature
was confirmed. In this regard, our findings suggest that factors such a lack of commitment and resistance to change
would be the main category of obstacles that would play the role of obstacles when managers execute their
objectives. Our findings supported our hypothesis that the main obstacles faced by managers in a service context are
related to the dimension of convergence with emotions. Our research would therefore suggest that variables related
to the convergent strategy with emotions would be the main dimension that would explain the obstacles faced by
managers in the context of a service transformation.
This study also indicates that the values with the obstacles in the category of service integrity would represent a
significant category of obstacles for managers when executing their objectives also with the category of initiatives
such as the lack of initiative from employees and the category of immediate action such as too many urgent matters.
Our study suggests that these dimensions would represent significant categories of managerial obstacles impeding
the execution of objectives in a service context.
Our study has supported our conceptual framework and suggests the existence of five different categories of
obstacles that impede managerial execution. As mentioned before, these five categories of obstacles for each
transformation strategies would include the convergent transformation strategy with emotions, service integrity with
values, divergent transformation with initiatives, and accommodation transformation with immediate action.
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In contrast with literature, we found that the dimension of rules with variables related to formal planning would not
play a key role as a category of obstacles faced by managers. It also indicates that obstacles related to formal
planning and formal objectives, rules and guidelines would be the least important part among the five categories
identified. This category in contrast with the review of the literature would play a much more minimal role than
expected when an organization face a transformation. Our data suggest that the assimilation with rules to play would
be therefore the least significant in the set of obstacles faced by managers in the context of a service transformation.
This might introduce a different perspective since the literature has generally put emphasis on formal planning as a
way to succeed in organizational change in a service context.
If our findings suggest that the relative importance of each of these dimensions would not be the same, it also opens
the door to a much complex research question on the interdependence among these categories of factors. Our
research highlights that the study of managerial obstacles in a service context could not be understood with a single
dimension and is more complex than apprehended in the literature. Additional studies will be necessary to assess and
better understand the specifications that would play an important role in each of these dimensions, especially in the
context of a service transformation and generally in the context of an organizational change.
Further in this regard, a relevant question could be raised: what are the correspondent managerial obstacles that could
be put in place to overcome these obstacles? If these categories of obstacles are significant in impeding managerial
actions, what are the management practices available to overcome these obstacles? This should lead to several
interesting and stimulating research work on the topic of organizational change managemt for the development of
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