Colorado Technical Unit 3 Red Carpet Change Management Discussion Unit 1 – Discussion Board 2 Primary Task Response: Within the Discussion Board area, write 200–300 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. Additional Information: Leroy Banks is the Director of Change Management for Red Carpet, a national hospitality and entertainment company. He has contracted you to be an OD Consultant because Red Carpet has recently acquired a movie theater company and needs to manage the change process. External forces for change are those that come from an organization’s outside environment. Internal forces for change are those that arise from employees within the organization. Leroy has asked you to begin by assessing forces for change. Review the Red Carpet scenario for this course and with your classmates; discuss the following questions: Identify and describe an example of an external force for change. Identify and describe an example of an internal force for change. In your opinion, what are the biggest challenges of being in the role of an OD Consultant at Red Carpet? Unit 3 – Discussion Board Primary Task Response: Within the Discussion Board area, write 300-400 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. Additional Information: The VP of HR reviewed the executive summary and decided that your recommendation was a strong course of action for the change process. In her discussions with Leroy, she mentioned that it would be good to have you participate in a focus group to discuss your experiences with the change process. She was interested in discovering some best practices for change and felt that your experiences would be very valuable to Red Carpet’s approach to change. To guide the discussion, she recommended addressing a few points that should be covered in the focus group. Leroy will gather the results of the focus group and share it with the VP of HR. Review the Red Carpet scenario for this course and with your classmates; discuss the following questions that will provide insight into your own change experiences: Describe a successful change from your own experiences and why it worked well. Describe an unsuccessful change from your own experiences and why it did not achieve its intended objectives. From your own experiences, what do you think Red Carpet should do to make the change successful? Unit 3 – Discussion Board
Primary Task Response: Within the Discussion Board area, write 300-400 words that respond to the
following questions with your thoughts, ideas, and comments. This will be the foundation for future
discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
Additional Information:
The VP of HR reviewed the executive summary and decided that your recommendation was a strong
course of action for the change process. In her discussions with Leroy, she mentioned that it would be good
to have you participate in a focus group to discuss your experiences with the change process. She was
interested in discovering some best practices for change and felt that your experiences would be very
valuable to Red Carpet’s approach to change. To guide the discussion, she recommended addressing a
few points that should be covered in the focus group. Leroy will gather the results of the focus group and
share it with the VP of HR.
Review the Red Carpet scenario for this course and with your classmates; discuss the following questions
that will provide insight into your own change experiences:
•
•
•
Describe a successful change from your own experiences and why it worked well.
Describe an unsuccessful change from your own experiences and why it did not achieve its
intended objectives.
From your own experiences, what do you think Red Carpet should do to make the change
successful?
Learning materials
Models of Change Management
Organizations going through a change process can improve the likelihood of success if they go through it in
a planned and organized fashion. To assist in this, there are a variety of change models that the change
agent can access to assist in the organization’s planned change effort. Models are constructions showing
what might be expected as outcomes of certain inputs. The government, for example, has a number of
models it uses to predict the impact on the economy when planning to change certain policies, such as
increasing or decreasing taxes or interest rates. City planners have models of what might happen to traffic
levels if new businesses are added to one part of a city. This kind of model will help city planners plan for
any necessary road infrastructure changes, such as widening or adding turn lanes for a new mall being
added. Although these are by no means exhaustive, five models for managing change will be addressed
here. It should be recognized that underneath each model—or as an unstated building block—are a series
of models of human behavior, such as those formulated by Maslow, Hertzberg, Skinner, and McClelland.
These models are as follows:
•
Nadler’s Congruence Model (Nadler, 1998): This model is based on the premise that when an
organization’s results are different than required or expected results, it may be because of some
•
•
•
•
degree of incongruence among factors, such as environment and strategy, strategy and structure, or
focus and expected outcomes.
Lewin’s Theory of Managing Change (Cummings & Worley, 2009): The premise of Lewin’s theory
of change is the recognition that individual behavior—such as resistance to change—is in great part
the result of forces, particularly group forces on each individual.
Action Research Model of Managing Change (Cummings & Worley, 2009): This model, though
separate, is also attributed to Kurt Lewin. It assumes that organizational change is best carried out by
the organization’s players.
Kotter’s Change Model (Kotter, 2006): This model is an 8-step procedure, including “establishing a
sense of urgency” and reducing the resistance to change.
Appreciative Inquiry Model (Cooperrider & Sekerka, 2006): This change model is based on the
premise that thinking and viewing a past performance in a positive light will have a great motivational
impact.
The formulation and existence of models are useful in many applications. Models help to organize
managers’ thought processes and decision making. There is no right or wrong, best or second-best model
to facilitate the management of change. Instead, it is up to the change agent or management team to
research and select which one seems to fit with the organization and environmental issues they are facing.
References
Burnes, B. (2006). Kurt Lewin and the planned approach to change: a reappraisal. Organizational
development. San Francisco, CA: John Wiley & Sons.
Cooperrider, D. L., & Sekerka, L. E. (2006). Toward a theory of positive organizational
change. Organizational development. San Francisco, CA: John Wiley & Sons.
Cummings, T., & Worley, C. (2009). Organizational development and change. Mason, OH: South-Western
Cengage.
Kotter, J. (2006). Leading change: why transformation efforts fail. Organizational development. San
Francisco, CA: John Wiley & Sons.
Nadler, D. (1998). Champions of change. San Francisco, CA: John Wiley & Sons.
Nadler’s Congruence Model
Nadler’s Congruence Model
Nadler’s congruence model is based on the premise that when an organization’s results are different than
required or expected results, it may be because of some degree of incongruence among factors. Some of
these factors could be between the external environment and the firm’s strategy, the firm’s strategy and its
operating organizational structure, the operating organization’s focus, or even the expected outcomes
measured with certain metrics.
To ensure successful change, the implication is that these must all be in congruence with each other; they
must be “in sync” (Nadler, 1998, p.31).
For example, if the external environment requires a more nimble and more frequent rate of new product
development, but the organizational structure is one of high bureaucracy that stifles innovation, the lack of
congruence would cause suboptimal achievement of desired outcomes.
Reference
Nadler, D. (1998). Champions of change. San Francisco, CA: John Wiley & Sons.
Lewin’s Theory of Managing Change
Lewin’s Theory of Managing Change
The premise of Lewin’s theory of change is the recognition that individual behavior, such as resistance to
change, is in great part the result of forces—particularly group forces—on each individual. For example, if
there is strong peer pressure to resist change from method A to method B (method B being the new
method), it is unlikely that successful change will occur. Lewin, therefore, broke the successful
management of change down into 3 steps, as follows:
1. The unfreezing of the old ways of doing things:
In this step, the change leaders must find ways (including terminating prior management) of discarding
old methods, rituals, and other traditional ways of doing things. Change leaders might even convince
stakeholders that the old methods were unacceptable, given the results and today’s environment.
2. Moving to the new paradigms:
This step is the actual implementation of the change.
3. Freezing in this new methodology, culture, or system:
This step codifies—perhaps through written standard operating procedures (SOPs)—new rituals and
key personnel selection for promotion and the new desired state and procedures.
Reference
Burnes, B. (2006). Kurt Lewin and the planned approach to change. Organizational development. San
Franciso, CA: John Wiley & Sons.
Action Research Model: Managing Change
Action Research Model of Managing Change
Action research (also attributed to Kurt Lewin) could be considered a separate model of change. Action
research assumes that organizational change is best carried out by the organization’s players in a steady,
never-ending iterative process—somewhat akin to the concept of continuous improvement. It assumes that
organizational players know the main problems they face and that they can formulate potential solutions,
pick the best option for improvement, and implement the solution. Further, it assumes that this same
internal team can assess the effectiveness of the change, and if necessary, go through another iteration of
improvement (Thomas, 2009, p.24).
References
Cummings, T., & Worley, C. (2009). Organizational development and change (9th ed.). Mason, OH: SouthWestern Cengage.
Kotter’s Change Model
The Kotter change management model is an eight-step procedure, as follows (Kotter, 2006, p. 243):
1. Establishing a sense of urgency: This can be translated into the fact that it is very difficult to reduce
the resistance to change and to truly ingrain the change if stakeholders do not recognize the need for
or urgency of the change. A workforce, ill-informed about a potential new competitor on the scene that
has traditionally operated at a more efficient, higher quality level, may not “buy in” to the need for a
quantum leap in performance, especially if they are not made aware of this sense of urgency or need
for change.
2. Forming a powerful guiding coalition: This can be viewed as the importance of creating a team to
help sell and implement the change because it is impossible for the top manager to engage all of the
affected stakeholders.
3. Creating a vision: This is usually the responsibility of a senior manager. Creating a vision it serves as
a rallying cry, or as an image of a desired future state. It acts as an easy slogan to remember to guide
stakeholders’ actions and decision making.
4. Communicating the vision: Without employees knowing where the end goal is, it is hard to get them
to buy into an understanding of each of their roles.
5. Empowering others to act on the vision: Perhaps the key step toward success implementation is the
need to get other stakeholders to buy in and act in accordance with the new state. It could be thought
of as the radiating outward effect that occurs when a pebble is thrown into a pond and small waves are
created.
6. Planning for and creating short-term wins: Given the importance of addressing resistance to
change, the ability for the whole organization to see early successes is crucial to selling the idea
throughout the organization. Sometimes, the term “low-hanging fruit” is used to describe some easy
and quickly attained success stories, as just a beginning of the wholesale change effort. As
stakeholders see these early successes, the whole effort gains credibility and momentum.
7. Consolidating improvement and producing more change: This step takes the initial success
stories, new methods, procedures, structures, systems, and cultural norms, making them permanent,
and committing them to writing in the form of standard operating procedures (SOPs), or new human
resource (HR) policies.
8. Institutionalizing new approaches: What was learned in one area or department can be transferred
into other areas of the organization. Resistance to change efforts in another department may be more
easily overcome.
Reference
Kotter, J. (2006). Leading change: Why transformation efforts fail. San Francisco, CA: John Wiley & Sons.
Appreciative Inquiry Model
Appreciative Inquiry Model
This change model is based on the premise that thinking and viewing past performances in a positive light
will have far greater motivational impact than viewing past performances as a “we did it badly, we screwed
up, it was a failure” type of thinking. Instead, it is a change process, not unlike action research, only this is
focusing on what has worked well and how that can be applied to solve current issues. It focuses on an
organizations’ strengths and successes as a motivational tool to go from the current state to some needed
changed state (Cooperrider & Sekerka, 2006, p.223).
Reference
Cooperrider, D. L., & Sekerka, L. E. (2006). Organizational development. San Francisco, CA: John Wiley &
Sons.
Strategies and Techniques
Question 1: What is an integrated approach to change?
Answer 1: An integrated approach to change is a change oriented toward dealing with the total
organization through an integration of behavioral structural and technical strategies. Using this approach,
the consultant and the client determine the major strategy and then decide on the specific OD techniques to
implement in the change effort.
Question 2: What factors should I consider when selecting a technique?
Answer 2: There are multiple strategies available for intervening in the action phase of an organizational
development program. An awareness of the range of intervention techniques available to be applied to a
given target system is, in fact, critical to you as organizational development professional. It is up to you and
your client to select the solution that bears the best fit to the problem(s). In making your selection, you will
need to consider numerous factors, including the nature of the problem, the objectives of the change effort,
the cultural norms of the client system, and the expected degree of resistance. After consideration of broad
factors, selecting your technique should involve comparing and testing possible interventions against some
criteria concerning the following 3 broad aspects:
•
•
•
The potential results of the technique. Will it solve the basic problems? Does it have any additional
positive outcomes?
The potential implementation of the technique. Can the proposed technique actually work in a practical
application? What are the actual dollar and human costs of this technique and the impact of costs on
the client system? How do the estimated costs of the technique compare with the expected results
(costs versus benefit)?
The potential acceptance of the technique. Is the technique acceptable to the client system? Is the
technique adequately developed and tested? Has the technique been adequately explained and
communicated to members of the client system?
Question 3: What is employee empowerment?
Answer 3: Employee empowerment is a relatively new technique for unleashing human potential in
organizations. Central to empowerment is delegating power and decision making to lower levels and, by
using concepts such as shared visions of the future, engaging all employees so that people develop in
themselves a sense of pride, self-respect, and responsibility. Employees who are empowered are more
proactive and self-sufficient in helping their organizations to achieve their goals. Employee empowerment
has become in many organizations—including small and large, profit and nonprofit, domestic and
international—a basic cornerstone of organizational development and change programs. It is not, however,
to be viewed as a panacea for all organizational problems. Organizations that embark upon programs to
empower employees need to do so recognizing that empowerment is not a natural process and it runs
contrary to traditional command models of organizations.
Unit 1 – Discussion Board 2
Primary Task Response: Within the Discussion Board area, write 200–300 words that respond to the following
questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your
classmates. Be substantive and clear, and use examples to reinforce your ideas.
Additional Information:
Leroy Banks is the Director of Change Management for Red Carpet, a national hospitality and entertainment
company. He has contracted you to be an OD Consultant because Red Carpet has recently acquired a movie
theater company and needs to manage the change process. External forces for change are those that come from
an organization’s outside environment. Internal forces for change are those that arise from employees within
the organization. Leroy has asked you to begin by assessing forces for change.
Review the Red Carpet scenario for this course and with your classmates; discuss the following questions:
•
•
•
Identify and describe an example of an external force for change.
Identify and describe an example of an internal force for change.
In your opinion, what are the biggest challenges of being in the role of an OD Consultant at Red Carpet?
Learning Material
Drivers of Organizational Change
Introduction
In today’s business world, change is occurring all around the landscape, and it is doing so at an
accelerating rate. Years ago, companies typically did strategic planning with a 5-year time horizon.
Now, many companies have reduced the horizon to only 3 years because 5-year plans may become
obsolete soon after they begin. Given this level of change, managers in all industries can either
benefit from the change or become victims of the change. Their experience depends wholly on their
ability to recognize the change and—even more importantly—to plan how their organization will
adapt to the change. This is broadly referred to as managing change or management of change.
Rather than reacting to change, firms and their managers can be most effective if they can recognize
the forces or drivers of change and proactively address them.
Drivers of Change
Drivers of change refer, quite simply, to the forces that drive or stimulate the change. These forces
may be external to the firm or organization or emanate from within. Although the magnitude of the
changes’ effects on the organization will differ from firm to firm and industry to industry, the forces
generally have the same directional impact. For example, a driver of change may be negative
economic conditions. Although there are always exceptions, most firms in this example will be
negatively affected by this force. The following are several types of drivers of change:
•
External drivers: Typically, the most challenging forces of change are those that rise
externally to the firm or organization. These can be especially challenging because the firm
may have little or no control over them.
•
•
•
Internal drivers: Although external drivers of change are typically out of the control of an
organization’s management, internal forces that arise from inside the organization are those
that the management does have control over.
Emotional impacts of change: For most people, change can create stress in any kind
of organization, and this stress manifests itself in the form of overt or covert resistance to
change. The following are several possible sources of stress:
o Fear of the unknown
o The desire to maintain one’s current comfort level
o The real or perceived threat to job security, position, compensation, and responsibilities
Organizational impacts of change: If resistance to change is accepted as a natural
phenomenon, improperly executed change efforts can almost result in an organizational
paralysis.
Conclusion
To prosper and survive in today’s turbulent business environment, managers must stay aware of
forces of change and be able to implement initiatives in response to these changes. If the firm does
not address the changes, it may see itself quickly becoming obsolete in terms of competitiveness.
Organization External Drivers of Change
External driven drivers are typically the most challenging forces of change to an organization. These
forces are those arising external to the firm or organization itself; factors that the firm has little or no
control over. Typical examples would include the following:
•
Economic
o
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Technological
o
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Typical economic drivers of change are a slowing economy, such as in a recession, or a
booming economy. It could be as far as high or low interest rates or easing of monetary
policy. It could also be the depreciation of the country’s currency, or appreciation.
Technological drivers of change could be a new generation of programmable chips that
dramatically improve processing speed, or a technological driver of change could be in
the area of new business development where a technology that was successfully
applied in economic sector A has found use in sector B. Or it could also be the
expiration of a pharmaceutical firm’s patent, which could cause it to scramble to replace
the lost revenue and put it in competition to rapidly copy what once was a proprietary
formula.
Regulation and Governmental Actions
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Regulation and governmental intervention can …
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