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Organisational Change - WHY change

The “why” part of change is:

Deltapoint’s view of the effort necessary in working out WHY to change

  • 80% Science: Awareness - scanning - scenario planning..

This 80% is where most improvement can occur in organisations. Research consistently finds incomplete reasoning and decision processes behind the reasons for change efforts

  • 20% Art

Many organisations rely heavily on this 20% for the reasoning for change. 

[These figures are not research-based - but idicative]

Organisation ‘change’ refers to slow and organic adjustments to what the organisation does and how it does it - over time.  Organisation change may be required to fix something that is broken, or help the organisation improve even though it is doing well.  In contrast, organisation ‘transformation’ refers to a radical change - perhaps even of what the organisation is. The motives / reason for each are different.

Organisation Change - 
Motive 1
- fix things that need it
(Problems)

Change may be orchestrated from within the organisation or use an external “Intervention”, and may aim to correct poorly functioning aspects of organisational performance, such as activity alignment. It changes the ‘way’ an organisation does things. It reduces the strategic disadvantage that is currently suffered by the organisation because something is ineffective or inefficient.

In this way, a Strategic Dis-Advantage is corrected[Our piece of the pie is getting smaller]. 

Organisation Change - 
Motive 2
- become bigger or better
(Opportunities)

Change in this case might be about adding new capabilities or increasing the capacity of the current capabilities of the organisation

In this way, aStrategic Advantage is sought (Market power  / strength) [Bigger piece of pie]


Organisational Transformation 
- become different
(Driven by Vision)

Change may be needed that transforms the organisation to the extent that it becomes a ‘different’ entity.  It may change ‘what’ it does, or ‘how’ it does it.  Transformation suggests adaptability, while change suggests flexibility. Old capabilities and processes are replace by new ones.  It represents change of the highest order.

Strategic Advantage demonstrated = Adaptability & Flexibility (better for the future position).[Realign with market - different pie - perhaps bigger pie]

Philosophy of change:

  • adaptability to change ‘what’ is being done - is strategic change
  • flexibility to change ‘how’ it is being done - is operational change 
  • change shouldalways begin at the strategic level
  • Do the right things poorly rather than the wrong things well.
  • Therefore - change starts with behavioural changes at the executive level

 

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Organisational Transformation

 

We help organisations develop the skills and create the environment to improve, simultaneously, organisational performance and quality of work-life for its members - Contact us

Changing, Transforming, or Renewing the Organisation

Can an organisation change, transform, or renew - without the people in it having to change their attitudes and behaviours?

 

Differences between change, transformation, and renewal

Changes embrace every and any form of alteration of an organisation’s functioning. Therefore it embraces change, transformation, and renewal. However, change can be small, gentle, and over any time of time period. There is genuine argument to say that organisations are today having to survive constant change. Effective change processes attempt to enlist the aid of members in introducing new ways or new goals. The ability to be comfortable with change - to embrace continuous change, is regarded as a strategic advantage - only because it is so poorly done by most organisations.

Transformation is like a metamorphosis, a radical change involving structure, function, and every other aspect of the organisation’s being. It is sudden, and the new organisation barely resembles its origins. These massive maneuvres typically occur with mergers, acquisitions, and CEO or Board change. There is usually disruption in the form of downsizing, closures, restructuring and other activities that have many unintended consequances along with some degree of success with intended outcomes. Members are invariably impacted, with and fear and stress a standard part of the package. It is possible to undergo metamorhosis without destroying the creature trying to emerge, but it requires much more attention than is typical.

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Why consider organisational change, transformation, or renewal?

  • Become more flexible
  • Do more with fewer people
  • Recovery after critical event (downsize, disaster, lost business etc)
  • Post-merger remodeling
  • Need to change strategic direction (what we do)
  • Need to change processes (how we do it)
  • Need to change values (why we do it - why this way)

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Familiar vehicles to achieve change, transformation, or renewal

  • Just in time planning
  • Quality assurance
  • Balanced Scorecard ©
  • Knowledge management
  • Transformational leadership programs

All have code letters. Others are MBO, QFD, CAT, TQC, QWL, TQP, CAM, SPC, VAM, MAP, TQM and MRP, and BPR.  Many are regarded as FADS, and all have scored success in some sites, and failures in others. Perhaps:

  • mismatch of program with organisation
  • inadequate commitment to program
  • unrealistic expectations
  • applied poorly
  • excessive and unexpected costs
  • excessive and unexpected outcomes
  • inappropriate organisational climate to begin with
  • low trust/goodwill towards organisation by members

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A workable process for change

All programs that work make certain realistic assumptions

Assumptions about people - its members.
  • People want to be proud of where they work
  • People want to be proud of what they do
  • People want to belong
  • People want to feel appreciated
  • People want to be heard
  • People want to be able to trust
  • People want to work
  • People want justice and fairness
  • People want to be challenged - to grow.
Assumptions about ‘change’ are:
  • Any program for organisational change requires initial cooperation from members
  • Any program to be continue successful requires ongoing cooperation from members
  • No program can afford to alienate people
  • Any program that carries personal risk for members will initiate self-preservation behaviour rather than organisational interest behaviour
Therefore, the sequence in a successful program includes in its opening moves, the need to inform clearly about:
  • pressure / need for change
  • goals of change program
  • what will happen if don't change
  • what it means to individuals
  • how it will be done
  • how they can perticipate
Also:
  • Set up genuinely open communication channels
  • Provide support mechanisms - address concerns
  • Acknowledge that some individuals will not be able to make the change. There will be personnel losses.

 How Deltapoint can help you

Transformation is an executive-led radical program to improve the organisation's future. The executive team will be heavily engaged in commercial, legal, alliance, and other executive-level matters. It is difficult for executives in such times to sense, think, and care about the organisation's members. Transformation is a high-risk undertaking that puts the reputation of the executive team on the line. It is all the more important then, to prepare those members who will have to leave, those members who have to change, and those who will remain relatively intact (they suffer guilt). Deltapoint can help prepare processes to manage the people within the three groups. The organisation needs to hit the ground running, and can only do so if staffed by effective people who are not suffering shell shock.

Change programs require careful preparation and attention to psychological details - if the program is to work with full effect. There are three climates to consider - that preparing for the change, that during the change, and that following the change. The change itself needs to be planned with organisational goals in mind, and preferably lessons from others who have followed the same path. Deltaccount can help plan the change program, prepare the climate for it to happen, and facilitate implementation and measure outcomes.

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Contact us on Internat: +61-7-3348-5161 | Australia (07)3348-5161 
Email: info@strategic-conversation.com.au