what can change organisations apart?
Incessant Change
3 tools to achieve dynamic stability?
- Tinkering: The process to observe what the company already has, rather than creating or generating new processes and ideas instantly.
- Kludging: Elaborate Tinkering. The process if integrating new-economy practices into old-economy businesses.
- Pacing: Implement small and big changes at regular intervals to protect the company’s stability and support additional change.
key to dynamic stability?
Continually reconfigure-rather than replace-existing business models and practices.
4 operating guidelines for dynamic stability?
- Reward Shameless Borrowing: The company must be willing to noodle with what already exists, and keep building from scratch as a last resort.
- Appoint a Chief Memory Officer: Only by remembering the past as we tinker and kludge, can we avoid making the same old mistakes again. Then we take advantage of valuable opportunities.
- Tinker and Kludge Internally First: Dynamic stability is much easier to achieve if you stay inside the organization.
- Hire Generalists: Generalists are often derided as jacks-of-all-trades and masters of none. Their range of skills lets them combine disparate ideas, techniques, processes and cultures.
Theory E and Theory O of Change?
THEORY E: this change emphasizes economic value, measured only by shareholder returns. This HARD approach boosts returns through economic incentives, drastic layoffs and restructuring.
THEORY O: This is a SOFTER approach that focuses on developing corporate culture and human capability, by patiently building trust and emotional commitment to the company through teamwork and communication.
Combination of theories E & O for Change dimension?
GOALS: Embrace paradox between economic value and organizational capability.
LEADERSHIP: Set direction from the top and engage people from below.
FOCUS: Focus on both hard and soft sides of the organization.
PROCESS: Plan for spontaneity.
REWARD SYSTEM: Use incentives to reinforce rather than drive change.
8 stages for a successful change process?
- ESTABLISHING A SENSE OF URGENCY: Examining market and competitive realities.
- FORMING A POWERFUL GUIDING COALITION: Assembling a group with enough power to lead the change effort and encouragement to work as a team.
- CREATING A VISION: Help direct the change effort and develop strategies.
- COMMUNICATING THE VISION: Use every existing communication vehicle and incorporate it into routine discussions about business problems.
- EMPOWERING OTHERS TO ACT ON THE VISION: Getting rid of obstacles and encouraging risk taking.
- PLANNING FOR AND CREATING SHORT-TERM WINS: Clear victories help convince the doubters that the change will be worth the trouble.
- CONSOLIDATING IMPROVEMENTS AND PRODUCING STILL MORE CHANGE: It is good to celebrate short-term wins, but not take the things to come for granted.
- INSTITUTIONALIZING NEW APPROACHES: Make effort to practice the change once implemented.
Why transformation efforts fail?
Because the 8 stages are not followed in order.
Vision?
something that clarifies the direction in which an organization needs to move.
Worst type of bosses?
who refuse to change and make demands that are inconsistent with the overall effort.
The dynamic of failure?
effects of active inertia?
- Strategic frames become blinders: leads managers to new ideas and opportunities all the time.
- Processes harden into routine: people overlook better ways of working.
- Relationships become shackles: due to change relationships with customers, suppliers and employees can restrict flexibility.
- Values harden into dogmas: company’s values can over a period of time can turn into self-defeating rules and regulations.
Inside-outsider change leader?
The approach is to look for new leaders within the company but outside the core businesses.
Bringing in outsiders is not the best idea. WHY?
Because they look to throw old ideas that may have good potential. They tend to start from scratch to impress, but actually they neglect the present which just needs some work.
