Introduction to Change Management
General management is the systematic process of attaining specific objectives by leveraging particular resources, primarily human resources, aligning them with organizational goals. In the realm of Business Engineering, it entails not only engineering the business processes but also ensuring continuous alignment with the overall strategic direction. This alignment is crucial to managing the business within the established Strategic Direction.
In the 1990s, "Managing change" emerged as a pivotal theme for general managers. It involves viewing any change through the lens of the broader organizational strategy. Organizational change, aimed at enabling new tasks and procedures within the workforce, is a key facet. Business Engineering relies on a robust business case that must be effectively communicated throughout the organization and embraced by its members. The change manager plays a critical role in addressing resistance to change and ensuring that every employee embraces the overall change initiative.
The role of a general manager encompasses the effective and efficient deployment of all available resources to successfully deliver the anticipated business benefits.
Management tasks are oriented toward the following objectives:
1. Planning: Determining what needs to be done.
2. Organizing: Assigning responsibilities and defining tasks.
3. Directing: Providing clear instructions.
4. Controlling: Ensuring the execution of instructions and monitoring progress.
These fundamental management dimensions encapsulate the generic and traditional tasks. Within these dimensions, the capacity to adeptly navigate change becomes increasingly vital.
This "animal" called Change
The 1990s presented individuals and organizations with complex challenges, and the relentless force of change will persist in reshaping organizational landscapes.
As we enter the year 2000, success will favor those who embrace continuous learning, demonstrating a willingness to navigate and adapt to change.
Effectively managing the transformations confronting organizations in the 90s is imperative for the survival of even the smallest businesses. The reality is that every organization, regardless of size or sector—be it industrial or commercial, publicly owned, service-oriented, or focused on marketing and production—must confront the challenge of change.
Steward's (1991) research project assessing the evolving role of the management practitioner highlighted major changes faced by organizations in the 1990s:
1. Increasing commercialization
2. Rising competition
3. Customer sovereignty
4. The need for personal accountability
5. Technological advancement
6. Shifts in state intervention
7. Political influences
8. Fundamental social change
9. Demographic change
10. Workforce diversity
These issues carry significant implications for change management, and the Human Engineering System was developed to address them comprehensively. Later in this discussion, we will delve into specific tools, methods, and techniques that form part of managing acceptance and commitment to the aforementioned changes.
The Nature of Change
The growing focus on change management has captured the attention of those entrusted with sustaining the ongoing success of work organizations. What prompts this heightened interest, and what exactly are organizations striving to navigate in the realm of change? By delving into the essence and genuine significance of organizational change, we will establish the backdrop for Discon's method in approaching change management.
A) Types of Change
To gain a deeper understanding of change, it proves beneficial to formulate overarching generalizations that capture the varying degrees of change typically encountered by organizations. While not empirically validated models, these generalizations play a crucial role in shaping our perceptions of change.
Firstly, change can manifest as a smooth, incremental process. This trait is characteristic of business environments that have been evolving gradually in a systematic and predictable manner. Although this form of change was prevalent in the markets of the 50s and 60s, some contemporary organizations still maintain the belief that a relatively seamless state of change is currently in progress.
On the other hand, change may take on a bumpy, incremental nature. This is characterized by periods of relative tranquility punctuated by sudden accelerations in the pace of change, often perceived as "overload." Such periods of overload are frequently linked with periodic reorganization efforts.
Discontinuous change, in contrast, is associated with a rupture in the pattern of smooth, incremental change. It is marked by rapid shifts in either strategy, structure, culture, or a combination of all three elements.
B) Change as Experienced by Species
Charles Darwin's theory posits that species must undergo adaptation to navigate changes and evolving environments for survival. Those species capable of change not only endure but thrive, while those that resist evolution face extinction. Natural selection operates on two levels: "inter" and "intra" species. In practical terms, individual members of a species with advantageous traits successfully reproduce, ensuring the transmission of those traits, and granting a competitive edge in the struggle for survival against other species.
Evolution, a continuous and perpetual process, is evident within the human species as well. While noticeable changes occur in physical attributes, intellectual and emotional characteristics also undergo transformation. In direct comparison, present-day Homo sapiens differ from their initial emergence as a distinct species, and this evolutionary trajectory will persist, making us distinctly different in the coming millennia.
Ecology, as a scientific discipline, teaches us about the intricate, interdependent relationships among various life forms on Earth. This understanding suggests that species actively engage with, influence, and alter their environments. Instead of merely reacting or adapting passively, life forms establish symbiotic relationships with their surroundings. It is within this dynamic interaction that natural selection operates, ultimately determining the fate of survival or extinction.
C) Change as Experienced by Individuals
Humans are perpetually influenced by the inexorable forces of change. This natural progression typically unfolds in a cyclical pattern encompassing birth, development, growth, decline, and ultimately, death. While the tangible transformations in one's physicality are readily apparent, it's essential to recognize that individuals also undergo intellectual and emotional shifts over the course of their lives. Unlike a finite endpoint termed "maturity," these transformative processes persist and evolve continuously throughout the journey of life.
The characteristics of change in Homo sapiens encompass the following aspects:
1. Individual Variation in Change:
While change is a universal aspect of individual experiences, the specific nature of this change varies among individuals.
2. Environmental Impact on Life-long Development:
The environment plays a pivotal role in life-long development, offering diverse experiences that significantly contribute to shaping an individual's physical, intellectual, and emotional growth.
3. Exercise of Free Will and Independent Choice:
As sapient beings, humans possess the capacity for free will and independent choice. Through these abilities, individuals exert influence on and actively contribute to the formation of their personal environments.
4. Intellectual and Emotional Development through Learning and Experience:
The development and alteration of intellectual and emotional characteristics occur through a continuous process of learning and accumulated experiences.
5. Adaptability as a Key to Species Survival:
A species enhances its chances of survival when its members can adapt their behavior in response to a changing environment. The success of Homo sapiens as a species is, in part, attributed to the advanced level at which individuals can learn and change. Continuous learning emerges as a crucial factor in facilitating individual change.
D) Change Experienced by Organisations
Understanding the dynamics of change within species and individuals holds significant relevance for effective change management in organizations.
Firstly, nature provides valuable lessons applicable to various facets of human existence. Principles governing structural design often find inspiration in natural forms and arrangements, such as the load-bearing properties observed in a spider's web or the teamwork dynamics represented by a pride of lions, mirroring aspects of a project team.
Secondly, organizations are essentially composed of individual members of the human species. To comprehend organizations, it is imperative to understand human beings both as a collective species and as unique individuals. Effective organizational management necessitates this understanding, as the two are intricately intertwined.
James Steward (1991) distills insightful lessons from nature that can enhance our comprehension of organizational change:
1. Change is a natural phenomenon.
2. Change is continuous and ongoing.
3. The purpose of change is to facilitate survival and growth.
4. Survival and growth hinge on adapting to a dynamic environment.
5. Organizations can influence and shape the environment through their actions and decisions.
6. Successful adaptation and change require learning from experience.
7. Individuals undergo both common and unique directions of change.
In essence, organizations must adapt to a changing environment, paralleling the transformation observed in individuals. This necessitates learning intellectual and emotional lessons from experiences and being mindful of the impact of organizational actions on the environment.
Change in the New South Africa
The miracle birth of the New South Africa has now passed, but the transformation of the broad community and all its institutions has just begun. There can hardly be an organisation in this country; not undergoing change and this affects not only the country and the organisation, but also almost every individual on a personal and professional level. Many organisations are setting international precedents in terms of change management, especially in respect of stakeholders'
accommodation in governance structures. However, most organisations are not successful. What characterised the change in South Africa is that there are a few rules:
“Change managers in particular are acting in a play which has not yet been fully written, never mind rehearsed”
Terry Meyer
Some of the key issues facing South African organisations and individuals are the following:
a.) Democratization
Essentially, democratization revolves around fostering stakeholder participation. At the corporate level, it involves scrutinizing governance structures and incorporating stakeholders in strategic changes. Organizations need to engage employees in their pursuit of global excellence, necessitating the development of new understandings, and diverse skills, and addressing significant shifts in values.
b.) Reconstruction & Development
The failure to fulfill the promises, demands, and expectations of the Reconstruction and Development Programme (RDP) poses serious threats to the country's economic future. The RDP holds the potential to infuse capital into the economy, cultivate essential skills for sustainability, and kick-start economic growth. The implications for change management are substantial and need careful consideration.
c.) Affirmative Action
In its broadest sense, affirmative action encompasses various strategies related to human development. Contentious issues include potential legislation enforcing quota systems, tokenism, and structural and subliminal racism. On a more constructive note, it involves economic empowerment through appropriate board appointments, black business participation in corporate South Africa, skills development, individual growth, confidence building, and empowerment. All of these aspects exert significant pressure on change management within organizations.
d.) From Training to Learning
South African companies require employees with access to information, knowledge, and understanding when confronted with complex problems. The change management implication is that, for survival, the focus must shift from providing mere education and training to the management and facilitation of multi-dimensional learning.
e.) Diversity
The new South African company is marked by increased racial, cultural, ethnic, and gender differences. Workgroups consist of individuals with diverse backgrounds, some of whom have not been exposed to the working environment before. Managing diversity or multiculturalism entails implementing the three "R's" - recruiting, retaining, and unleashing the full potential of every employee.
f.) Traits of Organizational Change
Any large-scale organizational change in a company will exhibit at least one of the following traits. Keeping these in mind can assist South African change managers in crafting and rehearsing the "change play."
Trait 1 - Multiple Transitions
Complex changes often involve many different transitions, some explicitly related, others not.
Trait 2 - Uncertain Future State
Predicting or defining the exact future state is challenging due to unknowns, and events may alter the nature of the state before achieving it.
Trait 3 - Incomplete Transitions
Many initiated transitions do not get completed, as events or subsequent changes overtake them.
Trait 4 - Transitions Over Long Periods
Large-scale organizational changes often take a considerable time to implement, requiring different dynamics than quick change initiatives.
Trait 5 - Everything Looks Like Failure in the Middle
Doubts often arise in change projects as problems mount, but it's essential to recognize that change is inherently messy, chaotic, and painful.
Attitudes About Change
Employee attitudes about change significantly influence their acceptance of change initiatives. It's not the change itself that employees resist but their attitudes toward it that determine resistance. Analyzing the existing organizational paradigm can be useful in assessing and influencing change acceptance.
The change affects each employee differently based on their attitudes and perceptions. Recognizing that attitudes are both cognitive and emotional can help manage resistance successfully. Common misconceptions about change, if understood by change agents, can contribute to effective change management.
Some employees’ perceptions may be derived from common misconceptions about change, and if the change agent understands this, the resistance to change can be managed successfully. Typical misconceptions are the following:
Another reality is that people have a natural tendency to resist change. Anticipating, managing and overcoming this resistance is the key to successful change management.
DISCON Specialists Human Engineering System
Introduction:
DISCON Specialists have crafted the Human Engineering System in response to the intricate nature, extensive scope, and prolonged duration of Business Engineering projects. This framework serves as a structured approach to formally manage and navigate change interventions, addressing emotional issues and trauma associated with organizational changes in a strategic and systematic manner.
The primary objective of the Human Engineering System is to demystify the concept of change management within organizations and effectively address human-centric challenges within the broader context of Business Engineering.
DISCON Specialists' Change Management System comprises four interconnected systems, creating a comprehensive environment for change management. Designed for flexibility, this system empowers DISCON Specialists users across all installations to apply the methodology effectively, seamlessly integrating Change Management, Project Management, and Architecture disciplines crucial for the successful delivery of Business Engineering projects.
The Human Engineering System:
The Human Engineering System is built upon four sub-systems, each encompassing four dimensions aligned with the classical generic management tasks of planning, organizing, directing, and controlling. The Business Engineering Project Management guide delves into these tasks in detail.
The four phases of the Human Engineering process include:
A. Establish the Need for Change (Diagnosis)
1. Ensure assessment of the total human engineering environment
2. Define the organizational environment to be assessed
3. Define and plan the research project
4. Identify the project business area
5. Determine the target group affected by change
6. Identify key role players
7. Determine time implications
8. Validate research project parameters
9. Execute the research project
10. Assess the determined environment by analyzing the findings
11. Include and accommodate past research findings
12. Include "subjective" findings and observations
13. Identify change problems
14. Define barriers
15. Identify key change forces
16. Interpret assessment results
17. Ensure contextual value of change
18. Consider possible change directions
19. Choose desired direction
20. Determine gap
21. Define the future value of the selected change direction
B. Ensure the Alignment of Human Engineering with Business Strategic Positioning (Plan)
1. Determine relevant strategic objectives (form master business plan)
2. Map future change direction to strategic objectives
3. Determine aligned Human Engineering objectives
4. Plan Human Engineering project(s)
C. Align the Workforce with the Change in Direction
1. Establish an environment conducive to change, focusing on pillars of change:
- Communication
- Leadership development
- Team development
- Training/learning
- Process consultation
- Customer interventions
- Practice development
2. Ensure organization-wide HE project directing
3. Ensure HE project organization
D. Establish, Ensure, and Maintain a "Change-Sensitive" Workforce and Organization
1. Develop and maintain the "change competency"
2. Nourish and maintain the learning organization
3. Monitor and control HE initiatives
Function Structure Diagram (FSD):
The function structure diagram (FSD) for the DISCON Specialist Human Engineering Management System is provided below, detailing the key components and their relationships within the system.
A.) Establish the need for change
- Ensure assessment of total human engineering environment
- Define the organisational environment to be assessed
- Define and plan the research project
- Identify the project business area
- Determine target group effected by change
- Identify key role players
- Determine time implications
- Validate research project parameters
- Time available
- Timing of deliverables
- Prominent constraints
- Facilities
- Execute the research project
- Assess the determined environment by analysing the findings
- Include and accommodate past research findings
- Include “subjective” findings and observations
- Identify change problems
- Define barriers
- Identify key change forces
- Interpret assessment results
- Ensure contextual value of change
- Consider possible change directions
- Choose desired direction
- Determine gap
- Define future value of selected change direction
B.) Ensure the alignment of Human Engineering with Business Strategic Positioning (plan)
- Determine relevant strategic objectives (form master business plan)
- Map future change direction to strategic objectives
- Determine aligned Human Engineering objectives
- Plan Human Engineering project(s)
C.) Align the workforce with the change direction
- Establish an environment conducive to change, enabling the workforce to be productive and Motivated, effective and efficient, focusing on the pillars of change:
- Communication
- Leadership development
- Team development
- Training/learning
- Process consultation
- Customer interventions
- Practice development
2. Ensure organisation-wide HE project directing
3. Ensure HE project organisation
D.) Establish, ensure and maintain a “change sensitive” workforce and organisation
- Develop and maintain the “change competency”
- Nourish and maintain the learning organisation
- Monitor and control HE initiatives