The Challenges of Sustaining Momentum in Learning Organizations - Book Report/Review Example

It is an unfortunate fact that despite all the researches, books and resources devoted to making successful change possible, a majority of change efforts fail. In a research study conducted by leading companies including Arthur and McKinsey, it was discovered that several firms had engaged in Total Quality Management programs, but were surprised to discover that an enormous number of them failed to implement the TQM program successfully and failed miserably in their attempts to produce the target results (Hiatt & Creasey, 2003). However, change efforts targeted at Business Process Reengineering failed even more miserably with a 70% failure rate (Hiatt & Creasey, 2003). According to a study conducted by Peter Senge, the change efforts fail again and again despite enormous resources , skilled personnel, top management commitment and financial support as well as research ploughed into making change management successful (Senge, 1999). There is a high degree of risk involved in change management strategies and the fact that majority of these efforts fail, translates into huge losses for the company initiating it. It is observed, according to Peter, that companies exhaust almost all of their energy and resources towards the end of sustained change effort and are then left with minimum options (Senge, 1999). However, according to Peter, this does not undermine the importance of change efforts and that they represent a challenge that the company must come to terms with, either immediately or sometime in the foreseeable future; although the sooner companies face it, the better (Senge, 1999). John Kotter, who is a lecturer at Harvard Business School, has gone at length to research on both successful and failed change efforts. From his research and findings, he summarizes that one of the most important lessons to be learnt from the successful change initiatives is that the development of change goes through a series of stages that require the devotion of significant time by companies initiating them (Kotter, 1996). In an attempt for fast results, managers often tend to become short-sighted and tend to jump between steps, missing important ones in their course (Kotter, 1996). This of course, tends to expedite the change process but never leads to successful long term results (Kotter, 1996). Furthermore, according to John, making a serious mistake in any of the stages can have a disastrous impact on the entire change process and can slow down the pace of change as well as destroy any milestones already achieved with hard work. He explained the eight phases of the change process which are as follows (Kotter, 1996): 1. Establishing a sense of Urgency The change process is initiated only after individuals in the organization notice the need for change; that is, they notice a process that can be improved and changed or a better way of executing an existing process is discovered. Hence, the problem with the current setup needs to be identified first. The need for change develops a sense of urgency amongst employees who quickly spread the word around in an attempt to minimize the risk to the company from continuing existing inefficient/faulty processes. The problem, as noted by Kotter, is that more than 50% of the companies fail to acknowledge the urgency for change and hence, fail in the very first step (Kotter, 1996). However, most successful companies do acknowledge their shortcomings by discussing their weaknesses and threats candidly with employees rather than hiding them. At this stage, external/third party view and help is useful. In case of the U.S Department of Corrections, this could involve, for example, a change in prisoner detention facilities which was identified by one of the personnel. 2) Creating a leadership group Change often starts with one or two individuals noticing the need for change, but it often does spread out to include a large number of people who favor change. The size of the leadership group should ideally be between 3-5 people and these people are the key drivers and motivators of change for others in an organization (Kotter, 1996). In case of the U.S Department of Corrections, this could involve 2-5 key field service officers noticing how the current prisoner detention facilities are inadequate. 3) Forming a Vision In order to change successfully, companies need to formulate a clear big picture / vision that is easily understood by and convincingly communicated to all the stakeholders of a company (Kotter, 1996). In case of the U.S Department of Corrections, this would involve a vision set by the top management comprising of the Secretary and the Personal Secretary. 4) Communicating the Vision According to Kotter, estimation must be made as to how much effort shall be needed to communicate the vision successfully, and that effort should be multiplied by 10 (Kotter, 1996). Actions, indeed, speak much more effectively than words and managers must walk their talk to demonstrate the vision effectively. In the case of the U.S Department of Corrections, this would involve a meeting hosted by the Secretary, addressing the Deputy Secretary and Assistant Secretaries as well as the employees. 5) Empowerment Individuals must be empowered or authorized to change in their own areas and must be allotted sufficient budget for doing so. The organization structure may require revisions (Kotter, 1996); that is, individuals need to be given the time and ‘space’ to change themselves since change does not happen overnight. In the case of the U.S Department of Corrections, this would involve altering the roles of key personnel, steering their efforts towards the change in prisoner detention facilities, offering them flexible work schedules and hiring other personnel to perform ‘their’ tasks, thus, freeing them for their traditional responsibilities. 6) Create short-term gains Management and the organization must celebrate and reward short term gains to keep the people motivated (Kotter, 1996). In the case of the U.S Department of Corrections, this would involve giving monetary and non-monetary rewards to the high achievers (such as honoring the high achievers with titles at a state ceremony) to boost their morale. 7) Ensure that change is uninterrupted and strengthen improvements The organization should not become overconfident and lose sight of its ultimate goal- that is to change. Victory should not be celebrated so soon (Kotter, 1996). In the case of the U.S Department of Corrections, this would involve regular meetings and monitoring progress of individuals in their change management efforts. 8) Institutionalize the change The changes should be absorbed into the bloodstream of the organization and should become the new way of doing things (Kotter, 1996). In the case of the U.S Department of Corrections, this would involve the adoption of altered prisoner detention facilities for existing and new prisoners. Kotter, however, makes the change process appear too simplistic. In reality, the change process is never so smooth and predictable. Furthermore, the sequence in which these steps are followed is not always the same and not the same for each organization. Some companies may require moving back and forth between these steps depending on factors such as the existing organization culture, top management support, nature of industry and mindsets of employees. An important factor not considered here is the risk-averse and change resistant attitude of most workers- workers are often always reluctant to change for fear of loss of position, status, employment etc. This may complicate the process further. Also, unanticipated factors such as a change in the political, economic, legal environment can shift management’s focus to areas other than change and the process may be delayed. Finally, it is not always the case that all companies will pass through these stages successfully; most companies’ change management process is aborted during the early stages and still few make it to the latter stages. Also, it is not just important to change; what matters is whether or not the company is able to sustain that change. Most companies, although successfully change, often revert to old practices when they fail to sustain and integrate the change in their business practices. References: Hiatt, J., & Creasey, T. J. (2003). Change management: the people side of change. Colorado: Prosci. Kotter, J. (1996). Leading Change. Massachusetts: Harvard Business School Press. Senge, P. M. (1999). The dance of change:the challenges of sustaining momentum in learning organizations. Currency/Doubleday. Read More