The Current Management Change - Essay Example

Topic----The Current Management change process does not appear to address cultural issues Part Models of Change Applied to Registers of Scotland The concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program and so on. Examples of organization-wide change might include a change in mission, restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, mergers, major collaborations, "rightsizing", new programs such as Total Quality Management, re-engineering, etc. Some experts refer to organizational transformation. Often this term designates a fundamental and radical reorientation in the way the organization operates. 1. The Nature of Change----Incremental or Transformational There are two different views about the nature of change and the extent to which change affects organizations. One is incremental change and the other is transformational change. Change should not be done for the sake of change but it is a strategy to accomplish some overall goal. Usually organizational change is provoked by some major outside driving force, e.g., substantial cuts in funding, address major new markets/clients, need for dramatic increases in productivity/services, etc. Typically, organizations must undertake organization-wide change to evolve to a different level in their life cycle, e.g., going from a highly reactive, entrepreneurial organization to more stable and planned development. Transition to a new chief executive can provoke organization-wide change when his or her new and unique personality pervades the entire organization. A) Incremental change By far the most sort of change in organizations is incremental change. There are some arguably views that it is beneficial for the nature of change in an organization to be incremental. Incremental change will build on the skills, routines and beliefs of those in the organization, so that change is efficient and likely to win their commitment. (Johnson &Scholes 2002). Incremental change focus on ‘doing things better’ through a process of continuous tinkering, adaptation and modification. Change in these periods builds on what has already been accomplished and has the flavors of continuous improvement. B) Transformational change For transformational change, it is regarded mostly as fundamental, dramatic and large scale. It involves changing one or more assumptions in the organizational paradigm and with it the values of the organization. Transformational change could be seen as a means of marking out current thinking and practice as novel and different. It involves a break with the past, a step function change rather than an extrapolation of past patterns of change and development. The change is about generating success where previously there as failure as well as changing beliefs and values regarding the organization’s future. So transformational change involves doing things differently rather than doing things better, it might even mean doing different things C) The Comparison of Main Characteristics of these two types of Change The two types of change have their own characteristics (refer to diagram 1), it is easy to identify that there are two distinguished differences between them: Incremental change is “bottom-up” process. It is originated by the people most intimately connected with the organization’s processes, offers and customers. It will tend to be reactive, which a short time horizon Transformation change is “top-down” process. It initiated and imposed by the top team. It associated with leadership rather than operational management. Incremental change does not require paradigm (the way organization, thinking & operation) change. It doesn’t lead to a change in the implicit underlying assumptions of the organizational paradigm. Transformational change requires paradigm change. The organization will do things very differently compared with before. Differences between incremental and transformational changed (Adapted from Finlay ,2000) I Incremental Change Transformational Change “Bottom up”---came from operational management “Top down”---associated with leadership Paradigm unaffected Paradigm changed Doing things better or doing more of them Doing things very differently or doing different things Continuous progression Frame breaking burst, one step, ad hoc Cause-effect is easily recognizable Cause-effect is obscure Long term, affect part of the organization step by step large scale, transform entire organization Product improvement New products, new markets Does seek to interpret and explain Mass Communication as a new reality Does not seek to interpret and explain Mass Customization as a new reality It meets resistance Unlike other forms of change in that it meets no resistance It does not identify Mass Production Thinking as a major barrier to organizational change It identifies Mass Production Thinking as the major barrier to organizational change May not be a permanent change driven by the desire to be different It is about positive, permanent change driven by the desire to be different Delivery of working product on each stage Not necessarily working product No need for maintenance Maintenance may be required More flexible or requirements change Less flexible requirements change Efficiency Effectiveness Disadvantages of Incremental Change Incorporation of new builds Flexibility, but possibility of degenerating to build-and-fix model Extra time spent on testing, documenting and maintaining a “temporary” product Can be difficult to split the problem up into appropriate increments Expensive i. The Analysis of ROS----The Transformation Model of Change Registers of Scotland is the Government Agency responsible for compiling and maintaining records relating to property and other legal documents in Scotland. Registers are as old as history. In Scotland the various Registers were established 7 centuries ago to give citizens the power and protection of having their rights recorded in an official Register. After reviewing the history and current situation of ROS, a conclusion can be drawn that changes in ROS are conducted in a strategic direction, in long term view, ROS implied transformational change in its business process since: a) Paradigm changed---Doing things in different ways The aim of implementing change is “embedding something new into the business” (Archer, 2003) ROS has been progressively transitioning itself from a paper-based organization to one that embraces developments in IT in order to deliver e-commerce and electronic internal business processes. E-commerce Technical and Organizational aspects Provides an easy and secure way for customers to order Provides reliability and security. Parallel servers, hardware redundancy, fail-safe technology, information encryption, and firewalls can enhance this requirement. Provides a 360-degree view of the customer relationship, defined as ensuring that all employees, suppliers, and partners have a complete view, and the same view, of the customer. Constructs a commercially sound business model. Engineers an electronic value chain in which one focuses on a "limited" number of core competencies -- the opposite of a one-stop shop. Operates on or near the cutting edge of technology and staying there as technology changes. Setts up an organization of sufficient alertness and agility to respond quickly to any changes in the economic, social and physical environment. Provides an attractive website. Streamlines business processes, possibly through re-engineering and information technologies. Customers perspectives 1. Provides value to customers. 2. Provides service and performance. 3. Provides an incentive for customers to buy and to return. 4. Provides personal attention. 5. Provides a sense of community. 6. Owns the customers total experience. 7. Lets the customers help themselves. Provision of a self-serve site, easy to use without assistance, can help in this respect. 8. Helps customers do their job of consuming. Implementation of transformational change affected the organization from top to bottom; it affected all the functional and divisional areas of the business. The transition from planning change to implementing change required a shift of responsibility from strategists to divisional and functional managers. Implementation problems did arise because of the shift in responsibility. Change formulation issues came as a surprise to middle and lower level managers. The Agency now has also changed the way that it manages and introduces these changes. One of the main facilitators for this is the recent introduction and use of the PRINCE2 project management method as a key component of business change activity. b) Manage business change at strategic level For ROS, the one of aims of changing business process is to realize anticipated benefits. ROS has its own definition about benefit “A benefit is an outcome of change which is perceived as positive by a stakeholder” (Handouts). They take stakeholders into consideration means ROS think of business change from strategic level. Management issues central to these strategic implementation includes establishing annual objectives, devising policies, allocating resources, altering an existing organizational structure, restructuring and reengineering, revising reward and incentive plans, minimizing resistance to change, matching managers with the changing strategies, developing a change supportive culture, adapting production/operations processes, developing an effective human resource function and if necessary downsizing. Management changes are more extensive when changes within the firm are moving the firm in to a major new direction. C) Top- down process for managing change c.1) The drives for business change came from the top level Before decided beginning a business process change, ROS has done three kinds of things: Agency Business Strategy Review, McCartney Report and Post Implementation Review Recommendations. All of them are controlled by top. Managers and employees throughout the organization has to participate early and directly in strategy implementation decisions. Their role in strategy implementation should build upon prior involvement in strategy formulation activities. Such a commitment to implementation is a necessary and powerful motivational force for the managers and employees. Too often change implementers are too busy to actively support strategy implementation efforts, and their lack of interest can be detrimental to the organizational success. The rationale for objectives should be understood and clearly communicated throughout the organization. Internal strengths and weaknesses and external opportunities and threats should be clear and managers and employees questions should be answered. Top down flow of communication is essential for developing bottom up support. c.2) The adoption of PRINCE 2 The introduction and use of the PRINCE2 project management is a powerful evidence to illustrate that not only the business change itself came from strategic leaders’ thinking, but the way ROS manages and introduces change are controlled tightly by the Board. Prince 2 will help in the following ways It produces highly standardised projects which share a common approach, vocabulary and documents. Consequently it is a transferable skill and anyone familiar with a method can quickly be brought up to speed on a properly applied PRINCE2 project. It is a method which embodies best practice in project management It enshrines management by exception as a guiding rule, which allows the Project Manager to do their job without undue interference, while at the same time involving higher level managers when things go badly off plan or in PRINCE terms out of tolerance. It provides a controlled start, middle and end of projects Each type of document required by PRINCE2 is supplied as a template, which includes required sub-headings which produces easily comprehensible, standardised and complete documentation. It is tailorable to the needs of a specific organisation and/or project. It is royalty-free, therefore an organisation can advise/require its suppliers to use PRINCE2 without royalty concerns. PRINCE2 reference/material are published, so that an organisation need not develop and document its own project management method in order to train staff in its use. PRINCE2 is a process based approach to project management. It consists of eight high level processes: Directing a project (DP) This process will define the functions of the Project Board who are responsible for the project. Planning (PL) Planning is a process that will be involved throughout the projects life-cycle. The actual elements of Planning are: PL1. Designing a Plan PL2. Defining and Analysing Products PL3. Identifying Activities and Dependencies PL4. Estimating PL5. Scheduling PL6. Analysing Risks PL7. Completing a Plan. Starting up a project (SU) The purpose of Starting Up a Project will be to set the project up in the right way. Initiating a project (IP) A successful project should follow certain principles. Therefore this process will define quality responsibility and quality methods and tools that would be used for the project. Controlling a stage (CS) The Controlling a Stage phase will describe the day-to-day management of the project, i.e. the work of the Project Manager. It will be started after approval of a Stage Plan. Managing product delivery (MP) Managing Product Delivery will allow a controlled break between Project Manager and product creation/provision by teams or third party Suppliers. Managing Stage Boundaries (SB) Managing Stage Boundaries (SB) is a key step reflecting the decision point in the continuity of the project as planned, adjusted or stopped. This process will involve preparing for the next stage and reviewing the current stage and will also pick up the information which can help later in this project. Closing a project (CP) This will involve evaluating the projects result (The Post Project Review). Any lessons learned will be recorded, a handover document will be created if necessary and a post implementation review would then be planned. d) New products, new markets After conducting the business change, a flexible and simple to use web-based service will be provided by ROS---Registers Direct. Through this way, the paperwork be cut down and a new market----online market, be acquired. E-commerce would help ROS in the following ways. -The opportunity to be on equal ground with the largest of companies. - The potential to reach 30 - 50 million people worldwide, or a strong market locally. -The ability to gather demographics from the web and customers who visit your website. - The ability to conduct technical support activities on-line and conduct on-line commerce. - Reduction of phone charges, fax charges, printing costs, and postage costs. - Increased profit. - Efficient advertising - much lower cost than traditional print and television advertising. ii. Transformation Matrix Applied to ROS For transformational change, there is a practical matrix that maps out the current usage of transformational rhetoric (refer to www.managementfirst.com). It includes: New business form Corporate transformation Learning organization OT as ‘spiritual’ development The transformational change in ROS can be described as corporate transformation since the change emphasis system-wide change through a relatively controlled process PRINCE 2. In ROS, transformations are viewed as a ‘product’. Steps for successful change implementation 1. Create a sense of urgency. 2. Form a team of key stakeholders who support the initiative. 3. Form a vision: appealing & easy to understand & communicate. 4. Vision has to be communicated. 5. Obstacles should be removed--identify barriers & deal with them. 6. Plan for short-term wins. 7. Complete the process. 8. Anchor the changes in the organizational culture. Conclusion The situation at Registers of Scotland significantly showed a need of change in system to keep its records in a safe and secure mode. The only solution was a transformational change. How the change was to occur and how Prince2 was to be installed and implemented were described in the above sentences. The whole process showed a few limitations and even with all these limitations the Registers of Scotland had in fact reached its objective and could be termed as a successful one. References: 1. Change Management (2004); home.att.net/~nickols/change.htm; Accessed on 9th May 2006 2. Eight Steps For Successful Implementation; www.union.edu/PUBLIC/ECODEPT/kleind/transforming/eight-steps.html; Accessed on 9th May 2006 3. Transformational Change; www.transchange.com/sections/books/trans.asp; Accessed on 9th May 2006 4. Transformation Change; www.duchs.com/isbn/0966843509; Accessed on 9th May 2006 5. Transformational Change: How to Transform Mass Production Thinking; www.abduct.com/shopaaer/uk/product/0966843509.htm; Accessed on 9th May 2006 6. Prince2 ™ and Project Management Forum; www.p2ug.com; Accessed on 9th May 2006 7. What We Do; www.ros.gov.uk/aboutus/whatwedo.html; Accessed on 9th May 2006 Books 1. Kathryn M. Bartol & David C Martin (1998); Management 3rd Edition McGraw Hill; 2. Fred R. David (2001); Strategic Management 9th Edition Prentice Hall; Journal 1. Rolland LeBrasseur (2002);Organisational learning, transformational leadership and implementation of continuous quality improvement in Canadian hospitals. Australian Journal of Management. Read More