SYS380

MTA:
Made by: Timaa Bajabaa (2023-2024)
 (Chapter 1):
*Explain why managing organizational change is both a creative and a
rational process. Provide an example to clarify your explanation:

In management practice, what is going to work well when it comes to implementing

change depends on the organizational context. General guidelines help to identify the
factors to take into consideration which forms a rational process but the details have to
be determined by local, informed management and staff judgement which forms a
creative process.

Multiple perspectives is the most significant of these properties of the literature. That
is usually seen as a problem—“the experts can’t agree.” First, a perspective that works
in one context may not work well in a different setting. Second, “Should we define our
problem in these terms, or in some other way?” Third, “Can we combine ideas from two
or more approaches and adapt them to fit our context?”

The practicing manager, less interested in theoretical perspectives, wants to know

“what works?” There are difficulties in providing a clear answer to that question, too,
for the following reasons:

• Many variables: even with simple changes, the impact is multidimensional, and
measuring “effectiveness” has to capture all of the factors to produce a
complete picture.
• Slippery causality: it is difficult to establish cause and effect clearly across
complex processes that unfold over time, usually at the same time as lots of
other changes.
• Many stakeholders: different stakeholders have different views of the nature
of the problem, the appropriate solution, and the desirable outcomes— whose
measures to use?

For example, change will be more readily accepted if there is a “sense of urgency”.
That sense of urgency can be seen in the financial meltdown at Beth Israel and the falling
profitability at both Sears and J. C. Penney.
 *Referring to the case studies in your course work or your own reflections
provide an example of a change management in an organization:

❖ Beth Israel, Sears, and J.C. Penney stories:

• Beth Israel Deaconess Medical Centre:
• Managing a corporate turnaround. Key change issues:
a) Identification of the factors that explain the success of a
particular initiative.
b) Identifying factors specific to a change situation and those that
constitute ‘lessons’ applicable more generally.
c) The role of the ‘change leader’.

• Sears Holdings:
• Evaluating the impact of a particular style of leading organizational
change.
• Linking the appropriateness of a style of leading change to characteristics
of the context in which the change is occurring.
• Judging the success of a change initiative.

• J. C. Penney:
• Evaluating the effectiveness of a turnaround strategy.
• Managing reactions to change.
• Unanticipated consequences of a change initiative.

—————————————————————————————————
 (Chapter 2):
*Evaluate the use that different authors make of the terms change agent
change manager and change leader: Or *Do the terms change agent / change
manager and change leader refer to different roles in relation to organizational?

In practice the terms are intertwined. The term change agent traditionally refers to an
external consultant or adviser and while that role is still common , the term today is used
to refer to internal and external change agents. Change managers also can have the same
role but focuses more on planning, coordinating and executing change. While Change
leaders provide the vision, strategic direction, and inspiration for change.

The term change agent refers to an external expert management consultant who was
paid work out what was going wrong in an organization and to implement change to put
things right. Today a change agent can just be likely a member of the organization as an
external consultant. Internal change agents usually have a better understanding than
outsiders of the changes that would lead to improvements.

*Compare and contrast six different images change managers:

1) Change Manager as Director (Controlling Intended Outcomes):

This change involves a strategic management choice upon which the well- being and
survival of the organization. For example, the change management response could
involve a new corporate IT system, to analyze larger volumes of data.

2) Change Manager as Coach (Shaping Intended Outcomes):

The assumption is that change managers can intentionally shape the organization’s
capabilities in particular ways. For example, a sports coach, can shape the
organization’s or the team’s capabilities in a competitive situation to succeed.

3) Change Manager as Navigator (Controlling Some Intended Outcomes):

The outcomes of change are shaped by a combination of factors including the past
present, and future. For example, external and internal factors which could be new
technology, process redesign.

4) Change Manager as Interpreter (Shaping Some Intended Outcomes):

The manager creates meaning for other organizational members, helping them to
make sense of various organizational events and actions. For example, is one situation
where competing interpretations are inevitable.

5) Change Manager as Caretaker (Controlling Unintended Outcomes):

The manager’s control by a variety of internal and external forces beyond their scope.
For example, the change manager's desire to encourage innovative behavior, this may
become a failing if the organization grows need more bureaucratic action.

6) Change Manager as Nurturer (Shaping Unintended Outcomes):

The image assumes that even small changes can have a large impact on organizations,
and that managers may be unable to control the outcomes of these changes. For
example, a parent's relationship with a child.
 *Explain the importance of the organizational images and mental models:

The images or mental models that we all have provide us with ways of
understanding the world around us. While these images are useful, we have to
appreciate that "Ways of seeing” are also “Ways of not seeing”.

Focusing on specific attributes of a situation of necessity means overlooking other

attributes, which may sometimes be important. Change managers approach their
task with an image of the organization, an image of the change process, and an image
of their role in change. These mental models—our “images-in-use”—have profound
implications for change management practice.

*How the six images framework used in practice of organizational change: Or

*Six-images of change managers have Three Core Uses discuss them in practice:

We identified three uses of the six-images framework in practice:

1) Surfacing assumptions about change:

They highlight a variety of assumptions that change managers make about
change. The mental models help us to simplify and make sense of the complex
organizational worlds.

2) Assessing dominant images of change:

They draw attention to the dominant images of change within an organization.
For example, the director image turns our attention to the outcomes. In this case,
change managers whose images are not consistent with the dominant
organizational image may experience stress as they work with a change.

3) Using multiple perspectives and images of change:

They highlight a range of perspectives available to change managers. For example,
a manager's personality affects his way of managing indirectly. If a manager is
exposed to different images, this will be a big advantage.

❖ A Conscious choice of “image-in-use” based on the following four sets:

• Image in use depends on the type of change.
• Image in use depends on the context of the change.
• Image in use depends on the phase of change.
• Image in use depends on involvement in multiple changes

❖ Three Core Uses of the Images:

• There are no “right” and “wrong" images of change management.
• It is valuable to be able to interpret problems and solutions in general and
changes processes in particular, from different standpoints.
• This “multiple perspectives” approach help create fresh thinking and creative
solutions.

—————————————————————————————————
 (Chapter 3):
*A. Explain four internal organizational change pressures that can trigger
change: B. Reflecting on your experience and research, explain some internal
organizational change pressures that triggered change within a company:

1- Growth: generates problems of increased size and complexity, and at some

point the need for formal rules interferes with the need for creativity and
innovation.

2- Integration and collaboration: are common problems in larger organizations,

often requiring cultural, structural, and process solutions to improve cross-
divisional communication and information sharing.

3- Corporate Identity: may be an abstract concept, but shared purpose and goals,
and a strong corporate brand, can be valuable competitive assets requiring
appropriate changes to protect and build them.

4- A new chief executive: is often expected to bring fresh ideas and energy and to
move the organization in new directions.

5- Power and Politics: both drive and interfere with organizational change,
depending on the interests of stakeholders and their ability to influence
management decision making.

Defensive' agendas designed to prevent something happening (again) can effect

development of something new (e.g., products, markets, systems) change managers, who can
experience more challenge from implementing progressive change. It may be helpful to
combine defensive agendas with progressive agendas to progress (develop).

*An organization rarely has the luxury to face one of the external
environmental pressures as discussed in your course work as external pressures
are constantly active. Explain five pressures for change:

1- Demography: organizations need to consider how to address the changing motives of

each new generation. For example, the generation (born post 1990) take for granted
the internet and social networking.

2- Mandate: many changes are nonnegotiable, driven by legislation and regulation, and
others are difficult to avoid, such as expectations of corporate responsibility.

3- Reputation: an organization’s sales and credibility can be badly affected by process,

product, service, rapid changes to restore and build reputation often be necessary.

4- Hyper competition: change is being driven by disruptive innovation, can be seen “out-
of-sector” competition, where organizations which are not in your business sector
start to steal your customers.
 5- Geopolitics: events in distant locations can have “ripple effects” around the planet,
and all organizations need to address the implications of climate change and global
warming.

6- Fashion: managers want to appear to be “progressive,” looking out for “the next big
thing”. For example, Boeing underwent a number of structural and cultural changes
based on what Jack Welch had done at GE.

————————————————————————————————————
*Questions from book:
*Explain why not all organizations are affected equally by external pressures:

To explain why external pressures do not always lead to change, we outline four
debates; First: Organizational learning vs. threat-rigidity: Whether external pressures
facilitate or inhibit the process of change. Second: Environment as an objective entity vs.
environment as a cognitive construction: The former treats the environment as an
objective entity to which managers must respond.

Third: Forces for change vs. forces for stability: External forces can vary; they either
promote change or promote stability. Fourth: Bridging (adapting) vs. buffering
(shielding): These represent either strategies that can maintain effectiveness by adapting
parts of the organization to changes happening in the outside environment.

*Explain why organizations often fail to change following crises:

❖ Factors may include:

• Organizational learning difficulties: Many organizations are good at passive
learning (identifying lessons) but not so good at active learning (implementing
those changes).
• Second-order and third-order causal factors are not understood: The causes of
these incidents are usually complex and systemic, requiring systemic solutions.
• Lack of a ‘psychologically safe environment’.
• ‘Defensive’ agendas designed to prevent something happening (again) can be
less appealing/rewarding than ‘innovative’ agendas focused on the
development of something new (e.g., products, markets, systems).

*Relate differing images of managing change to pressures for change:

External and internal pressures or drivers do not necessarily lead to change. Those
pressures are filtered through the perceptions of the need for change, and those
perceptions are in turn colored by the images that managers have of the change process.
One manager’s reaction to a particular external or internal pressure, therefore, may not
be shared by others.

—————————————————————————————————
 (Chapter 5):
*Incremental and transformational change in organizations can be described
as first, second, third change or as a metaphor of depth. Explain the descriptions:
Or *Explain several different ways of categorizing different types of change:

We need to distinguish between incremental change, which is gradual and small scale,
and transformational change, which is radical can often be rapid (fast). First order and
second order change can be used to refer incremental and transformational change.

First order change involves specific initiative that solves a problem or makes
improvements in ways that do not present a challenge to current methods and thinking.
First order change is adaptive and implies a degree of continuity and order. Example,
safety features in motor vehicles from seat belts to electronic sensors.

Second order change leads to organizational transformation by introducing new

products, services, and ways of doing business based on creative lateral thinking that
alters current core assumptions. Second order change is disruptive and discontinuous.
Example, the development of electric-powered self-driving motorcars.

Third order change is based on the habitual questioning of assumptions and points of
view, contributing to what can be a chaotic process of continual adaption, self renewal,
and self organization. Example, Walmart and other retail supermarkets sell motorcars
thus threatening established dealer networks.

Depth is a metaphor used to categorize different types of change:

• Off the scale: disruptive innovation, frame-breaking, mold-breaking.

• Deeper: paradigm shift, strategic change, third-order change.
• Deep change: change the mission, vision, values, the organization’s philosophy.
• Sustaining innovation: improve business planning to symbolize a shift in thinking.
• Shallow change: incremental, fine tuning: cut costs, first-order change.
• Not on the scale: “Sweat the small stuff” quickly solve the minor annoying
problems.
 ————————————————————————————————————
*Questions from book:
*Identify practical implications of different types for the change manager:

First implications concerns matching solutions with problems. Second implication

concerns the nature of the change management task. Third practical issue concerns,
management reputation. Fourth challenge, to coordinate initiatives to avoid duplication.

The Project Management Institute study identified four factors contributing to the
effectiveness of PMOs:
• They need a senior executive champion.
• Their role must be clearly understood.
• The change professionals must have the respect of functional departments.
• PMOs need to collaborate with functional departments in the development of
initiatives.

Example, at the National Cancer Institute, the PMO head found that teams working
on early-phase drug development projects started every project plan from scratch.

*Assess the significance of organizational culture with regard to organizational

performance and reputation, and the role of leaders as culture architects:

Organizational culture can cause many problems such as; Drop sales turnover and Poor
public reputation, Staff absenteeism. For example, Nasa organizational culture is
important because it:
• Helps to attract staff.
• Provides direction for the company.
• Shapes the public image of an organization.

❖ A strong culture: Organization values are widely shared.

❖ A weak culture: Little agreement about core values.

*Assess the potential impact of new digital technologies in general, and the
potential organizational benefits of applications of social media in particular:

❖ The impact of digitalization:

Martin Hirt and Paul Willmott argue that digital technologies are “profoundly changing
the strategic context: altering the structure of competition, the conduct of business,
and ultimately, performance across industries” Emphasizing that digitalization is a
“moving target” they identify three strategic opportunities:

• Enhancing interaction.
• Improving management decision.
• Creating new business models.

—————————————————————————————————
 SYS380
Case studies:
Made by: Timaa Bajabaa (2023-2024)
 *Case study:
LEGO
Lego’s reinvention has seen its story hailed as the greatest turnaround in corporate history. From 1932 until 1998,
Lego had never posted a loss. By 2003, it was an entirely different story. Sales were down by 30% year-on-year and
the brand was $800 million in debt.
Lego’s CEO, Jorgen Vig Knudstorp, admitted that the brand is running out of cash. Lego eventually realized that its
lifespan of physical products was not going to have an infinite interest. After a period of expansion, this beloved toy
company was near bankruptcy in 2004. With this realistic yet disastrous outcome on the horizon, Lego decided it
was time to start restructuring.
To begin, the business implemented digital transformation. Instead of putting their sole focus on physical toy
products, Lego is increasingly concentrating on bridging the physical and virtual augmented reality (AR)
experiences. Now, Lego’s revival has gone down in history. By finding new sources of revenue, LEGO has managed
to transform its brand and keep up with the requirements of its target audience today.

*Identify and explain the three images of change outcome. Reflect on your
answer with examples: Or *Analyze the images of change and outcome of
change related to Lego according to your understanding by referring to the
pressures of change undergone in Lego: (Chapter 2)

The three images of change outcomes are :

1) Intended change outcomes:
Change is the realization of prior intent through the actions of change managers. For
producing intentional change there are three strategies : empirical rational strategies,
normative re-educative strategies, power- coercive strategies.

2) Partially Intended change outcomes:

In this image it is assumed that some but not all planned change outcomes are
achievable. Power, processes, interests and different skill levels of managers affect their
ability to produce intended outcomes. Intended outcomes may be adapted along the
way or externally imposed forces.

3) Unintended change outcomes:

The variety of internal and external forces can push change in unplanned directions.
Internal forces can include interdepartmental politics, long established working practices
and deep seated perceptions and values. External forces can include confrontational
industrial relations, legislative requirements or industry wide trends.

To combine these change outcomes with LEGO, in my view, I believe there are a number of
intended and unintended change outcomes, as LEGO did not face technological change in its
beginnings, which affected it with a huge loss that could have led to the company’s bankruptcy
which was unintended. While there were intended change outcomes in terms of adopting
digital transformation or technological transformation, as The impact of digitalization was
discussed by Martin Hirt and Paul Willmott as they argue that digital technologies are
“profoundly changing the strategic context: altering the structure of competition, the conduct
of business, and ultimately, performance across industries” Emphasizing that digitalization is
a “moving target” they identify three strategic opportunities:

• Enhancing interaction.
• Improving management decision.
• Creating new business models.
 *A. Explain the difference between sustaining and disruptive innovation: B.
Discuss the implication of this distinction for change management by providing
an example of sustaining and disruptive innovation: Or *Explain the difference
between sustaining and disruptive innovation. Discuss the Implication of this
distinction for change management through Lego: (Chapter 5)

Sustaining innovations improve current practice, while disruptive innovations

introduce wholly new ways of doing things.

• Sustaining innovations:
It does not involve chaos and upheaval. Sustaining innovation achieves benefits
to through small scale initiatives. Many organizations have profitable business
based on traditional products. New technology cannot always replace old
technology. Example, Swiss watches In the United States, by 2014.

• Disruptive innovations:
Disruptive innovations are difficult to understand, cannot be observed and tested
and cannot be compared with current practice. The change manager can be a
disruptive innovator by adopting five habits, associating , questioning, observing,
experimenting, and networking which are developed through practice. Example,
Its difficult that the organization seeking to develop the capabilities for handling
disruptive innovation.

From a change management perspective it is usually easier to persuade others

of the value of sustaining innovations, disruptive innovations are more difficult
to explain, and because they make current practice obsolete, they be seen as
more risky. Most organizations do not have established procedures or routines
for handling disruptive innovations which thus often implemented by small start
up companies rather than large established organizations.

Regardless, disruptive innovations are not usually carried out by large companies, as we
mentioned previously. However, in this case, Lego presented a disruptive innovation as it
shifted its focus from selling physical games to virtual world games, which served as a bait of
salvation that saved the company from bankruptcy and made its change recorded historically.

—————————————————————————————————
 *Case study:
NOKIA
NOKIA Before smartphones entered the mainstream market, Nokia was enjoying the success it had built , as the
business had claimed 40 % of the market share in 2007. Five years later, however, the Finnish organization was
almost finished! It edged closer to disaster as shares plummeted and the company logged more than $2 billion in
operating losses in the first half of 2012 alone. The problem ? Nokia realized that it had missed the opportunity to
lead the smartphone revolution. Nokia then hired a new CEO and embarked on a journey to reinvent itself . After
selling its struggling mobile device division to fellow giant Microsoft , the concentration shifted to network and
mapping technologies . In 2008, Nokia introduced a Booster Program that helped the company match the ever-
changing aspirations of its customers , as well as technologies among competitors. They went from nine to four
business units and streamlined development into just three business units . rile Nokia also purchased Siemens and
then Alcatel-Lucent. The result was billions gained in shareholder value and Nokia became a full-service
infrastructure provider. Nokia's amazing transformation from a borderline bankrupt hardware manufacturer to
leading technology players shows how major organizations can respond to serious disruptions by transforming
themselves.

*Analyze the image of change and outcome of change related to Nokia

according to your understanding by referring to the external pressures of change
undergone in Nokia: (Chapter 2)

The three images of change outcomes are :

1) Intended change outcomes:
Change is the realization of prior intent through the actions of change managers. For
producing intentional change there are three strategies : empirical rational strategies,
normative re-educative strategies, power- coercive strategies.

2) Partially Intended change outcomes:

In this image it is assumed that some but not all planned change outcomes are
achievable. Power, processes, interests and different skill levels of managers affect their
ability to produce intended outcomes. Intended outcomes may be adapted along the
way or externally imposed forces.

3) Unintended change outcomes:

The variety of internal and external forces can push change in unplanned directions.
Internal forces can include interdepartmental politics, long established working practices
and deep seated perceptions and values. External forces can include confrontational
industrial relations, legislative requirements or industry wide trends.

To combine these change outcomes with NOKIA, in my view, I believe there are a number of
intended and unintended change outcomes, as NOKIA did not face technological change in its
beginnings, which affected it with a huge loss that could have led to the company’s bankruptcy
which was unintended. While there were intended change outcomes in terms of adopting
digital transformation or technological transformation, as The impact of digitalization was
discussed by Martin Hirt and Paul Willmott as they argue that digital technologies are
“profoundly changing the strategic context: altering the structure of competition, the conduct
of business, and ultimately, performance across industries” Emphasizing that digitalization is
a “moving target” they identify three strategic opportunities:

• Enhancing interaction.
• Improving management decision.
• Creating new business models.
 *The field of change management is rich in tensions and paradoxes " Explore
any five of the tensions and paradoxes that change managers in Nokia
experienced during decisions of change: Or *Identify the main tensions and
paradoxes in managing organizational change: (Chapter 1)

• Tension when two or more ideas are in opposition to each other.

• Paradox when two or more apparently correct ideas contradict each other.

The field of change management is rich in tensions and paradoxes:

1. Transformational change, or “sweat the small stuff”?

The Beth Israel, Sears, and J. C. Penney stories reflect this view, implementing whole-
organizational changes to deal with survival threats.
2. Systematic Tools, or Messy Political Process?
Change is a creative process as well as a rational one. Organizations are political
systems, there are often “winners and losers,” so change is a political process.
3. Organizational capabilities, or personal skills?
Beth Israel was formed by the merger of two organizations with different cultures.
Causal management style that encouraged professional autonomy and creativity.
4. Rapid Change, or the Acceleration Trap?
The pace of change—social, political, economic, technological—appears to have
accelerated. Can organizations keep up?
5. Change Leader, or Distributed Leadership?
It is widely assumed that change needs a champion, a senior figure, who sets the
direction, inspires others, and drives the project.
6. Learning Lessons, or Implementing Lessons?
Change following crises, accidents, misconduct, failures, and other extreme events
often does not happen.

Looking at Tensions and Paradoxes, we find that Nokia faced transformational change
through digital transformation, which helped the company a lot in regaining its market
position, but it was not the leader in the field of rapid change because it was late in its
transformation, which clearly affected the company.

—————————————————————————————————
 *Case study:
NETFLIX
In 1997, the gargantuan media-services provider Netflix was born. Mrevious the model offered cuitomen monthly
subseriations to have movies posted to their door. This meant they avoided the late fees which the dittoing move
rental bushes imported upon customer. From the beginning, Netflix proved to be a disruptive organic anion which
has likely resulted in its capacity to transform and actor to the digital world. Streaming began in 2007 for the business
and meant subscribe no longer needed to wait for ovos to come through the mail. Netflix successfully implemented
change management to meet the needs of the consumers that would begin to watch content online. At. one stage, it
was at a crossroads, when its longterm sustainability was dependent on how it managed the change to a digital
picture. After surviving a drop in subscription numbers and stock figures, Netflix subscribers grew from 23 million
in 2011 to more than 137 million in 2018. 50 trusting their plan worked, as the business knew DvDs were on their
way out and they needed to shift goals.

*Referring to Netflix , analyze the image of change Type of outcome according

to your understand of Netflix organizational context. Discuss the implication of
the image chosen by discussing the move of Netflix as sustaining or disruptive
innovation: (Chapter 5)

Sustaining innovations improve current practice, while disruptive innovations

introduce wholly new ways of doing things.

• Sustaining innovations:
It does not involve chaos and upheaval. Sustaining innovation achieves benefits
to through small scale initiatives. Many organizations have profitable business
based on traditional products. New technology cannot always replace old
technology. Example, Swiss watches In the United States, by 2014.

• Disruptive innovations:
Disruptive innovations are difficult to understand, cannot be observed and tested
and cannot be compared with current practice. The change manager can be a
disruptive innovator by adopting five habits, associating , questioning, observing,
experimenting, and networking which are developed through practice. Example,
Its difficult that the organization seeking to develop the capabilities for handling
disruptive innovation.

From a change management perspective it is usually easier to persuade others

of the value of sustaining innovations, disruptive innovations are more difficult
to explain, and because they make current practice obsolete, they be seen as
more risky. Most organizations do not have established procedures or routines
for handling disruptive innovations which thus often implemented by small start
up companies rather than large established organizations.

Regardless, disruptive innovations are not usually carried out by large companies, as we
mentioned previously. However, in this case, NETFLIX presented a disruptive innovation as it
transformed the method of broadcasting movies from sending them via mail to subscriptions,
thus saving more time for consumers, and this was equivalent to making Netflix sit on the
throne of the three best applications for watching movies.
 *Evaluate the strength and weakness of your current understanding of change
management with reference to Netflix: (Chapter 1)

Multiple perspectives is the most significant of these properties of the literature. That is
usually seen as a problem—“the experts can’t agree.” First, a perspective that works in one
context may not work well in a different setting. Second, “Should we define our problem in
these terms, or in some other way?” Third, “Can we combine ideas from two or more
approaches and adapt them to fit our context?”

The practicing manager, less interested in theoretical perspectives, wants to know “what
works?” There are difficulties in providing a clear answer to that question, too, for the
following reasons:

• Many variables: even with simple changes, the impact is multidimensional, and
measuring “effectiveness” has to capture all of the factors to produce a
complete picture.
• Slippery causality: it is difficult to establish cause and effect clearly across
complex processes that unfold over time, usually at the same time as lots of
other changes.
• Many stakeholders: different stakeholders have different views of the nature
of the problem, the appropriate solution, and the desirable outcomes— whose
measures to use?

❖ Literature can be difficult to access, and to absorb, for the following reasons:
1. Multiple perspectives: there are contributions from several different schools and
academic disciplines.
2. Conceptual spread: the concepts that are used range in scale, from whole schools of
thought or perspectives.
3. Fluid boundaries: depending on the definitions of change and change management in
use.
4. Rich history: interesting and useful contributions date from the 1940’s.
5. Varied Settings: come from a range of organizational types, using different
methodologies.

From a change management perspective it is usually easier to persuade others of the value
of sustaining innovations, disruptive innovations are more difficult to explain, and because
they make current practice obsolete, they be seen as more risky. Most organizations do not
have established procedures or routines for handling disruptive innovations which thus often
implemented by small start up companies rather than large established organizations. As we
can see here that NETFLIX did a disruptive change which made it one of the largest platforms
for watching movies.

—————————————————————————————————