What could be done to increase the probability of success?

250-300 words

After completing Exercise 10.5: Risk Exposure Calculator, determine if the success of your change initiative in the safety, cautionary or danger zone.  What could be done to increase the probability of success?   Support your response with one or more specific examples.

Chapter 10: Measuring Change

Chapter Overview

Measurement & control processes can play a critical role in guiding change and integrating the initiatives of others

Four types of control systems are discussed: Diagnostic / Steering Controls, Belief Systems, Boundary Systems, & Interactive Controls

Different types of controls are needed at different stages of the change process

The use of strategy maps as an alignment tool is explored

Three measurement tools are presented: the Balanced Scorecard, the Risk Exposure Calculator, & the Duration, Integrity, Commitment and Effort (DICE) model

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

The Change Path Model

Tracking & Measuring the change over time to assess progress, make modifications (as needed) & manage risk

Institutionalizing the change through systems

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Awakening

Chapter 4

Acceleration

Chapter 9

Institutionalization

Chapter 10

Mobilization

Chapter 5 through 8

Can Control Processes Facilitate Change?

Change agents often complain about how control systems & metrics impede change

BUT when controls and metrics are effectively deployed, they can be powerful aids to change

First understand the impact of existing controls on the change initiative

Then tackle the challenge of aligning controls and measures to facilitate change

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.2 – Impact of Measures & Control Processes on Change

Think of a change initiative that you are familiar with:

What measures and controls were used to track the change? Were they congruent with the change vision and strategy? Were they viewed as legitimate by users?

How was information captured and fed back? Did it arrive in a useful and timely form?

Did measures need to evolve and be modified over the life of the change initiative? How was this managed?

Were steps taken to ensure measures would be properly used? Were there risks arising from their use that needed to be managed?

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.2 – Impact of Measures & Control Processes on Change

Were goals and milestones established, used to plot process and make midcourse corrections? Were small victories celebrated?

Were the end state measures developed for the change consistent with the vision and strategy? Were they viewed as legitimate?

How were the end state measures fed back to users?

Were steps taken to ensure that end state measures were properly used? Were there risks and potential consequences that needed to be managed?

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Choosing Measures

Focus on key factors

Use measures that lead to challenging but achievable goals

Use measures and controls that are perceived as fair & approrpriate

Avoid sending mixed signals

Ensure measures deliver accurate & useful data

Match the precision of the measures with the ability to measure

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

The Change Context & The Choice of Measures

Choose Precise, Explicit, Goal Focused Measures Choose Approximate Measures, Vision Focused, “Learn as You Go” Measures
When Complexity & Ambiguity are: Low High
When Time to Completion is: Short Long

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Types of Control Levers

Interactive Controls – systems that sense environmental changes crucial to strategic concerns (e.g., market intelligence)

Boundary Systems – systems that set limits of authority & action and determine acceptable & unacceptable behavior

Belief Systems – organizational values & beliefs that underpin decisions

Diagnostic/Steering Controls – traditional control systems, focused on key performance variables

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Strategy & The 4 Levers of Control

Business

Strategy

Risks to be Avoided

Critical Performance Variables

Core Values

Strategic Uncertainties

Interactive Control Systems

Belief Systems

Boundary Systems

Diagnostic Control Systems

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

10

Control System Measures & Stage of the Change

Controls When Planning Change Controls in Early Stages of Change Controls in Middle Stages Controls Towards End of Change Initiative
Inter-Active Controls Assessing opportunities and threats Testing viability of existing vision, mission & strategy, given the environment Affirm that change project is aligned with environmental trends Assess how to use trends to increase prospects for success Ongoing monitoring Confirm that environmental assessment continues to support the change Obtain feedback re: success of the change relative to environmental factors On-going environmental scanning

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Control System Measures & Stage of the Change (con’t)

Controls When Planning Change Controls in Early Stages of Change Controls in Middle Stages Controls Towards End of Change Initiative
Boundary System Limit the change options to those within the boundary conditions Test the limits of what is acceptable Go/no go guidance on appropriateness of actions Go/no go guidance on appropriateness of actions Reassess risks Reestablish boundaries, if needed Test new boundaries, where appropriate Re-evaluate the boundary limits

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Controls When Planning Change Controls in Early Stages of Change Controls in Middle Stages Controls Towards End of Change Initiative
Belief System Assess congruence with purpose Congruence assessment Appeals to beliefs to overcome resistance Congruence assessment Congruence assessment Re-evaluation of core values

Control System Measures & Stage of the Change (con’t)

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Control System Measures & Stage of the Change (con’t)

Controls When Planning Change Controls in Early Stages of Change Controls in Middle Stages Controls Towards End of Change Initiative
Diagnostic and Steering Controls Assess impact of controls on the change project Consider what diagnostic controls will need to be developed and/or altered Develop milestones, diagnostic measures, & steering controls Develop tactics to alter control systems as needed Evaluate progress against milestones & measures Assess whether things are workings as they should Modify milestones & measures as needed Determine when project is completed Confirm changes are working appropriately Evaluate project & pursue learning on improvements for the next time

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Control System Focus & Stage of the Change

Early Stage of Change Middle Stages of Change Late Stages of Change
Focus on the “what” of change Focus on the “how” of change Focus on outcomes & the “what next” of change
Strategic Analysis: Goals, Resources, Environment Measure Progress and Effectiveness of Processes Strategic Reanalysis: Goals, Resources, Environment

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.3 – Application of Simon’s Control Systems Model

Consider a change you are familiar with:

Describe the control processes and measures that were used. What was their impact?

During the earlier stages of the change initiative

During the middle stages of the change initiative

During the latter stages of the change initiative

Were there forbidden topics, such as questioning strategy or core values? Were those limits appropriate and were limits tested?

Were small successes recognized & celebrated along the way?

What changes to measures & control processes would have assisted change?

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Strategy Maps & Change

Visual representation can be used to show how the change vision & strategy intend to link with each other.

They are linked through:

Employee learning and growth targets & goals

System and process targets & goals

Customer (internal/external) targets & goals

Desired financial targets and goals

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Strategy Maps & Change (con’t)

Human Capital

Informational Capital

Organizational Capital

LEARNING & GROWTH PERSPECTIVE

INTERNAL PROCESS PERSPECTIVE

CUSTOMER PERSPECTIVE

FINANCIAL PERSPECTIVE

VISION FOR CHANGE & STRATEGY

How Strategy Links the Perspectives

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

A Generic Strategy Map

Learning & Growth

Internal

Customer

Financial

What do we want to accomplish?

How do we plan to accomplish this?

Human Capital (staff competencies) 2. Information Capital (technology infrastructure) 3. Organizational Capital (climate for action)

Customer

mgmt

leadership

Innovation & comm. supremacy

Internal ops excellence

Effective governance & control

Perception, public relations

Current

Migrated

New

New Offerings

Solution Focused

Scalability strategies

Add / retain value customer

Increase revenue/customer

Reduce cost/customer

Revenue Growth Strategy

Productivity Strategy

Asset Utilization

Maximize Organizational Value

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

The Balanced Scorecard & Change Management

Vision & Strategy

Customers

Internal Business Process

Financial Shareholders

Employee Learning & Growth

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Generic Balanced Scorecard for Change

Vision & Strategy

Customers: To achieve our change vision, how should we appear to our customers

Internal Bus. Processes: To achieve our change vision, what business processes do we need to excel at?

Financial: to succeed financially, how should appear to our shareholders?

Learning & Growth: How will we sustain our ability to change & improve?

Objectives Measures Targets Initiatives
1.
2.
3.
Objectives Measures Targets Initiatives
1.
2.
3.

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.4 – Aligning Change & Building the Balanced Scorecard

Think about a change you are familiar with:

State the Mission, Vision and Strategy for the change.

Consider the Mission, Vision and Strategy of the organization:

Is the proposed change consistent with these?

If not, what needs to be done to bring them into alignment?

Financial Component of Scorecard: If you succeed with the change vision, how will it appear to the shareholders or those responsible for funding the change? How will you know (objectives & metrics)?

Customer Component of Scorecard: If you succeed with the change, how will it appear to your customers? How will you know (objectives & metrics)?

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.4 – Aligning Change & Building the Balanced Scorecard (con’t)

Internal Business Processes Component of Scorecard: If you succeed with the change, how will it appear in your business processes? How will you know (objectives & metrics)?

Employee Learning and Growth Component of Scorecard: If you succeed with the change, how will it appear to your employees and demonstrate itself in their actions? How will you and they know (objectives & metrics)?

Lay out the scorecard you’ve designed for your change and seek feedback from a classmate.

Can you show how the different components are connected to each other by developing a strategy map for the change?

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Factors Leading to Increase Risk

Change Pressure – Risk increases when change leaders feel:

Significant pressures to produce & accomplish the change

There are high levels of ambiguity

The leaders have little experience with change

Change Culture – Risk increases when:

The rewards for risk taking are high

Senior executives resist hearing “bad” news

There is internal competition between units

Information Management – Risk increases when:

the situation is complex and fast changing

gaps in diagnosis exist

if decision-making is decentralized

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.5 – Using the Risk Exposure Calculator

Score
Change Pressure Pressure to Produce Low High 1-2-3-4-5 Level of Ambiguity Low High 1-2-3-4-5 Experience with Change High Low 1-2-3-4-5 Out of 15 ___
Change Culture Rewards for Risk-taking Low High 1-2-3-4-5 Executives Resist Bad News Low High 1-2-3-4-5 Internal Competition Low High 1-2-3-4-5 Out of 15 ___
Information Situation Situation is Complex and Fast-changing Low High 1-2-3-4-5 Gaps Exist in Diagnostic Measures Low High 1-2-3-4-5 Change Decision-Making Decentralized Low High 1-2-3-4-5 Out of 15 ___
Total Score =

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Four Key D.I.C.E. Factors

Duration [D]

The time until the change program is completed or the amount of time between reviews of milestones

Integrity [I]

Extent to which companies can rely on teams of managers, supervisors & staff to execute change projects successfully

Commitment [C]

Dedication & support from top management [C1] and the employees [C2] to the change initiative

Effort [E]

Additional work that the change initiative demands from employees

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.6 – Applying the D.I.C.E. Model

Consider a change initiative that you know is currently be being considered for adoption and apply the DICE model to it.

Duration Score: 1 — 2 — 3 — 4 Score: ___

Score of 1 if formal reviews < 2 months

Score of 2 if formal review every 2 to 4 months

Score of 3 if formal review every 4 to 8 months

Score of 4 if formal review > 8 months

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.6 – Applying the D.I.C.E. Model (con’t)

Integrity of Performance Score: 1– 2 — 3 — 4 Score: __

Score of 1 if team leader has the skills needed and the respect of coworkers, team members have the skills and motivation to complete the project on time and at least 50% of the team members’ time has been assigned to the initiative

Score of 4 if change team and change leader are lacking on all dimensions.

Score of 2 or 3 if the factors lie somewhere in-between

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.6 – Applying the D.I.C.E. Model (con’t)

Commitment Score is a 2-part measure…

Senior Management Commitment: 1-2-3- 4 Score: __

Score of 1 if words and deeds of senior managers regularly reinforce the need for change

Score of 2 or 3 if senior managers are fairly neutral

Score of 4 if senior managers are perceived as less than supportive

Employee Commitment: 1 –- 2 –- 3 — 4 Score: ___

Score of 1 if employees are very supportive

Score of 2 if they are willing but not overly eager,

Scores of 3 or 4 as reluctance increases

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Toolkit Exercise 10.4 – Applying the D.I.C.E. Model (con’t)

Level of Additional Employee Effort & Demands over the normal load:

1 –- 2 –- 3 — 4 Score: ___

Score of 1 if incremental effort < 10%

Score of 2 if incremental effort 10% – 20%

Score of 3 if incremental effort 20%-40%

Score of 4 if additional effort > 40%

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Interpreting D.I.C.E. Change Risk Scores

Calculating The DICE Score:

(Duration Score +

2 x Integrity Score +

2 x Senior Management Commitment Score +

Local-level Commitment Score +

Effort Score)

Interpreting the Score:

Scores between 7 and 14: Win Zone

Scores between 14 and 17: Worry Zone

Scores over 17: Woe Zone

Do the findings help you to think about sources of risk and how to manage risk?

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

Summary

Care taken in the selection of measures and control processes help focus energy and effort

They can help enhance the efficiency & effectiveness of the change, provide an early warning system, & provide direction to midcourse corrections

They can help clarify what will be accomplished, what it will take to bring these things to reality & chart progress

The careful selection & use of metrics can be used to enhance the legitimacy & sense of ownership of the change

Cawsey, Deszca, and Ingols. Organizational Change, Third Edition. © 2016, SAGE Publications.

 

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