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Four Strategies
1.
Four Change Management Strategies Fred Nickols ©
Fred Nickols 2003 All rights reserved www.nickols.us nickols@att.net
2.
Four Change Management
Strategies The source for the first three strategies presented here is “General Strategies for Effecting Changes in Human Systems” (1969) by Robert Chin and Kenneth D. Benne, Section 1.3 of Chap- ter 1 in The Planning of Change (2nd Edition), Warren G. Bennis, Kenneth D. Benne and Robert Chin (Editors). Holt, Rinehart & Winston: New York, NY. The fourth strategy is one of my own making. Change Strategy Underlying Assumptions Selection Factors Empirical-Rational People are rational beings and will Change strategy here centers on the follow their self-interest – once it is balance of incentives and risk man- revealed to them. Successful change agement. is based on the communication of information and the proffering of in- This strategy is difficult to deploy centives. when the incentives available are modest. Why risk what we have for For the most part, people are rea- an uncertain future that promises to sonable and they can be reasoned be no more than modestly better with. In short, they can be per- than the present? This is especially suaded. Value judgments aside, true when people currently have it they can also be bought. This is the pretty good. “carrot” side of carrot-and-stick management. But for reason and in- One stratagem of use here is to cast centives to work, there has to be doubt on the viability of the present very little in the way of a downside state of affairs. You can attempt to to the change and/or the upside has convince people that they are on a to greatly outweigh it. If there’s a burning platform (not a good choice big downside and it’s not offset by if they really aren’t) or you can sim- an upside that is big enough and at- ply try to persuade them that the tractive enough to offset the down- current state of affairs has a short side and null out any risk involved, shelf life. In either case, the story people will indeed be rational; that you tell has to convince them, not is, they will oppose or resist the you. change – overtly or covertly. A by-product of this strategy con- sists of converts, that is, people who buy the story. Some will see the light and want to sign on. These people can be very helpful. How- ever, depending on their stature in the organization, you might not want them. Another stratagem here is to sys- tematically target converts, that is, thought leaders and influencers who, if they buy the story and buy into helping make the change, will influ- ence others. © Fred Nickols 2003 2
3.
Four Change Management
Strategies Change Strategy Underlying Assumptions Selection Factors Normative-Reeducative People are social beings and will Change strategy here focuses adhere to cultural norms and values. squarely on culture – what people Successful change is based on rede- believe about their world, their work fining and reinterpreting existing and themselves and the ways in norms and values, and developing which people behave so as to be commitments to new ones. consistent with these beliefs. For the most part, most people do Ordinarily, culture doesn’t change want to “fit in” and “go along.” quickly and certainly not overnight. They will “go with the flow.” The This, then, is not the strategy of trick here is figuring out how to es- choice in a turnaround situation on tablish and define the flow. Again, short deadlines. set aside value judgments and you will see such commonplace prac- Moreover, an organization’s culture tices such as advertising, position- is as much in the grip of the infor- ing, and so on. Central here also is mal organization as it is the formal charismatic and dynamic leadership. organization. For this reason, this It is also the case that the influence strategy works only when the rela- of the informal organization is felt tionships between the formal and in- strongly here, especially in the form formal organizations are at least of communities of practice. cordial and hopefully harmonious. If they are at odds with one another, this change strategy is denied to management. Still, there is an avenue or two open here. Almost all change efforts have long-term as well as short-term goals. To some extent, the long- term change strategy will have to in- corporate some normative- reeducative actions. Enlisting and involving the informal leaders of the organization and keeping them in- volved is one such avenue. (It should be kept in mind that the for- mal and informal organizations of- ten overlap in the form of people who lead or influence large or im- portant constituencies and who also hold powerful positions.) © Fred Nickols 2003 3
4.
Four Change Management
Strategies Change Strategy Underlying Assumptions Selection Factors Power-Coercive People are basically compliant and Two major factors influencing the will generally do what they are told choice of this strategy are time and or can be made to do. Successful the seriousness of the threat faced. change is based on the exercise of authority and the imposition of sanc- If the organization sits astride the tions. fabled “burning platform,” the threat is grave and the time for action is This can range from the iron hand in limited. The metaphor of a burning the velvet glove to downright brutal- platform is useful but only if all ity – “My way or the highway.” concerned can in fact see that the The basic aim here is to decrease platform is on fire. This is rarely the people’s options, not increase them. case in an organization. Few com- Surprisingly, in many situations, panies are filled with people who people actually want and will read- understand the way the business ily accept this approach, particularly works and fewer people still appre- when all feel threatened and few ciate the threats it faces or the op- know what to do. This is the “stick” portunities it encounters. side of carrot-and-stick manage- ment. It has been argued that change- minded leaders should create a burn- ing platform. That idea might have merit in extreme situations but it also entails considerable risk – to the organization, to its people, and to the leader who attempts it. A mitigating factor here is the cul- ture. If the culture is basically one of a benign bureaucracy that is clearly threatened, its members are likely to go along with a sensible program, no matter how high- handed. Conversely, if the culture is laced with autonomy and entrepre- neurship but has grown fat, dumb and happy, people will resent and perhaps oppose or resist authoritar- ian moves. In this case, key posi- tions might have to be filled with new people. © Fred Nickols 2003 4
5.
Four Change Management
Strategies Change Strategy Underlying Assumptions Selection Factors Environmental-Adaptive People oppose loss and disruption The major consideration here is the but they adapt readily to new cir- extent of the change. This strategy cumstances. Change is based on is best suited for situations where building a new organization and radical, transformative change is gradually transferring people from called for. For gradual or incre- the old one to the new one. mental change, this is not the strat- egy of choice. This strategy seeks to shift the bur- den of change from management Time frames are not a factor. This and the organization to the people. strategy can work under short time It exploits their natural adaptive na- frames or longer ones. However, ture and avoids the many complica- under short time frames, a key issue tions associated with trying to will be that of managing what could change people or their culture. be explosive growth in the new or- ganization and, if it is not ade- Essentially, this is a strategy of self- quately seeded with new folks, the cannibalization, that is, you set out rapid influx of people from the old to eat your own lunch – before culture can infuse the new organiza- someone else does. tion with the old culture. Also known as “the die-on-the-vine” Another factor to consider is the strategy, this hinges on the com- availability of suitable people to monplace observation that, although “seed” the new organization and people are often quick to oppose jump-start its culture. Some can change they view as undesirable, come from other organizations but they are even quicker to adapt to some can come from the old organi- new environments. Consequently, zation, too. In the old culture can be instead of trying to transform exist- found rebels, misfits and other non- ing organizations, it is often quicker comformists who are precisely what and easier to create a new one and is needed in the new culture. They gradually move people from the old must be chosen with care, however, one to the new one. Once there, in- because of the politics and the pos- stead of being able to oppose sibility that some will bear grudges change, they are faced with the against some members of the old prospect of adapting to new circum- culture. stances, a feat they manage with great facility. The old organization, Another consideration here is per- then, is left to die on the vine. haps best termed as “bad apples” (i.e., people from the old organiza- tion who simply cannot be allowed into the new one). Strategy Selection Considerations 1. Degree of Change. Radical change or transformation argues for an environmental- adaptive strategy (i.e., “wall off” the existing organization and build a new one instead of trying to transform the old one). Less radical changes argue against this strategy. 2. Degree of Resistance. Strong resistance argues for a coupling of power-coercive and en- vironmental-adaptive strategies. Weak resistance or concurrence argues for a combina- tion of rational-empirical and normative-reeducative strategies. © Fred Nickols 2003 5
6.
Four Change Management
Strategies 3. Population. Large populations argue for a mix of all four strategies, something for eve- ryone so to speak. Diverse populations also call for a mix of strategies. This implies careful segmentation. 4. Stakes. High stakes argue for a mix of all four strategies. When the stakes are high, noth- ing can be left to chance. Moderate stakes argue against a power-coercive strategy be- cause there is no grand payoff that will offset the high costs of using the power-coercive strategy. There are no low-stakes change problems. If the stakes are low, no one cares, and resistance levels will be low. Avoid Power-Coercive strategies in low stakes situa- tions. 5. Time Frame. Short time frames argue for a power-coercive strategy. Longer time frames argue for a mix of rational-empirical, normative-reeducative, and environmental-adaptive strategies. 6. Expertise. Having available adequate expertise at making change argues for some mix of the strategies outlined above. Not having it available argues for reliance on the power- coercive strategy. 7. Dependency. This is a classic double-edged sword. If the organization is dependent on its people, its ability to command and demand is limited. On the other hand, if the people are dependent on the organization, their ability to oppose is limited. (Mutual dependency almost always signals a requirement to negotiate.) Generally speaking, there is no single change strategy. You can adopt a general or grand strategy (say, a power-coercive one) but, for any given initiative (and there will always be multiple initia- tives), you are best served by some mix of strategies and tactics. A useful exercise is to queue up the change initiatives and examine each of them in relation to the various change strategies. The end result of this exercise is a filled-in matrix something like the table below. Rational- Normative- Power- Enviromental- Empirical Reeducative Coercive Adaptive Change R-E Strategy 1 N-R Strategy 1 P-C Strategy 1 E-A Strategy 1 Initiative 1 R-E Strategy 2 N-R Strategy 2 P-C Strategy 2 E-A Strategy 2 R-E Strategy n N-R Strategy n P-C Strategy n E-A Strategy n Change R-E Strategy 1 N-R Strategy 1 P-C Strategy 1 E-A Strategy 1 Initiative 2 R-E Strategy 2 N-R Strategy 2 P-C Strategy 2 E-A Strategy 2 R-E Strategy n N-R Strategy n P-C Strategy n E-A Strategy n Change R-E Strategy 1 N-R Strategy 1 P-C Strategy 1 E-A Strategy 1 Initiative n R-E Strategy 2 N-R Strategy 2 P-C Strategy 2 E-A Strategy 2 R-E Strategy n N-R Strategy n P-C Strategy n E-A Strategy n Contact the Author Fred Nickols can be reached by e-mail at nickols@att.net. Other articles of his can be found on his web site at: http://home.att.net/~nickols/articles.htm © Fred Nickols 2003 6
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