Theories and concepts concerning the best approach for organisational changes are in abundance. However, changes in organisations are still difficult and lead frequently to insufficient results. The reason for this is that almost all of the existing theories and conceptions concerning management of change have a very limited view.
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TOP-Change for the fifth technology revolution
1. TOP-Change
A framework for management of change in the fifth
technology revolution
Leon Dohmen
January 2010
Translation by William Martin
Theories and concepts concerning the best approach for organisational changes are in abundance.
However, changes in organisations are still difficult and lead frequently to insufficient results. The
reason for this is that almost all of the existing theories and conceptions concerning management of
change have a very limited view.
2. TOP-Change
Introduction
The term, management of change, has no unambiguous definition. For a good understanding,
this article uses the definition: to give optimal steering to change. Steering means: to guide in
a certain direction.
In the article ’The irrational side of change management’ McKinsey writes that in spite of
Kotter, still only 30% of the changes succeed. McKinsey concludes therefore that the rational
approach of Kotter does not work. According to McKinsey, changes must be carried out in a
more irrational manner. Apart from the fact many organisations now actually change
according to the approach of Kotter, it is interesting to look further into the comments of
McKinsey. Because, also with McKinsey’s approach, only a maximum of 30% of the changes
will succeed. If changes are rational or irrationally approached, in both cases it only concerns
the domain people as a component of the change. This view is much too limited. There are
still two other domains – technology and organisation – which have a considerable influence
on the success rate of changes.
The fifth technology revolution
According to Carlota Perez, we are presently in the fifth technology revolution. Changes in
this period are especially driven by Information Technology (IT). The five minute long video
‘Did you know’ on YouTube - http://www.youtube.com/watch?v=jpEnFwiqdx8 - sums up
pieces of information that typify this period. The conclusion of this video is: ‘We are living in
exponential times’. In the fifth technology revolution, technology, organisation and people
are the most important domains which are involved in changes.
Technology
This is the supply of available technology and the possibilities, limitations and the
impossibilities that this technology has. Where IT is concerned, the available technology is
limited to the IT domain. Even with this limitation, the supply of available technology is
enormous. Characteristically, the life cycle of new technology is (still) becoming shorter.
Organisation
Here it concerns processes and structure (including location) of the organisation.
Organisations commit IT for the realisation of their organisational goals. The application of
technology is tuned on this. In some branches, the application of new technology has an
enormous influence on the existing processes, structures and relationships. Internet
technology has made it possible to create a virtual world (V-world) next to a physical world in
which the meaning of the terms place, time and presence has drastically changed.
People
A new IT solution often means new work content and changing cooperation with colleagues
or people outside its own organisation. Often, because of this, interests of people change. The
main question is: How fast are people able to make new IT solutions their own and apply
them within their work situation? Other behaviour, new knowledge and skills must be
developed. This will be nearly always coupled with a learning process. However, this learning
process can be different for each person. It is popular to distinguish between people who have
grown up with IT (digital natives) and the elderly (digital immigrants). Besides this, people
have different learning styles which also affect the learning process.
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3. TOP-Change
Incomplete views
The view from the practice of the fifth technology revolution shows that there is a permanent
interaction between technology, organisation and people. For each issue where IT plays an
important role, the composition and interaction is different between the domains Technology,
Organisation and People. Each TOP-mix is unique and knows its own dynamics and
unpredictability. Results are never absolute and univocal. Here is where the most views that
the various professional fields and studies have developed go wrong. Many of these views
about how change can best be carried out limit itself to one or at most two domains of the
TOP-mix. Psychologists and behaviour scientists point to the importance of the people factor
and the developing of correct behaviour. IT project managers approach their issues from the
domain technology and restrict their IT project to this domain only. Most IT project managers
have no idea what takes place outside of their technical domain. Organisation scientists
especially evaluate processes and structures and explain which organisation form is most
appropriate for an
organisation. Each view
from a separate field of
study or profession is
incomplete and without
insight in the required
contribution of and
interaction between other
domains, only a partial
solution can be offered.
Only thinking and acting
over all domains, will
considerably increase the
success rate of
organisational changes
where IT plays an
important role. (Figure 1).
Figure 1: Relation between
domains of change and steering
Manager, leader, director
It has already been indicated in this article that each TOP-mix is unique, that the change
results are unpredictable and not univocal. Therefore, it is a big mistake to think that each
organisational change, where IT plays an important role, always take place in the same way.
There is not a sanctifying, always fitting form of steering. The steering of the change must be
tuned on the TOP-mix. Most organisations subconsciously choose a form of steering for an
organisational change where IT plays an important role. Mostly, without considering a
standard project management method, such as PRINCE2, is used.
There is a distinction between two basic steering profiles and a hybrid one. The two basic
forms involve the ‘hard’ side and ‘soft’ side of change (Figure 2). The ‘soft’ side helps to
provide steering within the people domain and is called leadership. The ‘hard’ side which is
called management, helps with the steering within the domains technique and organisation.
The third steering profile, a hybrid of ‘hard’ and ‘soft’, is called directing. A director knows
the composition and interaction of the TOP-mix in order to choose appropriate steering for an
organisational change where IT plays an important role. Often a change can be subdivided in
smaller segments. Each part can have its own separate necessary steering. The director knows
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4. TOP-Change
how to play with the different steering profiles. Where necessary he directs his time and
attention to the ‘hard’
side, but he is also able
to overcome resistance,
influence and persuade
people. Not just anyone
can direct. It is no
gimmick or trick.
Directing demands a
set of competences
which supports the
director to understand
what happens in the
TOP-mix and how to
coordinate the steering
of this.
Figure 2: ‘Hard’ and ‘soft’ side
of an organisational change
(http://www.enleadership.com)
Competences and change instruments
There exist only a few directors, who from a deep and broad understanding of the TOP-mix,
are capable to steer properly organisational change where IT plays an important role. It is not
an easy job to do, considering the scope and depth of the various professional fields and
studies that are hereby concerned. Here, training is necessary that develops a sustainable
insight in the interaction and working of the TOP-mix and which form of steering the TOP-
mix needs. Many managers do not look for their salvation in these sustained trainings. For
‘competence development’, one or two day trainings and seminars are eagerly used. People
are lured with slogans such as, ‘you will be on the edge of your seat’, ‘extraordinary full
programme’ and the promise ‘learned today and apply tomorrow’. In these one or two days,
they can never get a good insight in the working of the TOP-mix and how to provide here
optimal steering. These compact trainings lead to a superficial and over simplified ‘reality’ of
the fifth technology revolution. A good director must have the right mix of competences that
makes it possible sometimes to steer on the ‘hard’ side and sometimes on the ‘soft’ side when
it is necessary. The transformational competency model contains 18 competences and
supports to develop directing competences where understanding of the context (TOP-mix)
forms the basis. In the book, ‘Changing IT in six’, (published April 2010) it is explained
which competences contribute to the use of five change instruments to determine the correct
direction and approach for better steering and execution of organisational change where IT
plays an important role (table 1). These five instruments are part of the IBAFrame (IT
Benefits Accelerator Framework). The instruments provide for permanent alignment and
connection at different levels: organisation, group and individual. They help to determine a
common goal for all concerned parties and to choose an appropriate change approach. In
addition, these instruments help with stimulating involvement and cooperation and providing
the correct impulses to the learning process and personal contribution. The change
instruments offer support during all phases of the change process. Table 1 contains an
overview of the instruments, their objectives, focus and which competences are appropriate
with which instrument. The transformational competence model can be seen as the sixth
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5. TOP-Change
IBAFrame instrument. The section input contains competences that describe the supporting
knowledge and the understanding required to perform a task successfully. The competences of
the process section are made up from competences that transform individuals and contribute
to group activities and support the decision-making process. The third and last section output
aims at the competences that develop the capacity to carry out a task to satisfaction. These
competences are result oriented.
Change 'Hard' IBAFrame objectives 'Soft' IBAFrame objectives Objective and Phase change Relation with transformational competences
instrument Management Leadership work forms process Input Process Output
focused on
Roadmap • Point of departure, destination • Creating a collective Organisation/ Start/Centre •Strategic • Innovative
(corporate objective) and determine view and sense of direction Group orientation (SH) thinking (CA)
change route •Conceptual
• Make a connection between the thinking (TC)
change in the IT solution and changes
in the work domains of the users and
IT support
• Gain insight into the complexity of
the change by means of IT
Change • Tune the change approach to the • Ensure the proper atmosphere with Organisation/ Start/Centre • Interpersonal • Organisational • Flexibility (CA)
approach complexity level the organisational change by means Group understanding awareness (SH) • Holding people
• Translate the change approach into of IT; increase speed of change if (KI) accountable (MQ)
fitting work forms required and/or possible; offer
exploration and learning space if
necessary
Programme • Translate the corporate objective into • Encourage commitment and Group/Individual Centre/End • Teamwork and • Planning and
and derived objectives and make them cooperation cooperation (SA) initiative (KI)
Project SMART • Organising a dialogue • Team leadership • Achievement
management • Provide change routes and route (TC) orientation (SA)
characteristics (specifications) and a
time path
• Set the proper priorities (which
programmes and projects have to be
executed first)
• Ensuring a controlled (fitting)
execution
Knowledge • Accelerate the adoption of the new • Creating an optimal learning Group/Individual All phases • Information • Relationship • Concern for
management IT solutions environment seeking (MQ) building (MQ) quality and order
• Encouraging the (collective) • Analytical (TC)
learning process thinking
(KI)
Personal • Tune the personal objective to the • Provide meaningfulness and space Individual All phases • Self confidence • Customer
effectiveness corporate objective (via programme within the collective frames which (SA) service
and project objective) have been positioned by means of • Organisational orientation (SH)
• Improve the personal (individual) the other change instruments commitment
productivity (CA)
Table 1: Relation between IBAFrame change instruments and transformational competences (Source: ‘Changing IT in six’)
SH=Social and Human Skills, TC=Technical Competence, CA=Conceptual Ability, KI=Basic Knowledge and Information,
SA=Specific Skills and Attributes, MQ=Meta Qualities
Alpha and beta
In the current fifth technology revolution, the need for people with knowledge and skills from
all 3 domains, technology, organisation and people, is growing. A mixture of alpha and beta
knowledge forms here the basis. You can wonder if secondary education (in the Netherlands)
is taking this into account sufficiently. Still the classic two-part alpha and beta profiles is
applied. Students are forced to choose for one of the two profiles, while a mixed profile is
needed from the perspective of the fifth technology revolution.
Summary
‘Narrow streets breed narrow minds’. The limited and one-sided thinking concerning change
management insufficiently contributes to the success rate of organisational changes where IT
plays an important role. Only when these changes are approached from the total content of
technology, organisation and people - TOP-mix - a proper analysis of the issue is possible and
the correct steering can be chosen. For this, people are needed who have competences from
several fields of expertise or know how bring them together.
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Leon Dohmen is working at Logica as Principal Management Consultant.
Furthermore, he teaches Management of Technology at the Rotterdam Business
School for Master and MBA-programmes. He is co-author of the book ‘Changing
IT in six’ (published in April 2010).
- http://www.linkedin.com/pub/leon-dohmen/0/b24/92 -
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