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Introduction
Due to growing of globalization, advance technology, and organizational consolidation,
change is nowadays become a crucial part of every organization in order to survive in
changing business environment. To handle the change, change management is required in
transitioning for both organizational and individual level to attain future desired change
(Hughes, 2006). Change at organizational level is related to strategy which will indicate
organizational direction and activities (Thornhill, Lewis, Millmore and Saunders, 2000). In
developing effective organization strategy, both internal and external environments have to
be taken into consideration. When the strategy has been changed as adapting to changing
internal and external environments, strategic change is necessity to be utilized in change
management in order to align change with developed strategy. As individual change is
pivotal part of organization change, change management need to be adopted at individual
level in order to initiate the change and consequently obtain successful organization
change.
As change agent takes responsibility of implementing change, they need to have clear
understanding of strategic change concept including change models, approaches and tools
in order to implement change appropriately. The essential skills required for change agent
are analytical skill for analyzing change contexts, judgmental and critical thinking skills for
prioritizing the contexts base on importance, and implementation, interpersonal and
influencing skills for applying change to related people in the organization (Balogun and
Hailey, 2008). Besides, self awareness is also important for change agent to realize the
need of change from organization perspective rather than their own perception and
experience.
Change Approaches
Some of hi-lighted approaches to change are planned and emergent approach. For planned
approach, change is deliberately developed through intentional and rational process driven
from top down based on assumption of stable environment (Hayes, 2002). Its original
purpose is to achieve effectiveness improvement of human operation through group
application of change program (Burns, 2004). It perceives that one change which is a series
of linear events can be applied for all parties (Graham, Lecture session 4 - 16 October
2009). In contrary, change from emergent approach is initiated from contingent and
unpredictable environment. It is built up from interrelated several variables such as external
environment and process of decision making (Graham, Lecture session 4 - 16 October
2009). The process of change in emergent approach is open-ended and continuous driven
from bottom up and adapted to changing organization context (Hayes, 2002).
Change Tools
Among number of implementing tools, well-known tools which are used for analyzing
organization external business environment as illustrated in APPEXDIX C are PESTEL and
Porter's five forces. For internal environment or organization context, Change kaleidoscope,
Culture web and Force field analysis can be applied whereas SWOT analysis is for
analyzing both internal and external environment. PESTEL will provide analysis for macro-
environment factors which influence success or failure of organization including political,
economic, social, technological, environment and legal (Johnson, Scholes, and Whittington,
2009). While Porter's five forces scope down analysis to industry which organization is in. It
will identify organization competitiveness and attractiveness of industry through analysis on
threat of entry, threat of substitutes, power of buyers, power of suppliers and competitive
rivalry. In contrary, Change kaleidoscope concerns analysis of three components which are
organization context, change contextual features, and design or implementing choices for
change (Balogan and Hailey, 2008). Whereas Cultural web will point out current obstacles
of change and provide direction to adjust organizational culture, force field analysis is
adopted to identify driving and restraining forces to change at individual level. It suggests
three stage of individual attitude changing process which is unfreezing, learning, and
refreezing (Balogun and Hailey, 2008). In contrast, SWOT is applied to analyze both
strengths and weaknesses of organization and opportunities and threats from outside
organization.
Change Kaleidoscope
To apply change successfully, organization context needs to be analyzed in order to select
appropriate implementing options. Change kaleidoscope can be utilized effectively as it
provides both available range of implementing options and contextual features analysis.
Change awareness from organization aspect is encouraged by using this tool in which
model and details can be referred from APPENDIX D. Organization need to examine
contextual constraints and enablers to change in order to evaluate its change ability and
consider implementing choices of path, start point, style, target, interventions and roles.
Using Kaleidoscope allows organization to understand the reason why design choice is
appropriate or inappropriate to particular context. Kaleidoscope is normally used by change
agent group to solve change problem through three steps which are assessing contextual
enablers and constraints, determining change path, and selecting other change choices.
However, to achieve complete change design, other tools such as cultural web need to be
implemented together with Kaleidoscope. Although Kaleidoscope establishes well structure
for transition state, challenges of this tool is occurred from interventions of other changes
during processing which need to be synchronized over the time. Due to complexity and
resource consuming in transitioning, competencies of analytical, judgmental, and
implementation skills cannot be deficient for change agent. In addition, even though
Kaleidoscope can be implemented in different change circumstance, it is most appropriate
to planned change which aims to achieve particular goal (Hailey and Balogun, 2002).
4. Diversity (+) - Change is required for sales division only. Therefore, diversity is low
and enabler for change.
5. Capability (n) - From low experience of change management in sales divisions with
highly educated workforce, capability is marked as neutral.
8. Power (n) - With high volume of employee preservation, power of directors to impose
change is limited consequence of neutral mark for power.
Considering nature and result of change, Glaxo made decision to initially employ big bang
reconstruction path from senior management to generate change readiness for long term
transformation in second stage by employing RATIO program. It was likely that senior
management employed intervention rather than direction to create change awareness and
sense of ownership. Also, constraint of low capability was overcome by adopting of outdoor
development course suggested by outside consultants.
1. Time (+) - There is no urgency for change so the mark is still positive
6. Capacity (+) - Glaxo still maintains its strong capacity for investment.
From result and nature of change, Glaxo had considered taking evolution path for further
fundamental change and other implementing choices are chosen as below elucidated
1. Change path - Glaxo had taken evolution path through reconstructing and
reengineering programme in order to develop long term transformational change.
There is transformation of Glaxo brand and image though increasing customer focus
and relationship. However, the attitude survey showed that there is no substantial
change in employee values.
2. Starting point - The starting point of change is still mandated from top management.
3. Style - The style of change was judged to be participation from collaboration in real
implementation although consideration of organizational strategy and change
process were still made by senior management.
Conclusion
Glaxo has undergone major two stages of changes. Emergent approach has been applied
in combination with planned approach in order to achieve successful long term organization
change and Change Kaleidoscope is used as a tool to implement change. Kaleidoscope
model used to conduct analysis of each Glaxo's contextual features in order to determine
most appropriate implementation options available. In the first stage, it creates change
readiness among employees and change organization structure from reconstruction to be
evolution in second stage. However, the satisfied level of change is not achieve since the
embedded of organization value is not radically change cause from insufficient change
target and the deviation of conducting personal development from business strategy.
Moreover, there is critical point on over optimistic of Glaxo base on its success in
pharmaceutical industry, change capacity, expiration of Zantac patent, and anticipation of
faster change in NHS (Hailey and Balogun, 2002).
Summary
In current changing business environment driven from a range of factors, there are various
approaches and tools use to manage changes. Due to different internal and external
environments, each organization has to consider and analyze their own environment in
order to adopt the most appropriate approach and tool to implement change successfully.
For Glaxo case study, both emergent and planned approaches to change has been applied
to complete long term transformational change. Change Kaleidoscope tool is used to
analyze its contextual feature and select the most suitable design choices to implement the
change. After executing change, Glaxo achieve increasing level of change awareness in
first level of change and achieved a level of transformational change in second stage
although it is not reach the preferable level due to insufficient change target, deviation of
personal development from business strategy and over optimistic vision of Glaxo.
2. Scope - The degree of change which can be separated into realignment and
transformation
2. Change Start Point - Change start point indicate where the change is initiated which
can be divided as following
3. Change Style - The way to manage process of change can be divided into 5 styles
as following
4. Change Target - There are 3 types of change targets which are outputs, behaviors,
and values
5. Change Levers - The level of levers and intervention needed for organization
change. The cultural web can be applied to indentify organization culture and current
change barrier. From below of culture web, intervention into all components of
culture web which are symbols, power structures, organizational structures, control
systems, routines and rituals, and stories, is inevitable to develop change
successfully.
Cultural Web (Graham, Lecture session4 - 16 October
2009)
1. Change Roles - The roles of change agent can be categorized into 4 different roles
as followings
Reference
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